Art and Culture

Experts Hail Contributory Pension Scheme as Most Transparent

todayAugust 15, 2022

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James Emejo in Abuja

Experts have taunted the Contributory Pension Scheme ((CPS) as the most transparent pension system in the country’s history.

They said that 18 years down the line, the scheme, which had amassed over N14 trillion in assets remained unique and less risky, and predictable.

They also moved against recent agitations by some public agencies to exit the CPS.

Former President, Trade Union Congress (TUC), Comrade Bobboi Kaigama, and National Chairman, Nigeria Union of Contributory Pension Scheme Sector, Comrade Silva Nwaiwu, therefore, kicked against recent agitations from some government agencies seeking to pull out of the scheme.

Speaking during a televised programme, both, however, expressed their disapproval of the exemption of permanent secretaries, heads of service, Accountants General of the Federation, and other top government functionaries from the CPS.

Kaigama, particularly pointed out that as of 2004 when the administration of former president Olusegun Obasanjo enacted the Pension Reform Act (PRA), it was meant to address the problem bedeviling the pension system then.

According to him, Section 5(1)(a) of the PRA 2014 was derived from Section 291 of the 1999 Constitution of the Federal Republic of Nigeria as amended, which clearly exempts only the Military, Intelligence, and Secret Service.

Also, Section 5 (1)(b) of the PRA 2014 exempted public servants who had three years or less to retire as of 2004 when the CPS was implemented.

Kaigama said so far, the N14 trillion pension assets had been plunged into less risky portfolios, adding that “It develops the Nigeria economy. There is no system that might not have one or two problems.

“This is a system that is well novel, but very laudable. I have never seen a system in this country that is as transparent as the Contributory Pension Scheme.”

He argued that the federal government proposed to spend N577 billion on payments of pension and gratuities in 2022 alone adding that exempting any government agency will further increase the government’s annual budgets for pension and gratuities.

Nwaiwu, however, said the CPS is transparent and should be embraced by every responsible government.

He said, “There is nothing wrong with the Contributory Pension System. Any transparent government anywhere in the world will buy into it. The security of funds is very tight and very transparent.”

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