PenCom to Launch Minimum Pension Guarantee November 10 After 12-Year Delay

By Adedapo Adesanya

The National Pension Commission (PenCom) has announced that the long-awaited Minimum Pension Guarantee will commence on November 10, 2026, 12 years after it was provided for under the Pension Reform Act 2014.

The Director-General of PenCom, Ms Omolola Oloworaran, disclosed this on Thursday at the inaugural National Pension Week Leadership Summit in Abuja, saying President Bola Tinubu is expected to officially launch the initiative alongside PenCare, a national healthcare programme for retirees.

Ms Oloworaran said the Minimum Pension Guarantee would establish a payment floor for low-income retirees, ensuring that Nigerians who contributed to the pension scheme during their working years do not face poverty in retirement.

She, however, did not disclose the minimum payment amount, eligibility requirements or funding arrangements for the programme.

President Tinubu, represented by the Secretary to the Government of the Federation, George Akume, said his administration was committed to implementing the provision, which had remained unfulfilled since the enactment of the pension law in 2014.

The President also announced the launch of PenCare, which will initially provide low-income retirees with access to essential healthcare services.

President Tinubu disclosed that he had approved a N758 billion federal government Pension Bond to settle outstanding accrued pension rights and strengthen the Pension Protection Fund.

Meanwhile, Ms Oloworaran called on private-sector employers to contribute to the funding of the Minimum Pension Guarantee, arguing that the burden should not rest solely on public resources.

She said almost 70 per cent of private-sector employees retire with pensions below the national minimum wage, while more than 55 per cent of retirees receiving below-minimum-wage pensions come from the private sector.

The PenCom chief attributed the situation partly to employers calculating pension contributions on only a fraction of workers’ salaries rather than their full earnings.

She noted that the Pension Reform Act requires a combined contribution of 18 per cent of employees’ pensionable earnings, comprising 10 per cent from employers and eight per cent from employees.

Ms Oloworaran also warned employers against deducting workers’ pension contributions without remitting them, saying the commission would deploy its enforcement powers to recover outstanding contributions.

On expanding pension coverage, she said nine Nigerians remain outside the pension system for every one enrolled, adding that PenCom and pension operators were targeting three million additional funded and active pension accounts within one year.

She said the commission would leverage the Personal Pension Plan, accredited pension agents and digital platforms to bring informal-sector workers, including traders, artisans, farmers and transport operators, into the scheme.

Ms Oloworaran further disclosed that pension assets increased from N20.79tn in July 2024 to N31.8 trillion at the end of August 2026, stressing that the growth must translate into improved retirement security.

She also maintained that Pension Fund Administrators and custodians must complete their recapitalisation exercise by June 30, 2027.