‘Plans Underway To Liquidate Outstanding Pension Liabilities’

The Federal Government has concluded plans to liquidate outstanding pension liabilities under the Contributory Pension Scheme (CPS).

The Director General of the National Pension Commission (PenCom), Mrs. Omolola Bridget Oloworanran, confirmed the update in Abuja at the second annual conference of Pension Correspondents Assocation of Nigeria (PENCAN).

Represented by Ibrahim Buwai, Head Corporate Communications of the Commission, she declared that “very soon outstanding pension liabilities with regard to the Federal Government have been duly computed.

Very soon, this issue will be put behind us. “Importantly, part of this ongoing initiative also is that a mechanism is being put in place to ensure that going for ward, we do not experience the issue of delaying accrued pension rights.

The issue is we still have enlightenment gaps.” She described the Contributory Pension Scheme (CPS) as an inbuilt mechanism for resolving challenges associated with the previous pension system. She added that despite a few challenges grappling with CPS, it remained the best.

“What the contributory pension system seeks to do, as I have explained earlier, is to introduce a total paradigm shift by changing the system whereby it is now contributory, and these contributions are owed from the employer and the employee.

“And then, more importantly, the pension fund contributions will be privately managed. Privately managed means it will be managed by private companies that have been licensed exclusively to conduct this function of pension management and administration.

“The licensing process that is required to go through is very rigorous and stringent. And, of course, another important aspect of it is the establishment of PENCOM as the regulator and supervisor of the Nigerian pension system.

“Indeed, it is instructive because prior to that time, there was no clear regulatory direction in terms of pensions in Nigeria”, she added.

Pension data by the Pension Funds Operators Association of Nigeria (PenOp) put lump sum paid on programmed withdrawal and annuity in the last 15 years to 357,310 retirees stood at N1.12 trillion.”