The National Pension Commission (PenCom) has commenced a review of the Pension Reform Act, 2014, in a move aimed at modernising the country’s pension framework, addressing implementation gaps and improving retirement benefits for millions of Nigerians.
PenCom Director-General and Chairman of the Pension Industry Leadership Council, Omolola Oloworaran, disclosed this on Tuesday while briefing journalists after the council’s third meeting held at Fraser Suites in Abuja.
The quarterly meeting brought together leaders of Pension Fund Administrators, Pension Fund Custodians, Closed Pension Fund Administrators and officials of the commission to assess the performance of the pension industry, review ongoing reforms and outline priorities for strengthening pension administration.
Speaking on the review of the pension law, Oloworaran said the Act, last amended 12 years ago, must be updated to reflect current realities and support reforms being pursued by the commission.
“The reason we are reviewing the Act is to modernise it,” she said.
“Things continue to change, and we continue to introduce reform initiatives that improve the lives of ordinary Nigerians participating in the pension scheme. The whole essence of the review is to ensure the Act reflects today’s realities.”
She said the amendment would also address shortcomings identified during the implementation of the existing law.
“We identified some implementation gaps in the current Act, and we intend to correct them through this review,” she added.
Although she declined to disclose specific amendments, Oloworaran explained that consultations with key stakeholders were still ongoing.
She assured contributors that all proposed changes were designed to strengthen the pension system and improve the welfare of retirees.
“All the amendments being proposed are in the interest of ordinary Nigerians participating in the scheme and are intended to improve their lives,” she said.
Earlier, the PenCom boss said the council deliberated on a number of initiatives aimed at making Nigeria’s pension industry more inclusive, globally competitive and beneficial to contributors.
According to her, discussions focused on improving retirement outcomes, expanding pension awareness and literacy, strengthening the industry’s participation in the capital market and advancing the proposed Pension Industry Infrastructure Fund.
“One thing that was clear from today’s engagement is the need to deliver better outcomes for contributors and ensure that ordinary Nigerians benefit more from the pension scheme,” she said.
Oloworaran also announced that PenCom would hold its maiden National Pension Week from September 15 to 19 to deepen public awareness and understanding of pension administration.
“We have identified a gap in pension literacy and awareness. Several initiatives are being developed to improve public understanding of the pension system, enhance accountability and transparency, and boost participation in the Personal Pension Plan,” she said.
She added that the pension industry would intensify collaboration with capital market operators, noting that pension assets remain Nigeria’s largest source of long-term domestic savings.
The Director-General further disclosed that the proposed Pension Industry Infrastructure Fund was at an advanced stage, while PenCom was introducing a liability-driven investment framework aimed at improving retirement outcomes.
“We will continue to explore both local and global initiatives that can help us achieve our goal of putting more money in the hands of Nigerians and ensuring that retirees enjoy financial security and peace of mind,” she said.
