May 6, 2021

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Inflation will not affect returns, say Fund operators

3 min read
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By Omobola Tolu-Kusimo

Pension Pension Fund Operators Association of Nigeria (PenOp) has assured that inflation will not affect the returns of contributions of workers who are under the Contributory Pension Scheme (CPS).

Its President,  Mr. Wale Odutola, was reacting to the alleged position by the House of Representatives on Pension Committee on mismanagement of funds as reported in some media platforms.

Odutola, who said the reports were misleading, stated that the association had been proffering solutions to some of the challenges facing the smooth implementation in conformity with the Pension Reform Act (PRA) 2014.

He said: “Our attention has been drawn to the recent media reports with respect to the House of Representatives Committee’s invitation to some Pension Funds Administrators (PFAs). We wish to state that the report is misleading as it failed to convey the meeting’s true essence, which was for a routine interaction session with members in furtherance of their oversight functions.

“The House Committee on Pensions had invited some pension fund operators for an interactive meeting to discuss the non-remittance of pensions by employers, the delay or non-payment of pension entitlements by pension fund operators, and compliance with the provisions of the Pension Reform Act 2014. The Committee also asked for some information to aid in their investigative hearing, which the pension operators duly provided.

“We wish to state that we welcome interactions and inquiries by the members and, as always, provide our full cooperation, especially regarding proffering solutions to some of the challenges facing the smooth implementation in conformity with the Pension Reform Act 2014. We will continue to engage the members and collaborate with them in the area of strict compliance with the CPS. We value the House members and their contributions towards improving the welfare of the Nigerian workers who contribute to their Retirement Savings Account (RSA) monthly and we, the operators, are fully committed to ensuring that these individuals receive inflation-adjusted returns during their retirement.”

Also, Fidelity Pension Managers Limited has denied that it is being probed by the House of Representatives and that the Managing Director/Chief Executive Officer was summoned to the probe panel.

Company Secretary and Group Head, Legal and Corporate Communications, Fidelity Pension Managers, Noel Orji, stated that the report was false, adding that  his boss was merely invited for a routine hearing by the House Committee on Pensions as part of their oversight function.

The Managing Director/Chief Executive Officer, Mrs. Amaka Andy-Azike, said when the company officials appeared at the House, the Committee asked for some documents,, which were submitted.

Also at the meeting were the Company Secretary and the Group Head, Operations presented. However, they were informed that the Managing Director was also needed, a reason the meeting was rescheduled.

“We wish to reassure the public that Fidelity Pension Managers Limited is a law-abiding organisation, built on integrity and transparency. We will always manage our customers’pension assets safely and profitably to ensure they have a happy retirement,” she said.

She added that the company has over 300,000 clients and manages over N130 billion in pension assets.

She stressed that the company has been in operation since 2007 and has rewarded its customers with investment returns.