PenCom Pledges Financial Security for Retirees

The Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, has reaffirmed the Contributory Pension Scheme’s (CPS) commitment to ensuring the timely payment of retirement benefits and providing adequate financial security for retirees.

Speaking at a press conference in Abuja on Thursday, Oloworaran highlighted the significant milestones achieved through pension reforms, highlighting the scheme’s dedication to transparency, efficiency, and sustainability in pension administration.

She reiterated that PenCom remains focused on enhancing the welfare of retirees and strengthening Nigeria’s pension system to meet global standards.

“A defining milestone in our nation’s pension administration has been achieved through the approval of a N758 billion Federal Government bond to fully settle outstanding pension liabilities under the CPS.

“President Bola Tinubu has signalled a new dawn for pensioners, ensuring that the CPS fulfils its mandate of providing timely and adequate retirement benefits,” the DG said.

She said that the president had set a new standard for pension administration in the country, effectively resetting the CPS on the path to sustainability.

Oloworaran said that achieving full implementation required strategic collaboration.

“PenCom will continue working with all stakeholders to ensure the seamless issuance of the bond and the timely disbursement of pension payments.

“Our priority remains efficiency, transparency and accountability in the administration of retirement benefits,” she said.

Oloworaran said that the resolution of pension liabilities restores confidence in the CPS and positions the pension industry for long-term growth.

She said that beyond the immediate payments to retirees, it would stimulate the economy, deepen the capital market, and enhance financial stability.

Oloworaran said that the landmark bond resolves all accumulated pension liabilities covering: N253 billion accrued pension rights to settle outstanding entitlements for retirees of the Federal Government Treasury-funded MDAs,

She said that addressing the delays caused by previous funding shortfalls, going forward accrued pension rights would be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.

Oloworaran said that N388 billion pension increases since 2007 had been approved, adding that the long-overdue entitlement would benefit more than 250,000 retirees.

She said that it would reflect on the administration’s commitment to ensuring pensions remained fair and responsive to economic realities.

For the first time, the Federal Government is contributing to the PPF, ensuring that pensioners, particularly low-income earners, receive a living wage in retirement.

“This is a major step towards strengthening financial security for all retirees under the CPS,” Oloworaran said.

She said that N11 billion for the university professors’ pension shortfall had been released.

Oloworaran said that it would implement the provision allowing eligible university professors to retire on their full salary while addressing the funding gaps that previously hindered its execution.

“With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimising investment returns.

“A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can save securely for their future,” the DG said.

She commended the president and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for their support in bringing the initiative to fruition.