The senate has passed the bill for the establishment of a
Police Pension Board to exclude the Nigeria Police Force (NPF) from the
contributory pension scheme (CPS) and return the force to the old defined
benefit scheme (DBS).
The upper chamber announced on its Twitter handle on Tuesday
that it had passed the bill, although a 2014 federal government white paper
rejected the agitation and previous attempts had been turned down by the
federal lawmakers.
Under the CPS, both the employee and the employer make
contributions towards the employee’s pension — in contrast with the DBS under
which all the burden is borne by the government.
This had led to unfunded pensions and pile-up of pension
liabilities running into trillions of naira before the Olusegun Obasanjo
administration carried out an industry reform in 2004.
Under the bill passed by the senate, the federal government
will now be fully responsible for police pensions and this is expected to cost
trillions of naira over time.
At the public hearing organised by the senate committee on
police affairs on January 20, 2023, the National Pension Commission (PenCom),
which regulates the industry, the Pension Fund Operators Association of Nigeria
and the Nigeria Labour Congress (NLC) opposed the bill.
Boss Mustapha, who was then secretary to the government of
the federation (SGF), wrote to the inspector general of police reminding him
that there was an SGF circular Ref. 59149/S.1/C.1/11/266 and July 20, 2021
which said the police must be under the CPS and that the directive had not
changed.
Mustapha also referred to the White Paper on the report of
the Presidential Committee on Restructuring and Rationalization of Federal
Government Parastatals, Commissions and Agencies which expressly forbids any
government body, apart from the military and the intelligence services, from
exiting the CPS.
The national assembly also passed a bill recently to exempt
its staff from the CPS.
Former President Muhammadu Buhari assented to on the even of
his departure.
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Who ever envy Nigerian police or have wicked mind and malice against the removal of police from the contributory pension scheme. May Almighty God denied him/her of what he/she wants in this world and in the hereafter. Ameen so shall it be.
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