Barely two years after a bill that was passed at the twilight of the Buhari administration, which removed the workers of the National Assembly Service (NASS) from the Contributory Pension Scheme (CPS), they are currently seeking a return to the scheme.
The National Assembly Service Pensions Board (Establishment) Act, enacted in April 2023, created a separate pension board for NASS personnel, effectively removing them from the CPS under the Pension Reform Act (PRA) 2014.
With the implementation of the NASS Pension Board Act yet to commence, recent developments suggest a shift in perspective amongst the assembly’s management and staff.
The Clerk of the National Assembly, Kamoru Ogunlana, made the disclosure during a stakeholders’ engagement on the review of the PRA 2014 organised by the House of Representatives Committee on Pensions in Abuja.
Represented by an official of the assembly, Ogunlana explained the service’s interest in rejoining the CPS in a memorandum submitted to the committee.
Chairman of the House Committee on Pensions, Hussaini Jalo, while declaring open the engagement, stated the need to amend the PRA, which was last reviewed in 2014, urging stakeholders to outline potential review areas for the committee’s consideration.
The engagement brought together key stakeholders, including PenCom, the Pension Transitional Arrangement Directorate (PTAD), Nigeria Employers’ Consultative Association (NECA), Pension Fund Operators Association of Nigeria, the Military Pensions Board, and the Nigerian Police Force, among others.
The session was part of a consultative process to inform the stakeholders about the proposed amendment to the PRA 2014 and the committee affirmed its commitment to fast-track the review process to align the legislation with current realities and stakeholders’ expectations.
In a memorandum submitted during the session, the National Pension Commission (PenCom) acknowledged the need to review the PRA 2014, noting that such a review had commenced earlier, PenCom recommended revisiting the resolutions reached during the stakeholders’ consultations in 2022 to validate earlier positions and address emerging concerns.
It also expressed support for proposed amendments aimed at improving lump sum payouts for retirees, in response to widespread calls from stakeholders, assuring that the commission supported a holistic review of Sections 7(1) and (2) of the Pension Reform Act 2014 to address issues around retirement benefits and ensure a more equitable framework for retirees.
PenCom further pledged to collaborate with the committee, as well as the Senate Committee on Establishment and Public Service to ensure a seamless and comprehensive review process.
The Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah, while contributing on why PRA should be amended, stressed that the act is over 10 years old and due for a review due to critical developments in the pension sector.
He noted, “The review is for sustainability and economic development so that the pension sector operators can continue investing, and also to ensure the independence of the regulator, which is the National Pension Commission.”;;
Agudah explained that the review is targeted at ensuring nationwide coverage and growth, as only six states have total coverage.
