Senior Civil Servants call for accountable administration of Pension Funds

The Federal Government has been urged to always ensure that policies on the administration of pension funds will ultimately translate into financial security for civil servants after retirement.

Some civil servants from the southwest zone of the country under the aegis of the Association of Senior Civil Servants of Nigeria (ASCSN), Nigerian Navy, made the appeal at a seminar, tagged ” Pension Fund Administration and Retirees Benefits.

The seminar organized by the leadership of the association featured presentations by some Pension Fund Administrators, PFAs, who gave assurances that the Pension Fund which has hit over Nineteen -points seven trillion Naira is being properly managed under the strict supervision of the National Pension Commission.

The civil servants who expressed displeasure over some media reports alleging plans by the federal government to borrow from the pension fund appealed for its prudent management and easy accessibility on retirement.

They also called for amendment of the Pension Reform Act, 2014 to increase the lump sum paid at retirement, among other demands.

In an address, the Chairperson of the association, Mrs. Victoria Mbakwo noted that it was important for the government to prioritize issues having to do with workers so that they do not suffer when out of service.

According to her, “The essence of the seminar has been achieved because some of these questions do come to us as leaders and they would expect us to give them a clear-cut answer.

“But one thing that we will have to know is that the Pension fund and the issues that accompany it are what you will experience when you have government policies. Because in every government policy, you will always encounter bureaucracy involved in it. On my part, I used to tell my fellow union members that it is not always the case to ask for minimum wage, some of these salient issues are things we will engage the government on to ensure that we put them on their toes.
“When you carry out policies and those that you are carrying out the policies on their behalf are raising concerns, then the policymakers should actually look at the concerns of these people and see how they can make an adjustment so that those that they are trying to protect would not be seen to be suffering.

We are still going to brainstorm to see if we would be able to ensure that these policies are not draconian in nature, but it will be to the benefit of those that have been made for”, she said.

Mbakwo encouraged Pension Funds Administrators to consistently engage their clients by clarifying grey areas and regularly updating them on the performance of their funds.

“The PFAs are trying, but they are also interested in staying in business. I would advise them to keep engaging their clients, assuring them that when they come for either Program Withdrawal or Annuity, they would be ready to attend to them and it is not something that they would have to stay too much to get”, she said.

In a lecture, the Guest Speaker, Mr. Ade Oluwa who stated that transparency and accountability were key to effective and efficient administration of the Pension Funds, said the PFAs were under obligation to prudently invest the funds for greater returns while making wise decisions that guarantee a secure financial future for workers at old age.

“Transparency and accountability is a crucial aspect of the Pension Reform Act 2014. PFAs should provide regular reports on the funds. They are mandated to prudently invest Pension funds in a diversified manner to maximize returns and minimize risk”.

The speaker explained that the Pension Act has enormous benefits, including “promoting a saving culture among workers and ensuring social and financial security for Nigerians in old age.

He called for more discussions on the administration of the Pension Funds to keep the government in check to avoid undue interference with the pool of funds.

“We need to do more. I think the union still needs to tell the government to be accountable”.

On the media reports that the government was planning to borrow from the Pension Funds, Oluwa said: ” Even now when it’s like we are not sure, I think we should not keep quiet. We should use every means to put the government in check. We should use every means to go against it”.

The spokespersons of the PFAs said that workers could go to sleep with both eyes closed as the pension funds are intact.

According to them, the Act establishing the Funds is so strong that it cannot easily be tampered with by the government.

They however advised that to reduce stress in accessing their gratuity and pensions, civil servants should ensure they update their records through data capturing and verification as they near retirement.

They were also encouraged to embrace voluntary contributions, aside from mandatory contributions, to increase their savings, thereby enabling them to have a bigger payout at retirement.

The spokespersons for the PFAs including Premium Fund Limited, Leadway Pension, FCMB Pension, and IBTC pension gave assurances that they were standing strong and in a good position to deliver top-notch services to their clients. They noted that they had leveraged technology to reach their clients, while also making use of WhatsApp to attend to all their issues in addition to assigning designated account officers to take care of their concerns.

The leaders of some of the unions under the Ministry of Defence, compromising Navy, Air Force, and Army who were in attendance expressed understanding of the subject.

Among the dignitaries was the commandant, of Nigerian Navy Secondary School, Ojo, Lagos.