President Muhammadu Buhari has approved the payment of some critical aspects of the outstanding pension liabilities of the federal government under the Contributory Pension Scheme.
National Pension Commission (PenCom) made the disclosure in a statement yesterday.
Specifically, the President 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, as well as the back log of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs.
PenCom said the President also approved it’s submission for the 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 pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4(1) of the pension reform act of 2014.
The approval also covers 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 a remittance of at least 18 per cent monthly (employer 10 per cent and employee 8 per cent) as provided by the PRA 2014.
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,” PenCom said in the statement.
It stated that the affected retirees and employees would be notified in due course by their respective Pension Fund Administrators (PFAs).
The settlement of the outstanding accrued pension rights of verified and enrolled federal government retirees and compliance with the reviewed rate of pension contributions are significant development that have resolved the challenges in these aspects that have lingered since 2014.