President Muhammadu Buhari has approved payment of outstanding pension liabilities to retired workers of federal government treasury-funded ministries, departments, and agencies.
The National Pension Commission, PenCom, in a statement on Wednesday, announced that President Muhammadu Buhari’s approval for the payment of outstanding pension liabilities of the Federal Government retirees would be available under the Contributory Pension Scheme, especially retirees of Treasury-funded Federal Ministries, Departments and Agencies, MDAs.
The PenCom management 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 per cent 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 per cent to 10 per cent 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 per cent rate of employer pension contribution for its employees.
“Thus, ensuring remittance of at least 18 per cent monthly (employer 10 per cent and employee 8 per cent) as provided by the PRA 2014. 3.
“Funds have already been made available for the settlement of the above-stated pension liabilities.
“Accordingly, remittance into the various Retirement Savings Accounts, RSAs, of the affected retirees and employees is currently being processed.
“The affected retirees and employees would be notified in due course by their respective Pension Fund Administrators, PFAs.
“The settlement of the outstanding accrued rights of verified and enrolled Federal Government retirees and compliance with the reviewed rate of contributions are significant developments that have resolved the challenges in these aspects that have lingered since 2014.”
As provided by the Pension Reform Act 2014, PenCom said the federal government is expected to continue with the payment of the 10 per cent rate of employer pension contribution for its employees, thus ensuring remittance of at least 18 per cent monthly (employer 10% and employee 8%).
Accordingly, remittance into the various Retirement Savings Accounts, RSAs, of the affected retirees and employees is currently being processed.
The statement added that the Board and Management of the Commission reiterates their appreciation to Mr President for his support and commitment to the implementation of the Contributory Pension Scheme and ensuring the welfare of retirees.
“The affected retirees and employees would be notified in due course by their respective Pension Fund Administrators, PFAs.