PenCom, finance ministry working to pay retirees – DG

The Nationwide Pension Fee has revealed that it’s working with the Ministry of Finance to make sure immediate cost of retirees’ advantages.

This was revealed by the Director-Basic of PenCom, Omolola Oloworaran, throughout an interactive session with the media in Lagos not too long ago.

Responding to a query on accrued rights and the non-payment of retirees’ advantages, the DG projected that the initiative being labored on ought to come to life earlier than the shut of the 12 months.

She mentioned, “I perceive that plenty of retirees haven’t been paid and are questioning why we can’t give them what they’ve contributed, which is a reputable request. Sadly, the regulation doesn’t enable PenCom to launch these funds to them proper now. The one factor we are able to do is comply with up with the federal government to make sure that the accrued rights are paid.  Additionally, there may be the argument that if we pay them what they’ve contributed, the federal government could not take paying the excellent critically and which may linger on for years as a result of when you give pensioners what they’ve contributed, the agitation would scale back for a while and the federal government won’t really feel the warmth and deal with it as pressing the best way they’re doing it proper now.

“We’re a long-lasting resolution going ahead. We’re engaged on an initiative with the Ministry of Finance and earlier than the tip of the 12 months, that ought to come to fruition. The primary set of those who needs to be getting paid in any respect in authorities needs to be contributors beneath the CPS as a result of they’ve contributed. For me, it’s a lasting resolution. We’re working with the federal government to make sure that as soon as you might be retired, inside a month, it is best to get your advantages and I’m optimistic that we should always have the ability to obtain it.”

Oloworaran revealed that from November 2023 until date, about 18,000 individuals have retired and are awaiting their advantages.

Earlier this month, the federal authorities launched the sum of N44bn for cost of accrued rights to its retired staff from March to October 2023.

In regards to the annuitants beneath African Alliance Insurance coverage Firm, the PenCom boss revealed that the Fee had banned the agency from promoting annuities to anybody and is working with them to make sure there was no repeat.

“We’re glad that they’ve made the cost now and we need to work with them to make sure that they don’t have this drawback once more. Proper now, we now have banned them from promoting annuities. No one should purchase an annuity from African Alliance Insurance coverage once more till we’re positive that they will meet up with their obligations as of when due. That’s it for a begin. When we now have a long-lasting resolution in place, we’ll then work with NAICOM to see what penalties we are able to impose,” she affirmed.

With an annuity, a retiree pays a lump sum to an insurance coverage firm, which it invests in return for a assured earnings stream.

PenCom DG additionally reiterated that pension fund directors would proceed to put money into FG securities as a result of it was risk-free and the federal government had not defaulted on its obligations.

She mentioned,“Pension funds globally type a pool of capital for each nation. Each developed and creating nations like ours at all times put money into authorities treasury payments or authorities bonds. So, there may be nothing new that Nigeria is doing. What we’re merely doing is investing in federal authorities securities both via treasury payments, FGN bonds, or every other instrument issued by the federal government. Sure, it’s borrowing, however it’s an funding for us, and the returns on funding in authorities securities for the time being, I imagine, high any investments, a minimum of in Nigeria, that I’ve seen.