Mr Patrick Igboh, Pension Consultant on Friday said that the N3.7
trillion pension fund was impacting positively on the economy.
Igboh told the News Agency of Nigeria (NAN) in Lagos that the
contributors and retirees had become investors by virtue of their
contributions to the pension fund.
According to him, the money is being invested in various money and capital market instruments like fixed deposits, treasury bills as well as Federal and State Governments Bonds.
“The N3.7 trillion contributions being referred to is a function of what has been contributed and also invested over time since the inception of the Contributory Pension Scheme (CPS). “So, it is not just a stagnant fund that is set aside.
“It is as a result of what the employees and the employers who are the key players of the CPS have done over time, from the inception of PFAs,” he said. Igbo said that the N3.7 trillion also included the Defined Existing Benefit Scheme (DEBS) which was being fully funded.
He said that the pension fund was being managed and invested by the Pension Fund Administrators (PFAS) and the Closed Pension Fund Administrations (CPFAs). “Lager part of the N3.7 trillion, precisely 60 per cent, is with the Federal Government bonds which had been made available.
“Through that means the Federal Government has been able to raise fund to fund infrastructure like power and road, among others. “Also, since the fund is long- term fund, it has helped to stabilise the economy and enable it to breathe properly,” he said.
Igboh said that contributors were now certain of the safety of their pension with the hope that at the point of retiring they would access their money as and when due. He said that the N3.7 trillion should not be looked from the monetary policy point only, but from the point of the return on investment.
The consultant said that there was need to consider the satisfaction, psychological and mental aspects of knowing that the money was always there. According to him, there will always be return on investment as the fund is not stagnant. NAN)
According to him, the money is being invested in various money and capital market instruments like fixed deposits, treasury bills as well as Federal and State Governments Bonds.
“The N3.7 trillion contributions being referred to is a function of what has been contributed and also invested over time since the inception of the Contributory Pension Scheme (CPS). “So, it is not just a stagnant fund that is set aside.
“It is as a result of what the employees and the employers who are the key players of the CPS have done over time, from the inception of PFAs,” he said. Igbo said that the N3.7 trillion also included the Defined Existing Benefit Scheme (DEBS) which was being fully funded.
He said that the pension fund was being managed and invested by the Pension Fund Administrators (PFAS) and the Closed Pension Fund Administrations (CPFAs). “Lager part of the N3.7 trillion, precisely 60 per cent, is with the Federal Government bonds which had been made available.
“Through that means the Federal Government has been able to raise fund to fund infrastructure like power and road, among others. “Also, since the fund is long- term fund, it has helped to stabilise the economy and enable it to breathe properly,” he said.
Igboh said that contributors were now certain of the safety of their pension with the hope that at the point of retiring they would access their money as and when due. He said that the N3.7 trillion should not be looked from the monetary policy point only, but from the point of the return on investment.
The consultant said that there was need to consider the satisfaction, psychological and mental aspects of knowing that the money was always there. According to him, there will always be return on investment as the fund is not stagnant. NAN)
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