FAAN allays fear over contributory pension scheme

The Federal Airports Authority of Nigeria has allayed the fear of its staff over the directive from the National Pension Commission that the Authority migrates from the Defined Benefits Scheme run by the Authority to the Contributory Pension Scheme, in line with the Pension Reform Act 2004 of the Federal Government of Nigeria.
The directive, which states, among other things, that staff of FAAN opting to retire under the Defined Benefits Scheme should do so between now and March 31, 2014, implies that anyone who chooses to remain in service after the said date will be migrated to the Contributory Pension Scheme automatically.
The management has however assured the staff that it had written to the NPC for clarification on the exact transition period for the migration and other related issues that have given staff concern, promising to keep all staff abreast of further developments on the issue.
The Authority said, in a memorandum to staff, that it acknowledged the invaluable contributions of her staff to the development of the aviation industry and would therefore continue to maintain its good pension legacy under any approved pension scheme by the government, adding that “management is committed to a fully funded pension scheme for all staff of FAAN retiring under the CPS, including the repayment of all outstanding pension liabilities”.