Stanbic IBTC Pension promises to embrace micro pension scheme

Stanbic IBTC Pension Managers has promised to leverage on micro-pension scheme, when the scheme finally kicks off, to increase the volume of its Retirement Savings Account (RSA) holders.

The Chief Executive, Stanbic IBTC Pension Managers, Mr. Eric Fajemisinmi, who stated this at a media parley in Lagos yesterday, noted that micro pension scheme is another way of increasing pension adoption, as the 7. 3 million Nigerians registered under the Contributory Pension Scheme (CPS) is a far cry from a population of 180 million Nigerians.

He noted that the micro pension scheme will be targeting the informal sector of the economy which is about 70 per cent of the country’s population.

Hoping that the scheme will commence next year, he said the regulator, the National Pension Commission(PenCom) is currently in advanced discussion with the Federal Government to add a good incentive in the scheme that will attract the informal sector into it, since, it is not going to be a joint contribution like the current CPS.

“The scheme must have a sweetener to attract the informal sector into it. PenCom is currently proposing to the FG to either give tax incentives or access to loans to the would-be beneficiaries, as this will persuade more operators in the informal sector to embrace it. Definitely, there must be something to attract people to subscribe to it and that is currently being worked out,” he stressed.

He promised that his PFA has put all mercenaries in place to immediately key into the scheme, as soon as it is launched.

Fajemisinmi, however, lauded the reforms being put in place by PenCom through the Pension Reforms Act (PRA 2014), noting that this has further strengthened the scheme.

He listed some of the improvement in the guideline to include; compulsory payment of pension by state governments, reduction in the number of employees a company must have to subscribe to CPS, from five to three, among others.

Stanbic IBTC Pension, he said, had invested in bonds and equities, which are given good returns on investment to its numerous RSA holders across the country.

In a bid to continue to serve the customers better, he stated that the PFA has launched a new app on Play Store to allow customers enjoy seamless services across the federation.