Allowing retirees to withdraw 75 per cent of their pension contributions under the Contributory Pension Scheme (CPS) is wrong, Chief Marketing Officer, Premium Pension Limited, KabirTijani, has said.
Tijani made this known at a briefing on the proposed bill on lump sum payment of up to 75 per cent to retirees against the 50 per cent being paid now before the National Assembly.
Tijani said if the bill was allowed to sail through, a major objective of the CPS would be defeated.
He noted that a lot of people could not manage money. For him, allowing such individuals to pullout huge amount implies that they might squander it and later become liabilities to others, adding that the scheme had been designed to avoid such scenarios.
‘’This is why it is arranged that when you retire, you take a lump sum payment to adjust your life and the rest is spread as monthly pension.
“We have seen what is happening in the Senate where a distinguished senator proposed that the percentage of the lump sum withdrawal should be increased to 75 per cent.
“Our response to that is we are not going to support it as a Pension Fund Administrator (PFA) because we know that one of the objectives of having the scheme is to ensure that when people retire after they might have exhausted their adulthood in service. They should retire home and have something to live on until they pass on.
“Under the new scheme, a retiree has the option to take lump sum. It is something that is provided under the law as an entitlement for the retiree. The law says you can take between 25 per cent and 50 per cent of the balance of your RSA as lump sum payment and the rest will then be spread as programmed withdrawal or annuity plan.
“However, an employer is free to provide an additional benefit to its employees at retirement,’’ Tijani said. STI 22nd AGM To Decide on N7.5bn capital rejig Thursday, September 21, 2017, has been set as the date to hold the 22nd Annual General Meeting of Sovereign Trust Insurance Plc, having been granted approvals for its 2016 Annual Report and Accounts by the various Regulatory Authorities. The Meeting will take place at The Grand Banquet Hall, Civic Centre, Victoria Island, Lagos.
Under the Ordinary Business, the Meeting will consider the Audited Financial Statements for the year ended December 31, 2016, as well as the Reports of the Directors and the Audit Committee.
The agenda, according to a statement from the company, also include re-election of Directors who are still eligible and at the same time authorize the Directors to fix the remuneration of the Auditors while the Shareholders will elect their representatives that will serve on the Audit Committee.
The Special Business will focus on increasing the authorized share capital of the company from N5.5billion to N7.5billion by the creation of 4,000,000,000 (four billion) ordinary shares of 50 kobo each ranking paripassu in all respects with the existing ordinary shares of the company.
The meeting will also authorize the Directors to raise additional equity capital for the company up to the maximum limit of the authorized share capital, whether by way of Special Placement, Public Offer or Rights Issue or a combination of any one of them, either locally or internationally.
Sovereign Trust Insurance Plc is a wholly owned Nigerian company.