The Motion Sponsor opined that 65% of the pension funds loaned to the Federal Government is an investment, which exposes the contributors to unnecessary volatility.
The House of Representatives has adopted a motion to probe the status of N15.5 trillion in Pension Assets being regulated by the National Pension Commission (PenCom).
It will also probe the status of the N10 trillion loaned to the federal government and efforts being made to recover the funds, which belong to Pensioners.
These resolutions sequel a motion sponsored by Rep. Aliyu Bappa Misau (PDP, Bauchi) at Tuesday’s Plenary.
Presenting the motion, Rep. Misau noted that the pension fund assets which PenCom regulates, were the proceeds of the contributory pension scheme and returns on investment.
He said assets stood at over N15.5 Trillion (Fifteen Trillion, Five Hundred Billion Naira) as of the close of the first quarter of 2023.
Misau, who lamented the difficulties pensioners face in accessing their funds, argued that there is no justification for retirees not to have access to their Retirement Savings Accounts (RSAs).
“Retirement Saving Accounts (RSAs) are the lifeline that pensioners rely upon to cater to their needs upon retirement. However, most pensioners are unable to access their retirement funds despite complying with the requirements of the contributory pension scheme, and neither the National Pension Commission (PenCom) nor the Pension Fund Administrators (PFAs) have been able to reassure them of prompt payment of their entitlements.”
He further explained that 65% of the pension fund (N10 Trillion Naira) loaned to the Federal Government is an investment, which exposes the contributors to unnecessary volatility as the Federal Government may fail to pay back the loan in due time.
In adopting the motion, the House called on the National Pension Commission (PenCom) to ensure the immediate release of funds for the payment of pension funds to all retirees.
It further mandated the Committee on Pensions to investigate the status of the over N15.5 Trillion pension fund assets and ensure that the N10 trillion Naira loaned to the Federal Government from pension funds is duly recovered and modalities are put in place to hinder a collapse of the pension scheme.