In a statement on Thursday, PenCom said in providing a stable, timely, predictable, and adequate source of retirement income for employees in the public and private sectors, the commission had introduced the contributory pension scheme .
In addressing the complaints, the commission said “the CPS provides a comprehensive framework that allows employers and employees to plan and save towards pensions”. “The 18 percent contribution rate stipulated under section 4 of the PRA 2014 is only a legal minimum and is shared between the employer and the employee in the ratio of 10 percent and 8 percent, respectively,” the commission explained.
According to the bureau, 15 percent of the DBS fund was released in 2007. In 2010, 33 percent was disbursed; while a ‘consequential adjustment’ was made in and 2019.“Meanwhile, the FGN did not provide funds to pay pension increases for eligible retirees under the CPS. federal government of Nigeria employees who were employed before June 2004 are entitled to accrued pension rights,” PenCom explained.
The agency said Nigeria needs to institute zero pillar pensions in the form of a social security benefit, which is recognised and provided for under section 16 of the Constitution of the Federal Republic of Nigeria 1999 .