The National Pension Commission, PenCom, has been directed to clear of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded Ministries, Departments and Agencies of the government, MDAs.
This payment concerns those 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, explained that this payment followed directive by President Muhammadu Buhari, after approving PenCom’s submission on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme.
The approval covers 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 PRA 2014. Payments for retirees and existing employees would take effect from July 2014.
The agency further said that subsequently, government 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.
The PenCon, confirmed that funds have already been made available for the settlement of the 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). ” it said.
The settlement of the outstanding accrued pension rights of verified and enrolled government 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.
The Commission also appreciated Buhari for his untiring support and commitment to the implementation of the Contributory Pension Scheme and ensuring welfare of retirees.