Pension Reform Act (PRA) 2014 Breakdown with comments.
Section 1 – Objective of PRA 2014
Section 1d states that;
(d) assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age.
PensionNigeria Comment on PRA 2014 Section 1d
This is the 4th and last objective of Pension Reform Act 2014.
Improvident individuals are people who will ordinarily not plan for life after retirement.
PenCom has done a good job here by mandating that persons working in organizations with 3 or more employees, must open Retirement Savings Accounts and most importantly, by introducing Micro Pension Scheme, to ensure that, persons in organizations with less than 3 employees and self employed persons, are able to participate under the Scheme.