FG Urged to Pay Outstanding Pension Right to Boost Retirees Benefits

Pension Fund Administrators and the National Pension Commission (PenCom) have expressed optimism that expeditious release of the N97.55 billion accrued Pension Rights owed by the federal government from May 2017 to April 2018 will enhance payment of retirement benefits to pensioners. This is as modalities have been put in place for the take - off of the much awaited micro pension scheme.

The PenCom said at a recent media retreat in Uyo, Akwa Ibom State that pensioners will begin to receive their entitlements as soon the money is released.

“The outstanding accrued rights of federal government employees who retired in 2017 as well as the amount due to those retiring in 2018, have been submitted to the federal government for appropriation in the 2018 budget”, PenCom said.

At a press briefing in Lagos, Monday, the Managing Director Stanbic IBTC Pensions, Eric Fajemision, said that the release of the outstanding accrued rights of pensioners by federal government will enhance the quantum of benefits paid out to pensioners. He said the PFAs are hopeful that the funds will soon be released by the government.

PenCom had noted that based on the positive disposition of the federal government towards settling outstanding pension liabilities, as evidenced by the release of N54 billion in April 2017, it is expected that these liabilities will soon be paid off.

“The Commission served as a member of an Inter-Ministerial Committee, Chaired by the Minister of Finance that was set up by Mr. President to determine the total pension liabilities of the federal government under both the CPS and the Defined Benefits Scheme, and advise the government on the amount required to be provided in the budget to defray the pension obligation.

“The Commission has determined the total pension liability owed to the Contributory Pension retirees due to both the 15 per cent and 33 per cent pension increases of 2007 and 2014 respectively”, said the Director General PenCom, Mrs. Aisha Dahiru -Umar. She stressed the commission’s commitment towards ensuring that retirees enjoy their retirement, further adding that this was the reason for the implementation of the pension enhancement, which is one of the significant milestones attained since the commencement of the CPS.

The pension regulator said the implementation confirms that the Contributory Pension Scheme (CPS) has workable internal mechanisms to respond to legitimate demands of retirees as they seek a reasonable retirement income, stressing that it intends to sustain this periodic review exercise in line with relevant provisions of the law.

Speaking on micro Pension take off, Fajemisin, said the micro pension scheme targeted at the informal sector will soon take off.