PenCom Assures Timely Retiree Benefits as Assets Near N22 Trillion

By Don Tejiri On Dec 13, 2024

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National Pension Commission to Ensure Timely Retiree Benefits.

The National Pension Commission (PenCom) is collaborating with the Federal Government to establish a sustainable solution that guarantees retirees receive their benefits promptly and without undue stress, according to Director-General Omolola Oloworaran.

Speaking at a media conference in Abuja on Thursday, Oloworaran emphasized the Commission’s priority to expand pension coverage. “Our revamped Micro Pension Plan leverages technology to incentivize informal sector participation, making it easier for everyday Nigerians to save for retirement,” she said.

This project supports our objective of inclusive growth and financial security for all.

Concerning delays in retirement benefit payments, she stated that N44 billion was recently allocated from the 2024 budget appropriations to settle accrued pension rights for pensioners from March to September 2023. “Moving forward, we are working with the Federal Government to institutionalise a sustainable solution, ensuring retirees receive their benefits promptly and without undue stress.” Oloworaran also predicted that the Commission will end 2024 with more over N22 trillion in pension assets.

These numbers reflect our unwavering commitment to fund safety, prudent management, and sustainable growth,” she stated.

Highlighting the economic challenges of 2024, including high inflation, naira devaluation, and the lingering effects of unorthodox monetary policies, Oloworaran pointed out that these issues have eroded the real value of pension funds and impacted contributors’ purchasing power.

To address these issues, PenCom has launched a thorough examination of its investment laws, with an emphasis on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.

The conference, titled “Tech-Driven Transformation Shaping the Pension Landscape,” highlighted PenCom’s strategic commitment to innovation.

Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah, noted that innovations in the sector have led to the steady growth of pension fund assets. “Strategic investments will be targeted for the year 2025,” he added.

A significant milestone for the Commission was the launch of the e-Application Portal for Pension Clearance Certificates (PCC) in October 2024, replacing the manual process and enabling companies to seamlessly apply for and receive PCCs online.

This year, we have issued 38,528 PCCs, significantly enhancing ease of doing business and ensuring compliance,” Oloworaran reported.

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.

To improve contributors’ experiences, PenCom launched a revised scheduled withdrawal template, simplifying access to voluntary contributions and raising the threshold for en-bloc payments to align with the new minimum wage. These changes are intended to make retirement processes more efficient and user-friendly. PenCom intends to increase the accessibility of the Contributory Pension Scheme (CPS).

As we integrate technology into every facet of the pension industry, we are shaping a future where the CPS becomes more accessible, reliable, and sustainable,” Oloworaran told the audience. She also urged media professionals to support and magnify PenCom’s efforts to educate stakeholders throughout Nigeria.

PenCom