Pension Funds Administrators are optimistic that a framework expected to be released by the National Pension Commission (PENCOM) which aims at incorporating a multi-fund structure for Retirement Savings Accounts (RSAs) into the amended investment guidelines will boost participation of persons working in the informal sector and increase coverage of the scheme.
Already, Pensions Operators Association of Nigeria (PENOP) has set a target to increase the number of contributors in the contributory pension scheme from the current 5.5 million to about 20 million in 2017.
PENOP said it also privy to the draft framework from PENCOM which will be released before the end of the first quarter of 2013, adding that it had made input into the document.
It's chairman, Mr. David Udeanu, told the media in Lagos that the multi-funds would be differentiated by their overall exposure to income instruments and a contributor's choice of funds might be limited by the age of the contributor.
Udeanu expressed the hope that the multi-funds structure would allow for the introduction of a non-interest or ethical fund.