Pension Reform Act (PRA) 2014 Breakdown with comments.
Section 1 – Objective of PRA 2014
Section 1c states that;
(c) ensure that every person who worked in either the Public Service of the Federation, Federal Capital Territory, States and Local Governments or the Private Sector receives his retirement benefits as and when due.
PensionNigeria Comment on PRA 2014 Section 1c
This is the most important objective but its also the hardest objective to achieve, before this objective can be achieved all employers, be it FG, State, LG or Private sector, must remit all their employees pension contributions into their Retirement Savings Accounts (RSA) with their Pension Fund Administrators (PFA).
The last accrued rights released for FG employees is February 2018, PenCom recently said they will soon release up to May 2018 but we have not received any information that this has been done.
State governments are not doing any better in compliance with the Contributory Pension Scheme, based on the report released by PenCom for Q3 2018 only 4 states had commenced remittance of pension contribution, funded accrued rights and also implemented group life insurance for their employees. The remaining states have one thing or the other outstanding.
Local Governments just like the states still have a long way to go, we have frequently received news of non or under payment of pension to LG retirees.
For the private sector, most employers are remitting as at when due and also have group life insurance, but if you work in a private sector organisation (with 3 or more employees) and your employer is not remitting your pension and or they dont have group life insurance for employees, you should not hesitate to report the employer to the National Pension Commission.