A non-governmental organisation, COPEHRA has called on the incoming administration of the federal government to increase the employer contributions for Police by 100 per cent to ensure their Retirement Savings Account (RSA) is robust enough after serving their country in such critical sector.
Employers contribution is currently 10 per cent, while the employee (police officers) contribute eight per cent monthly to the RSA under the government regulated Contributory pension scheme (CPS). An increase will increase the amount in their retirement account.
Speaking at a press conference in Abuja, COPEHRA’s legal adviser, Barr. Oyiminu Audu also urged the incoming government consider the setting up of a second pillar for the pension industry as recommended by the World Bank to increase the protection against retirement poverty.
Police have been angling to exit the contributory pension scheme in line with the Military and Judiciary, a position the National Pension Commission (PenCom) says is an indication of going back to the dark age. COPEHRA says is simply supporting harmony within the pension scheme.
COPEHRA expressed concern that not much was mentioned about pension or retirement in the manifestoes of the major contenders for tomorrow’s presidential election.
It urged any of the eventual winner of the presidential election to make laws for the reform of the pension sector, while also expecting that the sub-nationals follow suit.
Barrister Audu said “We call on states to key into this noble scheme for the happiness of their retirees. Most states that key into the CPS and have their funds managed by the registered operators do not owe their pensioners.
“We also call on entities that have issues with the CPS to look for solution inside the scheme and not outside—How can you leave where there are funds ready for payment and then move to where loans have to be taken before pension payment!”
The NGO called on all workers in the informal and semi-formal sectors to Key-into the Micro Pension plan (MPP). COPEHRA believes the initiative expanded the implementation of the CPS to the informal sectors such as low-income earners, self-employed, SME’s, and artisans.
