PenCom worry over low turnout on pension verification
• July 31 deadline looms for pre-2004 civil servants The National Pension Commission (PenCom) is worried by the low turnout in the ongoing mandatory verification and enrolment exercise for civil
• July 31 deadline looms for pre-2004 civil servants
The National Pension Commission (PenCom) is worried by the low turnout in the ongoing mandatory verification and enrolment exercise for civil servants with accrued pension rights, and has moved to enforce compliance as the deadline draws near.
Despite months of planning and a phased rollout, participation has fallen short of expectations, raising fears that thousands of workers risk delays in accessing their retirement benefits.
The exercise, coordinated by PenCom, is for employees of treasury-funded Ministries, Departments and Agencies (MDAs) who were in service before June 30, 2004.
It began on February 2 and is scheduled to end on July 31.
In a bid to reverse the trend, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, directed all MDAs to ensure full compliance.
Under the directive, MDAs are to upload details of eligible staff, while affected workers must complete their enrolment with their Pension Fund Administrators (PFAs).
Officials warned that failure to participate could stall the computation of accrued pension rights and delay payments at retirement.
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The exercise is a key step in clearing pension liabilities inherited from the old Defined Benefit Scheme (DBS), replaced by the Contributory Pension Scheme (CPS) in 2004.
Under the Pension Reform Act 2014, affected workers are entitled to accrued rights, benefits earned before the transition.
Funding for these obligations is drawn from the Retirement Benefits Bond Redemption Fund domiciled with the Central Bank of Nigeria.
To address past bottlenecks, PenCom introduced a digital platform, the Contributions and Bond Redemption Application (COBRA), to handle real-time data capture and verification.
The system, backed by biometric checks and record validation, is expected to eliminate errors that previously slowed pension processing.
Yet, despite the improved system, response has remained sluggish.
The exercise is being implemented in phases, with the current stage covering workers due to retire from 2030 onwards.
But with barely weeks to the July 31 deadline, pressure is mounting on MDAs to mobilise their workforce.
PenCom insists the exercise is critical, not just for accurate data capture, but for ensuring government makes adequate budgetary provision for pension obligations.
