Remain with Pension Scheme, PenCom urges Police 

Ms Omolola Oloworaran, Acting Director-General of National Pension Commission (PenCom), has urged the Nigeria Police Force (NPF), to remain with the Contributory Pension Scheme (CPS).

Oloworaran said this during a public hearing on a bill for an Act to establish Police Pension Board, in Abuja on Tuesday.

Oloworaran, represented by the Commissioner of Administration, Dr Farouk Aminu, also reiterated PenCom’s commitment to Police welfare.

She said that pension must be affordable, sustainable and adequate.

“PenCom has consistently proposed practical solutions, including increasing pension contribution rates, offering additional retirement benefits, and implementing periodic pension reviews under the existing CPS framework.

“These measures are designed to enhance the financial well-being of retired police personnel without compromising fiscal discipline or administrative efficiency.

“Notably, the establishment of an Augmentation Fund and the enhancement of the Retiree Resettlement Scheme demonstrate PenCom’s commitment to addressing the unique needs of the police.

“The welfare of Nigeria Police personnel is paramount, the proposed bill is a step in the wrong direction.

“The CPS offers a balanced approach to achieving pension adequacy, affordability, and sustainability,” Oloworaran said.

She said that implementing PenCom’s recommendations was a more viable path to meeting the needs of police personnel while safeguarding the broader national interest.

Oloworaran said that the senate should prioritise those solutions and uphold the principles of Nigeria’s pension reform.

The Chairman, Senate Committee on Establishment and Public Service, Sen. Cyril Fasuyi, said that the bill was to establish a board to oversee Police pension.

Fasuyi said that the committee intended to create an enabling environment for retired police officers.

Fasuyi said that the public hearing provides more information and an opportunity to various stakeholders.

Sen. Sen. Binos Yaroe, who sponsored the bill, said that retired Commissioners of Police take N70,000 while Assistant Superintendents of Police collect about N40, 000 to N50, 000 as pension.

He said that Military, Department of State Service (DSS), Defence Intelligence Agency (DIA) and National Intelligence Agency (NIA) had pulled out of CPS.

He, however, said that the NPF, which is the lead security agency in section 214 of the cconstitution, is left under CPS regulated by PenCom.

This, according to him, places retired police officers on wrong post-service employment in spite of their crucial role.

He said that the matter was not just about the police exiting, but improving their salaries.

“Even if they exit, with a poor salary, their pension will still be poor.

“Towards the end of the ninth assembly, the bill was passed but not signed because we started the process late. That’s why we started the process again early March 19 and July 4.”

The Inspector-General of Police, Kayode Egbetokun, said that the NPF wanted the police pension board established for improved welfare for retired police officers.

Egbetokun was represented by the Deputy Inspector General (DIG) of police, Bala Chiroma.

The National Chairman of Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS), Mr Sylva Nwaiwu, said that CPS should be amended.

Nwaiwu said that CPS was good for the nation, adding that pension increments should always be encouraged.

Alhaji Sani Mustapha, the Executive Director of the Contributory Pension and Happy Retirement Advocacy (COPEHRA), said that CPS had proven to be resilient, transparent and sustainable,

He added that it was also effectively addressing the shortcomings of the previous pension system.

He said that keeping the NPF within the CPS aligns with best practices in pension management, ensuring their financial security while also supporting Nigeria’s broader economic development.

Mustapha said that the transition to a Defined Benefit Scheme (DBS) would introduce significant risks, including fiscal unsustainability, delayed payments and potential economic setbacks.

He said that it was imperative to uphold the principles of equity, transparency and sustainability by maintaining the NPF’s inclusion in the CPS.

“My recommendation is to maintain the current system to safeguard the future of our police personnel and promote a robust economic environment in Nigeria.

“Any challenge that the Police may have in the administration of their pensions under the CPS should be discussed and resolved by PenCom and other relevant Government agencies,” Mustapha said.

The director said that there were many benefits in retaining police in the CPS.

He listed the benefits to include regulation and oversight, security and timeliness, economic independence, transparency and accountability, and alignment with global trends.

“The risks of establishing a separate pension board for DBS includes fiscal burden, lack of autonomy, economic instability and precedent setting,” Mustapha said.