The National Pension Commission (PenCom) has announced its ongoing collaboration with the Ministry of Finance to ensure prompt payment of retirees’ benefits under the Contributory Pension Scheme (CPS).
The PenCom’s Director-General, Omolola Oloworaran, made this disclosure during an interactive session with journalists in Lagos on Sunday, December 22.
Addressing concerns over accrued rights and delayed payment of retirees’ entitlements, Oloworaran expressed optimism that a sustainable solution would be implemented by the end of the year.
She explained that while retirees have a legitimate claim to their contributions, the law currently restricts PenCom from directly releasing those funds.
“We are following up with the government to ensure that accrued rights are paid.
“The argument is that if we release retirees’ contributions now, the government might not prioritize paying the outstanding amounts, potentially prolonging the issue for years,” Oloworaran stated.
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The DG highlighted that the ongoing initiative aims to create a lasting framework for retirees to receive their benefits within a month of retirement.
From November 2023 to date, over 18,000 retirees are awaiting their entitlements.
Earlier this month, the federal government disbursed ₦44 billion to settle accrued rights for retired workers covering March to October 2023.
Regarding annuities, Oloworaran revealed that PenCom has banned African Alliance Insurance Company from selling annuities after concerns about its ability to meet obligations.
“We are working with them to prevent a recurrence and will collaborate with NAICOM to impose appropriate penalties once a lasting solution is in place,” she affirmed.
The DG also reiterated the safety of pension fund investments in government securities, describing them as risk-free with consistent returns.
“Globally, pension funds serve as a capital pool for national development.
“In Nigeria, investing in government securities offers top returns compared to other options,” Oloworaran explained.
With reforms underway, PenCom aims to address the challenges in Nigeria’s pension system and ensure a more efficient process for retirees to access their benefits.
