N'assembly commission seeks return to contributory pension scheme

The National Assembly Service Commission (NASC) is seeking to rejoin the contributory pension scheme (CPS) nearly two years after it was exempted through a law passed in the final days of former President Muhammadu Buhari‘s administration.

Kamoru Ogunlana, clerk of the national assembly, raised the concerns in a memorandum submitted during a stakeholder engagement on the review of the pension reform Act (PRA) 2014, organised by the house of representatives committee on pensions in Abuja.

Ogunlana said the service had reviewed its position and now favours returning to the CPS.

This is despite the establishment of the National Assembly Service Pensions Board in April 2023, which had removed NASS personnel from the CPS.

Declaring the session open on Monday, Hussaini Jalo, chairman of the house committee on pensions, emphasised the need to amend the PRA, which was last reviewed a decade ago.

He called on stakeholders to propose areas for reform to align the law with current realities.

The engagement had in attendance key players in the pension sector, including the National Pension Commission (PenCom), Pension Transitional Arrangement Directorate (PTAD), Nigeria Employers’ Consultative Association (NECA), Pension Fund Operators Association of Nigeria (PenOp), the Military Pensions Board, and the Nigerian Police Force.

PENCOM CALLS FOR COMPREHENSIVE AMENDMENT OF PRA

In its submission, PenCom backed a comprehensive amendment of the PRA and recommended a revisit of the resolutions reached during the 2022 consultations.

The commission also supported a review of Sections 7(1) and (2) to improve lump sum payouts and make retirement benefits more equitable.

PenCom pledged to work closely with the house of representatives and senate committees overseeing pension matters to deliver a robust and inclusive reform process.

Also speaking at the event, Oluwole Oke, a member of the house committee, urged caution in amending the PRA.

Oke called for enhanced regulatory powers for PenCom while assuring the national assembly’s support for reforms that ensure secure and dignified retirements.

Tolulope Odunaiya, executive secretary of PTAD, in his submission, requested formal recognition as a corporate legal entity under the proposed amendment.

Odunaiya said the “recognition is critical to the directorate’s operational effectiveness”.

On his part, Oguche Agudah, chief executive officer (CEO) of PenOp, said the law was due for review after more than a decade.

“The review is for sustainability and economic development so that the pension sector operators can continue investing and also to ensure the independence of regulator which is the National Pension Commission,” Agudah said.

He also advocated for expanding CPS coverage across the country, noting that only six states currently have full implementation.

Agudah also said pension remittances should be processed exclusively through recognised payment platforms to maintain transparency and compliance.