State governments in the Country have been advised to set aside sinking funds to address te issue of Pension entitlements owed retired workers in their various states.
This advice was given by Mrs Kemi Oluwashina the Executive Director, Business Development, South and Strategy of Premium Pension Limited in Enugu.
A sinking fund is an account that is used to deposit and save money to repay a debt or replace a wasting asset in the future.
Sinking fund is essentially established to ease the process of retiring debt or prevent defaulting on debts. It can serve several purposes but the main purpose is to lower the outstanding principal before it becomes due.
Lack of prompt payment of Pension entitlements, especially accrued rights to retiring or retired workers, is belittling the successes recorded in the Contributory Pension Scheme in Nigeria. State Governments in the Country must as a matter of urgency establish sinking funds to address the problem.