PenCom: Small and Medium Enterprises now embracing Contributory Pension Scheme
The National Pension Commission (PenCom) has said Small and Medium Enterprises are increasingly embracing the Contributory Pension Scheme (CPS).
The Commission said in a recent report, that an analysis of Retirement Savings Account (RSA) registration revealed that organisations with employees between 11 to 100 had the highest number of registration during the second quarter of 2020, while large organisations with more than 2000 had the lowest number of registrations.
The Commission noted that the pension industry recorded a 0.45 per cent growth (41,074) in the scheme membership during the second quarter of 2020, moving from 9.06 million contributors at the end of the preceding quarter to 9.10 million.
The growth in the industry membership, it said was driven by the Retirement Savings Account (RSA) Scheme, which had an increase of 41,147 contributors representing 0.46 per cent. However, membership of the Closed Pension Fund Administration (CPFA) Scheme declined by 73 members to 17,125 while the Approved Existing Scheme (AES) membership, remained unchanged at 40,951 as at the second quarter 2020, it stated.
According to PenCom, the RSA registrations grew to 9,039,727 as at second quarter, 2020 moving from 8,998,580 in the first quarter, 2020, representing a growth of 0.46 per cent.
The growth, it maintained was attributed to the increased level of compliance by the private sector as a result of the various steps it had taken as well as marketing strategies of the PFAs.