PenCom DG Refutes Allegations Of N10 Trillion Loan To FG

PenCom DG Refutes Allegations Of N10 Trillion Loan To FG

The Director-General of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has strongly refuted widespread reports claiming that the Commission provided a N10 trillion loan to the federal government……READ ALSO BREAKING: List Of Agencies, Parastatals, Institutions Affected By Tinubu’s Board Dissolution

She also addressed concerns regarding pension arrears owed to Federal Government retirees and allegations of Pension Fund Administrators (PFAs) failing to fulfill their obligations.

In a media interview, Dahir-Umar clarified that PenCom does not function as a bank nor does it manage pension funds directly. She emphasized that the federal government did not receive a loan of N10 trillion from the Commission. Instead, investments made by PFAs in Federal Government securities, such as bonds and treasury bills, are not loans but investments approved by relevant government agencies like the Debt Management Office (DMO) and Securities and Exchange Commission (SEC).

Furthermore, she highlighted that pension fund assets are not managed by PenCom but by licensed PFAs and held in custody by licensed Pension Fund Custodians (PFCs). The PFAs invest pension fund assets in permissible asset classes, including FGN debt instruments, with the aim of ensuring safety and fair returns, as mandated by the Pension Reform Act 2014.

Dahir-Umar emphasized that investing in FGN securities aligns with international best practices, as they offer safety and fair returns. She assured that the federal government has consistently met its repayment obligations for investments in bonds and treasury bills, including accrued interest.

Regarding outstanding benefits for federal government retirees, Dahir-Umar attributed delays to inadequate and delayed funding for the payment of Accrued Pension Rights for those employed before the introduction of the Contributory Pension Scheme (CPS) in 2004. She clarified that payment of accrued rights is contingent upon the release of funds by the federal government and is beyond the Commission’s control.

In conclusion, Dahir-Umar affirmed that all individuals enrolled under the CPS have been receiving their benefits through their PFAs, with no pending complaints before the Commission. She reiterated PenCom’s commitment to engaging with the Federal Ministry of Finance to secure additional funds for settling outstanding liabilities, while acknowledging the government’s budgetary constraints.