Pension: PenCom refunds N6.04b to military employees
Following the exit of the Military and Security Agencies from the contributory pension scheme established by the Pension Reform Act 2004, the National Pension Commission (PenCom) says it has refunded N6.04 billion being employees’ contributions and accrued interest to 39,474 serving employees of the Military.
After clamouring for exemption, the Military was eventually allowed to exit from the contributory pension scheme in January 2012 because the legislators at the National Assembly found out that they are usually exempted in most countries of the world.
In the latest report by the PenCom, the regulatory authority in the nation’s pension industry disclosed that it refunded N6.04 billion employees contributions and interest thereon to 39,474 serving employees of the Military and Department of State Security who have complete employment and Retirement Savings Account (RSA) details.
The commission also informed that it was still working on the RSA records of the remaining 68,553 employees of the Military, for onward refund of pension contributions into their RSAs.
It would be recalled that at a joint parliamentary session of the National Assembly in 2011, a resolution was passed to remove out right, members of the Nigerian Armed Forces from the Contributory Pension Scheme. Consequently, the Military Services Pay Offices stopped sending the personnel’s contributions to the Pension Fund Administrators (PFAs) managing their RSAs.
Based on this, military retirees, hitherto under the Contributory Pension Scheme being supervised by PenCom, were brought back to the Defined Benefit Scheme under Military Pension Board with effect from January 2012.
The refund of military employees’ contributions by PenCom is coming one year after their exit from the Contributory Pension Scheme.