The National Pension Commission (PenCom) has begun discussions with the Lagos State Government and the Lagos State Pension Commission (LASPEC) over delayed pension increases, wage awards and other outstanding benefits owed to retirees under the Contributory Pension Scheme (CPS).
The development followed a protest by pensioners in Lagos who demanded the implementation of approved adjustments to their retirement benefits, including pension increases, wage awards and accumulated arrears.
The protesters, comprising members of the Nigeria Union of Pensioners and CPS retirees, took their grievances to Lagos House and the Lagos State House of Assembly in Ikeja.
The demonstration reportedly turned tense when police officers fired tear gas to disperse some of the protesters.
In a statement issued on Monday, PenCom acknowledged the concerns raised by the retirees and said it was engaging the state government and LASPEC to resolve issues surrounding the administration of pensions under the CPS.
“PenCom recognises the importance of ensuring that retirees receive all benefits legitimately due to them and appreciates the concerns arising from delays in the implementation of any approved pension adjustments,” the commission said.
According to the regulator, its engagements with the Lagos State Government and LASPEC include discussions on extending appropriate pension adjustments to eligible retirees enrolled under the CPS.
“PenCom has engaged with the Lagos State Government and the Lagos State Pension Commission on matters related to administering pensions under the CPS, including the need to extend appropriate pension adjustments to eligible CPS retirees,” it stated.
The commission explained that pension increases under the contributory scheme could not be implemented through a single administrative step, as several processes had to be completed before adjustments could be reflected in retirees’ benefits.
These processes, PenCom said, include determining the retirees who qualify for the adjustments, establishing the applicable increases, calculating the resulting actuarial liabilities and identifying the funding requirements.
Relevant data and implementation instructions must also be supplied to Pension Fund Administrators (PFAs) and other pension operators responsible for effecting the adjustments.
“Implementing pension enhancements involves determining eligibility, applicable adjustments, actuarial liability, funding, and providing relevant data and instructions to the pension operators,” PenCom explained.
The regulator said it was working with relevant stakeholders to resolve the outstanding issues, but stopped short of announcing when the delayed pension increases, wage awards and arrears would be paid.
PenCom did not give a specific timeline for concluding its engagements with the Lagos State Government and LASPEC, leaving affected retirees without a definite date for when the adjustments would begin to reflect in their benefits.
It said resolving the matter would require cooperation among the Lagos State Government, LASPEC, PFAs and representatives of the affected pensioners.
“PenCom will continue to work with the Lagos State Government, LASPEC, PFAs, and representatives of pensioners toward a transparent, orderly, and sustainable resolution of the issues,” the commission said.
PenCom also reaffirmed its regulatory responsibility to safeguard the interests of pension contributors and retirees participating in the pension system.
The commission said it would continue to deploy its regulatory and supervisory powers to ensure that pension obligations were administered in accordance with applicable laws and regulations.
“PenCom remains committed to protecting the interests of pension contributors and retirees and will continue to exercise its regulatory and supervisory mandate to ensure compliance with applicable pension laws and regulations,” it added.
Under the CPS, retirement benefits are accumulated through contributions into individual Retirement Savings Accounts and managed by licensed PFAs, while PenCom oversees and regulates the pension industry.
For participating state governments, however, the payment of pension liabilities and implementation of benefit adjustments are also linked to the fulfilment of their funding obligations.
The latest intervention therefore places the responsibility for resolving the Lagos retirees’ grievances on a combination of the state government, LASPEC, PFAs and other stakeholders, with PenCom serving as the industry regulator.
