The Chairman of the House Committee on Pensions, Hussaini Jalo, has revealed that the National Assembly is preparing to make changes to the Pension Reform Act (PRA) of 2014. The announcement was made during a stakeholders’ engagement meeting in Abuja, organized by the House Committee on Pensions.
Jalo said the committee is inviting contributions from various stakeholders to identify specific areas that need to be reviewed in the existing law. This move aims to ensure that the amendment addresses current challenges and improves the pension system for retirees across the country.
At the session, the Clerk of the National Assembly, Kamoru Ogunlana, shared the concerns of National Assembly workers who want to return to the Contributory Pension Scheme (CPS).
According to Ogunlana, this request was made in a memorandum submitted to the committee.
He explained that a new law, the National Assembly Service Pensions Board Establishment Act, was passed in April 2023 to set up a separate pension board for National Assembly staff. This act effectively took them out of the CPS under the 2014 Pension Reform Act.
Ogunlana noted that the pension board is not yet active, and recent discussions suggest that both management and staff are reconsidering their position on the pension scheme.
Representing the Director-General of the National Pension Commission (PenCom), Muhammad Muhammad, the Commission’s Secretary and Legal Adviser, said PenCom supports the review of the 2014 Act.
PenCom wants the review to build on consultations held in 2022 to confirm earlier decisions and deal with new issues that have emerged. The proposed changes aim to improve lump sum payments that retirees receive and to make retirement benefits fairer.
PenCom also intends to work closely with both the House Committee on Pensions and the Senate Committee on Establishment and Public Service to ensure the review process is thorough and smooth.
The Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, asked that PTAD be formally recognized as a legal corporate entity in the new law.
Additionally, Mr. Oguche Agudah, CEO of the Pension Fund Operators Association of Nigeria (PenOp), pointed out that since the current act has been in place for over ten years, it needs updating to reflect recent changes in the pension sector.
He said, “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, PenCom.”
Agudah added that the amendment would help expand pension coverage nationwide, noting that currently, only six states have full coverage. He also stressed the importance of ensuring that pension contributions are paid only through recognized platforms.
