By Rukayat Adeyemi
The Pension Fund Operators Association of Nigeria (PenOp) on Friday faulted the bill passed by the legislature, exempting the National Assembly Service from the Contributory Pension Scheme (CPS).
This is contained in a statement signed by Ms Olajumoke Akinwa, Media, Branding and Communications Lead, PenOp in Lagos.
The News Agency of Nigeria (NAN) reports that both chambers of the National Assembly recently passed a bill for an Act to amend the Pension Reform Act, 2014, to exclude or exempt the National Assembly Service from the CPS.
The bill also seeks to establish the National Assembly Service Pension Board and for Related Matters (HB 2025).
PenOp stated that 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 depends on the CPS for retirement security and stability.
“More particularly, PenOp wishes to express grave concern regarding the way this bill was passed.
“The passage of this bill seems to have been unnecessarily expedited and shrouded in secrecy with very little engagement and input from critical stakeholders because 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.
“If this was done, pertinent issues such as the amendment of retirement age, funding of pension liability and the potential debt burden on government ; all of which are affected by this bill, would have been debated and brought to the fore.
According to the the pension fund operators, the introduction of the CPS 18 years ago in Nigeria marked a departure from the unsustainable pension schemes the country had been operating in the past.
The association explained that the scheme had brought transparency, international best practice and guaranteed peace of mind to millions of pensioners.
It noted that for these reasons and many more, the need for the bill is indeed unfathomable and unjustifiable.
PenOp lamented that the exemption of any agency or group from the CPS holds grave consequences for the nation’s struggling fiscal position.
The pension fund operators said this will potentially upend the retirement security of pensioners who have given their blood and sweat in service to our great nation.
PenOp said: “therefore, without reservations, as a critical stakeholder in Nigeria’s pension industry, we consider the passage of this bill a procedural anomaly and legislative immorality.
” Hence, we call on all well-meaning Nigerians to note this grave anomaly and join us in calling on the National Assembly to reconsider its decision.
“We enjoin the Executive and Judiciary arm of Government to outrightly condemn this action.
” More specifically, we call on the National Economic Council, Minister of Finance, Budget and National Planning, Secretary to the Government of the Federation.
” Also, all relevant government stakeholders to look into this anti-people bill and ensure that it is not signed into law.
” Finally, should this bill proceed to the President, we call on him to kindly refuse to assent to it.
“This is in the interest of the people, the sustainability of the nation’s pension system and the flawed procedure in which this bill went through. (NAN)
