This article is about the National Pension Commission (PENCOM) salary structure in Nigeria currently in this year 2023. We will focus on the entry-level monthly compensation structure for PENCOM fresh graduates in the country today so that our esteemed readers who are considering working for this top federal government agency can get a sense of the payment structure for new intakes. Please note that the starting monthly wage for PENCOM new employees that will be provided in this post is an estimate, but it falls within that range, with allowances and bonuses greatly increasing the payment. Let us take a closer look at what this federal government parastatal is all about.
NATIONAL PENSION COMMISSION (PENCOM): COMPANY OVERVIEW
Prior to the passage of the Pension Reform Act of 2004, Nigerian pension schemes were plagued by numerous issues. The Public Service had an unfunded Defined Benefits Scheme, and retirement benefits had to be budgeted each year. In light of resource constraints, the annual budgeted provision for pension was frequently one of the most vulnerable items in budget implementation. Even when budgetary preparations were established, insufficient and late delivery of money resulted in delays and accumulation of pension rights payment arrears in numerous cases. As a result, it was clear that the Defined Benefits Scheme could not be maintained.
Many employees in the private sector, on the other hand, were not covered by their employers’ pension plans, and many of these plans were underfunded. Furthermore, the management of the pension funds, where the schemes were funded, was full of malpractices between the fund managers and the pension fund Trustees. This situation forced President Olusegun Obasanjo’s administration to reconsider pension administration in Nigeria. As a result, the administration launched a pension reform to address and eliminate the difficulties linked with the country’s pension programs. The Pension Reform Act of 2004 was signed into law as a result of the reform.
After ten years of implementing pension reform in Nigeria, the Pension Reform Act of 2014 was signed into law to address the issues encountered throughout implementation. New clauses were also included to strengthen the Commission’s abilities to arbitrate issues, as well as provide harsher punishments for breaches. The PRA 2014 addressed difficulties with political office holders’ and professors’ pensions, as well as providing incentives for improving scheme coverage by allowing participants to use a portion of their retirement savings account balances to make equity contributions toward the purchase of a home.
POWER OF THE NATIONAL PENSION COMMISSION (PENCOM)
The Commission shall have the power to:
- Formulate, direct and oversee the overall policy on pension matters in Nigeria.
- Fix the terms and conditions of service including remuneration of the employees of the Commission.
- Request or call for information from any employer or pension fund administrator or custodian or any other person or institution on matters relating to retirement benefit.
- Charge and collect such fees, levy or penalties, as may be specified by the Commission.
- Establish and acquire offices and other premises for the use of the Commission in such locations as it may deem necessary for the proper performance of its functions under the Act.
- Establish standards, rules and regulations for the management of the pension funds under the Act.
Investigate any pension fund administrator, custodian or other party involved in the management of pension funds.
- Impose administrative sanctions or fines on erring employers or pension fund administrators or custodians.
- Order the transfer of management or custody of all pension funds or assets being managed by a pension fund administrator or held by a custodian whose licence has been revoked under this Act or subject to insolvency proceedings to another pension fund administrator or custodian, as the case may be.
- Do such other things which in its opinion are necessary to ensure the efficient performance of the functions of the Commission under the Act.
FUNCTIONS OF THE NATIONAL PENSION COMMISSION (PENCOM)
The National Pension Commission (PenCom) was founded by the Pension Reform Act of 2004 to regulate, monitor, and assure the proper administration of pensions in Nigeria. The functions of the Commission include:
- Regulation and supervision of the Scheme established under the Act.
- Issuance of guidelines for the investment of pension funds.
- Approving, licensing, regulating and supervising pension fund administrators, custodians and other institutions relating to pension matters as the Commission may, from time to time, determine.
- Establishing standards, rules and guidelines for the management of the pension funds under the Act.
- Ensuring the maintenance of a National Data Bank on all pension matters.
- Carrying out public awareness and education on the establishment and management of the Scheme.
- Promoting capacity building and institutional strengthening of pension fund administrators and custodians.
- Receiving and investigating complaints of impropriety levelled against any pension fund administrator, custodian or employer or any of their staff or agents.
- Performing such other duties which, in the opinion of the Commission, are necessary or expedient for the discharge of its functions under the Act.
NATIONAL PENSION COMMISSION (PENCOM) SALARY STRUCTURE IN NIGERIA 2023: WHAT PENCOM PAYS ITS WORKERS
On the average, an entry-level employee at the National Pension Commission (PENCOM) on grade level 8 earns between ₦70,000 and ₦90,000. In addition to their basic salaries, PENCOM workers are eligible for a number of benefits. These benefits, however, are based on factors such as years of experience, location, and current job position.