The National Pension Commission says the Nigerian Police Force has no reason to exit the Contributory Pension Scheme (CPS).
The Director General, Aisha Dahir-Umar, disclosed this at a public hearing on a bill to exclude the NPF from CPS and allow a retiree to be paid at least 75 per cent benefits upon retirement.
She said the Federal Government has so far made the CPS sustainable for its workers and that of private sector which has led to huge sums of money saved and invested for the country.
The Pencom boss noted that the agitations of the NPF can be solved administratively as the push agitations exit was unnecessary.”
Through the CPS, Government has successfully introduced transparency and Efficiency.
As such, the attempt for police to leave didn’t start today and it has been a recurrent decimal.”
Reason put forward by the police is the quantum of the benefits payable to officers of the force who have retired is small, as such it is a small issue that salary increment can solve,” she said.
She explained that exiting the CPS is not a solution for the NPF because “Pension is a function of salary and as long as the salary of officers continues, then there is no need to exit.“
Acknowledging the challenges of the CPS, it is not perfect because there is no system that is efficient completely” she said.
The Pencom DG noted that since 2004, the commission has increased contributions to 18 per cent from 15 per cent, adding that the Pension Reform Act (PRA) 2014 also allows for additional benefit payment.
“18 per cent is a mandatory minimal that every employer is expected to pay, based on affordability employer can do more adding that the second Bill to “Amend Sections I (C) 7 (2) 8 (1) 18, 24 and 99 of the PRA CAP50 LFN 2014 provides that a pensioner shall receive atleast 75 per cent of his/her retirement benefits immediately upon retirement and criminalise undue delay in the payment of Pensions (BR 1000)” goes against the Nigerian Constitution.
“Section 173 of the 1999 Constitution as amended says everyone who has worked and retired is entitled to periodic payment and the second bill goes contrary to the constitution,” she said.
Mrs Dahir-Umar further said the operators cannot be criminalised because “They can only pay when government gives them money so if they don’t pay, you can’t send them to jail.”
The Speaker, Federal House of Representatives, Femi Gbajabiamila, represented by Representative Peter Akpatason, said the exercise was to improve welfare of senior citizens.
“We hope the bill will provide the needed solution and it is expected that it will enhance the pension industry” he said.
The Chairman, House Committee on Pension, Representative, Kabiru Rurum said the public hearing is to get opinions and provide an avenue for senior citizens to make their submissions.“
I urged stakeholders to critically make inputs that will improve the life of retirees” he said.
The Inspector General of Police, Baba Alkali, represented by the Deputy Inspector General (DIG) of Police in charge of operations, Salisu Lemu, called for equal treatment with the Armed Forces due to unpleasant experiences of officers arising from the scheme.
He said the position of the force is that they should exit and handle their pension funds independently.
The Chief Executive Officer of Pension Operators Association of Nigeria, Oguche Agudah, said it was not sustainable for the Police to exit CPS.
He however, noted that the country has moved from the Defined Benefit Scheme (DBS) and if to return to the scheme, the Federal Government would need a minimum of N2 trillion to cater for the welfare of Policemen.
