Demand By Police To Exit CPS ‘ll Undermine Gains Of Pension Industry, Group Warns

The demand by the Nigeria Police Force to exit the Contributory Pension Scheme will undermine the gains so far recorded by the National Pension Commission in the pension industry

A media advocacy group for good governance in Africa, the African Media Roundtable Initiative, said this in a statement made available to THE WHISTLER.

The Group stated that the demand by the Nigeria Police Force for an independent pension management body was unnecessary because PenCom has been prudent over the years in managing the pension scheme of workers of various categories.

The House of Representatives had on Tuesday held a public hearing on a Bill to exclude the Nigerian Police Force from the CPS as well as allow a retiree to be paid at least 75 per cent of his/her retirement benefits.

The Director-General of PenCom Hajiya Aisha Dahiru-Umar had opposed the bill stating that the Contributory Pension Scheme has provisions that can address the challenges being faced by personnel of the Nigeria Police and other Federal Government Agencies on the administration of their retirement benefits.

Supporting the PenCom DG, AMRI said if allowed to succeed, the move will open a series of demands by other government institutions to leave the CPS.

AMRI in the statement signed by its Executive Director, Charles Awolowo, noted that such demand should not arise at this moment especially when the focused and visionary leadership of the commission, under Aisha Dahiru-Umar has continued to enthrone transparency and openness in the management of the CPS.

The Pension Fund Asset has grown to about N13trn.

Awolowo maintained that Dahiru-Umar has demonstrated that she is a listening leader who is willing to give her all to ensure that senior citizens of the country enjoy a decent living after service.

He stated that the concern raised by the Police in its quest to leave the CPS could be resolved administratively in a table of dialogue rather than to totally exit the scheme.

The statement reads, “The demand by the Nigeria Police Force does not only have the tendency to make mockery of the legions of gains made by the CPS but will arm other agencies of the government with undue boldness to seek withdrawal from the scheme.

“Again, we are not oblivious of the fact that there is no perfect system anywhere but the scheme has proven to be the best for both public and private sector workers in the country since introduction.

“The question of amount of money payable to retirees is not the making of PenCom but rather a question of the earnings of the officers. An increased wage will automatically bring about enhancement in pension of retirees.

“PenCom is a creation of the law and does not operate outside the extant laws of the country.

“The demand for payment of 75 per cent of retirement earnings of workers cannot be feasible at this moment because Section 173 of the 1999 Constitution as amended is clear when it says everyone who has worked and is retired is entitled to periodic payment. Only an amendment of the Constitution by the National Assembly can make this work.

“As a responsible organization, we are deeply concerned about the welfare of our senior citizens who have given their all in the service of their fatherland. However, we must be guided by laid down rules.

“Pulling out of the Contributory Pension Scheme,is not an inch close to a better post-service life of the police officers than it is at the moment. It would rather take us back to forgotten years and reverse the modest achievements PenCom has recorded, as amplified under the current leadership.

“The National Assembly must do the needful by rejecting the Bill for an independent pension body for the police.

“The solution to their concerns is not in creation of a new body to oversee their pension but to raise their earnings as well as legislative framework that can make the withdrawal of 75 per cent of earnings possible upon retirement.

“We must not resort to treating the symptoms while the ailment takes a toll on our body system.”