Reps Move To Recover N10tn Pension Funds

The House of Representatives has moved to probe the pension funds’ status and retrieve the N10 trillion lent to the Federal Government.

In a ruling during Tuesday’s plenary, Deputy Speaker Benjamin Kalu mandated the pension committee to investigate the state of the pension fund assets, which total over N15.5 trillion.

 

The motion was raised by Aliyu Misau (PDP-Bauchi State) during the plenary on Tuesday.

Misau emphasized the vital role of the Retirement Saving Account (RSA) as the primary financial lifeline for pensioners, providing for their financial needs in retirement.

He alleged that despite meeting the contributory pension scheme criteria, most pensioners encounter difficulties in accessing their retirement savings.

 

“Aware that the pension fund assets which PenCom regulates, being the proceeds of the contributory pension scheme and returns on investment, stood at more than N15.5 trillion at the close of the first quarter of 2023.

There is no justification for retirees not to have access to their RSA; worried that critical stakeholders have expressed concern that 65 per cent of the funds, which amount to N10 trillion, loaned to the Federal Government is an investment which exposes the contributors to unnecessary volatility as the Federal Government may fail to pay back the loan in due time.

 

“Being unable to access their pension has caused untold hardship to the retirees as they cannot afford even necessities,” he said.

 

Subsequently, the legislative assembly pressed the pension company to guarantee the immediate release of funds necessary for pension payments to all retirees in the country.