PenCom reiterates commitment to prompt payment of retirees
By Eberechi Obinagwam
The National Pension Commission (PenCom) has said it will work with the federal government to implement a sustainable solution that ensures retirees receive their benefits promptly and without undue stress.
Omolola Oloworaran, Director General of PenCom stated this on Thursday during a media conference in Lagos with the theme; ‘Tech-Driven Transformation: Shaping the Pension Landscape’,
She said since assuming office, her team have been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimize returns, improving benefits, and expanding coverage to include more Nigerians, especially those in the informal sector.
Speaking on the theme, she said Technology has become the backbone of transformation across all sectors, and the pension industry is no exception.
“At PenCom, we have embraced this transformation wholeheartedly. Today, we have over 10.5 million contributors and oversee pension assets in excess of 21.9 trillion Naira as of October. This progress demonstrates the strength of our contributory pension system, but we are not without challenges. Inflation, for instance, continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.
We also continue to face the persistent issue of delays in the payment of accrued rights. Recently, 44 billion Naira was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023.”
She also hinted on rebranding the Micro-Pension scheme in such a way that will speak to individuals in the private sector directly and address their specific needs.
“The micro-pension initiative, in particular, is something we are very passionate about. It is our way of saying that no one should be left behind, no matter how small their earnings might be. Technology plays a vital role in driving this inclusion, from mobile enrollment to real-time account management to benefits administration. We intend to use technology to scale the micro-pension plan.”
She used the medium to disclose some of their initiatives and achievements.
According to her, this year, 2024, the commission has achieved a milestone with the launch of e-Application Portal for Pension Clearance Certificates (PCC) in October. This initiative she said, replaces the previous manual process, enabling companies to seamlessly apply for and receive PCCs online.
“Since its deployment, we have issued over 38,000 PCCs, significantly enhancing ease of doing business and ensuring compliance.
Additionally, the Pension Industry Shared Service Initiative is in advanced stages of implementation. This initiative will digitize pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details.”
The PenCom DG said to further enhance contributors’ experiences, the commission have introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage. These measures are designed to make retirement processes more efficient and user-centric.
She added that beyond policies and systems, what really excites her is the potential to transform lives. “Every time I meet a pensioner who is able to live comfortably because of the contributions they made during their working years, it reminds me of why this work is so important. And every time I hear from a young entrepreneur or artisan who has signed up for the micro-pension scheme, it strengthens my belief that we are moving in the right direction,” she said.
Also, Obioral Ibezialo, Head, Benefits and Insurance Department, PenCom while delivering a paper on The New Pension Contribution and Collection System said the current situation of Pension remittance is the issue of electronic remittances without schedules. According to him, some employers send schedules without accompanying schedulea for their staffs, leading to unmatched pension remittances which raises concerns about the potential loss of value for Retirement Savings Account (RSA) holders.
He said for the new solution, four PSSP have been selected and engaged to facilitate pension remittances, ensuring that all platforms meet industry specifications. This he said, includes; PayPen by Netline Ltd, Paythru by Pethahiah by Rehoboth International Ltd, Pension Central by Chams and Cyberpay by CyberSpace Ltd .
He added that the new solution would enhance accuracy and efficiency, “By requiring remittances schedules to accompany payments, the accuracy of contributions credited to Retirement Savings Accounts (RSAs) is significantly improved. This reduces the likelihood of unmatched contributions, streamlining the reconciliation process”
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