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Federal Government Announces Initiative to Resolve Pension Liabilities

Published by Tope Fakinlede on September 26th, 2024.

Federal Government Announces Initiative to Resolve Pension Liabilities

The federal government has unveiled a plan to settle all outstanding pension obligations related to the Contributory Pension Scheme and to prevent future unpaid pensions.

Omolola Oloworaran, the acting Director-General of the National Pension Commission (PenCom), made this announcement during a visit from the Nigeria Union of Pensioners Contributory Pension Scheme Sector in Abuja on Wednesday. She highlighted that PenCom is working closely with key stakeholders to tackle issues such as pension adjustments, accrued rights, and other related liabilities. This initiative is expected to be presented to the Federal Executive Council for approval soon.

Regarding the non-payment issues affecting annuitants of the African Alliance Insurance Company, which falls under the oversight of the National Insurance Commission, Oloworaran assured that these concerns will be addressed promptly. PenCom and NAICOM are developing regulatory changes to mandate that all pension funds in annuities be managed by Pension Fund Custodians to prevent similar problems in the future.

Oloworaran also stressed that inadequate service from Pension Fund Administrators towards retirees will not be accepted. She underscored the need for accessible complaint channels to facilitate the quick resolution of issues.

In earlier remarks, NUPCPS National Chairman Sylva Nwaiwu criticized the federal government for not implementing pension increases for retirees under the Contributory Pension Scheme, labeling it as unfair. He noted that while retirees under the Defined Benefit Scheme received pension adjustments, those under the CPS have been neglected.