Tue. Jun 28th, 2022

Fed Govt releases N31.97bn for retirees’ accrued pension rights

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The Federal Government has released another N31.97bn for the payment of accrued pension rights to 2021 retirees of Treasury-funded Ministries, Departments and Agencies.

PenCom, in a statement on Thursday titled ‘Federal government releases funds for payment of accrued pension rights under the Contributory Pension Scheme’, said this followed a recent release of N16.67bn in December.

It said, “The National Pension Commission 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.

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“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 December 2020.”

The accrued pension rights represent an employee’s benefits for the past years of service up to June 2004 when the Pension Reform Act that birthed the Contributory Pension Scheme came into effect, according to PenCom.

During a visit by the Senate Committee on Establishment & Public Services to PenCom in 2021, the pension regulator highlighted some of the major challenges of the commission and sought for the support of the lawmakers.

A major challenge according to PenCom was that a large number of Federal Government employees who retired from under the Contributory Pension Scheme had delays in getting their pensions due to non-payment of their accrued pension rights.

“This challenge, which started in 2014, was essentially triggered by the appropriation of insufficient amounts for payment of accrued pension rights of FGN retirees and further aggravated by late or non-release of full appropriated amounts,” PenCom stated.

PenCom urged the National Assembly to intervene in the matter of payment of outstanding pension liabilities of the Federal Government.

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