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Legislative Arm to tackle challenges facing Pension industry

National Assembly Building

The Senate Committee on Establishment and Public Service and the House Committee on Pensions have united to address the issue of accrued rights in the pension industry, committing to collaborate closely to tackle this challenge.

One of the resolutions from the two-day retreat for federal lawmakers organized by pension fund operators in Lagos is for the Committee on Establishment and the Committee on Pensions to collaborate and address the challenges facing the pension industry.

According to the National Pension Commission, accrued rights refer to the pension benefits that employees of the Federal Government Treasury Funded Ministries, Departments, and Agencies are entitled to, based on their service years before the commencement of the contributory pension scheme in 2004.

It does not apply to employees of the MDA who receive employment offers after CPS, or to the private sector.

A statement from the Pension Fund Operators Association of Nigeria, on Saturday, said, “A commitment to work together with both houses to tackle the issue of accrued rights, which causes a number of treasury-funded retirees to experience delays in receipt of pensions.

“Be creative and focused on ensuring that the value of pensions that retirees receive in retirement will be enough to live comfortably, especially in light of rising inflation and devaluation of the local currency, ensuring constant engagement between the industry and the committees in both houses to aid a better understanding of issues affecting the industry.

“The pension industry needs to work on constant education and enlightenment of Nigerians, both literate and illiterate, on the workings of the scheme and the positive impact of the industry on the economy, as many Nigerians don’t seem to understand the basics of the scheme.”

The Chairman of the Senate Committee on Establishment and Public Service, Oluwole Fasuyi, stated that the retreat was very enlightening for the lawmakers. He urged the pension operators to keep up the engagement with lawmakers as the only way to foster a good working relationship between the parties.

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