PenCom Faults Proposed Additional Provision on Pension

The National Pension Commission (PenCom), has faulted the proposed introduction of additional provision on pension in the bill on the devolution of powers currently before the National Assembly in the constitutional amendment exercise. PenCom, in a position paper to this effect made available to THISDAY, described it as unsuitable questioning the appropriateness and motive behind the proposal.

According to PenCom, questioning of the proposal became necessary against the backdrop of the existence of provisions on the subject in the 1999 constitution as well as the fact that there are currently in the public domain, discussions on legislative activities on proposals for reversal of certain aspects of the pension reform embarked upon by Nigeria since 2004.

“A natural starting point for an objective analysis on this subject is an in-depth evaluation of the adequacy of the existing provisions on pensions under the 1999 Constitution (as amended). Indeed, a discerning reviewer of the current provisions would unavoidably draw a conclusion that the subject of pensions has amply been addressed under the 1999 constitution of the Federal Republic of Nigeria (as amended). It is addressed both as an enforceable right accruing to certain categories of employees and also as a persuasive requirement under chapter 2 of the 1999 constitution, dealing with fundamental objectives and directive principles of state policy, which governments at all levels and tiers, are encouraged to observe and apply its provisions for the benefit of all citizens”, the commission stated.

Buttressing its argument on why the proposed amendment is unnecessary, the commission noted that the 1999 constitution provides under Section 16(2) (d) that the state should strive to provide for the citizens a number of social security benefits, including “old age care and pensions”. Consequently, organs of governments at all levels (federal, states and local governments) as well as all public authorities are expected to strive to provide these benefits for all citizens regardless of whether they work under the public or private sectors, formal or informal sectors, or do not work at all.

It however, noted that the provision of Section 16 of the 1999 constitution is only persuasive and not enforceable, having fallen under Chapter 2 of the 1999 constitution dealing with the fundamental objectives and directive principles of state policy.

The commission observed that the 1999 constitution under sections 173 and 210 and in similar wordings, unequivocally elevated public sector pensions to the status of enforceable rights accruing to employees of both the federal and state governments respectively.

It said subject to the provisions of the constitution, the right of a person in the public service of the federation to receive pension or gratuity shall be regulated by law.