Pension operators denies involvement in “Pension Racket”

The Pension Fund Operators Association of Nigeria (PenOp) has dismissed allegations that its members are involved in generating fake pin numbers to bring into the system non existing pensioners.

PenOp noted that the procedure for registration of a Retirement Savings Account (RSA) under the Contributory Pension Scheme (CPS) created a web of security around it in such a way that would be difficult for ghost workers to receive pensions.

Eguarekhide Longe, President, PenOp

Chairman of the group Lounge Eguarekhide, therefore denied connivance of Pension Fund Administrators (PFAs) with some civil servants and bank officials to generate fake pin numbers for ghost workers culminating into ghost pensioners.

He described reports that the Director-General of PenCom was summoned, and PFAs are being investigated as salacious gossip, adding that it is impossible for anyone to generate fake pin number because ghosts cannot receive pensions under the new pension system.

The procedure for registration under the scheme, has in-built checks and balances, he said.

He noted that there is a central data bank with PenCom that stores the pin numbers and issues them.

“There are some facts on the government side which they have confronted the National Pension Commission (PenCom) with. I also heard that there was a bank being investigated. But I cannot respond but I can explain the process which will show you that it is impossible for fake pins to come alive.

“There is no fake pin and there are no genuine pins. The way it works is that you have an RSA account, you sign a form when you wanted to set up your RSA, send it to your PFA who sends to PenCom. A pin is generated and you thumbprint. You give the pin to your employer and your pension contributions start. That is the process of getting a pin.

“There is a central data bank in PenCom that stores and issues the pins. What they may think are fake pins are that, in some parts of the country at the beginning of the scheme, there were issues with registration and some people registered a number of people by just filling the forms and send pins to them. These people went to register in other places leading to double registration. So there is that possibility.

“But whichever way you register yourself on CPS, when you want to exit, you have to present yourself as a living human being and not a ghost. So there are inbuilt checks and balances. There is also the possibility of people who belong to the defined benefit scheme which I think is the case. To say PenCom Director-General was summoned and PFAs are being investigated is a salacious gossip but we have to explain to you the procedure for registration. Ghosts cannot collect pensions because there are inbuilt checks and balances.”