FG to Clear Pension Arrears

The National Pension Commission (PenCom) has assured Nigerians that the federal government’s outstanding pension liabilities under the Contributory Pension Scheme (CPS) will soon be cleared.

The Director-General of PenCom, Mrs. Omolola Bridget Oloworaran, gave the assurance during the second annual conference of the Pension Correspondents Association of Nigeria (PENCAM) in Abuja.

Represented by the Head of Corporate Communications, Mr. Ibrahim Buwai, Mrs. Oloworaran confirmed that the commission had successfully computed the backlog of pension liabilities owed by the federal government, and efforts are underway to address them promptly.

“Very soon, this issue will be put behind us,” Buwai stated.

She revealed that PenCom is working on a mechanism to prevent delays in the accrued pension rights of retirees in the future adding that the CPS, is a robust framework designed to address issues inherent in Nigeria’s previous pension system.

“The CPS is an inbuilt mechanism for resolving the challenges that were associated with the defined benefit scheme,” she said.

“The contributions are privately managed by licensed Pension Fund Administrators (PFAs), and this private management structure ensures better accountability and efficiency,” Mrs. Oloworaran added.

The Chief Executive Officer of the Pension Funds Operators Association of Nigeria (PenOp), Mr. Ogwuche Aguda, revealed that N1.12 trillion has been paid out in lump sums to 357,310 retirees over the past 15 years through programmed withdrawals and annuities under the CPS.

“Moreover, a total of N247.47 billion has been paid to 483,464 Nigerians who withdrew 25% from their Retirement Savings Accounts (RSAs) after losing their jobs. In terms of death benefits, N451.2 billion has been disbursed to 104,259 beneficiaries.”

Reflecting on the 20-year journey since the introduction of the Pension Reform Act in 2004, Mr. Aguda highlighted the significant gains made by the CPS.

“The CPS has introduced a total paradigm shift in pension management, transforming a broken system into one that is both transparent and reliable,” he stated.

The President of PenCAN, Mrs. Nana Musa, said the conference provided a unique platform for critical discourse, networking, and knowledge sharing among experts, policymakers, and stakeholders.

Mrs. Musa said the gathering was for industry stakeholders to reflect on the gains, challenges, and prospects of the PRA after 20 years of existence.
The highlight of the event was the launch of the second edition of PenCAN Magazine, and presentation of awards to deserving agencies and personalities in the industry.