Retirees’ agitation for full payment of CPS is misguided — Etaduovie

By Favour Nnabugwu, Reporting from Kampala

THE agitation of labor unions for full payment of workers’ accumulated funds in their pension accounts under the Contributory Pension Scheme (CPS) represents misguided perception of the scheme.

Managing Director of IEI-Anchor Pension Managers Limited, Mr. Glory Etaduovie, who took this position told Vanguard Insurance that the government acted in the best interest of the country’s pensioners.

He stated: “There is still a serious gap in understanding the Contributory Pension Scheme. The passion and negative emotions of those fighting implementation was palpable. “Some information making rounds is that the states that adopted the CPS are failing like Kaduna and Niger, which clearly, are not true because we have facts of the schemes. The mix-up is coming from the challenges of transition from the old scheme to the new one.”

Etaduovie added, “This is especially so for those caught in between of both schemes. This will disappear with time. There is as well as challenges of remittances from the governments which is not uncommon with the defined benefits scheme. This has nothing to do with the CPS.”

He said the clamour for full payment of pensions by retirees negates the whole idea of the scheme.

“This negates the Pensions idea of a steady and regular income for the period of reduced energy to engage in serious business adventure. Many retirees are not business-wise. Not even at the retirement age when it would be difficult to learn new tricks.” He however observed: “No doubt, the fears of the recent past bad experiences with the defined benefits, the syndicated looting of the fund, the long and horrible annual verification of retirees and the long processing and wait for payment of benefits after long retirement were painful to both retirees and their children.

“We cannot remain in the past. It is not news that the burden of pension payment on by the government is increasing and its power to continue paying is the dwindling world and local economies is becoming not only impossible to carry, but no longer in vogue.”

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