The National Pension Commission, PenCom, has announced that President Buhari on Wednesday, approved the payment of outstanding pension liabilities of the Federal Government retirees under the Contributory Pension Scheme, especially retirees of Treasury-Funded Federal Ministries, Departments and agencies, MDAs.
This announcement was made in a statement released by Mr Peter Aghahowa, Head of Corporate Commission at the National Pensions Commission, PenCom.
Here is what the statement released by the Commission said:
‘The President has approved payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that retired but are yet to be paid their retirement benefits’.
‘Also, the backlog of death benefits claims due to beneficiaries of deceased employees of treasury-funded MDAs, payment of 2.5 percent differential in the rate of employer pension contribution for Federal Government retirees and employees, which resulted from the increase in the minimum contribution for employers from 7.5 percent to 10 percent in line with Section 4(1) of the PRA 2014, and payments for retirees and existing employees would take effect from July 2014’.
‘It is worthy to note that subsequently, the Federal Government of Nigeria is expected to continue with the payment of the 10 percent rate of employer pension contribution for its employees, thus ensuring a remittance of at least 18 percent monthly (employer 10 percent and employee 8 percent) as provided by the PRA 2014’.
He stated that funds had already been made available for the settlement of the aforementioned pension liabilities, while confirming that the remittance into the various Retirement Savings Accounts, RSAs, of the affected retirees and employees were currently being processed.
He assured that the affected retirees and employees will be notified in due course by their respective Pension Fund Administrators, PFAs.
Hear him: ‘The settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees and compliance with the reviewed rate of pension contributions are significant developments, that have resolved the challenges in these aspects that have lingered since 2014’, he said.
The board and management of the commission expressed their appreciation to President Buhari for his support and commitment to the implementation of the Contributory Pension Scheme and ensuring welfare of retirees.
Recall that the Federal Government approved an increment in pension allowances under the pension scheme, following similar increase in the minimum wage salary structure. The increment took immediate effect and was backdated to April 18, 2019 when the minimum wage was signed into law. It indicated that all affected pensioners will be paid their arrears.
It was relevant stakeholders like the National Union of Pensioners, Pension Transition Administration Department, Budget Office of the Federation, Federal Ministry of Finance, Office of the Secretary to the Federal Government, among others that reviewed and collaborated with the Board of the Commission until they successfully concluded the matter and forwarded the decision to the presidency for approval.
This increment will give the retirees the opportunity to enjoy the fruits of their labour in a country they served for decades.