The National Pension Commission needs to take more advantage of digitization in pension operations to make transactions easier and more accessible.
Mrs Folashade Onanuga fmr Director General, Lagos State Pension Commissioner (LASPEC), stated this during her address as keynote speaker at National Association of Insurance and Pension Correspondents (NAIPCO) conference saying There is also a trust gap to be bridged in the pensions industry despite the potential benefits of the product. According to her the National Pension Commission needs to take more advantage of digitization in pension operations to make transactions easier and more accessible.
The 6th NAIPCO National Conference 2021 with the Theme: ‘COVID-19 IMPACT ON FINANCIAL INCLUSION: OPPORTUNITIES FOR INSURANCE AND PENSION SECTORS’ event held recently in Lagos
In this, Mrs Onanuga said we can take a page out of what the banks have done to provide banking services to lower-income population groups. Structures must be in place before the release of pension laws to ensure that all aspects of the Law are implementable, she added.
“The contributory pension scheme in Nigeria was designed to address the problem of inadequate or no preparation for retirement. However, the scheme has done much more – it has allowed incredible mobility for employees in the formal sector;
She pointed out that it has simplified the administrative processes, has reduced drastically the fraudulent practices in pension scheme administration but is yet to fully address the issue of ensuring that retirement benefits are paid as at when due most especially where benefits accrue to workers under the defined benefit plan.
Fmr DG LASPEC affirmed that Pension benefits as received by many in the CPS dispensation, have been considered very inadequate to give comfort in old age.
“While we would like greater participation from State Governments and small/medium sized corporates, that is not something we can boast of today.
In coming up with solutions to address these problems, Mrs Onanuga said we must consider the basic needs of our clients when they indeed retire – food, shelter, healthcare and transportation adding that these needs must be considered in conjunction with inflation so that consumers can get the intended benefit that this scheme was created to provide.