President Muhammadu Buhari has approved the submission of the National Pension Commission (PenCom) on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme (CPS).
This development, according to the commission in a statement on Wednesday, will be particularly beneficial to retirees of the treasury-funded Federal Ministries, Departments and Agencies (MDAs) who are yet to get their retirement benefits.
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Payment of 2.5 percent differential in the rate of employer pension contribution for FGN retirees and employees which resulted from the increase in the minimum pension contribution for employers from 7.5 percent to 10 percent in line with Section 4 (1) of the PRA 2014. Payments for retirees and existing employees would take effect from July 2014.
The commission noted that the Federal Government will continue with the payment of the 10 percent rate of employer pension contribution for its employees subsequently, thus ensuring a remittance of at least 18 percent monthly (employer 10 percent and employee 8 percent) 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)”, the statement said.
The commission further informed that the settlement of the outstanding accrued pension rights of verified and enrolled Federal 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 board and management of the commission, reiterates their appreciation to Mr. President for his untiring support and commitment to the implementation of the contributory pension scheme and ensuring welfare of retirees”, the statement said.
