Workers under the National Assembly Service Commission have asked to be returned to the Contributory Pension Scheme (CPS), two years after they were removed from it by a new law. The demand was made during a stakeholders’ meeting held on Tuesday in Abuja by the House of Representatives Committee on Pensions. The meeting was organised to discuss proposed changes to the Pension Reform Act (PRA) 2014.
The Clerk of the National Assembly, Mr. Kamoru Ogunlana, made a submission on behalf of the Commission. He stated that despite the setting up of a separate pension board, the management had reviewed its earlier position and now wants to go back to the CPS.
In April 2023, under the administration of former President Muhammadu Buhari, a new law known as the National Assembly Service Pensions Board (Establishment) Act was signed. That law removed the staff of the National Assembly from the PRA 2014 and created an independent pension board for them. However, the new pension board has not started operating yet, causing uncertainty among the workers.
At the meeting, the Chairman of the House Committee on Pensions, Hon. Hussaini Jalo, said the review of the PRA was necessary to address current challenges in the pension system. He urged all stakeholders to point out areas of the law that need to be changed.
Also at the session were officials from major stakeholders in the pension industry, including the National Pension Commission (PenCom), the Pension Transitional Arrangement Directorate (PTAD), the Nigeria Employers’ Consultative Association (NECA), the Pension Fund Operators Association of Nigeria (PenOp), the Military Pensions Board, and the Nigeria Police Force.
During the engagement, PenCom said it fully supports the plan to review the PRA. The commission urged lawmakers to consider suggestions made during the last major stakeholder meeting held in 2022. It also backed changes to Section 7 (1) and (2) of the Act to improve retirees’ benefits, including higher lump sum payments.
PenCom pledged to work closely with the committees in both the House of Representatives and the Senate to ensure the new law meets the needs of Nigerian workers.
A member of the House Committee, Hon. Oluwole Oke, said any changes to the pension law must be well thought out. He warned against rushing the amendment process and said more focus should be placed on giving PenCom stronger powers to regulate the sector.
The Executive Secretary of PTAD, Mrs. Tolulope Odunaiya, also made a request at the session. She asked that the Directorate be recognised as a legal corporate entity in the revised law. She said this would help PTAD function more effectively.
Mr. Oguche Agudah, the Chief Executive Officer of PenOp, also spoke at the event. He said the PRA was overdue for an update. He explained that reviewing the law will help ensure the long-term survival of the pension sector, make PenCom more independent, and increase coverage among workers, especially in the public sector.
Agudah said only six states in Nigeria had fully complied with the CPS so far. He called on the National Assembly to make sure pension contributions are done through approved platforms to ensure better transparency and accountability.
The event showed that there is growing concern about the state of pension management in Nigeria. Many stakeholders agreed that the current system needs improvement to secure the future of workers and retirees.
