The Federal Government, through the Office of the Accountant-General of the Federation (OAGF), has released N44 billion to pay federal retirees, according to a statement by the National Pension Commission (PenCom).
This disbursement, drawn from the 2024 budget appropriation for January to June, has been deposited into the Retirement Benefits Bond Redemption Fund (RBBRF) Account at the Central Bank of Nigeria (CBN).
PenCom stated that the funds are intended to partially offset the accrued pension rights of retirees from Federal Government Ministries, Departments, and Agencies (MDAs) funded by the treasury under the Contributory Pension Scheme (CPS).
The statement read:
“The disbursed funds have been applied to settle the accrued pension rights of duly verified and enrolled retirees, covering the period from March to September 2023, as well as some deceased employees. Accordingly, the remittances have been credited directly to the Retirement Savings Accounts (RSAs) of the affected retirees through their respective Pension Fund Administrators (PFAs).”
This development follows assurances from the PenCom Director-General, Ms. Omolola Oloworaran, that the Commission is working towards resolving challenges associated with inadequate funding and delays in disbursing retirees’ accrued pension rights.
The accrued pension rights pertain to benefits earned by employees of federal MDAs prior to the commencement of the CPS in June 2004. These rights represent pension entitlements distinct from the individual contributions made to RSAs under the CPS.
PenCom acknowledged that the delays in settling these rights have caused undue hardship to retirees and undermined the scheme’s objective of ensuring timely payment of retirement benefits.
The statement continued:
“The Contributory Pension Scheme was designed to provide a sustainable and robust retirement savings plan for Nigerian workers. However, delays in the payment of accrued pension rights for Federal Government retirees have been a persistent issue. Recognising the importance of resolving this challenge, PenCom has prioritised engagement with relevant authorities to secure the full settlement of all outstanding liabilities.”
The release of N44 billion marks a significant step towards addressing these challenges. PenCom assured retirees of its commitment to expediting the payment process, instructing PFAs to ensure prompt disbursement of entitlements.
PenCom also expressed gratitude to retirees for their patience and understanding during the prolonged period of uncertainty, reaffirming its dedication to safeguarding their financial future and ensuring the CPS delivers on its promise of timely and adequate retirement benefits.
The Commission pledged to sustain efforts to fully settle all outstanding accrued pension rights for federal retirees.
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