The federal government is considering an additional intervention aimed at improving retirement income for police officers covered by the Contributory Pension Scheme, according to NPF Pensions Limited.
Managing Director and Chief Executive Officer Muhammed Dutse said the proposal was being handled by a presidential committee and remained under development. He declined to disclose details while the process was ongoing.
Dutse said the intervention was intended to narrow the gap between the balances accumulated in Retirement Savings Accounts and the income police retirees eventually receive after leaving service.
He acknowledged continuing dissatisfaction among some pensioners despite recent measures that have improved retirement savings. According to him, the present administration has cleared a backlog of pension contributions that had accumulated for more than 24 months and committed more than N150 billion to pension related obligations and adjustments.
NPF Pensions said it was also expanding programmes intended to prepare officers financially before retirement. One initiative provides temporary resettlement support to retiring personnel while they await the release of benefits through the pension system.
The pension manager has also increased pre retirement seminars covering financial planning and possible income generating activities, including agriculture, poultry and small businesses.
Digital service delivery is another part of the strategy. Dutse said nearly 100,000 customers had been enrolled on the company’s online platform, with regional and customer service offices being encouraged to bring more police personnel into the system.
He said the pension fund administrator was also reviewing its investment strategy following changes in monetary conditions and would consider alternative investments, infrastructure funds and equities alongside conventional fixed income assets.
Dutse said investment returns had been strong over the previous five years, although annual performance varied.
Executive Director for Corporate Services Priscilla Egede Njowusi also urged serving police officers who qualify to use the pension industry’s mortgage provision, which allows contributors to access up to 25 per cent of their Retirement Savings Account balance as equity towards purchasing a home.
NPF Pensions said the combined measures were intended to improve financial outcomes for police personnel before and after retirement, while the proposed federal intervention could provide an additional response to longstanding concerns about the adequacy of police pensions.
