PenCom holds retreat on review of Pension Reform Act 2014, Updated with more info from PenCom

The National Pension Commission (PenCom) organized a retreat on the review of the Pension Reform Act 2014 (PRA 2014) in Abuja, between 12 and 14 January, 2022.

The retreat drew stakeholders from the National Assembly, Pension Fund Operators Association of Nigeria (PenOp), labor unions, employers’ union, the Civil Society Organizations (CSOs) and other key players in the pension industry.

The retreat aimed to identify salient issues to be reviewed in the PRA 2014 as a prelude to advancing legislative action on the Bill. It is expected that the National Assembly would subsequently organize a public hearing in order to provide an avenue for stakeholders to formally make input into the proposed amendments.

The PRA 2014 was enacted following a review of the initial Pension Reform Act of 2004, which introduced legal and institutional frameworks of the Contributory Pension Scheme (CPS) and established PenCom to regulate and supervise all pension matters in Nigeria.

Speaking during the opening ceremony of the retreat held on 12 January, 2022, the Director General of PenCom, Aisha Dahir Umar, informed the participants that the PRA 2014 codified one of the most important socioeconomic reform initiatives of the Federal Government, leading to a pension industry that has accumulated pension assets in excess of N13 trillion invested in various aspects of the Nigerian economy.

She noted that the review is a corollary to some implementation challenges encountered with certain sections of the Act not long after its enactment in July 2014.

This is in addition to persistent calls from stakeholders for the amendment of some sections of the Act, which resulted in several legislative initiatives through the sponsorship of Bills for amendment of the PRA 2014 by the National Assembly.

Consequently, the Commission, as the regulator of the pension industry, decided to coordinate and harmonize the various efforts in order to achieve a more comprehensive and constructive exercise for the review of the PRA 2014.

The Chairman, Senate Committee on Establishment and Public Service, Senator Ibrahim Shekarau, said that the Pension Reform Act 2004 (PRA 2004) was reviewed in 2014 having been implemented for a 10-year period.

Senator Shekarau said the National Assembly and PenCom are being proactive by initiating the second review of the PRA less than 10 years since the first review in response to the dynamism of the pension industry.

He said all laws are never perfect and in the case of PRA, between 2014 and now, several developments have necessitated a review of the legislation.

Furthermore, he stated that since assumption of duty in the Senate, saddled with responsibility for pension matters, he has received several submissions from stakeholders requesting for a review of some sections of the PRA 2014.

He noted that not all the agitations for the review of the PRA 2014 are backed by sound arguments, but they show a need for a review of the pension legislation.

Also speaking at the retreat, the Chairman House Committee on Pension, Hon. Kabiru Alhassan Rurum, stated that attempts were made to review some provisions of the PRA 2014 by the 8th National Assembly, but the process was not concluded owing to some issues.

He therefore expressed the commitment of the Committee in ensuring a diligent review of the PRA 2014 as the retreat provided a valuable input into the process.

Furthermore, the President of the Nigeria Labor Congress (NLC), Comrade Ayuba Wabba, cautioned against policies that will undermine the CPS, including agitations to exempt some employees from the scheme as it may defeat the primary purpose of the CPS.

The President of the Trade Union Congress (TUC), Comrade Quadri Olaleye, represented by an executive member of the TUC, Hafsat Shuaibu, cited the disruptions in the workplace as a result of COVID-19 pandemics, which makes it imperative to review the pension legislation.

On his part, the representative of the Nigeria Employers’ Consultative Association (NECA), Mr. Thompson Akpabio, commended PenCom for the consultative retreat and expressed optimism that the outcome would improve the CPS.

He said the review was apt, as since 2014, there have been several cases on pension matters decided in various courts and that the implications of these decisions should be considered during the review of the PRA 2014.

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