PENCOM Meets NLC, Assures on Safety of Contributors’ Fund

Onyebuchi Ezigbo in Abuja 

The Director General (DG) of the National Pension Commission (PenCom), Mrs. Omolola Oloworaran, has dispelled fears of organised labour and other concerned stakeholders over safety of contributors’ fund.

He assured that contributors’ funds are safe due to inbuilt safety guards in the management and disbursement of the funds.

A statement by the NLC’s Head of Information and Publicity, Benson Upah, said that Oloworaran made the clarification during a courtesy visit to the President of the Nigeria Labour Congress, Comrade Joe Ajaero at his Pascal Bafyau Labour House office, Abuja, last Friday.

The PENCOM DG said that the purpose of the visit was to correct the misunderstanding created by of the past comments, (including exchanges in the media) and to commit to a mutually beneficial relationship as well as to explore ways the two organisations could work together.

She assured that contributors’ funds were safe due to inbuilt safety guards, explaining that funds were not in custody of PenCom but PFAs (Pension Funds Administrators) that manage them.

On the role of the PENCOM board, the DG said the board’s oversight function over the organisation (PenCom) could not be wished away.

The DG however said that PenCom “is committed to transparency and ready to give information on everything”.

Comrade Joe Ajaero in his response went down memory lane to explain that some of Congress’ issues with PenCom predated her appointment and revolved around the non-constitution of the board and weighty decisions taken on behalf of the board by unknown entities in violation of the PenCom Act. 

He noted the consequences were equally weighty not just for contributors but the entire philosophy behind the Contributory Pension Scheme which the Chief Obasanjo-government lobbied hard to put in place to replace the collapsed Defined Benefit Scheme.

He reminded her of how government ignored complaints from Congress including a letter that was totally ignored.

Ajaero expressed dismay that the DG elected to pick up a fight pointing out that taking on the Nigeria Labour Congress unjustly could be a costly venture not only because the Congress is on the board, the funds belong to workers and not government.

He pointed out even when the DG maintained the same course of sidelining the Congress by neither calling nor visiting, Congress took it in its stride.

However, he said there were certain things Congress could no longer ignore, hence its second or third letter which the DG took upon herself to respond to even when clearly the issues were beyond her.

While expressing commitment to the DG’s rapprochement, Ajaero said there were still serious challenges ahead that   their partnership could help   tackle.

These challenges, he said include: the ambiguous status of gratuity in CPS; The shortchanging of contributors by PFAs; the agitation of contributors to return to the Defined Benefit Scheme and non-unionisation of workers in PFAs; non-remittances of contributions by employers/governments.