PenCom Urges Police to Remain with Contributory Pension Scheme.

Abuja: Ms Omolola Oloworaran, the Acting Director-General of the National Pension Commission (PenCom), has called on the Nigeria Police Force (NPF) to continue their participation in the Contributory Pension Scheme (CPS). Oloworaran made this appeal during a public hearing on a proposed bill aimed at establishing a Police Pension Board, held in Abuja.

According to News Agency of Nigeria, Oloworaran, represented at the hearing by the Commissioner of Administration, Dr. Farouk Aminu, emphasized PenCom’s dedication to police welfare. She outlined that the pension system must remain affordable, sustainable, and adequate. PenCom has consistently suggested practical measures like increasing pension contributions, offering additional retirement benefits, and conducting periodic pension reviews within the existing CPS framework. These initiatives, she noted, aim to improve the financial well-being of retired police officers while maintaining fiscal discipline and administrative efficiency.

Oloworaran highlighted th
e establishment of an Augmentation Fund and enhancements to the Retiree Resettlement Scheme as evidence of PenCom’s commitment to addressing the unique needs of the police. She argued that the proposed bill to create a separate Police Pension Board is counterproductive, as the CPS offers a balanced approach to achieving pension adequacy, affordability, and sustainability. Implementing PenCom’s recommendations, she urged, is a more viable path that aligns with the national interest, and she called on the Senate to prioritize these solutions.

Senator Cyril Fasuyi, Chairman of the Senate Committee on Establishment and Public Service, stated that the bill seeks to form a board to oversee Police pensions, intending to create a conducive environment for retired police officers. The public hearing, he noted, serves as a platform for gathering insights from various stakeholders.

Senator Binos Yaroe, the bill’s sponsor, highlighted discrepancies in police pensions, citing that retired Commissioners of Police receive
N70,000, while Assistant Superintendents of Police collect between N40,000 and N50,000. He pointed out that other security agencies like the Military, DSS, DIA, and NIA have exited the CPS, leaving the NPF, the lead security agency under section 214 of the constitution, still regulated by PenCom. Yaroe argued that the issue extends beyond simply exiting the CPS; it involves improving salaries to ensure better pensions.

Inspector-General of Police, Kayode Egbetokun, represented by Deputy Inspector General Bala Chiroma, expressed the NPF’s desire for a dedicated police pension board to enhance retired officers’ welfare. Meanwhile, Mr. Sylva Nwaiwu, National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme Sector, suggested amendments to the CPS, advocating for regular pension increments.

Alhaji Sani Mustapha, Executive Director of the Contributory Pension and Happy Retirement Advocacy, supported the CPS, describing it as resilient, transparent, and sustainable. He argued that keeping th
e NPF within the CPS aligns with best practices in pension management, ensuring financial security for police personnel and supporting Nigeria’s economic development. Mustapha warned that transitioning to a Defined Benefit Scheme would introduce risks such as fiscal unsustainability and delayed payments, urging the retention of the CPS for the NPF to promote a robust economic environment in Nigeria.

Mustapha further elaborated on the benefits of retaining the police within the CPS, which include regulation and oversight, economic independence, transparency, and alignment with global trends. He cautioned that establishing a separate pension board could lead to fiscal burdens, economic instability, and other risks.