The House of Representatives has decided to initiate an inquiry into the pension funds’ status and to retrieve the N10 trillion that had been lent to the Federal Government.
The call was a direct result of the motion brought forward by Aliyu Misau (PDP-Bauchi State) during Tuesday’s plenary, which garnered unanimous support.
Misau stressed the vital role of the Retirement Saving Account (RSA) as the primary financial lifeline for pensioners, providing for their financial needs in retirement.
He claimed that the majority of pensioners, despite meeting the criteria of the contributory pension scheme, encounter difficulties in accessing their retirement savings.
- “Aware that the pension fund assets which PenCom regulates, being the proceeds of the contributory pension scheme and returns on investment, stood at more than N15.5 trillion at the close of the first quarter of 2023,
- “There is no justification for retirees not to have access to their RSA; worried that critical stakeholders have expressed concern that 65 per cent of the funds which amount to N10 trillion, loaned to the Federal Government is an investment which exposes the contributors to unnecessary volatility as the Federal Government may fail to pay back the loan in due time.
- “Being unable to access their pension has caused untold hardship to the retirees as they are unable to afford even necessities,” he said
Subsequently, the legislative assembly pressed the pencil company to guarantee the immediate release of funds necessary for pension payments to all retirees in the country.
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In his ruling, Deputy Speaker Benjamin Kalu mandated the pension committee to investigate the state of the pension fund assets, which total over N15.5 trillion.
He stated that the primary aim was to recover the N10 trillion loaned to the Federal Government from pension funds and to establish precautionary measures to avert any potential collapse of the initiative.
Furthermore, he required the committee to also assess how PFAs have fallen short of fulfilling their commitments to retirees concerning accessing their retirement funds.
Members of the house of representatives should please remove pension fund managers from the prevailing iniquitous pension system in Nigeria.
Public service retiree’s can be paid by a public managed pension office instead pension managers who are using pension funds for their personal gains, while retiree’s are impoverished.