SUPERVISION OF THE FEDERAL GOVERNMENT PENSION DEPARTMENTS

  SUPERVISION OF THE FEDERAL GOVERNMENT PENSION DEPARTMENTS
UNDER THE PRA 2004

CHALLENGES AND PROSPECTS

„  A presentation by:

„  Abbo Mamman

„  Public Sector Pensions Department

„  OUTLINE

„  Introduction

„  Supervisory Purview

„  Supervision of Federal Government Pension Schemes

„  Recent Initiatives

„  Questions?

„  Introduction

„  The PRA 2004 provided for the following:

„  Introduced CPS for existing workers

„  Exempted those that had 3 years to retire from the CPS

„  Recognized obligations to existing pensioners

„  Allowed the continued existence of Pension Boards & Offices as Pension Departments to administer pension & benefits of exempt persons/existing pensioners

„  REGULATORY/SUPERVISORY PURVIEW

„  The Commission has regulatory oversight over all pension matters in Nigeria

„  The Commission’s supervisory purview also covers the DBS operated by the PDs

„  Supervision of federal government pension schemes

„  The P-A-Y-G Scheme is currently in two categories:

„  DBS administered by Pension Departments

„  Insured Schemes of Parastatals

„  Both categories are funded by budgetary allocations

„  Insured schemes - administered by BOTs of the institutions while funds are released through insurance companies

„  The arrangement is in violation of the PRA 2004

„  Supervision of federal government pension schemes

„  Efforts underway to terminate the schemes and cut over to direct payment:

„  Determination of number of pensioners involved and their entitlements

„  Commencement of direct payment to pensioners and reconciliation of government releases to insurance companies and payments from insurance companies to BOTs

„  Dissolution of BOTs – Sec. 43 (1) & 99 (2)

„  Weak regulatory framework

„  Loopholes in the legal framework – Sec. 30 (1) & (2)

„  Enshrined corruption, bureaucracy and lack of transparency

„  Inconsistent support from the Executive and Legislature (budgets, etc.)

„  Collaboration with the Pension Departments, largely ineffective

„  Supervision of federal government PENSION schemes CONT’D.

„  The framework for operation of PDs jointly developed was never implemented by the PDs

„  Only one (MPB) out of the 5 PDs rendered regular returns until its exit from the CPS

„  Preliminary assessment of each PD identified gaps in the following areas:

„  Structure

„  Staffing

„  Database and records management

„  ICT infrastructure

„  Supervision of federal government PENSION schemes CONT’D.

„  Efforts by the Commission at ensuring that the PDs maintained robust database was sabotaged at high levels

„  No recourse to 2006 verification exercise coordinated by the Commission

„  Uncoordinated and incessant pensioner verifications by the PDs without recourse to the Commission

„  Government support through annual budgetary allocations for pensioners’ verifications 

„  Supervision of federal government PENSION schemes CONT’D

„  Numerous complaints keep pouring in from pensioners – non/short-payment of pensions

„  Requests by the Commission for the resolution of such complaints, largely ignored and not treated

„  Efforts under way to strengthen the regulatory framework:

„  Strengthening the legal framework - amendment of the PRA2004

„  Streamlining the structure of the PDs to consolidate the Commission’s supervisory focus

„  Adjusting the operational structure within the PDs to remove incentives for corruption and enhance transparency

„  Recent initiatives

„  Following acceptance by Government, the Commission has commenced the process of establishing the PTADs – Fed. & FCT

„  Milestones achieved include:

ü  completion of the project planning

ü  design of the organizational structure and manning levels

ü  stakeholder engagement strategy and plan

ü  diagnostic review of the Police and Civil Service Pension Offices

Questions?

Thank you!