Pension funds should be invested, not borrowed – Group

The Centre for Pension Right Advocacy has spoken against the borrowing of funds under the Contributory Pension Scheme which they say should be invested.

This was made known by the group's director, Ivor Takor, who reacted to plans by government to borrow funds from the scheme for infrastructure.

He said, “We are stating categorically without any fear of contradiction that the pension fund is about investment and not borrowing. Pension Fund Administrators are investing organisations and not borrowing organisations.

"The spirit and letters of the Pension Reform Act 2014 envisage investment not borrowing. The government, National Pension Commission and pension operators know this very well.”

He also made known his awareness of a committee currently studying and working on the investment of huge funds in infrastructure.

“To us at the centre, we see the development as a welcome one because the law and guidelines for investment of pension fund make provisions for investment in infrastructure,” he said.