Sequel to the granting of licence to the Nigeria Police Force as 21st Pension Fund Administrator (PFA), the management says it expects the transfer of over N300 billion pension contributions of all police personnel from the other 20 PFA which are currently managing the funds in line with the conditions for the licensing of the Police PFA.
The NPF Pensions, which is specially licensed to administer the pension contributions of personnel of the Force under thePensions Reform Act 2014, is already taking steps to receive the funds.
According to Tony Ede, a consultant to the PFA, the company is expected to operate like the other 20 PFAs, within the provisions of the Pension Reform Act and guidelines issued by PenCom.
The pension assets are ringed fence as the contributory funds are kept or in the custody of an appointed pension fund custodian in accordance with the Act.
The NPF Pensions was set up and licensed as a compromise to prevent NPF from exiting the contributory pension scheme. Following the enactment of the PensionReform (Amendment) Act 2011, which exempted the personnel of the military and intelligence agencies, the police and otheragencies brought heavy pressure to bear on the presidency to also beexcluded from the contributory pension scheme.
After careful considerations, following several meetings and consultations, the federal government decided that police personnel remain under the contributory pension scheme, but with special administrative solutions to address the grievances of their personnel within the framework of the scheme.
There are plans to establish representative pension offices in all police formations and commandsin order to provide better services to police personnel.
“All police pension contributions are currently being transferred to First Pension Custodian which has custody of the funds whereas NPF Pensions manages the funds and is required to publish its accounts annually like any other PFA. So the safety net that covers contributors fund in other PFAs is also covering police pension funds,” Ede said.
“There is no doubt that, the members of the Nigerian Police are desirous of owning their PFA in order to serve their unique needs and also use any profits therefrom to improve their welfare”, he added.