… Increases Monthly Payout
THE NATIONAL Pension Commission (PenCom) has announced that organizations failing to meet their pension remittance obligations will be blacklisted effective November 30, 2024.
The Director-General of PenCom, Ms. Omolola Oloworaran, issued the warning during the commission’s second-quarter media briefing held in Lagos on Wednesday.
Oloworaran emphasized that the move reinforces PenCom’s zero-tolerance stance toward non-compliance with the Pension Reform Act (PRA) of 2014. She stated that the commission has launched an uncompromising compliance drive to ensure all organizations — whether public or private, large or small — adhere strictly to pension remittance requirements.
Key Measures Announced by PenCom include mandatory Pension Clearance Certificates (PCCs). By this, all Pension Fund Administrators (PFAs) and Custodians have been directed to ensure that vendors, service providers, and counterparties possess valid PCCs, confirming their compliance with pension contribution remittances.
Entities without a valid PCC by November 30 will be blacklisted and barred from conducting pension-related business with PenCom-regulated institutions.
The directive extends to banks, investment counterparties, parent companies, and shareholders of licensed pension operators.
All pension-affiliated entities must enforce PCC requirements across their operations and submit compliance attestations.
Strong Warning Against Non-Compliance:
Oloworaran declared: “Pension compliance is no longer optional — it is existential. Only organizations that value their employees’ future will be allowed to participate in the pension ecosystem.”
Oloworaran highlighted PenCom’s commitment to restructuring the pension sector to foster a more robust and inclusive system that supports economic development. She referenced the inaugural Pension Industry Leadership Retreat held in May 2024, themed ‘Sustainable Retirement: A Strategic Blueprint for Economic Development and Inclusion.’
Four Key Pillars for Pension Sector Reform:
Infrastructure Financing: Pension funds will be strategically invested in transparent, low-risk, high-impact projects to drive economic growth while ensuring real returns for contributors and retirees.
Legislative Partnership: A Pension Legislature Working Group will collaborate with lawmakers to advance necessary reforms and strengthen the legal framework governing pensions.
Diversification of Pension Assets: PenCom is revising investment regulations to expand access to alternative asset classes while maintaining strict risk management protocols.
Revamped Micro-Pension Scheme (Now “Personal Pension Plan”): The scheme has been re-engineered for scalability, technology integration, and deeper penetration into the informal sector.
PenCom Increases Monthly Pension Payout to N11.9 Billion
In a related development, PenCom has introduced Pension Boost 1.0, an initiative under the Contributory Pension Scheme (CPS) that raises monthly pension payments from N8.3 billion to N11.9 billion, effective June 2024.
Oloworaran disclosed this during the briefing, noting that over 233,000 retirees will benefit from the increase, depending on their Retirement Savings Account (RSA) balances.
Key Highlights of Pension Boost 1.0:
The increase is driven by strong RSA investment performance and economic reforms under President Bola Tinubu’s administration.
A newly modified pension enhancement template ensures transparent and upward adjustments as investment returns improve.
PenCom has nearly cleared the backlog of pension arrears, with all retirees up to March 2025 receiving their accrued rights and monthly entitlements.
Government Support in Clearing Pension Liabilities
Oloworaran commended President Tinubu for approving a N758 billion bond to settle outstanding pension liabilities, describing it as a landmark decision that underscores the government’s commitment to retirees’ welfare.
“Thanks to the President’s decisive leadership, we have seen consistent fund releases for accrued rights since November 2023. The end of pension arrears is in sight,” she stated.
