The National Pension Commission (PenCom) has established the PenCare Initiative towards
Sustaining Dignity at retirement through Healthcare Security for retirees across the country.
A presentation by Mr. Ahmed Lawan, Head of Compliance and Enforcement at the PenCom Summit in Lagos stated that the initiative became imperative because rretirees under the Contributory Pension Scheme (CPS) lack structured health insurance.
And post-retirement vulnerability is driven by:
- Termination of employer-based health insurance.
- Inflation (22.97% as of May 2025, CBN) eroding pension value.
- Rising costs of healthcare and living.
- Many retirees deplete savings to fund medical needs, causing financial insecurity and health inequities.
According to Lawan, the vision behind the initiative is to safeguard the well-being, financial security, and dignity of CPS retirees through accessible healthcare while the mission is to build a sustainable, pension-industry-driven health insurance system anchored on corporate social responsibility.
Strategic Purpose:
- Protect retirees from health-induced poverty.
- Reinforce the social responsibility ethos of the pension industry.
- Build public trust in the CPS as a holistic retirement solution
Objectives:
- Provide affordable, comprehensive healthcare access to CPS retirees.
- Cushion retirees against financial hardship caused by unforeseen medical expenses.
- Reduce requests for RSA withdrawals on health grounds.
- Demonstrate the industry’s long-term commitment to contributors’ welfare.
- Enhance the dignity and quality of life for senior citizens.
“PenCare is an industry-driven CSR programme jointly funded by PenCom and LPFOs, designed for retirees only, not from contributors’ RSAs or pension fund assets and represents a collective moral responsibility to give back to Nigeria’s senior citizens.”
CSR Benefits:
- Strengthens the industry’s social impact profile.
- Potential for tax incentives and enhanced public goodwill.
- Establishes a replicable model for other industries.
Eligibility Criteria:
- CPS retirees aged 60+
- Enrolment through PFA or HMO digital platforms.
- Co-pay which has two categories
- Individual Co-pay:
- Retirees that upgrade their care package
- Retirees that are not covered under the current criteria
- Institutional Co-pay:
- Employers willing to pay for health care of its retirees not covered
In terms of implementation, Lawan said the roadmap will run through a phased rollout strategy:
- Phase 1: First phase with 30,000 retirees (across six geo-political zones).
- Phase 2: Full rollout post-pilot evaluation.
Projected Outcomes:
- Access to healthcare for 300,000+ retirees.
- Reduction in out-of-pocket health spending.
- Improved health and quality of life for senior citizens.
- Enhanced trust and reputation of the CPS.
