The House of Representatives on Thursday passed for second reading, a bill for an Act to annul the Pension Reform Act of 2004, and enact the Pension Reform Act of 2013.
Hon. Leo Ogor, the Deputy Leader of the House, who moved the motion for the second reading of the bill, said huge funds belonging to pensioners had been siphoned through fraudulent means due to lapses in the existing law.
According to Ogor, the new enactment would give more powers to the National Pension Commission (PENCOM) to set new guidelines and bring pension management in conformity with present day realities in Nigeria.
In the course of debates on the general principles of the bill, the lawmakers agreed that the existing Act gave room for fraud in the pension management system. The House also argued that the Pensions Department in the office of the Head of Civil Service of the Federation was running a parallel system to the National Pension Commission and that the new enactment would harmonise the management of pension and reduce corruption in the system.
The bill, however provides among other things, an enhanced coverage and informal sector participation in the Contributory Pensions Scheme.