The National Pension Commission (PenCom), Pension Fund Administrators (PFAS), and other stakeholders in the administration of pension funds should consider the basic needs of contributors, according to Mrs. Folashade Onanuga, the immediate past Director-General of the Lagos State Pension Commission (LASPEC).
Mrs. Onanuga outlined the essential requirements, which must be adjusted for inflation in order for customers to receive the benefits intended by the system.
She noted that, as a result of the economic downturn, many people are more willing to withdraw their pension money. Is there any way to fulfill this desire, she inquired?
What is the reason for locking others in if employees with Retirement Savings Account (RSA) balances of less than a specific level are allowed to withdraw their pension savings? she enquired.
“Can we incorporate penalties for early withdrawals?” she said. Is it possible to offer incentives such as basic levels of healthcare to entice clients to stay with their pension provider when they retire? Is it possible to provide more to clients while staying within the confines of the law?
“These flexible alternatives will provide pension fund clients greater control over their future while also appealing to operators’ financial motive.” When the average Nigerian worker, whether in the official or informal sector, demands pension goods rather than having them imposed on them, a major milestone in financial inclusion will have been reached.”
She praised PenCom, saying that the industry has achieved significant development in the last 17 years, with regulation serving as a catalyst for growth.
She did say, however, that inclusive pension development must take into account the unique characteristics of the population segment being targeted.