The national Bureau of Statistics (NBS) has r
eported that the Retirement Savings Account (RSA) membership distribution data for Q1 2017 shows that 7,493,599 workers are registered under the pension scheme compared to 7,348.028 regis
tered workers in Q4 of 2016 out of a total working population of 69,470.901 as record
ed as at Q4 20
16. Many believe that this growth in membership of workers in the RSA is borne out of confidence in the safety of the funds by workers.
In a case reminiscent of the heartbreaking Fidentia scandal, a pension fund administrator has R255 million worth of mine workers money. There are now fears that the amount lost by Bophelo Beneficiary Fund ( BBF) could be as much as R560 million – a devastating blow to the families of deceased mine workers who rely on the money to survive. In 2007, Fidentia scandal the company’s boss J Arthur Brown, squandered about R1.3 billion in investments leaving more than 47,000 beneficiaries mainly mine workers and their families in financial hardship. In this case, pension money belonging to workers at Anglo Platinum was invested in BBF, which is administered by Bophelo Benefit Services, a subsidiary of Mvunonala Holdings. Although it is unclear what happened to the money, investigation has shown that, in trying to hide the lost R255million, the BBF which holds the fund on behalf of Amplats Group Provident Fund (AGOF) and its 7, 229 beneficiaries appears to have ‘doctored ‘ their financial statements for the year ended 2016.
The National Pension Commission (Pencom) said 32 out of the States in the nation are yet to initiate group life Insurance for their workers only Lagos, Osun, Rivers & Niger States had commenced Implementation of the scheme. In the same vein, the Lagos government is to introduce mandatory Insurance for all existing and new buildings in line with the insurance Act 2003 Provisions.