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Tag: PenCom

  • PenCom sets June 1 deadline for employers to adopt new remittance process

    PenCom sets June 1 deadline for employers to adopt new remittance process

    The National Pension Commission (PenCom) has set June 1 as the deadline for adopting a new remittance processThe Commission launched the new Pension Contribution Remittance System to optimise the remitting of pension contributions into employees’ Retirement Savings Accounts (RSAs).

    In a statement, PenCom said, in collaboration with the Pension Fund Operators Association of Nigeria (PenOp), has deployed approved Payment Solution Service Providers (PSSPs) to enhance accuracy, efficiency and transparency in pension contributions.

    The introduction of the system is a response to the challenges frequently encountered by employers, including errors in contribution schedules and verification delays and uncredited pension contributions, primarily due to incomplete documentation from employers.

    The commission expressed concerns about the growing pile of uncredited pension contributions in PFAs’ accounts. The Commission called for strict compliance from employers and contributors to address this matter promptly.

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    The inability of PFAs to credit employees’ RSAs could affect their retirement plans. As a result, it is critical to act quickly to correct the situation.

    By automating remittance, PenCom and PenOp have taken significant steps towards creating a more robust Contributory Pension Scheme (CPS) for employers and employees, solving the challenge of uncredited pension contributions in the accounts of PFAs.

    By this development, employers are to channel pension contributions through the approved PSSPs, who then validate the PFAs and Personal Identification Numbers (PINs) of the RSA holders with PenCom’s database to eliminate errors, which led to uncredited pension contributions.

  • PenCom mandates states to implement CPS

    PenCom mandates states to implement CPS

    The National Pension Commission (PenCom) has mandated states and local governments to implement the Contributory Pension Scheme (CPS) for a pension-secure Nigeria. The Pension Reform Act (PRA) 2014, in Section 2(1), stipulates that the CPS applies to all public sector employees across the Federation, including the Federal Capital Territory, states, and local governments, as well as the private sector.

    In a statement signed by the Commission, it noted that in line with the 1999 Constitution of the Federal Republic of Nigeria (as amended), state governments have the constitutional right to legislate on pension matters within their jurisdictions. As such, state governments are required to domesticate the CPS by enacting appropriate pension laws within their states.

    “In August 2006, the National Council of States adopted the CPS for all states and local governments. To support this adoption, PenCom developed a Model State Pension Law, enabling state governments to modify it according to their unique needs. PenCom reviews draft state pension laws and guides states throughout the implementation process.

    “So far, many states are yet to implement the CPS. For a state to implement the CPS in full, the state is required to enact a law on CPS, establish a Pension Bureau, register its employees with Pension Fund Administrators (PFAs) and commence remittance of pension contributions.

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    “The state is also required to carry out Actuarial Valuation, commence funding of Accrued Pension Rights, procure Group Life Insurance for its employees, and open and fund a Retirement Benefits Bond Redemption Fund Account with the Central Bank of Nigeria (CBN) or PFA,” the statement read.

    The PenCom commended some states for their exemplary implementation of the CPS as at 31 December 2024, saying such states have set the benchmark for sustainable pension administration by ensuring that retirees receive their entitlements promptly.

    The statement added that adopting the CPS now will help states avoid escalating costs and provide a more secure financial future for both retirees and taxpayers. Moreover, it added, the CPS ensures fiscal discipline by accurately determining and systematically settling pension obligations, while also making funds available at the point of retirement for the prompt payment of benefits.

    The commission assured that it will continue to engage with non-compliant states, providing necessary guidance, advisory support, and technical expertise to facilitate their transition.

  • PenCom directs PFAs to open more branches, centres

    PenCom directs PFAs to open more branches, centres

    The National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) to open more branch offices and centres across the country to enable them to attend to the problems of pensioners or face sanctions, which include a huge fee of N10milion, PenCom has said.

    The directive takes effect from August 1.

    This was contained in a circular by PenCom with reference number: PENCOM/lNSP/ClR/SURV/2025/2186 dated February 3 to Licensed Pension Fund Administrators and Custodians with subject: “Revised Circular on the operations of branch offices and service centres by licensed Pension Fund Administrators’’.

    Consequently, PFAs must ensure that their staff members at the Service Centre are graduates, full-time employees of the PFA, and not contract staff or temporary staff of the parent.

    PFAs shall no longer locate their service centres in banking or business halls of their parent, subsidiary or shareholders’ companies.

    A branch office can only be co-located in the premises of the parent, subsidiary or shareholders of the PFA, only if the entrance to the branch office is different with distinct demarcations, separating the two offices and visible signage.

    Similarly, a PFA is required to open a branch office in any state where it has up to 10,000 funded Retirement Savings Accounts (RSAs).

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    According to the circular, a PFA shall be required to open at least one service centre in a different location within the state where it has up to 20,000 funded RSAs.

    Notwithstanding, a PFA shall open a service centre in a state where it has up to 2,000 funded RSAs.

    A PFA managing RSAs of employees of state governments that are implementing the Contributory Pension Scheme (CPS) shall open a service centre where it has up to 1,000 funded RSAs.

    Also, the Lead PFA managing the Contributory Defined Benefits Scheme (DBS) of a state government shall open a branch office in the state capital. However, every PFA shall have branch offices in, at least, two states in each geo-political zone of the country.

    The circular further read: “The commission has observed the need for greater presence of licensed Pension Fund Administrators (PFAs) across the country to meet the increasing demand for pension services by the public. The commission has also observed the need for more efficient service delivery by PFAs at their branches.

    “To address this issue, the Commission has issued new minimum requirements for the operation of branch offices as well as service centres which were not covered under the previous circular issued by the Commission

    PenCom added that the circular on the operations of branch offices and service centres by LPFAs is to give effect to the provisions of Section 72 of the PRA 2014, which provides, “subject to the approval of the Commission, a PFA or Pension Fund Custodian (PFC) may open or close any of its branch offices anywhere within or outside Nigeria’’.

    Operational services would take care of pension and benefits administration and customer support.

    Pension and benefits administration covers registration and enrolment of contributors, records update, collection of contribution schedules, among others, while benefits administration covers collection of benefits payment applications and requests for accessing equity contributions for residential mortgages.

    Customer support includes attending to complaints and enquiries, RSA statements rendition, verification/enrollment of employees/retirees of treasury funded Ministries Departments and Agencies (MDAs), data recapture.

  • PFAs default in payment of remunerations on the rise

    PFAs default in payment of remunerations on the rise

    Litigation on poor welfare and defaults in remunerations of staff members of some Pension Fund Administrators (PFAs) and other pension operators is becoming rampant in the pension industry, in spite of the regulatory oversight of PenCom, OMOBOLA TOLU-KUSIMO writes

    On November 19, last year, the National Industrial Court in Ikoyi, Lagos, gave judgment against Radix Pension Managers Limited, a Pension Fund Administrators (PFA) licensed by the National Pension Commission (PenCom).

    In the judgment, Justice R. H. Gwandu, granted the 14 reliefs brought before it by a former Managing Director of the pension fund administrator.

    Findings at the industrial court revealed that the same PFA had over 11 cases  brought against it by some workers, though the firm settled the claims out of court.

    The litigation, brought by former staff members of IGI Pensions, the legacy PFA acquired by Radix Capital Partners, the major investors, also centered on its failure to honour severance agreements, after the new investors, Radix Capital Partners, had assured the National Pension Commission (PenCom) of its intention to pay within days of obtaining regulatory nod.

    In another case, Justice Salisu Danjidda of the Lagos Judicial Division of the NIC declared the non-payment of Mr Adebayo Adesina’s salaries of between November and December 2018 and two weeks’ leave bonus by the Veritas Glanvills Pension as wrong.

    The court ordered Veritas Glanvills Pension to pay Mr Adebayo N6,895,740 as salaries for the period and N1,705,260 as the outstanding two-week leave bonus and N200,000 costs.

    A former staff member of IGI Pension, acquired by Radix Capital Partners, with similar unfortunate experience with Radix Pension, said though her severance pay was not up to N3million, she had to join her colleagues in seeking justice at the NIC after attempts at making the Radix Pension Board.

    Justice came for her in staggered payments over five years after the Radix Capital Investors had assured PenCom of meeting the obligations.

    These, and other staff issues in the industry, call for serious concerns, especially with the regulatory oversight of PenCom, which has received commendations over the past 18 years.

    Unfortunately, issues of poor welfare, defaults in staff remunerations leading to litigation are becoming rampant and a menace in the industry.

    A female staff member, who spoke on condition of anonymity, said it also calls to question PenCom’s regulatory oversight and operators’ rules of staff engagement, including maintaining corporate governance and integrity.

    She said aside from the yearly routine examinations by PenCom, they also require operators to send in monthly activity reports that cover the fiduciary functions of the PFAs as well as staff matters, including any litigation.

    She said: “In an industry that requires high level of trust and integrity, it is no surprise that PenCom takes the issues of staff fidelity very seriously, with the commission maintaining a list of erring staff members that have been blacklisted over the years. However, not much has been seen around sanctions against operators that deliberation renege on their agreements on staff remunerations and welfare; a situation that is becoming very rampant and disturbing in the industry. There are cases of employees that work for many years with nothing paid for years of unblemished service, by way of gratuity, in some PFAs.

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    “It is necessary to state that not all PFAs are guilty of this rather unfortunate development in an industry that is saddled with pension asset management and administration. Issues of staff welfare and remuneration go beyond contractual agreements on labour, they also serve as reward systems to encourage honesty in service.’’

    A male staff member also said the Retirement Savings Account (RSA) holders’ choice of PFA centres primarily around trust, especially in customer service promises and delivery, and return on pension assets, as the safety of the funds is already guaranteed by the National Pension Commission through its efficient and effective systems.

    “What isn’t seen as guaranteed is the way some operators, especially PFAs, treat issues of staff welfare, remuneration and severance pay.”

    The law firm of renowned human rights lawyer, Femi Falana, SAN and Funmi Falana, SAN, represented the claimant in the referenced case here that lasted close to four years.

    Mr. Taiwo Olawanle of the Falana Chambers, said efforts by them to settle the matter were rebuffed by Radix Pension Managers, compelling the claimant to approach the court. “The reluctance of the claimant, in this case, to pursue litigation must have been borne out of the belief that the PFA might be compelled by the regulator to honour its obligations.This is where the Legal Department at the National Pension Commission needs to develop guidelines around contractual obligations of operators in the industry.

    “There should be a minimum standard, at the least. As stated earlier, staff welfare and remunerations are not just payments for labour, but a way of ensuring staff members do not engage in any fraudulent act, thus encouraging honesty and integrity in a highly sensitive financial sector. When staff members are shortchanged gleefully without regulatory interventions, unscrupulous characters with fraudulent tendencies get emboldened.

    “Considering the objectives of the Contributory Pension Scheme (CPS), arguably one of the best policies by the Federal Government for its working-class citizens, PenCom needs to, as a matter of priority and urgency, develop guidelines that should govern issues such as this, in a most unambiguous manner, with very stiff penalties applied to any defaulting or erring operator. The regulator cannot afford to allow people without integrity to rubbish its commendable record as one the most effective and admired regulators in Nigeria.’’

    Olawanle said they hoped this verdict of the NIC would serve as a veritable landmark that would see PenCom getting more involved in assessing staff matters and litigations among operators.

    “PenCom must go beyond getting monthly reports on staff statistics and number of litigation pending against operators; it must develop a mechanism, as a matter of urgency, to check this disturbing trend in the industry, as it can cast a very dark shadow on the Commission’s outstanding records. The staff members that keep the wheels of the pension industry engine running must be protected by the National Pension Commission”.

    PenCom spokesman, Ibrahim Buwai said PenCom conducts yearly onsite inspections of operators in addition to the monthly offsite reports submitted by them, so it’s doubtful if such cases will go unreported if at all they exist.

    But another unnamed staff member said: “PFAs are meant to report cases. Yes, PenCom carry out routine annual examinations and monthly activity reports that include, “if there are any litigations. So, if an operator chooses not to report any litigation, how will PenCom know?

    “Now, what does PenCom do with the reports on litigation when submitted? What level of intervention does PenCom apply? Before cases get to court, does the Commission have a ‘Dispute resolution’ mechanism with regards to staff contractual rights? “I can tell you that PenCom leaves workers to their fate. It was the former Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, that was efficient in that regard. Probably because she is a lawyer.’’

  • PenCom hosts CSOs

    PenCom hosts CSOs

    TO deepened collaboration and raise awareness in the pension industry, the National Pension Commission (PenCom) has organised a sensitisation conference for Civil Society Organisations (CSOs) in Abuja.

     The yearly event was the fourth and the first engagement of the new Director-General, Ms Omolola Oloworaran, with the CSOs community.

    She emphasised the role of CSOs in bridging the gap between policy implementation and societal impact.

    She said the gathering underscored the importance of collaboration, affirming that CSOs are invaluable partners in amplifying the commission’s efforts to ensure that critical pension reforms reach every corner of  the country.

    The PenCom chief highlighted the impressive milestones achieved under the Contributory Pension Scheme (CPS), which, as of October, boasts over 10.53 million registered contributors and an asset portfolio valued at N21.92 trillion.

    Despite these achievements, she addressed the hurdles posed by inflation and currency devaluation, factors that have affected the purchasing power and real value of pension assets.

    She noted that to counteract these challenges, PenCom is revising its investment guidelines to diversify pension fund portfolios.

    This strategy, according to her, was designed to mitigate economic pressures, enhance returns for contributors, and ensure the sustainability of pension assets over the long term.

    In addition, she said PenCom is tackling delays in retirement benefit payments.

    She said: “A significant milestone in this regard was the release of N44 billion under the 2024 budget to clear outstanding pension rights for retirees, covering March to September 2023..

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    Highlighting the significance of the conference’s theme, ‘The Micro Pension Advantage: Redefining Financial Security for the Informal Sector,’ Ms Oloworaran stated that it captures a critical aspect of PenCom’s strategic vision.

    “The informal sector, which accounts for a significant portion of Nigeria’s workforce, has historically been underserved when it comes to retirement planning. This is where the Micro Pension Plan (MPP) comes in, offering informal sector workers and self-employed individuals a practical pathway to financial independence security that ensures dignity in retirement”.

    Acknowledging the influential role of CSOs, the PenCom DG urged them to champion the MPP by leading through action.

    She challenged CSO members to enrol in the plan and use their platforms to educate their communities about its benefits.

    She pointed out that “advocacy alone is not enough. To truly inspire confidence, I challenge you to practice what you preach. By participating in the MPP, the members of the CSOs would inspire confidence and encourage others to take the first steps toward securing their financial futures’’.

    She said to support CSOs, PenCom is enhancing the accessibility of the MPP through simplified enrolment, targeted incentives, and robust  campaigns.

    In their goodwill messages, the Chairman, Conference of Civil Society of Nigeria, Comrade Adams Otakwu and Executive Secretary of the Citizens Watch Advocacy Initiative (CWAI), Comrade Omoba Kenneth Aigbegbele, expressed appreciation to PenCom chief for the conference.

    They urged PenCom to leverage CSO-sponsored events to create awareness and bolster support for the MPP, and called for more frequent engagements with PenCom.

    Ms Oloworaran pledged to implement their suggestions, urging stakeholders to unite in promoting financial literacy and pension adoption.

    She stressed that redefining financial security for the informal sector is not merely a policy objective but a moral imperative.

  • Pension assets hit N22tr

    Pension assets hit N22tr

    • 18,000 retirees pension unpaid

    Retirees whose pension payments are delayed due to unpaid accrued pension have risen 18,000, the Director-General, National Pension Commission (PenCom), Ms Omolola Oloworaran, has said.

    She said that the Commission has recorded over 10.5 million contributors, adding that the value of pension assets was in excess of N21.9 trillion as at October, and N22 trillion by now. 

    The progress so far recorded according to her, “demonstrates the strength of our contributory pension system, but we are not without challenges. Inflation, for instance, continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.”

    Oloworaran, who spoke in Lagos, said PenCom is working with the Federal Government to put in place a sustainable solution that ensures retirees receive their benefits promptly and without undue stress.

    The PenCom DG said they have been facing challenges of persistent issue of delays in the payment of accrued rights but despite this, they recently got an approval of N44 billion under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023.

    Speaking on the theme of the conference titled, “Tech-Driver Transformation: Shaping the Pension Landscape”,  she said technology has become the backbone of transformation across all sectors, and that the pension industry was no exception.

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    She said: “Since assuming office, my team and I have been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimize returns, improving benefits, and expanding coverage to include more Nigerians, especially those in the informal sector.

    “The micro-pension initiative, in particular, is something we are very passionate about. It is our way of saying that no one should be left behind, no matter how small their earnings might be. Technology plays a vital role in driving this inclusion, from mobile enrollment to real-time account management. We intend to use technology to scale the micro-pension plan.

    “Permit me to talk briefly about some of our initiatives. This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October. This initiative replaces the previous manual process, enabling companies to seamlessly apply for and receive PCCs online. Since its deployment, we have issued over 38,000 PCCs, significantly enhancing ease of doing business and ensuring compliance,” she stated.

    Ms Oloworaran continued: “Additionally, the Pension Industry Shared Service Initiative is in advanced stages of implementation. This initiative will digitize pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details. To further enhance contributors’ experiences, we have introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage. These measures are designed to make retirement processes more efficient and user-centric.

    “But beyond policies and systems, what really excites me is the potential to transform lives. Every time I meet a pensioner who is able to live comfortably because of the contributions they made during their working years, it reminds me of why this work is so important. And every time I hear from a young entrepreneur, or artisan who has signed up for the micro-pension scheme, it strengthens my belief that we are moving in the right direction.

    “Now, let me take a moment to acknowledge the role of the media in this journey. You are not just storytellers; you are stakeholders in the success of our pension system. Your ability to inform, educate, and hold us accountable is invaluable. So, I urge you to continue asking the tough questions, highlighting areas that need improvement, and, yes, celebrating the wins when they come. And maybe, just maybe, next time you’ll get my picture right!

    “As we integrate technology across every aspect of the pension industry—ranging from data and identity management to seamless contributions, investment oversight, regulatory supervision, and service delivery—we are paving the way for a future where the Contributory Pension Scheme (CPS) becomes more accessible, reliable, and sustainable.

    “However, this transformation cannot succeed without your unwavering support as media practitioners. Your role in amplifying our initiatives and educating stakeholders across Nigeria is essential to achieving this vision. Together, we can ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement”, she said.

  • Why we are redefining pension, by PenCom DG

    Why we are redefining pension, by PenCom DG

    The National Pension Commission (PenCom) is redefining the country’s pension landscape to make the Contributory Pension Scheme (CPS) more accessible, reliable, and sustainable, the Director-General, Ms. Omolola Oloworaran, has said.

    Speaking at the PenCom Media Conference in Abuja, Ms. Oloworaran highlighted the commission’s commitment to integrating technology into every aspect of the pension industry, transforming the processes of pension administration, regulation, and supervision.

    The conference attracted an impressive gathering, including members of the Pension Correspondents Association of Nigeria (PenCan), Finance Correspondents Association of Nigeria (FICAN), and other reporters.

    Representatives from the Pension Fund Operators Association of Nigeria (PenOp) were also present, illustrating strong interest and collaboration within the sector.

    A new era of tech-driven transformation

    Marking her first official engagement with the media since her appointment, Ms. Oloworaran introduced the conference theme: “Tech-Driven Transformation: Shaping the Pension Landscape.” The theme reflects PenCom’s strategic commitment to harnessing innovation for improved pension administration.

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    She said: “By leveraging technology, we aim to transform service delivery, enhance transparency, and boost efficiency across the pension industry. A significant milestone was achieved with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This revolutionary online platform has replaced the cumbersome manual process, allowing companies to apply for and receive PCCs seamlessly. So far, PenCom has issued an impressive 38,528 PCCs, streamlining operations and ensuring compliance with regulatory requirements.’’

    Furthermore, she said crucial developments in the industry’s Shared Service Initiative, which is in its advanced stages of implementation. This initiative will digitise pension contributions and remittances, ensuring seamless processing of Retirement Savings Account contributions while rectifying discrepancies due to incomplete remittance details.

    “Additionally, PenCom has introduced a revised programmed withdrawal template aimed at simplifying access to voluntary contributions. The threshold for en-bloc payments has been adjusted in line with the new minimum wage, making retirement processes more user-centric and efficient for contributors,” she explained.

    The PenCom DG stressed the importance of expanding pension coverage, particularly for unserved workers. She revealed that the commission is revamping the Micro Pension Plan, utilising technology to incentivise the participation of informal sector workers, thus making it easier for everyday Nigerians to save for retirement. “This initiative aligns with our vision of inclusive growth and financial security for all,” she said.

    Responding to economic challenges

    Sharing significant updates within the pension industry, Ms. Oloworaran noted that as of October 2024, the CPS has recorded 10.53 million registered contributors, with pension fund assets totaling N21.92 trillion.

    “These remarkable figures reflect our commitment to fund safety, prudent management, and sustainable growth,” she told attendees.

    Despite these successes, she acknowledged the unique challenges posed by Nigeria’s economic realities, such as high inflation, Naira devaluation, and the ongoing impacts of unconventional monetary policies. To navigate these turbulent waters, PenCom has initiated a comprehensive review of Investment Regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments.

    “Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility,” she said.

    She addressed concerns regarding delays in retirement benefit payments to retirees of Federal Government treasury-funded Ministries, Departments, and Agencies (MDAs).

    She announced a release of N44 billion under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023.

    “We are collaborating with the Federal Government to establish a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress,” she stated.

    Call for collaborative efforts

    Ms. Oloworaran expressed her gratitude to the media for its commitment to raising awareness about the CPS.

    She described their collaboration as “indispensable” to PenCom’s mission of securing the future for millions of Nigerians.

    As Nigeria approaches a crucial transformation in its pension landscape, the emphasis on technology and collaboration stands as a beacon of hope for enhanced retirement security for all citizens, she stressed.

  • PenCom asset grows to N21.92

    PenCom asset grows to N21.92

    National Pension Commission (PenCom) Director-General (DG) Mrs. Omolola Oloworaran is optimistic that pension asset will hit N22 trillion before December 31.

    Mrs. Oloworaran, who spoke at a news conference in Abuja yesterday, said the Contributory Pension Scheme (CPS), as at October, had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.

    The conference, with the theme: “Tech-driven Transformation Shaping the Pension Landscape”, showcased PenCom’s strategic commitment to innovation.

    She said that the numbers reflected PenCom’s unwavering commitment to fund safety, prudent management, and sustainable growth.

    The PenCom boss said that some of the economic challenges of the year where high inflation, Naira devaluation, and the lingering effects of unorthodox monetary policies.

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    Saying that they had eroded the real value of pension funds and impacted contributors’ purchasing power, she said: “To address these issues, the commission has initiated a comprehensive review of its investment regulations.

    “It is focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.

    “The goal is to safeguard contributor savings and ensure resilience against future economic volatility.”

    She restated the commission’s commitment to expanding pension coverage, particularly through the advanced micro-pension plan designed to encourage participation from the informal sector using technology.

    Mrs. Oloworaran said: “This initiative will make it easier for everyday Nigerians to save for retirement, aligning with our vision of inclusive growth and financial stability for all.

    “The backlog in retirement benefits for retirees of the Federal Government’s Ministries, Departments, and Agencies (MDAs) will soon be settled.

    “The Federal Government recently disbursed N44 billion under the 2024 budget to settle approved pension rights.

    “We are collaborating with the Federal Government to institutionalise a sustainable solution to ensure retirees receive their benefits promptly, eliminating delays.”

    She noted that PenCom’s technology-driven transformation aimed to make the CPS more accessible, reliable, and sustainable.

    “From data management to seamless contributions and regulatory supervision, we are paving the way for a future where the pension industry serves all Nigerians effectively,” she said,

    According to her, the e-application portal for pension clearance certificates has replaced manual processes to enhance ease of doing business.

    “Since its deployment, 38,528 pension clearance certificates have been issued. This initiative ensures compliance and secures the future of Nigerians working in organisations that interact with the government,” she said.

  • PenCom records N21.92 trillion contributors pension fund assets

    PenCom records N21.92 trillion contributors pension fund assets

    The Director General of the National Pension Commission (PenCom), Omolola Oloworaran, has revealed that the Contributory Pension Scheme (CPS) recorded 10.53 million registered contributors and pension fund assets totaling N21.92 trillion as of October 2024.

    Speaking at the 2024 PenCom Media Conference in Abuja, themed “Tech-Driven Transformation: Shaping the Pension Landscape,” Oloworaran highlighted the commission’s steadfast commitment to ensuring fund safety, prudent management, and sustainable growth.

    She acknowledged the economic challenges of 2024 and preceding years, including high inflation, Naira devaluation, and the impact of unorthodox monetary policies, which have eroded the real value of pension funds and weakened contributors’ purchasing power.

    Oloworaran also addressed concerns over delays in retirement benefit payments to retirees in government treasury-funded Ministries, Departments, and Agencies (MDAs), noting ongoing efforts to resolve the issue.

    According to her, “We are also addressing delays in retirement benefit payments.   

    Recently, N44 billion dollars was released under the 2024 budget appropriations to settle accrued pension rights for retirees from March to September 2023. 

    Moving forward, we are working with the Federal Government to institutionalize a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.

    “To address these challenges, PenCom has initiated a comprehensive review of the Investment Regulations, focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign-currency denominated investments. Our goal is to safeguard contributors’ savings and ensure resilience against future economic volatility”.

    Again, expanding pension coverage remains a top priority for the Commission. Our revamped Micro Pension Plan leverages technology to incentivize informal sector participation, making it easier for everyday Nigerians to save for retirement. This initiative aligns with our vision of inclusive growth and financial security for all.

    “This year, we achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024. This initiative replaces the manual process, enabling companies to seamlessly apply for and receive PCCs online. This year we have so far issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance”.

    Additionally, the Pension Industry Shared Service Initiative is in advanced stages of implementation. 

    This initiative will digitize pension contributions and remittances, ensuring seamless processing of Retirement Savings Account contributions and resolving discrepancies caused by incomplete remittance details.

    The DG noted that to further enhance contributors’ experiences, the commission has introduced a revised programmed withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage. These measures are designed to make retirement processes more efficient and user-centric.

    She pointed that integrating  technology into every facet of the pension industry, we are shaping a future where the CPS becomes more accessible, reliable, and sustainable. 

    However, this transformation requires your unwavering support as media practitioners. Your role in amplifying our efforts and enlightening stakeholders across Nigeria is crucial. 

    This will ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement.

  • PenCom set to pay MDAs’ retirees

    PenCom set to pay MDAs’ retirees

    • Fed Govt releases N44b for unpaid pension

    A total of N44 billion has been released by the Office of the Accountant-General of the Federation (OAGF) to pay federal retirees.

    This was made known in a statement by the National Pension Commission (PenCom).

    The statement read: “This sum is part of the 2024 budget appropriation for January to June and has been deposited into the Retirement Benefits Bond Redemption Fund (RBBRF) Account at the Central Bank of Nigeria (CBN).

    “The primary objective of this disbursement is to partially settle the accrued pension rights of retirees of Federal Government Treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme (CPS).

    “The disbursed funds have been applied to settle the accrued pension rights of duly verified and enrolled retirees, covering the period March to September 2023 and some deceased employees. Accordingly, the remittances have been credited directly to the Retirement Savings Accounts (RSAs) of the affected retirees through their respective Pension Fund Administrators (PFAs).”

    According to PenCom, this move follows the recent disclosure by the Director-General of the National Pension Commission (PenCom), Ms Omolola Oloworaran, that plans had reached advanced stages and were expected to lead to lasting solutions that would resolve the challenges of inadequate funding and delayed fund releases for retirees’ accrued pension rights.

    “The issue of delayed payments of accrued rights has been an albatross for the CPS, undermining the scheme’s primary objective of ensuring that retirement benefits are paid promptly. The intractable delays, in turn, have caused hardship to retirees of treasury-funded federal MDAs.’’

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    It continued: “The Contributory Pension Scheme (CPS) was designed to provide a sustainable and robust retirement savings plan for Nigerian workers. However, the delay in payment of accrued pension rights for FGN retirees which are the benefits earned by FGN MDA employees for their years of service before the CPS, has been a challenging issue. The accrued pension rights for FGN retirees cover the period of service up until June 2004 when the CPS commenced and, represents the pension entitlements borne by the Federal Government distinct from the contributions made to individual Retirement Savings Accounts (RSAs).

    “Recognising the vital importance of the timely resolution of this issue of accrued pension rights, PenCom has prioritised engaging with the relevant authorities to secure the full settlement of all outstanding liabilities. The National Pension Commission’s commitment to settling pension issues is rooted in its dedication to safeguarding contributors’ and retirees’ financial future, ensuring that the Contributory Pension Scheme provides timely and adequate retirement benefits.

    “The recent release of N44 billion marks a significant step towards addressing the challenges. Nevertheless, PenCom understands that work remains to be done to resolve retirees’ challenges in accessing their pensions.The Commission assures retirees that efforts will be sustained to ensure the full settlement of accrued pension rights for retirees.

    “Following the release of the funds, PenCom directed Pension Fund Administrators to expedite payment processing to ensure that the retirees receive their entitlements as quickly as possible. Furthermore, PenCom expressed appreciation to the retirees for their patience and understanding throughout this period of uncertainty and reaffirmed its dedication to safeguarding their retirement benefits at all times.’’