In a significant development aimed at resolving pension liabilities under the Contributory Pension System (CPS), the Federal Government of Nigeria (FGN) and key stakeholders are working collaboratively to clear all outstanding payments owed to pensioners.
The Acting Director-General of the National Pension Commission (PenCom), Mrs. Omolola Oloworaran, said concerted efforts have reached an advanced stage and are expected to lead to lasting solutions that will resolve the issues of inadequate funding and delays in the release of funds for the accrued pension entitlements of retirees.
Mrs. Oloworaran made this disclosure in a keynote address at the Workshop on Online Enrolment Application for Pension Bureau Officers (PDOs) of Treasury-funded Ministries, Departments and Agencies (MDAs) held on September 17, 2024 in Lagos. The workshop was organised to equip PDOs and Pension Fund Administrators (PFAs) with the requisite knowledge and skills ahead of the 2024 Online Enrolment and Verification Exercise which will commence on October 7, 2024 for prospective 2025 retirees of Treasury-funded MDAs.
The PenCom Director General stressed that the late release of funds to settle accrued pension rights has long undermined the primary objective of the CPS, which is to ensure that retirement benefits are paid promptly. Accrued pension rights under the CPS refer to pension benefits earned by Treasury-funded MDAs prior to the CPS coming into effect in June 2004. These rights are calculated based on the employee's salary and years of service to that point and are paid by the FGN in addition to contributions made under the CPS.
Oloworaran further explained that the current measures are not only aimed at settling all outstanding obligations, but also at establishing a sustainable framework that will prevent payment delays in the future. This will create a more stable financial future for future retirees and give them confidence that their pensions will be paid promptly.
Since automating the enrollment process in 2021, PenCom has made significant progress in improving the efficiency of the pre-retirement verification and enrollment process for Treasury-funded MDAs. The Online Enrollment Application, which has four integrated modules (Retirees Module, MDA Module, PFA Module, and PenCom Module), enables seamless registration, verification, and enrollment of prospective retirees.
Automating the enrollment process has significantly improved the accuracy of data collection, which in turn ensures that PenCom can efficiently determine the accrued pension rights of future retirees. These calculations are critical to the preparation of the FGN’s budgetary provisions for pension obligations due in 2025.
PenCom organised the workshop to provide PDOs with practical training on the Application for Enrolment as part of preparations for the Verification and Enrolment Exercise. The workshop aims to ensure that PDOs are well equipped to provide prospective retirees with the necessary support on the online Application for Enrolment.
“We recognize the important role that pension board officers play in the enrolment process and are committed to supporting them, particularly during occasional downtime in the online enrolment application,” he said. PenCom’s goal is continuous improvement in service delivery so that retirees and taxpayers can receive the best possible experience under the CPS.
As PenCom continues to work closely with stakeholders to settle pension liabilities and strengthen the system, the future looks brighter for retirees under the CPS. The FGN’s commitment to resolve issues related to the delay in the release of accrued pension rights indicates a positive shift towards prompt payment of retirement benefits for this category of employees.
The online verification and enrolment exercise for 2025 retirees of Treasury-funded MDAs will mark another milestone in PenCom’s ongoing efforts to improve the efficiency and effectiveness of pension processes. Through continuous training of PDOs and adoption of new technologies, PenCom is ensuring a seamless online enrolment exercise.
