PenCom To Unveil Revised Regulation To Boost Pension Compliance

The Director General of the National Pension Commission (PenCom), Ms Omolola Oloworaran, has reaffirmed the Commission’s commitment to strengthening collaboration with the Trade Union Congress of Nigeria (TUC) in advancing pension reforms and ensuring greater compliance with the Contributory Pension Scheme (CPS).

Oloworaran gave the assurance during a courtesy visit to the TUC President, Comrade (Engr.) Festus Osifo, in Abuja.

She was accompanied by the Acting Commissioner, Technical, Hon. Hafiz Kawu Ibrahim, and other top management staff of the Commission.

Speaking at the meeting, the PenCom DG acknowledged the invaluable role of the TUC as a member of the PenCom Governing Board and stressed that the relationship between the two organisations remained crucial to the sustainability of the CPS in Nigeria.

She proposed more structured stakeholder engagements between PenCom and TUC to further strengthen the CPS and ensure greater compliance by employers of labour across the country.

Oloworaran emphasised that every employer of labour is obligated under the Pension Reform Act (PRA) 2014 to remit pension contributions on behalf of employees.

She called for TUC’s support in enforcing compliance, noting that timely remittances were essential for securing workers’ financial stability in retirement.

The PenCom DG also spoke about reforms underway to address value erosion in pension savings.

She said PenCom is working to mitigate the impact of inflation on pension assets.

Oloworaran disclosed that PenCom will unveil a revised Investment Regulation to expand opportunities in alternative investments and deliver better real returns.

In addition, she said that the PenCom is working with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance on mechanisms that will allow pension investments in naira but generate returns in dollars, as part of efforts to safeguard retirement funds.

Furthermore, she said that PenCom would soon introduce a minimum pension for all retirees under the CPS to guarantee a more dignified retirement for Nigerians.

This is being enabled by President Tinubu’s approval of a N758bn bond, which comprises funding for the Pension Protection Fund (PPF), which would fund the minimum pension guarantee.

Responding, Comrade Osifo commended PenCom for its professionalism and effectiveness, describing it as one of the highly performing Institutions in Nigeria. He recounted his experience with PenCom staff during his time in the pension industry, praising their exceptional integrity, competence and dedication.

The TUC president pledged the union’s continued support for the Commission, particularly in promoting compliance among employers.

He decried the practice of some employers who deduct workers’ pension contributions but fail to remit them, warning that such delays harm the eventual returns on retirement savings and often lead to industrial disputes.
Osifo further called for a review of the PRA 2014 to introduce greater flexibility in pension fund investments to better protect savings from inflation and exchange rate pressures.