PenCom seeks to enhance retirement benefits for police officers, rules out necessity for CPS withdrawal

The National Pension Commission, PenCom, has taken steps to address growing concerns among Nigeria Police personnel regarding their participation in the Contributory Pension Scheme, with the goal of securing better retirement benefits for officers, according to Director-General Omolola Oloworaran.

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Speaking on Tuesday, Oloworaran noted that the police have not withdrawn from the Contributory Pension Scheme, contrary to widespread perception, and that their grievances stem from the disparity between their retirement benefits and those of Armed Forces members.

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Oloworaran stated that PenCom has initiated discussions with relevant government authorities to address police personnel concerns by enhancing pension benefits, and that the commission fully understands and supports efforts to improve the welfare of police officers.

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According to Oloworaran, the primary concern of police officers is to receive improved benefits, comparable to those of the military, and that PenCom is working to achieve this goal, whether within the existing scheme or through alternative means.

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Oloworaran acknowledged that there are differing opinions within the police force regarding the proposed withdrawal from the CPS, with some groups advocating for an exit, while many officers are primarily interested in obtaining better retirement packages.

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The PenCom Director-General dismissed claims that pensioners often face delays in accessing their retirement benefits, emphasizing that retirees with complete documentation receive their entitlements without unnecessary hurdles.

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Oloworaran explained that the commission actively monitors complaints from contributors and pensioners, including those posted on social media, and immediately investigates genuine cases to resolve any issues that may arise.

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To enhance service delivery, Oloworaran announced that PenCom is deploying a Customer Relationship Management platform to create a unified system for receiving, tracking, and resolving complaints from pension contributors and retirees across the country.

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Beyond the police pension issue, Oloworaran expressed expectations that pension enrolment among workers in the informal sector will increase significantly within the next two years as reforms aimed at expanding pension coverage begin to take effect.

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According to Oloworaran, PenCom is laying the groundwork for this expansion by digitizing registration, simplifying enrolment procedures, and licensing Accredited Pension Agents to provide pension services to underserved locations.

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Oloworaran admitted that the commission had initially anticipated faster enrolment under the Micro Pension Plan, but emphasized that sustainable growth requires a strong institutional framework.

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The Director-General assured contributors that pension assets remain secure despite increased investments in the capital market and infrastructure projects, explaining that PenCom's investment regulations prescribe strict conditions for all investments.

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Oloworaran noted that the commission regularly conducts compliance examinations and spot checks on Pension Fund Administrators, while each PFA is supervised by a board investment and risk management committee to ensure adherence to PenCom's regulatory framework.

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Oloworaran defended PenCom's recent policy permitting PFAs to invest in the parent companies of their pension custodians, citing a comprehensive regulatory review that concluded the associated risks are minimal.

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According to Oloworaran, the revised policy broadens investment opportunities in financially strong Tier-1 institutions, such as First Bank, Zenith Bank, and United Bank for Africa, enabling pension funds to benefit from their market performance without compromising contributors' savings.