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!
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