By Victor Ahiuma-Young 

The National Pension Commission, PenCom, has promised to intensify engagement with state governments over pension shortfalls, disclosing that compliance with the Contributory Pension Scheme, CPS, remains low across the country.

The Director General of PenCom, Ms. Omolola Oloworaran, said that although some states have shown relatively higher compliance with the CPS, the major concern lies in the inadequacy of pension payments to retirees. She explained that discussions are ongoing with state governments to establish a minimum pension benchmark that aligns with current cost-of-living realities.

Addressing reports that certain states were awaiting implementation templates before proceeding with pension reforms, Ms. Oloworaran said the commission would immediately engage the affected states to resolve any issues and provide necessary guidance. 

She noted that delays in implementation may be due to miscommunication rather than deliberate non-compliance.

On the level of adherence to the CPS at the state level, the PenCom boss revealed that only eight states are currently compliant, though at varying degrees. 

She noted that the commission has adopted engagement as its primary strategy, with its zonal offices and executive management intensifying outreach to state governments to drive improved compliance.

Ms. Oloworaran expressed optimism that sustained dialogue would lead to better outcomes but noted that alternative measures could be considered if engagement efforts fail. She stressed, however, that PenCom’s ultimate goal is to ensure retirement security and peace of mind for pensioners nationwide.

She reaffirmed the commission’s preference for moralsuation (cooperation) over confrontation, emphasizing that constructive collaboration with state governments remains key to strengthening pension administration and safeguarding the welfare of retirees.