The Nigeria Police Force remains under the Contributory Pension Scheme (CPS), contrary to speculations that the force may be withdrawing from the system following the passage of a bill proposing the establishment of an independent pension board for the police. This clarification was made by the National Pension Commission (PenCom), which stated that the bill has yet to be signed into law and has no legal effect as of now.

In a media briefing to mark her one-year anniversary in office, PenCom’s Director-General, Ms. Omolola Oloworaran, confirmed that the police are still governed by the Pension Reform Act of 2014. She noted that there had been no formal withdrawal from the CPS, and until any amendments to the law are made and assented to by the president, the police will remain part of the scheme.

Key Highlights:

• Pension Benefits Increase: Oloworaran assured police officers that their pension benefits will see a significant increase by next year, as the Commission is working on securing approval for a substantial upward review of police pension benefits. She acknowledged that the grievances of police retirees are legitimate and are being actively addressed.
• Sustainability Over Exit: While the Senate has passed a bill allowing the Nigeria Police Force to withdraw from the CPS, PenCom advocates for reform rather than an exit from the scheme. Oloworaran emphasized that the police, like the military, deserve retirement benefits that reflect the risks they face in their service to the country.
• Equality with the Military: Oloworaran pointed out that military personnel enjoy better benefits than police officers despite both groups facing similar dangers. She stressed that fairness and equity in pension benefits are crucial for both services, particularly as they both sacrifice their lives for national security.

Addressing Police Welfare

PenCom’s intervention comes amid increasing pressure on the Federal Government to reform police welfare, particularly pensions. Over the years, numerous police retirees have expressed dissatisfaction with the current pension scheme, arguing for a return to the old defined benefit scheme. However, pension experts have warned that exiting the CPS could create fiscal instability and undermine the sustainability of Nigeria’s pension system.

The Contributory Pension Scheme has been praised for promoting transparency, accountability, and sustainability in the management of pensions, since its introduction in 2004 and reform in 2014.

Looking Forward

PenCom remains committed to ensuring the timely payment of pensions and is confident that the ongoing efforts will resolve the current issues surrounding police pensions. By next year, it is expected that the controversy around the police pension scheme will have been resolved.