PenCom raises PenCare eligibility to N150,000 monthly pension, targets wider retiree health coverage

THE National Pension Commission (PenCom) has increased the income eligibility threshold for its PenCare pilot programme, allowing retirees who earn monthly pensions of up to N150,000 to benefit from the free health insurance initiative, compared with the previous limit of N70,000.

The commission said the decision is aimed at expanding participation in the pilot scheme and improving access to healthcare for retirees under the contributory pension scheme (CPS). Speaking after the third Pension Industry Leadership Council (PILC) meeting in Abuja on Monday, PenCom Director-General, Ms Omolola Oloworaran,  said the revised threshold would help the commission gather enough data to properly evaluate the programme.

Launched in March, the PenCare initiative is designed to provide free health insurance for low-income pensioners nationwide. According to Oloworaran, the pilot targets 30,000 retirees but has enrolled only about 13,000 beneficiaries, prompting the commission to widen eligibility.

She explained that retirees receiving monthly pensions of N150,000 or less are now eligible to participate in the pilot scheme, stressing that the adjustment is temporary and will be reviewed once the pilot assessment is completed.

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Oloworaran noted that expanding the income limit is intended to ensure the programme reaches a sufficient number of participants to accurately test its effectiveness before nationwide implementation.

She disclosed that PenCom plans to introduce three healthcare packages after the pilot phase. The first package will continue to offer free healthcare for low-income retirees, while the second will operate on a co-payment basis for pensioners requiring additional medical support. The third package is expected to provide enhanced healthcare coverage for higher-income retirees through competitive premium payments.

She reaffirmed that improving the welfare of pensioners remains a key priority for the commission as it develops initiatives to strengthen retirees’ healthcare and financial wellbeing.

On pension investments, Oloworaran said the proposed pension industry infrastructure fund has reached an advanced implementation stage. She said PenCom and pension fund administrators (PFAs) have agreed on a framework that will enable long-term pension assets to finance infrastructure development, with PFAs expected to conclude consultations with their boards and stakeholders within the next one to two months before taking a final decision.

She said discussions at the PILC meeting centred on improving outcomes for contributors and retirees while positioning the pension industry to play a stronger role in supporting economic growth through increased collaboration with capital market operators.

Oloworaran also announced that PenCom will hold its first National Pension Week from September 15 to 19 to improve public understanding of the contributory pension scheme and promote pension literacy across the country.

The PenCom chief further revealed that only eight states currently operate the contributory pension scheme, warning that workers and retirees in states yet to implement the scheme could face challenges in accessing their retirement benefits.