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By Nana Musa
The Pension Fund Operators Association of Nigeria (PenOp), has expressed concerns over proposals from the Nigeria Police Force (NPF), to exit the Contributory Pension Scheme (CPS) to Defined Benefits Scheme (DBS).
Mr Oguche Agudah, the Chief Executive Officer of PenOp, voiced the concern on Tuesday in Abuja during a public hearing on a bill for an act to establish a police pension board.
He said that the CPS operates on a pre-funded model with both employees and employers contributing a mandatory percentage of the employee’s salary.
Agudah said that usually, a minimum of eight per cent from the employee and 10 per cent from the employer, totaling a minimum contribution rate of 18 per cent, is usually gathered.
He said that either party had the latitude to contribute a higher percentage, which allows pension funds to accumulate and be invested for future payouts.
Agudah said that the National Pension Commission (PenCom), as…
Source: News Agency of Nigeria
