The Pension Operators Association of Nigeria says the withdrawal of the Police from the Contributory Pension Scheme (CPS) will lead to the dismantling of the system government had put in place to manage pensions effectively.
According to a statement by the Chief Executive Officer of the Association, Oguche Agudah, the withdrawal amounts to a shift back to the Defined Benefits Scheme.
The statement describes the reversal as counterproductive which will add more financial burden on the government through unsustainable pension obligations that it has already made provision for through a private sector managed pension scheme
It adds that unwinding investments destabilizes the financial system, diminishes assets and jeopardizes the retirees themselves.
The operators maintained that the contributory pension scheme is transparent, and that the withdrawal of the Police from the scheme will disrupt fiscal policy.
”The beauty of Contributory Pension Scheme is that the benefit that accrues to the member within the scheme can be enjoyed by all members”.Agudah stated.
A stand alone pension management system as the Police is advocating will not benefit from this pooling effect.
The Senate had recently passed the bill for the establishment of a Police Pension Board to exclude the Nigeria Police Force from the contributory pension scheme.
