Key points
- PenCom says discussions are ongoing with Lagos State over pension adjustments for retirees under the Contributory Pension Scheme.
- The commission acknowledged concerns over delays in implementing approved pension adjustments and wage awards.
- Eligibility, funding, actuarial liabilities and beneficiary data must be addressed before approved increases can be implemented.
Main story
The National Pension Commission (PenCom) says it is working with the Lagos State Government and relevant pension authorities to resolve concerns over pension increases for retirees under the Contributory Pension Scheme (CPS).
The commission disclosed this in a statement issued in Abuja on Monday, acknowledging concerns raised by Lagos State pensioners over delays in implementing approved pension adjustments and wage awards.
PenCom said it had engaged the Lagos State Government and the Lagos State Pension Commission (LASPEC) on the administration of pensions under the CPS, including the extension of appropriate adjustments to eligible retirees.
The commission said the process required several issues to be resolved before adjustments could be implemented.
These include determining which retirees qualify, establishing the applicable adjustment, calculating the resulting actuarial liabilities, securing the necessary funding and validating relevant beneficiary data.
PenCom said appropriate instructions would also have to be issued to Pension Fund Operators (PFOs) to enable them to implement any approved adjustments effectively.
It said it was engaging the relevant stakeholders to ensure the required processes were completed properly.
The commission said the engagement would involve the Lagos State Government, LASPEC, Pension Fund Administrators (PFAs) and representatives of pensioners.
PenCom assured retirees that it was working to ensure eligible beneficiaries received all benefits legitimately due to them.
It also reaffirmed its regulatory and supervisory responsibility over the CPS, saying it would continue to ensure compliance with applicable pension laws and regulations.
The issues
The immediate concern for Lagos pensioners is the delay in implementing approved pension adjustments and wage awards under the CPS.
However, PenCom’s statement indicates that implementing an increase involves more than announcing a new pension amount.
Authorities must first establish which retirees are eligible, determine the applicable adjustment, assess the financial liability involved, provide funding and ensure that beneficiary records are accurate.
Pension Fund Operators must then receive the necessary instructions to implement the adjustment.
This means the ongoing engagement between PenCom, Lagos State and other stakeholders is intended to resolve both the financial and administrative requirements surrounding the proposed enhancements.
What’s being said
PenCom acknowledged the concerns of Lagos State pensioners and assured eligible retirees that it was working to ensure they received benefits legitimately due to them.
The commission said the objective of its engagement with the state government, LASPEC, PFAs and pensioners’ representatives was to achieve a “transparent, orderly and sustainable resolution” of the issues.
What’s next
PenCom and the Lagos State Government are expected to continue discussions on the proposed pension adjustments.
The relevant authorities will need to establish eligibility, determine applicable adjustments, address actuarial liabilities and funding, validate beneficiary data and provide implementation instructions to Pension Fund Operators.
Bottom line
PenCom says the process of addressing pension increases for eligible Lagos CPS retirees is still ongoing.
While the commission has acknowledged pensioners’ concerns over delays, implementation will depend on resolving the eligibility, funding, actuarial and administrative requirements needed to give effect to the approved adjustments.
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