Unionist seeks pension scheme expansion to cover informal sector workers
Chinyere Bassey
Lagos, May 28, 2018 (NAN) A unionist, Mr Issa Aremu, on Monday told the Pension Commission (PENCOM), to expand the Contributory Pension Scheme to cover people working in the informal sector.
Aremu said that expanding the scheme would help to eradicate poverty and corruption in the country.
The former Deputy President of the NLC, told reporters in Lagos that it would be good if up to 30 per cent of workers in the informal sector were captured in the scheme.
He argued that that since the Pension Act had been amended to cover informal and self-employed workers, it would be good if at least 30 per cent of the workers were covered by the scheme.
”If about seven to eight million workers can contribute about seven trillion naira, imagine what 80 million workers can contribute.
“It means it is also key to the pool of fund to sustainable development now being denied because of less coverage.
”We commend PENCOM for amending the Act because it is the key to eradicating poverty among the self-employed people and also to guarantee quality life for them after work.
”As good as this government has fought corruption, systemic corruption cannot be dealt with until you secure life after work for the working people.”
Aremu said that some of the anxiety for cutting corners, both for senior and junior workers, was the fear of what would happen after active service.
The unionist said that a key instrument to fight corruption was to enhance and expand the pension scheme covering the workforce.
He said that the operation of the scheme had been effective in the payment of pension but that more needed to be done to improve its services.
The labour leader also expressed his concern over the Federal Government’s delay in constituting the board of PENCOM, the regulator of the pension sector.
He said that the implication of non-constitution of the board was unhealthy for an industry, managing the fate and future of over eight million contributors.
On the minimum wage issue, Aremu called for speedy completion of negotiations, warning that any politician seeking high office without considering the welfare of workers would never get workers’ votes.
The News Agency of Nigeria (NAN) recalls that the Contributory Pension Act came into force in 2004 but was amended in 2014.
The Act requires both the employer and employee to contribute 10 and eight per cent, respectively of the worker’s emolument into a Retirement Saving Account, to be accessed by the worker on retirement. (NAN)
CHIN/CHOM/SN
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Edited by Chioma Ugboma/Silas Nwoha