FG Releases N16.7bn For Accrued Pension Rights

The Federal Government has released N16.67 billion for payment of accrued pension rights under the contributory pension scheme, the Director-General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar has said.

Mrs. Dahir-Umar, who made this known yesterday in a statement, said the money is for the payment of accrued pension rights for 2021 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).

She said government had earlier settled all arrears of accrued pension rights payments to the verified and enrolled retirees up to December 2020.

Meanwhile, President Muhammadu Buhari had approved PenCom’s submission on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government to its employees under the Scheme.

PenCom said Buhari had earlier approved payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that retired, but were yet to be paid their retirement benefits, as well as the back log of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs.

Payment of 2.5 per cent differential in the rate of employer pension contribution for FGN retirees and employees which resulted from the increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4(1) of the PRA 2014 were also approved.

PenCom has since transferred monies for retirees and existing employees from July 2014 to their various PFAS.

Mrs. Dahir-Umar said 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.