Mr Oguche Agudah, the Chief Executive Officer of Pension Fund Operators Association of Nigeria (PenOp), said that if police pension exited the Contributory Pension Scheme (CPS), it would disrupt fiscal policy and create an unstable financial system.
He said this while speaking with the News Agency of Nigeria (NAN) on Sunday in Abuja.
Agudah said that the unwinding investments distabilised the financial system, diminished assets and jeopardised the retirees.
He said that if police exited the scheme, it would only add more financial burden on the government through unsustainable pension obligations.
Agudah said that the pension obligations had already made provision through a private sector managed scheme.
He said that withdrawal of the police from the CPS would entail a shift back to the Defined Benefit Scheme (DBS).
Agudah said that it would lead to the dismantling of the institutions and the process government had established to manage pension effectively.
He said that the CPS, which had been in operation, was transparent with clear visibility into the amount of retirement benefits disbursed by all Pension Fund Administrators (PFAs).
Agudah said that the pension schemes operated in the past outside of this current framework lacked transparency.
” The police are pushing to go back to this non-transparent system.”
He said that the beauty of the CPS was the benefit that accrued to one member within the scheme could be enjoyed by all members.
Agudah said that the stand alone pension management system the police was advocating for would not benefit the pooling effect. (NAN)