Retirement package: Seek salary increment instead of exiting pension scheme, PenCom tells NPF

Aisha Dahir-Umar, director-general, National Pension Commission (PenCom), says the Nigerian Police Force (NPF) has no reason to exit the Contributory Pension Scheme (CPS).

Dahir-Umar said this on Tuesday at the public hearing on a bill to exclude the NPF from CPS and allow a retiree to be paid at least 75 percent of their retirement benefits.

The proposed legislation seeks to amend section 5 (1) of the Pension Reform Act of 2014, to include officers of the NPF as part of the categories of persons exempted from the contributory pension.

Members of the armed forces, the intelligence and secret services are exempted from the scheme.

Speaking at the hearing, the director-general said that the federal government had so far made the CPS sustainable for its workers, including those in the private sector. 

She said the development had led to huge sums of money saved and invested in the country.

She added that the agitations of the NPF could be solved administratively, as leaving the scheme is unnecessary.

“Through the CPS, the government has successfully introduced transparency and efficiency. As such, the attempt for police to leave didn’t start today, and it has been a recurring decimal,” Dahir-Umar said.

“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.

“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 completely efficient.”

Dahir-Umar further said that since 2004, the commission had increased contributions to 18 percent from 15 percent, adding that the Pension Reform Act (PRA) 2014 also allows for additional benefit payment and is not a criminal offence if not paid.

“18 percent is a mandatory minimum that every employer is expected to pay, based on affordability, the employer can do more,” she said.

“The second bill is to amend Sections I (C) 7 (2) 8 (1) 18, 24 and 99 of the PRA CAP50 LFN 2014 providing that a pensioner shall receive at least 75 percent of his/her retirement benefits immediately upon retirement and criminalise undue delay in the payment of Pensions (BR 1000).

“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.

“The operators cannot be criminalised because they can only pay whether the government gives them money, so if they don’t pay, you can’t send them to jail.”

On his part, Femi Gbajabiamila, the speaker of the house of representatives, represented by Peter Akpatason, said that the exercise was to improve the welfare of senior citizens.

“We hope the bill will provide the needed solution, and it is expected that it will enhance the pension industry,’’ Gbajabiamila said.

“I urge stakeholders to critically make inputs that will improve the lives of retirees.”

Baba Alkali, inspector-general of police, represented by Salisu Lemu, deputy inspector-general of police in charge of operations, said the NPF should get equal treatment with the Armed Forces due to unpleasant experiences of officers in the scheme.