By Dada Ahmed in Lokoja.
Pensioners under the Nigeria Union of Pensioners Contributory Pension Scheme (NUPCPS) have renewed their call on Pension Fund Administrators (PFAs) to pay their outstanding allowances directly into their individual bank accounts.
The pensioners, particularly those on annuity, objected to the planned arrangement under which the PFAs would channel the payments through insurance companies managing their previous annuity funds. They expressed dissatisfaction with the way such companies have handled their funds in the past.
Their demand followed a statement from the national body of the union citing Pencom assuring CPS pensioners that the payment of their long-awaited arrears would commence in November 2025.
The statement titled “Update from Our NUPCPS State Secretary” reads:
“As regards the NEC meeting of yesterday, PenCom will commence the payment of our pending arrears through our PFAs anytime between now and the 15th of this month.”
However, The Reporters gathered while some pensioners expressed sigh over the announcement of the date of commencement of the payment of the allowances, many pensioners, especially those under annuity, are concerned about the implications of the recent clarification jointly issued by the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM).
The circular, referenced PenCom/NAICOM/JCIR/2025/002, dated November 3, 2025, and addressed to Licensed Pension Fund Operators and Retiree Life Annuity Providers, sought to clarify how additional inflows into retirees’ accounts should be treated.
According to the circular, PFAs are required to notify retirees of any additional remittance into their Retirement Savings Accounts (RSAs). It further provides that:
If the additional inflow is ₦100,000 or below, the PFA must remit the full amount directly to the retiree’s bank account.
If the inflow is above ₦100,000 and the retiree’s annuity is already up to 50% of their last salary, the retiree may either receive the inflow as a lump sum or apply it as an additional annuity premium.
If the retiree’s current annuity is less than 50% of their last salary, the PFA must use the inflow to raise the annuity to that threshold before paying out any balance.
The circular, signed by Dr. Talmiz Usman, Director (Legal, Enforcement & Market Development) at PenCom, and A.M. Saleem, Director (Surveillance Department) at NAICOM, directed all PFAs and annuity providers to ensure strict compliance.
Reacting to the development, Florence Onwudiachi, one of the pensioners, said:
“We want our PFAs to pay our arrears directly into our bank accounts. Not one kobo should go to any insurance company. They should continue managing what they already collected after our retirement,” she said.
Another retiree, Mr. Ugolo, urged pensioners to collectively oppose the arrangement.
“President Bola Tinubu saw our pains and decided to wipe away our tears, but some people want to frustrate that effort. We must, in one voice, reject it,” he said.
He recalled that when a previous 2.5 per cent adjustment was paid, some retirees who received about ₦110,000 in additional funds ended up getting only ₦1,500 monthly from insurance companies.
“What can ₦1,500 do for someone above 60 years old? We must not allow that to happen again,” he added.
Another pensioner, Mr. Shuaibu B.A., called for collective action to ensure retirees’ rights are protected.
“Our complaints must go beyond talk. We should seek redress through the National Assembly and appeal to President Tinubu to issue a directive allowing retirees access to 100 percent of their arrears,” he said.
In his submission, Mr. Alhassan Salifu urged the government to review pension benefits to reflect current realities.
“If PenCom and the Federal Government are with their words,they should add ₦32,000 as a general increment to every pensioner’s monthly payment and ensure that the Pension Protection Fund for vulnerable retirees is effectively utilized,” he said.
Also speaking,Glory Ekaette said the recent PenCom circular only reinforces existing provisions of the Pension Reform Act.
“When accrued rights were paid, retirees were supposed to receive at least, 50 percent of their last salary as monthly pension. If additional money enters retiree’s RSA, it should first raise the annuity to that 50 per cent benchmark before any lump sum is paid,” he explained.
The pensioner, however, advised his colleagues to understand the guidelines before taking any action, noting that the directives were long-standing provisions.
