Pension Sector Under Fire as Complaints Mount to Alarming Levels

Despite Nigeria’s pension assets rising to an impressive N17.1 trillion in July, this financial prosperity is shadowed by a growing wave of discontent among pension contributors and retirees due to the mounting backlog of unresolved complaints within the sector.

Contributors and retirees, who shared their grievances, expressed frustration over the sluggish response or complete lack thereof to their complaints. This has sparked concerns that the National Pension Commission (PenCom) might be struggling to cope with the constant influx of grievances.

This unsettling trend is contributing to a growing inclination among various groups and institutions to seek an exit from the Contributory Pension Scheme (CPS) and revert to the old scheme.

Analysis of PenCom’s data, revealing alarming figures. In the first quarter of 2023 (Q1’23), out of 59 complaints related to non-remittance of pension contributions, only nine were resolved, leaving a staggering 84.7% of complaints unaddressed.

The trend continued in previous quarters, with a high percentage of complaints remaining unresolved.

PenCom acknowledges that besides non-remittance of pension contributions, they receive numerous other complaints daily. These encompass issues such as delays in receiving accrued pension rights, requests for resolution of multiple PIN registrations, approval delays for transfers to Retiree Life Annuity (RLA), programmed withdrawal, temporary access 25%, residential mortgage, voluntary contributions, and NSITF, along with delays in data-recapture and RSA transfer-related complaints.

Comrade Bisan Olufemi John, Secretary of the Nigerian Union of Pensioners Contributory Pension Scheme (NUPCPS), emphasized the urgency of enhancing customer service and improving the welfare of pensioners and workers.

He stressed that the government’s ability to address economic challenges hinges on satisfying the needs of both pensioners and current workers.

Malachy Eze, another pension contributor, criticized the pension industry’s slow response to complaints, noting that it negatively impacts the pension scheme.

He called for better opportunities and support for both workers and pensioners, particularly highlighting the issue of group life insurance claims.

Comrade Olagbayo Johnson, a NUPCPS member, expressed disappointment with the Contributory Pension Scheme’s performance, emphasizing the need to address its shortcomings promptly.

As the pension sector thrives, it becomes increasingly imperative to address these pressing concerns and ensure that pensioners and contributors receive the attention and support they deserve. The government’s commitment to prioritizing the welfare of its citizens, both past and present, remains essential for a prosperous economy.