Gbajabiamila calls for integrity, transparency in pension fund management
House of Representatives Speaker, Femi Gbajabiamila on Monday in Abuja called for integrity and transparency in the management of pension funds.
Gbajabiamila made the call during a three-day public hearing/investigation held for stakeholders on the non-remittance of pension contributions by employers.
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The public hearing was also to investigate delays of non-payment of pension entitlements to retirees by pension fund administrators, non- adherence and compliance to the provisions of the Pension Reform Act 2014 by relevant government authorities.
The speaker, represented by the House Chief Whip, Rep. Mohammad Monguno said the contributory pension scheme can boost the nation’s economy if well managed.
Gbajabiamila said the smooth operation of the scheme is important so that workers would not retiree and find it difficult to access their retirement benefits.
Chairman, House of Representatives Committee on Pension, Rep. Kabiru Rurum said the public hearing is aimed at finding solutions to the problems confronting the pension scheme.
He said the National Assembly is concerned with the alleged mismanagement of pension funds and ill-treatment of retirees.
Acting Director-General of the National Pension Commission (PenCom), Hajiya Aishat Umar attributed delay in the payment of pensions to federal government employees to the non-payment of accrued rights.
“There are three components of the retirement savings account which are contributions, accrued rights and the yield on investment; they are to be consolidated before payment to retirees,’’ Umar said.
She said the number of pension contributors has grown from 8.14 million to 8.89 million as at December 2019, adding that the total pension fund assets grew from N8.64 trillion as at December 2018 to N10.22 trillion by December 2019 and with an average monthly contribution of N131.69billion in 2019.
She disclosed that more than 308, 298 people have retired under the scheme as at December 2019 and were currently being paid pension.
Umar said there were 957 federal Ministries, Departments and Agencies (MDAs) under the contributory pension scheme, comprising of 845 treasury funded MDAs and 112 self- funded MDAs.
“The federal government is yet to implement the new rate of pension contributions in respect of employees of treasury funded MDAs from a minimum of 7.5 per cent to 10 per cent,” she disclosed.
According to Umar, there are 236, 676 private companies under the scheme, revealing that the commission has developed a framework for recovering unremitted pension contributions with penalty from defaulting employers.
