In a recent workshop organized by the National Pension Commission (PenCom) for the Labour Writers Association of Nigeria (LAWAN), the Director-General of PenCom, Aisha Dahir-Umar, revealed that the total pension assets in Nigeria have surpassed N15.58 trillion.
The workshop, themed “Securing the Future:
The Benefits of the Contributory Pension Scheme to the Nigerian Workers,” served as a platform to discuss the significant contributions of the pension scheme to the country’s workforce.
During the workshop, Abdulquadri Dahiru, the Head of Communications at PenCom, represented the Director-General and provided updates on the pension industry.
Dahir-Umar emphasized PenCom’s mission to ensure that Nigerian workers receive their retirement benefits promptly.
Through meticulous regulation and supervision, the commission has fostered continuous growth in pension assets and Contributory Pension Scheme (CPS) membership.
As of March 31, 2023, the value of pension assets reached an impressive N15.58 trillion, while the CPS membership stood at 9.95 million.
In a move to enhance flexibility and accessibility to pension funds, PenCom introduced a policy last year allowing Retirement Savings Account (RSA) holders to utilize a portion of their savings as equity for residential mortgages.
This policy, which acknowledges the challenges faced by individuals in securing adequate housing after retirement, aims to unlock the value of pension savings and facilitate homeownership.
RSA holders who have contributed to their accounts for a minimum of five years and meet specific eligibility criteria can now utilize up to 25 percent of their pension savings as equity toward acquiring residential properties.
The implementation of this policy aligns with PenCom’s commitment to utilizing pension funds as catalysts for economic development and social well-being.
Furthermore, the Contributory Pension Scheme offers support to workers facing job loss.
In the event of unemployment lasting over four months, RSA holders are eligible to access 25 percent of their RSA balance as a means of immediate relief.
It is important to note that this partial withdrawal is not a substitute for retirement benefits but rather a measure to provide support during challenging times, with the remaining balance continuing to accumulate until the holder reaches retirement age.
PenCom remains steadfast in its dedication to safeguarding the interests of workers and ensuring that employers fulfill their pension contribution obligations in a timely manner.
The first quarter of 2023 witnessed the recovery of N384.28 million from 34 defaulting employers, comprising N193.06 million in contributions and N191.22 million in penalties.
Since the commencement of pension contribution recovery efforts in June 2012 until March 31, 2023, the Commission has successfully retrieved a total of N24.53 billion (comprising N12.44 billion in contributions and N12.09 billion in penalties) from employers in default.
The National Pension Commission continues to play a crucial role in fostering the growth and stability of the Nigerian pension industry while ensuring that workers receive the benefits they deserve.
