Accrued Rights: PFAsYet to Feel Impact of N54bn Released By FG

Ebere Nwoji

Pension Fund Administrators (PFAs) are yet to feel the impact of the N54 billion released by the federal government last year for payment of accrued rights of pensioners for 2016 and 2017.

A reliable source who disclosed this to THISDAY, attributed the development to the non- appointment of board for the pension industry regulator, the National Pension Commission (PenCom), a situation which was said to have been slowing down activities of both the pension fund administrators and PenCom.

The Managing Director/Chief Executive Officer, IEI-Anchor Pensions, Glory Etaduovie, who also confirmed this, said though the fund was said to have been paid, not all PFAs have received it.

He said though the affected PFAs were still hopeful, the delay in releasing the said funds to the pension fund administrators managing the RSAs of those affected, may not be unconnected with lack of board for the regulator.

He said delay in appointment of board for the commission was also affecting the activities of the PFAs.

Before now managing directors of some PFAs had complained that delay in releasing the accrued rights is affecting smooth running of the contributory pension scheme (CPS).

But the federal government had last year, made budgetary provision of N54 billion for payment of accrued rights of its workers and pensioners for 2016 and 2017.

Accrued rights are entitle- ments of workers in pension terms before the advent of the private sector managed contributory pension.

It is pension rights of government workers that were in service before the commencement of CPS.

The CPS enabling laws demands that the government should release the money to PenCom, who in turn releases to the workers or pensioners through the various PFAs managing their RSAs.

But the government has been owing the pensioners in this regard.

Findings showed that since the inception of the CPS, total accrued rights owed by government to workers and retirees amounts to N300 billion. The Acting Director General National Pension Commission, Aisha Dahiru Umar, had said the released fund would boost efforts at clearing outstanding pension liabilities especially the accrued rights of retiring government workers. But some PFAs maintained that they were yet to feel the impact of the released funds.

Etaduovie, while speaking at a forum organised by the National Association of Insurance and Pension Correspondents (NAIPCO), also noted that one of the major challenges facing the CPS despite its success story and advantages was the unwillingness of some state governments and their workers to accept the scheme.