FG set to clear all pension liabilities – PenCom boss
The Federal Government says it will implement measures to clear all pension liabilities under the Contributory Pension Scheme (CPS) and ensure that no liabilities will be accumulated in the future.
The Acting Director-General of National Pension Commission (PenCom), Ms Omolola Oloworaran said this when the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS) paid her a courtesy visit in Abuja on Wednesday.
She said that PenCom was collaborating with relevant stakeholders to address issues related to pension increases, accrued pension rights, and other pension liabilities.
Oloworaran said the initiative would soon be presented to the Federal Executive Council (FEC) for approval.
She said that the nonpayment to annuitants under the African Alliance Insurance Company, which was being regulated by the National Insurance Commission (NAICOM) would soon be resolved.
“ PenCom is working with NAICOM to resolve the issue and announce a regulatory change that will require all pension funds under annuity to be domiciled with Pension Fund Custodians (PFCs) to prevent similar issues in the future.”
The acting D-G said that the poor service delivery by any PFA to retirees would not be tolerated.
She said that PFAs and PenCom must provide accessible complaint channels to ensure speedy resolution of issues.
Oloworaran commended the NUPCPS for their visit and reiterated Pencom’s commitment to maintaining a positive and collaborative relationship with the Union.
Earlier, the National Chairman of NUPCPS, Comrade Sylva Nwaiwu, said that Federal Government’s failure to implement pension increases for retirees under the CPS was unjust and inexplicable.
“ The Federal Government’s non-release of funds to enable PenCom pay pension increases for retirees under the CPS is not commendable.
“ While pension increases are implemented for retirees under the Defined Benefit Scheme (DBS), CPS retirees are being neglected,” he said.
Nwaiwu also criticised the irregular release of accrued pension rights by the Federal Government resulting to the delay of retirement benefits for retirees of Treasury-Funded Ministries, Departments, and Agencies (MDAs) since March 2023.
He said some NUPCPS members who are annuitants under the African Alliance Insurance Company had not received their pensions for five months, from May to September.
Nwaiwu urged PenCom to intervene and resolve the issue and reintroduce sensational engagement with the pensioners
The NUPCPS chairman also urged PenCom to strengthen its oversight of PFAs emphasising the need for improved service delivery to customers.
However, Nwaiwu commended PenCom’s significant achievements in the CPS sector, particularly its ability to grow pension funds to over N20 trillion as of June.
He also commended PenCom for ensuring the security of pension funds, as no case of fraud has been reported in the CPS’s since its first 20 years of operation (2004–2024).
Also speaking, Mrs Grace Yusuf, who retired as a Deputy Editor-in-Chief from NAN, said that the non-payment of accrued rights was having devastating effects on retirees.
According to her, some of the retirees have died while waiting to get their benefits.
“To add salt to injury, we pensioners are no longer under the NHIS, thereby denying us access to healthcare, resulting to deteriorating health and increasing health-related issues; leading to untimely deaths because of lack of money to buy drugs.
“ Some of us still have children who are not employed, how much more being able to fend for their aged parents. It is painful.
“ However, PenCom can liaise with the Federal Government so that retirees can access their benefits latest one to three months after retirement.
“Also, PenCom should through the office of the Head of Service (HOS), make retirement planning education compulsory in all MDAs.
” This knowledge will help retirees plan very well as many of them are suffering now because of inadequate pension and retirement education,” Yussuf said.
She urged PenCom to make late payment of retirees benefits a serious offence, so that it would be taken seriously, adding that removing the payment of gratuities to retirees is unfair and ungodly.
Yussuf said: ” majority of pensioners are wallowing in poverty and hunger, emotional trauma, social isolation, and reduced quality of life.
” The government has a moral obligation to do the needful urgently to save pensioners from avoidable deaths after serving their fatherland meritoriously,” she said.
