Nigeria. Why some retirees earn lower pensions
Pensions earned by a retiree under the Contributory Pension Scheme can be affected by the number of years the worker must have made contributions into the Retirement Savings Accounts.
The Managing Director, IEI-Anchor Pensions, Mr Glory Etaduovie, said this while making a presentation on the pension industry in Lagos.
He said, “There appears to be a dislike by some civil servants for the Contributory Pension Scheme because it is thought that it pays lower than the defined benefits scheme. This leads to attempts by some implementers to frustrate it in many states. This is not true as the individual contributors’ funds would grow as the number of years a person is working increases and the investment returns are applied on a compound interest basis.
“They forget quickly that the government can no longer carry such weight directly as it did in the past. Presently, it is difficult for many state governments to meet up salary payments. This is the new reality.”
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