The Pension Fund Operators Association of Nigeria (PenOp) has described as a dangerous precedent the hurried passage of the bill seeking to remove the National Assembly staff from the contributory pension scheme.
PenOp in a statement signed by the management also raised questions as to the manner the “Bill for an Act to amend the Pension Reform Act, 2014, to Exclude/Exempt the National Assembly Service from the Contributory Pension Scheme and Establish the National Assembly Service Pension Board; and for Related Matters (HB 2025)” was recently and hurriedly passed by both chambers of the National Assembly.
This bill seeks to exempt the National Assembly Service from the Contributory Pension Scheme (CPS), which has been in practice in Nigeria for the last 18 years.
PenOp, the umbrella body for all pension funds administrators, said, “The passage of this bill sets a dangerous precedent that will not augur well for hardworking Nigerians, working across the private and public sector, who depend on the Contributory Pension Scheme (CPS) for retirement security and stability.”
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PenOp reminded that the CPS brought transparency, international best practices and guaranteed peace of mind to millions of pensioners.
“The passage of this bill seems to have been unnecessarily expedited and shrouded in secrecy with very little engagement and input from critical stakeholders—as it was passed during the National Assembly’s recess. Indeed, it is disturbing that this bill did not go through any public hearing, a key component of the legislative process that allows stakeholders to have their voices and opinions heard for possible inclusion in the process,” PenOp observed.
PenOp further stated that “the exemption of any agency or group from the Contributory Pension Scheme (CPS) holds grave consequences for the Nation’s struggling fiscal position and will potentially upend the retirement security of pensioners who have given their blood and sweat in service to our great nation.”
It said the “passage of this bill is a procedural anomaly and legislative immorality.”
It also called on President Muhammadu Buhari to decline assent to the bill.
We call on Mr President “to kindly refuse to assent to this bill in the interest of the people, the sustainability of the nation’s pension system and the flawed procedure in which this bill went through.”
