PenCom: Contributory pension scheme reforms have eased challenges faced by employees

The National Pension Commission (PenCom) says reforms under the contributory pension scheme (CPS) have eased challenges encountered by employees.

The commission said this recently in a video message to Nigerians.

The contributory pension scheme (CPS) is an arrangement where both the employer and the employee contribute towards the payment of the worker’s pension at retirement.

In a bid to improve the sector, PenCom said it has implemented several reforms including the recovery of over N10 billion outstanding pension contribution, and the payment of outstanding pension liabilities.

The commission recently approved the increase of monthly pensions for retirees on “programmed withdrawal” under the CPS.

“The online enrollment and verification exercise, multi-fund structure, non-interest fund, retirement savings account transfer system, and data recapture exercise have eased all the challenges that contributors experience,” it said.

PenCom said it has also ensured that all pension fund administrators (PFAs) increase their share capital to at least N5 billion.

“As we speak, the total pension assets in the country has amounted to over N14 trillion and PenCom has launched the new edition of pension enhancement for retirees on programme withdrawal under the contributory pension scheme,” the commission said. 

“The most exciting benefit is that [it is] not only public and civil servants will be enjoying pension in our country; private sector, traders, tailors, fashion designers, shoemakers, civil societies — almost all citizens — can enrol in the pension scheme under the micro pension plan.

“This means that everyone can begin to plan for their lives and in the future, and the national security problem will end in our country.”

PenCom further lauded the federal government for revamping the pension scheme, enjoining Nigerians to make wise use of them.