Pension Fund Operators Press Statement on Exemption of National Assembly Staff from Contributory Pension Scheme provides more details on what is happening & the Implications

Pension Fund Operators Association of Nigeria (PenOp) has released a Press Statement on the exemption of National Assembly staff from the Contributory Pension Scheme.

EXEMPTION OF THE NATIONAL ASSEMBLY STAFF FROM THE CONTRIBUTORY PENSION SCHEME (CPS) – THE NEED FOR A SECOND LOOK

Newspaper reports have come to our attention stating that a “Bill for an Act to amend the Pension Reform Act, 2014, to Exclude/Exempt the National Assembly Service from the Contributory Pension Scheme and Establish the National Assembly Service Pension Board; and for Related Matters (HB 2025)” has recently been passed by the House of Representatives.

The Bill was passed for the second time after it was challenged by some lawmakers initially for breach of due process. Those breaches were not addressed when the Bill was passed for a second time a few days later.

It is pertinent to note that the Contributory Pension Scheme (CPS) has evolved since the Pension Reform Act was passed in 2004 by the National Assembly, following thorough legislative scrutiny and due processes. We are glad to say that it has been one of the most revolutionary pieces of legislation in Nigeria’s history, as it has effectively sanitized the pension industry and contributed immensely to the country’s economy in various ways including job creation, deepening of the financial markets and the funding of infrastructural projects with the pension funds contributed by workers in the pubic and private sectors. The coverage of the Pensioners under the CPS is currently at more than 9 million Nigerians, who have their pension liabilities fully funded unlike the situation in the old defined benefit scheme that always had funding deficits.

Whilst we acknowledge the constitutional responsibility of the legislature to make laws for the good governance of the country, we are not convinced that this bill was passed in “good” faith. We believe that an important bill of this nature, that has wide ranging implications for the finances of the Nation and the future of employees, should go through the standard and due legislative processes. One of such processes is the convening of a public hearing where all stakeholders that are affected by the bill are invited to discuss and make contributions that strengthen the law-making process.

Inclusivity is a critical and required part of lawmaking and unfortunately, for this bill, this process was negated. All the stakeholders like the workers union, labour, Employers of labour, the pertinent regulatory authorities, the Pension Operators and other critical stakeholders were not engaged in the process. We are also aware that some principal officers of the House who normally should oversee the passage of bills were unavoidably absent on both occasions, bringing the integrity of the process into question. We are forced to question whose interests this bill is geared to serve.

There are certainly pertinent questions the public must ask: Why was the bill passed without the crucial input of citizens and critical stakeholders? Was a technical assessment of the implications of the exit of NASS from the CPS conducted and taken into consideration at all?

This bill, if allowed to scale through without the usual due process will set a dangerous precedence in the history of lawmaking in Nigeria. A situation where laid down procedures are brazenly discarded should not be tolerated under any guise. Furthermore, this bill will deal a serious blow on our overall economic development as a country. We therefore call on the Principal Officers of the 9th House of Representatives, led by Mr. Speaker, Rt. Hon. Femi Gbajabiamila, to take a second look at the passage of this bill with a view to reversing the action immediately in the interest of fairness, justice and inclusion which should be the hallmark of every legislative assembly.

Inclusive governance is a fundamental pillar of democracy that the legislature must always strive to uphold. Legislators are elected to enact laws that would serve the generality of Nigerians and not just a privileged few, as this bill seeks to achieve. We therefore, respectfully request that the House holds true to its values by reversing this process and holding a public hearing that enables all stakeholders to participate and contribute their input into this process that has such a fundamental impact on pensioners specifically, and the economy more broadly.

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