Pension Fund Assets have hit N1.3 trillion, Mr Ahmed Dauda, Head of Research and Corporate Strategy, National Pension Commission (PenCom) said on Tuesday.
Dauda disclosed this at a Sensitisation Workshop on the Contributory Pension Scheme organised by the Chartered Institute of Personnel Management of Nigeria (CIPMN), in collaboration with PENCOM in Lagos. He said that out of this figure, the Retirement Savings Account (RSA) had N106.46 billion.
â€œThe Pension Fund has generated a large pool of long term investible fund for the first time in Nigeria.
Already, licensed operators have N1.3 trillion worth of assets as at September 2009 with RSA accounting for N106.46 billion,â€™â€™ he said. Dauda said that the amount was collected through the Pension Fund Administrators (PFA), Pension Fund Custodians (PFC), Closed PFA (CPFA) and Approval for Continuation of Existing Schemes (AES).
He said in a paper entitled: â€œAn Overview of the Contributory Pension Schemeâ€ that the investment options for the funds would soon be expanded to include the development of infrastructure.
He said that for now, the investment avenues have been limited to 100 per cent Federal Government bonds and 30 per cent for States and Corporate bonds, REITs and Mortgage Backed Security (MBS), He said others were 30 per cent in the Money Market and 25 per cent in the Capital Market.
Dauda said this was to safeguard the funds and ensure that there was always money to meet obligations to contributors at any point in time.
According to him, PenCom has now licensed 26 PFAs, seven CPFAs, five PFC and 19 Approval for the Continuation of Existing Schemes (AES). The CIPMN President, Mr Oladimeji Alo said that if properly implemented, the Contributory
Pension Scheme would help stem corruption in the country.
He said that fear of the unknown after retirement made many people to engage in many atrocities, including false declaration of age. The CIPMN Registrar, Malam Musa Rabiu said that the workshop would make human resource managers do it better and help the government in the proper implementation of the scheme.