The implication of the Police Pension Scheme-Odunze Reginald C

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In 2004 Pension Reform Act, the military, and the Nigeria Police Force were all part of the scheme but by 2014 Pension Reform Act, the military which comprises of the Navy, Air force and the Army, the State Security Service, the Defense Intelligence Agency, DIA, the Directorate of Military Intelligence, DMI, Defense industries Corporation of Nigeria DICON, the presidential air fleets etc all left to be part of the Military Pension Board.

This was by the introduction of the Police Pension Fund NPPF, and its subsequent pooling out from scheme.  The president Dr G. E. Jonathan while addressing officers and men of the force had promised them of the intention of the Federal Government to have a special pension fund just for the police, this was intended to boost their moral and give them the necessary ingredient to function effectively.

And the beauty of the arrangement is that the provisions of the National Pension Commission, the pension fund custodian are all existing and will bring a lot to bear on the effectiveness and efficiency of the scheme.

But the underlying defect may be the urge by other Para Military organizations like the Nigeria Immigration Service, Civil Defense, Fire Service, may be canvassing for the set up of their  own pension scheme bearing in mind that the lecturers under the auspices of Academic Staff Union of Universities have been canvassing for their own pension scheme pointing out that they are better equipped to managed their fund judging by the level of experts in investments, banking , financial and pension professions.

But I am of the view that any of such will definitely impact negatively on the scheme. The lecturers are of the view that the military are disciplined and as such their exit signal a bad omen and a disagreement on issues pertaining to the management of the fund. But industry watchers opined that is according to world practice where military pension has been the exclusive right of the Federal Government, adding that military all over the fund are exempted from the scheme as their professional calling indicates that they are trained to ward off external and territorial aggression and may lay their lives for their country in the course of doing that. And having a reliable and adequate pension scheme will augur well to enhancing the welfare while providing for their designate beneficiary or next of kin in the case of a possible loss as a result of death and grievous injury.

The Police Force are also related  to the military , as many have lost their lives in peace keeping mission abroad, armed robbery attack and other issues that bring their lives to risk.

But there is the loss of fund by the PFAs, which will impact seriously on their Fund under management FUM, the Net Assets Value, NAV. The result is that their fund are being depleted as a result of the transfer of these funds to the Police pension fund.

But what happens to the customer service and relationship as they are mandated by law to be in the scheme, hence there may not be adequate plan, schemes to continuously manage these customers, woo them and ensure their maximum satisfaction.

Culled from REGINALD ODUNZE.COM