The National Pension Commission (PenCom) and the Trade Union Congress of Nigeria (TUC) are collaborating to advance pension reforms and ensure greater compliance with the Contributory Pension Scheme (CPS).

Director-General of PenCom, Omolola Oloworaran, hinted this during a courtesy visit to the TUC President, Festus Osifo, where she was accompanied by the Acting Commissioner, Technical, Hafiz Ibrahim and other top management staff of the Commission.

She proposed more structured stakeholder engagements between both parties to ensure greater compliance by employers of labour across the country, noting that timely remittances were essential for securing workers’ financial stability in retirement.

Oloworaran emphasised that every employer of labour is obligated under the Pension Reform Act (PRA) 2014 to remit pension contributions on behalf of employees.

The PenCom DG also spoke about reforms underway to address value erosion in pension savings.

According to her, PenCom is working to mitigate the impact of inflation on pension assets.

Oloworaran disclosed that PenCom will unveil a revised Investment Regulation to expand opportunities in alternative investments and deliver better real returns.

In addition, she said that the PenCom is working with the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance on mechanisms that would allow pension investments in naira but generate returns in dollars, as part of efforts to safeguard retirement funds.

Furthermore, she said that PenCom would soon introduce a minimum pension for all retirees under the CPS to guarantee a more dignified retirement for Nigerians.

This, she said, is being enabled by President Tinubu’s approval of a N758 billion bond, which comprises funding for the Pension Protection Fund (PPF), which would fund the minimum pension guarantee.

Osifo pledged the union’s continued support for the Commission, particularly in promoting compliance among employers.

He decried the practice of some employers who deduct workers’ pension contributions but fail to remit them, warning that such delays harm the eventual returns on retirement savings and often lead to industrial disputes.

Osifo further called for a review of the PRA 2014 to introduce greater flexibility in pension fund investments to better protect savings from inflation and exchange rate pressures.