The Pension Reform Act of 2014, has made it compulsory for employers to make regular payments on behalf of their employees into their Retirement Savings Account, in both public and private sectors.
Before this become law, Pension schemes have been encouraged over the years for employees and the reason is simple: for them to have something to fall back on when they retire from their workplace, to continue with their lives without problems.
Now, IBTC Pension is a subsidiary of Stanbic IBTC Holdings PLC, they have been in operations since the 19th of May 2004, and have made it their duty to see to the fact that people who have been retired will have a smooth transitioning to a new phase of their lives.
They are arguably the most recognized pension brand in Nigeria. But that is not enough to sign up. Here are reasons you should sign up (and reasons not to after that).
Why you should sign up
For those who are thinking of signing up with them, here are some reasons that will persuade you to do so if you are entertaining some doubts.
Safety
Being a subsidiary of Stanbic IBTC Holdings PLC, the safety of your funds is ensured as a pensioner. They have been in the business for seventeen years and counting. Therefore, they have studied the trends of financial markets, before they can make investment decisions with pensioners’ funds in their custody.
This guarantee of safety, gives you peace of mind, knowing your pension is safe and is accessible when you need it.
Transparency
They are transparent with their operations, they do not have any hidden charges made on their customers without their knowledge.
They make sure to send emails to their customers, updating them about any transactions that have been made to their accounts. This helps them keep a tab on what is going on with their deposited funds. That way, if there are any discrepancies, they can call the attention of the Pension Managers to it so it could be rectified.
Convenience and Service
It is easy to get passage to them given the fact that they have numerous branches scattered all over the nation and they are up to date with the use of technology. This makes it convenient to access them via phone, SMS, electronic mails, and the internet.
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They also render financial services to the pensioners by giving them information as regards their accounts, how to go about withdrawing their funds whenever they need it, and any other thing to keep their minds at ease.
Why you shouldn’t
In as much as there are advantages, there are also disadvantages to the scheme. Here are some reasons you should not sign up with them
Risk of Poor Returns
The pension funds are mainly invested in stocks and shares, which makes it a risky venture as they are volatile. The level of risk can affect your returns, especially if you are close to the retirement age.
If there is a decline in the market rates, the return on your pension fund becomes poor as it would be also affected.
IBTC Pension will not be liable for any loss, as they can not control the happenings in the Stock Market or Financial Houses.
Lack of Access
As a pensioner, you can not receive your pension until you have reached the mandatory age of 50. The lack of access to their funds makes it hard for these pensioners when they are in need. IBTC Pension on its part will not grant you access to your funds without making you pass through rigorous procedures.
You will have to provide proof that you have been out of a job for at least four months, and you will apply for just 25% and not the usual 50%, the final stage is to go for a Data Recapture Procedure before you will be attended to.
After this first withdrawal, you can not withdraw from your Retirement Savings Account again until you have reached 50 as the initial 25% was given to help you get by at the time. No one wants to pass through such stress to get their funds, this makes it unattractive to sign up with them.
Written by Grace O.
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