Reassurance For Retirees As FG Releases N48.6bn To PenCom For Payment Of Accrued Pension
The Federal Government has released the sum of N48.6bn to the National Pension Commission for the payment of accrued pension rights under the Contributory Pension Scheme.
The money is for the payment of accrued pension rights for 2021 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).
The statement reads, “The National Pension Commission (PenCom) is pleased to announce an additional release of N31.97bn by the Federal Government for the payment of Accrued Pension Rights to 2021 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).
“This follows an earlier release of the sum of N16.67bn, thus bringing the total amount released for payment of the 2021 accrued pension rights to N48.64bn.
“The Federal Government had earlier settled all arrears of accrued pension rights payments to the verified and enrolled retirees up to 30 December 2021.”
The Accrued Pension Rights represents an employee’s benefits for the past years of service up to June 2004, when the Pension Reform Act (PRA) that birthed the Contributory Pension Scheme, came into effect.
The CPS commenced in 2004 with the key objectives to assist individuals to save and cater for their livelihood during old age; as well as establish a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sector
Experts have in the past said that the delay in payment of the accrued rights created a gap that hindered the consolidation of all components of the retirement benefits, which in turn translates into delayed payment of pension after retirement.
President Muhammadu Buhari, had directed the Budget Office of the Federation to include the sums of N12.83bn, N25bn, and N25bn in the budgets of 2020, 2021, and 2022 respectively to settle the outstanding accrued pension rights of Federal Government’s employees.
Buhari had also directed the Minister of Finance, Zainab Ahmed, to ensure that funds are fully released accordingly, and adequate provisions are made subsequently in the annual appropriation for payments of accrued pension rights, and funds release upon approval of Budget.