BY MIRACLE KALU
IN a bid to promote better understanding and effective participation in the Contributory Pension Scheme (CPS), representatives of Trust Fund Pensions, yesterday, paid an enlightenment visit to Delta Printing and Publishing Corporation (DPPC), publishers of The Pointer Newspapers.
The visit, anchored by Mr. Nnadozie Njoku and his team, focused on educating workers on the essence and workings of the CPS, an initiative of the Federal Government designed to ease the financial burden of pension payment on government while ensuring secure retirement benefits for workers.
During the session, Mr. Njoku underscored the significance of selecting a reliable Pension Fund Administrator (PFA), stressing that the choice of a PFA largely determines the growth or stagnation of a worker’s pension returns. According to him, workers are expected to open a Retirement Savings Account (RSA) with a trusted PFA of their choice, through which their contributions are managed for long-term benefit.
He explained that interest on the RSA is calculated using the principal amount, the duration of contribution, and the rate offered by the PFA. “If you are not satisfied with the service or returns of your current PFA, you can take advantage of the Transfer Window to switch—this can be done once every year,” Njoku said.
Other members of the Trust Fund Pensions team spoke extensively on the importance of data accuracy, advising workers to update their RSAs to ensure consistency across their records. They also emphasised the need for timely remittance of pension contributions, as this influences the rate of interest earned.
Highlighting the relevance of fund structures employed by PFAs, the team explained the difference between the Fixed Income Instrument and the Valuable Income Instrument. While the former assures fixed returns regardless of market conditions, the latter is subject to market fluctuations and can be either rewarding or risky, depending on the economic climate.
Commending the Delta State Government for its proactive approach, the Trust Fund Pensions team applauded the state’s commitment to the scheme, especially its strides in clearing pension arrears up to 2023 and efficiently managing pension matters across the board.
In wrapping up the session, the team recommended Pension Nigeria, a private platform dedicated to educating the public about the Nigerian pension system. They encouraged workers to explore the platform as a reliable guide in making informed decisions regarding their pension management and PFA selection.
The engagement was interactive, informative, and well-received by the staff, many of whom expressed renewed confidence in understanding and actively participating in the CPS.
