PenCom denies borrowing FG N10tn

In October, the Home of Representatives adopted a movement mandating its Committee on Pensions to get better N10tn pension funds “borrowed” by the federal authorities.

In an interview over the weekend, Dahir-Umar dismissed the declaration, stating that PenCom was not a financial institution and didn’t warehouse or handle pension funds and that the Federal Authorities didn’t receive a N10tn mortgage from the fee.

She stated, “Investments by the PFAs in the securities of the Federal Authorities of Nigeria usually are not loans as erroneously portrayed, but investments in securities, via bonds and treasury payments, as permitted by the related authorities businesses, in this case, the Debt Administration Workplace and Securities and Trade Fee. They’re traded on authorised capital markets. That’s the Nigerian Trade Restricted and FMDQ OTC Securities Trade.

“Furthermore, pension fund property usually is not managed by PenCom. I’ve stated repeatedly that after we say pension property has grown to N19.6tn, that doesn’t imply PenCom has N19.6tn locked someplace in its workplace or financial institution accounts. Pension fund properties are managed by the licensed PFAs and held in custody by the licensed Pension Fund Custodians.

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Responding to claims that PenCom owed Federal Authorities retirees pension arrears, Dahir-Umar argued that the Federal Authorities had persistently met its reimbursement obligations.

The PenCom DG additionally clarified claims about excellent advantages to Federal Authorities retirees: “The delayed cost of retirement advantages to some Federal Authorities retirees and deceased workers is due to the insufficient and delayed funding for the cost of Accrued Pension Rights for individuals who have been in service earlier than the Contributory Pension Scheme was launched when PenCom was established in 2004.

“Cost of the accrued rights is a topic for launch funds by the federal authorities. So, it’s past the powers of the Fee. Nonetheless, we now have been participating the Federal Ministry of Finance for extra funds to be launched to settle these liabilities, however it’s not a secret that the federal government itself has budgetary constraints.”

She stated that all those enrolled on the CPS had been receiving their benefits via their PFAs, and there was no unresolved criticism earlier than the fee.

The whole property beneath the Contributory Pension Scheme reached N18.36tn by 2023.