Bill on amendment of Pension Act scales second reading in Senate

A bill seeking the amendment of the Pension Act scaled second reading in the Senate on Wednesday.

This followed debate on the general principles of the bill titled: “The Pension Reform Act 2014 Amendment Bill 2022,” by the sponsor, Senator Aliyu Wamakko, at the plenary.

The bill was read for the first time in the Senate on November 5, 2019.

Wamakko, who led the debate on the matter, said the bill sought to amend the Pension Reform Act 2014, to provide for a definite and reasonable percentage a retiree could withdraw from his/her retirement saving’s account.

He said: “None of us can claim ignorance of the long-drawn-out anguish of retirees from the Civil Service, Nigerian Prison Service, universities and other federal agencies in the country.

“These retirees rather than enjoy retirement after selflessly serving their fatherland, have continued to live in misery and pain, leading to diseases and even death, as they cannot easily access their benefits.

“There is the existence of a Pension Reform Act 2004, which is now amended as Pension Reform Act 2014.

“The Act provides for a departure from the old pension scheme of ‘Defined Benefits’, to the new Contributory Pension Scheme (CPS). It also provides for the set-up of the National Pension Commission (Pen Com).”

READ ALSO: Nigeria’s pension fund hits N12.4tr – PenCom

The former Sokoto governor said the bill sought to provide succour to retirees by addressing delays in withdrawing their savings from Retirement Savings Accounts (RSA).

“It equally provides for a definite and reasonable percentage a pensioner can withdraw from such an account,” he said.

The lawmaker said with N12.78 trillion accumulated savings under the Pension Commission (PenCom)’s control, pensioners should be treated better.

“But the true situation is that only the Pension Administrators are benefitting, while the owners continue to suffer total neglect,” the lawmaker concluded.

In his contribution, the Senate Leader, Yahaya Abdullahi, called for comprehensive reform of the industry.

“This monthly allowance should be reviewed so that the sufferings of retirees in the federal level can be addressed.

“The area the sponsor did not touch is the area of the states. That is where the bulk of the pensioners live and their life has been devastated. Some of them are dead and some are completely neglected.”

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now