Lawmakers, Operators to Address Pension Industry Challenges

The Senate Committee on Establishment and Public Service and House Committee on Pensions have agreed to collaborate in addressing the challenge of accrued rights in the pension industry.

This decision was reached during a two-day retreat for federal lawmakers organized by pension fund operators in Lagos.

Accrued rights pertain to the pension benefits entitled to employees of the Federal Government Treasury Funded Ministries, Departments, and Agencies based on their service years before the commencement of the contributory pension scheme in 2004, as stated by the National Pension Commission.

This does not apply to employees of the MDA who were hired after the CPS or those in the private sector.

In addition to addressing accrued rights, the Pension Fund Operators Association of Nigeria released a statement over the weekend expressing a commitment to collaborating with both houses to tackle issues causing delays in pension receipt for treasury-funded retirees. 

The statement also emphasized the need to ensure that retirees receive sufficient pension value to live comfortably, especially in light of increasing inflation and devaluation of the local currency.

It further highlighted the importance of ongoing engagement between the industry and the committees in both houses to enhance understanding of issues affecting the industry.

He encouraged the pension administrators to maintain their communication with legislators as the primary method for building a positive working partnership between the two parties.

 In response, the Chairman of the House Committee on Pensions, Hussaini Jallo, praised the pension administrators for their initiative and emphasized that his committee was dedicated to serving the interests of pensioners and all Nigerians.

According to data from PenCom, Nigeria's pension fund assets were valued at N19.67tn as of March.