PenCom, LPFOs earmark over N1bn for 30,000 retirees free healthcare

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Chuks Udo Okonta

The National Pension Commission (PenCom) and Licensed Pension Fund Operators (LPFOs) have saved over N1 billion for the implementation of free health insurance coverage for 30,000 retirees selected from the six geopolitical zones of the country.

The Corporate Social Responsibility (CSR) initiative, which is a pilot project, being sponsored by PenCom and LPFOs tagged PenCare is expected to commence in the first quarter of year 2026.

The initiative is expected to cover low pension earners under the Programmed Withdrawal (PW) monthly pension benefits.

Speaking at the 2025 Annual PenCom Media Retreat in Lagos yesterday, its Director General, Mrs. Omolola Oloworaran, said the scheme is aimed at making pensioners live a good life at retirement, stay fit and healthy, thus, having a long life, noting that, the living conditions of retirees is dear to the pension regulator and indeed the pension industry.

She submitted that every revolution her administration had embarked upon were tilted towards giving values to Retirement Savings Account (RSA) holders and retirees, one of which is the free health insurance scheme.

The Head of Compliance and Enhancement Department, PenCom, Ahmed Lawan, noted that, while PenCom will financially support the initiative, PFAs are mandated to deduct from their Profit Before Tax(PBT) to co-fund the project.

He said, the funds contributed by both parties would then be used to procure health insurance packages from Health Maintenance Organisations(HMOs) in the name of the benefiting retirees.

Assuring that, the health status of retirees is paramount to the pension industry, he said, “we wants our retirees to live long and with this package, they can always take care of their ailment early enough before it weigh them down or becomes a terminal ailment.”

Earlier, the PenCom DG had disclosed that the recently launched Pension Revolution Summit 2.0 is a revolution that will rewrite the history of pension industry after the earlier evolution of the new scheme in 2004.

Aside this, she said, one of the historical moment is approval of N758 billion by President Bola Tinubu’s administration to clear all the outstanding pension liablities, adding that, this development allowed PenCom and the pension operators cleared all backlogs of federal government’s Treasury-funded Ministry, Department and Agencies(MDAs).

Because of this payment, she said, there is now a zero waiting time for payment of pension benefits as soon as a worker retires which makes life easier for pensioners.

Disclosing that the recently approved pension enhancement, specifically for retirees under Programme Withdrawal(PW) window has added over N2 billion in monthly pension payment, he added that, the scheme is fulfilling it promise of putting smile on the face of pensioners.

Moreover, she noted that, with the rebranding of micro pension plans into a Personal Pension Plan(PPP), the process has been simplified for easy onboarding, unlike the cumbersome and rigid requirements it has before now. This time around, what is mainly needed is your National Identification Number (NIN) and some simple documentation as enrolment under this package has been digitaised, she said.

To this end, she stated that, the regulator in partnership with the operators will train thousands of pension agents who will be saddled with the responsibility of deepening PPP and financial inclusion through pension.

Disclosing that contributions through pension compliance enforcement has increased from N150 billion it was in second quarter, 2025 to N232 billion in the third quarter of the year, she promised that her commission will continue to enhance enforcement of the scheme.

Ms. Oloworaran maintained that Pension is migrating from pension regulator to social security provider.