PenCom gets presidential approval to pay outstanding pension liabilities

The National Pension Commission has received the approval of President Muhammadu Buhari to pay outstanding pension liabilities of retirees of Treasury-funded Federal Ministries, Departments and Agencies.

This was sequel to PenCom’s submission to the President on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme.

Buhari 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.

Approval has also been given for payment of 2.5 per cent differential in the rate of employer pension contribution for Federal Government of Nigeria 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.

The management of PenCom said payments for retirees and existing employees would take effect from July 2014.

According to PenCom: “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.

“The affected retirees and employees would be notified in due course by their respective Pension Fund Administrators (PFAs).”