The National Pension Commission has opened discussions with the Lagos State Government and the Lagos State Pension Commission to address concerns over delayed pension increases and wage awards for retirees under the Contributory Pension Scheme.
PenCom disclosed this in a statement issued on Monday following concerns raised by pensioners in Lagos State over delays in implementing approved adjustments to their retirement benefits.
The intervention came as pensioners under the Nigeria Union of Pensioners and the CPS staged a protest at Lagos House and the state House of Assembly in Ikeja, demanding the implementation of pension increases, wage awards, outstanding arrears and other benefits.
The demonstration became tense after police officers reportedly fired tear gas to disperse some of the protesters.
The commission said it recognised the financial importance of ensuring that retirees received all benefits due to them and acknowledged concerns arising from delays in implementing pension adjustments.
“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 statement said.
According to the pension regulator, engagements are ongoing with the Lagos State Government and LASPEC over the administration of pensions under the CPS, particularly the extension of appropriate adjustments to eligible retirees.
“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 development comes amid concerns among Lagos retirees over the implementation of pension increases and wage awards, with affected pensioners seeking clarity on when adjustments would be reflected in their benefits.
PenCom explained that implementing pension increases under the CPS required several processes before payments could be made.
It listed the processes to include establishing which retirees qualified for the adjustments, determining the applicable increases, calculating the actuarial liabilities arising from the changes and identifying funding requirements.
The process also requires the provision of relevant data and instructions to Pension Fund Administrators and other pension operators responsible for implementing the adjustments.
“Implementing pension enhancements involves determining eligibility, applicable adjustments, actuarial liability, funding, and providing relevant data and instructions to the pension operators,” the commission explained.
It added that it was engaging relevant stakeholders to ensure that the outstanding processes were properly resolved.
The commission, however, did not provide a timeline for the conclusion of the engagements or indicate when affected retirees could expect the pension increases and wage awards to be implemented.
PenCom said resolving the matter would require collaboration among the state government, LASPEC, PFAs and pensioners’ representatives.
“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 statement added.
The commission also reiterated its responsibility to protect workers and retirees participating in the pension system, saying it would continue to exercise its regulatory and supervisory powers to ensure that pension obligations were administered in accordance with existing laws.
“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 said.
Under the Contributory Pension Scheme, retirement benefits are funded through contributions accumulated in individual Retirement Savings Accounts and managed by licensed PFAs, while PenCom regulates and supervises the pension industry.
For state governments participating in the scheme, the payment of pension liabilities and implementation of benefit adjustments depend partly on the fulfilment of funding obligations by the respective governments.