PenCom Raises Retirees' Health Insurance Income Limit to N150,000, Expands Free Medical Cover
- PenCom raises monthly pension threshold for health insurance eligibility from N70,000 to N150,000 for retirees
- PenCare initiative aims to provide free health insurance to low-income retirees, enrolling over 13,000 so far
- National Pension Week to enhance public awareness while tackling employer compliance on pension contributions
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The National Pension Commission (PenCom) has expanded access to its PenCare health insurance initiative by increasing the income eligibility threshold for retirees from N70,000 to N150,000 in monthly pension payments.
The move is expected to allow thousands more retirees under the Contributory Pension Scheme (CPS) to benefit from free healthcare while providing PenCom with enough participants to effectively assess the pilot programme.
Source: Getty Images
Speaking after the third Pension Industry Leadership Council (PILC) meeting in Abuja, PenCom Director-General Omolola Oloworaran said the revised threshold is designed to boost enrolment and improve healthcare access for pensioners.
More retirees now eligible
The PenCare initiative, launched in March, aims to provide free health insurance for low-income retirees across Nigeria.
According to Oloworaran, the pilot programme targets 30,000 beneficiaries but has so far enrolled only about 13,000 retirees, making it necessary to widen eligibility.
She explained that retirees receiving monthly pensions of N150,000 or below can now enrol and enjoy free health insurance under the scheme.
"We need a critical mass to properly test the system. Running a pilot with just 10,000 people will not give us the results we want," she said.
The PenCom boss stressed that the new income limit is only a temporary measure for the pilot phase and will be reviewed once the programme has been fully evaluated.
Three healthcare packages planned
Beyond the pilot programme, PenCom plans to introduce three healthcare packages tailored to retirees' income levels.
The first package will continue to offer free healthcare for low-income pensioners, while the second will provide a co-payment option for retirees requiring additional medical support.
A third package will enable higher-income retirees to purchase enhanced healthcare coverage at competitive premium rates.
Oloworaran said improving retirees' welfare remains a key priority, with healthcare playing an important role in ensuring financial security after retirement.
Infrastructure fund nears launch
PenCom also disclosed that the proposed Pension Industry Infrastructure Fund has entered an advanced stage of implementation.
According to Oloworaran, pension fund administrators (PFAs) are expected to conclude consultations with their boards and other stakeholders within the next one to two months before taking a final position on the initiative.
The fund is expected to channel part of Nigeria's long-term pension assets into critical infrastructure projects, supporting economic growth while generating sustainable returns for contributors.
Pension awareness, compliance drive intensifies
The commission also announced plans to hold Nigeria's first National Pension Week from September 15 to 19 to improve public understanding of the contributory pension scheme.
In addition, PenCom said it is strengthening enforcement against employers that fail to remit pension deductions, working alongside the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and planning closer collaboration with the Economic and Financial Crimes Commission (EFCC).
Source: Getty Images
Oloworaran added that only eight states currently operate the Contributory Pension Scheme, although Katsina and one South-West state are close to joining.
She said PenCom will continue engaging state governments to ensure more Nigerian workers enjoy secure retirement benefits.
2 pension companies merge, announce new name
Legit.ng earlier reported that two of Nigeria's established pension fund managers, Premium Pension and Trustfund Pensions, have announced plans to merge into a single institution to be known as Premium Trustfund Pensions Limited, in a move that would create the country's third-largest Pension Fund Administrator (PFA) by assets.
The merger notification was published through the Federal Competition and Consumer Protection Commission (FCCPC) and remains subject to regulatory approvals, BusinessDay reports.
Source: Legit.ng
