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The National Pension Commission (PenCom) has commenced a review of the Pension Reform Act, 2014, 12 years after its last amendment, in a move aimed at modernising Nigeria’s pension system, closing implementation gaps and improving retirement benefits for millions of workers.
PenCom Director-General, Omolola Oloworaran, disclosed this on Tuesday after the third meeting of the Pension Industry Leadership Council held in Abuja.
She said the review had become necessary to align the law with current realities and support ongoing reforms in the pension industry.
“The reason we are reviewing is to modernise the Act. Things continue to change, and we continue to come up with reform ideas that improve the lives of ordinary Nigerians who are part of the scheme,” she said.
Oloworaran added that the review would also address shortcomings identified in the implementation of the existing law, noting that consultations with stakeholders were still ongoing before details of the proposed amendments would be made public.
She stressed that all proposed changes were designed to improve the welfare of contributors and retirees.
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The PenCom boss also said the commission was pursuing reforms to make the pension industry more inclusive, strengthen retirement outcomes, expand pension awareness and deepen investments in critical sectors of the economy.
As part of efforts to improve public understanding of the Contributory Pension Scheme, she announced that PenCom would hold its maiden National Pension Week from September 15 to 19.
According to her, the initiative is expected to bridge the country’s pension literacy gap, promote transparency and encourage greater participation, particularly under the Personal Pension Plan.
On compliance, Oloworaran said PenCom would strengthen enforcement against employers who fail to remit workers’ pension contributions, disclosing that the commission would soon partner with the Economic and Financial Crimes Commission (EFCC), in addition to its existing collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
She also revealed that only eight states have fully implemented the Contributory Pension Scheme, while two others are close to joining, warning that workers in states yet to adopt the scheme face uncertainty over their retirement benefits.
The PenCom DG further disclosed that the commission had expanded eligibility for its retiree health insurance pilot scheme from pensioners earning monthly pensions of N70,000 and below to those earning up to N150,000 to increase participation before the programme is fully rolled out nationwide.
