For policemen, officers, there is life after service

Police Pension is a controversial issue. But, Police spokesman Chief Superintendent of Police (CSP) Frank Mba, in this piece, argues that a lot has been done to guarantee sweet retirement for officers and men 

Day and night, in peace as in times of crisis, they toil in spite of the elemental forces of the sun, heat, wind, rain and other adverse weather conditions. Herculean indeed is the task of providing effective security and safety for their beloved country and people. Yet, it is true that nothing borders these unsung heroes and long-suffering Policemen as much as their retirement benefits.

These worries are not unwarranted against a long and bitter history, better to be forgotten – a history of pension funds embezzled by corrupt civil servants, of gratuity and other emoluments not paid at all or paid belatedly in meaningless bits and pieces, or of Police retirees dying in endless queues while awaiting their benefits. Arguably, as the bitter groans and ululations of unhappy retirees from other Parastatals and agencies did demonstrate, the pain and anguish suffered then were not limited to Policemen alone, it was a general malaise. This state of affairs compelled the Federal Government to enact the Pension Reform Act (PRA), 2004 which replaced the old public sector operated Defined Benefit Scheme with the present Contributory Pension Scheme.

Of course, the present scheme is miles away better than the old one and many literatures have been written in praise of the Federal Government for this. Equally commendable are the efforts tailored towards making the Scheme better. However, even under the present scheme, some of the complaints raised above still persist. These include: under-payment of retirement benefits, low remittances and in some cases non-remittance of Pension contributions as well as undue administrative protocols deliberately created by some Pension Fund Administrators (PFAs).

This paper therefore, is at once celebratory as it is, as well, an attempt to tell the true story on why the Nigeria Police Force opted to have its own limited liability company, the NPF Pension Limited which is to operate as a Pension Fund Administrator to exclusively manage the Pension contributions of the personnel of the Force.

In view of the above observations and desirous of an exemption from the Contributory Pension Scheme (CPS) just as was done for the Military and the Department of State Services (DSS), the Nigeria Police Force approached the Federal Government but that request was turned down, ostensibly because it was argued that since the Police Force commands the largest staff strength, having over 300,000 officers and men, its exiting from the scheme will be counter-productive and adversely affect the financial stability of the scheme. The Force however did not give up the fight and subsequently, the Federal Government directed that administrative solutions be adopted to address the genuine grievances of the Police within the framework of the pension law.

In line with the Federal Government’s directive therefore and in compliance with relevant provisions of the PRA 2004, the Police High Command then set up the NPF Pensions limited which subsequently applied to the National Pension Commission (PenCom) for license to operate as a PFA, exclusively for the Force, in order to address the peculiar concerns of Police officers.But like the proverbial camel passing through the eye of a needle, the task was tortuous and seemed insurmountable. In fact, the road to the accomplishment of this feat was strewn with thorns and thistles but NPF Pensions Limited overcame it all. The Commission felt satisfied that NPF Pension Limited had met all the stringent conditions required and therefore granted it an Approval-in-Principle (A-I-P) for a license to operate as a PFA.

Indeed, there is a strong reason to celebrate the Approval-in-Principle (A-I-P) granted which has qualified it for a license to operate as a Pension Fund Administrator that will exclusively manage the pension contributions of the personnel of the Nigeria Police Force. Needless to say that Police Pension Funds are funds meant to settle officers and men of the Nigeria Police upon retirement, in line with the Pension Reform Act (PRA) of 2004.

Some commentators on pension matters have however expressed fear and uncertainty that the setting up of the NPF Pensions Limited and granting it an Approval-In-Principle (A-I-P) for a license to manage the pension contributions of Police personnel will constitute a major threat to the N4 trillion pension assets, in view of the safety and professional management of the fund. What an unwarranted and misplaced fear!

In one of its recent publications, the National Pension Commission (PenCom) painstakingly addressed these concerns. It explained in very lucid and concise terms that there were no bases for such doubts and fears in view of the fact that the management and custody of Pension assets are respectively undertaken by separate licensed operators, namely the PFAs and Pension Fund Custodians (PFCs) under the strict supervision of the Commission. Expatiating further on the matter, PenCom made it distinctly clear that first, only the administration of RSAs of Police personnel is being transferred to NPF Pensions Limited and not cash since the money will remain in the custody of licensed PFCs. Second, that it has designed an operational framework guiding the re-assignment of Personal Identification Numbers (PINs) and transfer of records of all Nigeria Police Contributors to the NPF Pensions Limited in eighteen months period.

It is worth mentioning however, that in spite of the fact that the NPF Pensions Limited was established by the Nigeria Police Force, it is nonetheless, a limited liability company independently managed by experienced professionals who have been certified as ‘fit and proper persons’ by the Commission. Besides, the Nigeria Police have never been involved in Pension Fund mismanagement or embezzlement. Rather, they have been the victims who have suffered severely because some Federal civil servants entrusted with their Pension Funds had stolen their money. However, blaming the victims for woes they did not inflict on themselves, is at best an unkind cut and an injustice of the worst kind! As earlier stated, one of the reasons the Police Force opted to have its PFA is to right the wrongs of the past and prevent a repeat of becoming perpetual victims in our country.

Our history of excellent management of corporate entities is incontestable. Companies such as NPF Microfinance Bank Plc, NPF Mortgage Bank Plc, NPF HMO and NPF Multipurpose Cooperatives Limited which have been operating profitably over the years under the relevant regulatory agencies are proudly owned by the Police. The NPF Microfinance PLC is quoted on the Nigerian Stock Exchange and is the undisputed and widely acknowledged best Microfinance Bank in the Country.

It needs be stated that the setting up of the NPF Pensions Limited is worthy of celebration. Its operation offers an average Policeman a sense of fulfillment as issues relating to his job and career would be ably addressed to suit his peculiar needs. Firstly, it will help to address the issue of multiple registrations peculiar with existing PFAs. Secondly, it will ensure uniformity in contribution and accurate remittance of pension retirement benefits to all retirees under the scheme.

Thirdly, in all Police Commands there will be Pension desks, manned by officers, which will be integrated electronically with the NPF Pensions Limited to enable easier and faster transactions between Police officers and their PFA. No doubt, this will facilitate prompt payment of retirement benefits with little bureaucratic processes.

Fourthly, it will afford commensurate returns on investments arising from operational profits which NPF Pensions Limited can make and this will be ploughed back to improve Police welfare.

Fifthly, NPF Pensions Limited will provide another opening for job opportunities for Nigerians, thereby helping to tackle the problem of unemployment and other social ills, including crimes often associated with lack of decent jobs.

Furthermore, it is also easier to identify Police officers who have Retirement Savings Accounts (RSAs) such that payouts would be made to the true beneficiaries only and thus help to eliminate fraud. Also, there is a measure of assurance with regards to the security of funds which are now in the custody of a licensed Pension Fund Custodian (PFC). As a matter of fact, the setting up of NPF Pensions Limited is a win-win situation for all the relevant stakeholders – the Federal Government, PenCom, NPF Pensions Limited and other PFAs, Police personnel and the general public.

Finally, as we draw our curtain on this write up, we wish to express our immense gratitude to all those who have in one way or another assisted the Inspector-General of Police, IGP MD Abubakar, CFR, NPM, mni, psc along with his Management Team in his golden, trailblazing innovations and unprecedented welfare measures, among which the setting up of the NPF Pensions Limited has become the icing on the cake, cautiously designed to make the lives of the officers and men of the Force better. Now, more than ever before, the officers and men can proudly and patriotically serve their country knowing that, indeed, after service, there is life!