Reps to probe N15.5trn pension assets, recover N10trn from FG

The House of Representatives is set to investigate the status of N15.5 trillion pension assets being regulated by the National Pension Commission (PenCom). It will also probe the status of the N10trn loaned to the federal government and efforts being made to recover the funds that belong to pensioners. Daily Trust investigation however shows that […]

The House of Representatives is set to investigate the status of N15.5 trillion pension assets being regulated by the National Pension Commission (PenCom).

It will also probe the status of the N10trn loaned to the federal government and efforts being made to recover the funds that belong to pensioners.

Daily Trust investigation however shows that what the House of Representatives describes as a loan is actually the totality of Pension funds Administrators’ (PFAs) investments in federal government Bonds.

The FGN Bonds are considered the safest of all investments in the domestic debt market because it is backed by the ‘full faith and credit of the Federal government.

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The move by the house follows the adoption of a motion moved by Aliyu Bappa Misau (PDP, Bauchi) at the plenary on Tuesday.

Presenting the motion, he said the pension fund assets that PenCom regulated were the proceeds of the Contributory Pension Scheme and returns on investment.

According to him, it stood at more than N15.5trn as of the close of the first quarter of 2023.

Misau said, there is no justification for retirees not to have access to their Retirement Savings Accounts (RSAs).

The lawmaker said, “Retirement Saving Accounts (RSAs) are the lifeline that pensioners rely upon to cater to their needs upon retirement.

“Most pensioners are unable to access their retirement funds despite complying with the requirements of the CPS, and neither PenCom nor the Pension Fund Administrators (PFAs) have been able to reassure them of prompt payment of their entitlements.”

According to him, critical stakeholders have expressed concern that 65 per cent of the pension funds (N10trn) loaned to the federal government was an investment that exposed the contributors to unnecessary volatility as the federal government might fail to pay back the loan on time.

The house, therefore, urge the National Pension Commission (PenCom) to ensure the immediate release of funds for the payment of pension to all retirees.