President Muhammadu Buhari has approved for payment some critical aspects of the outstanding pension liabilities of the federal government under the contributory Pension Scheme .
The beneficiaries are retirees of treasury-funded federal ministries, department and agencies (MDAs) which were submitted by PenCom that 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.
The presidential approval also guaranteed payment of 2.5% 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% to 10% in line with Section 4(1) of the PRA 2014. Payments for retirees and existing employees would take effect from July 2014.
Included in the approval is the federal government compliance with PRA 2014 demand that employers contribution for its pension employees should not be less than 10% and employees 8% ensuring a monthly remittance of at least 18%.
PenCom statement said funds have already been made available for the settlement of the pension liabilities; and remittance into the various Retirement Savings Accounts (RSAs) of the affected retirees and employees is currently being processed. Knocking off the pains of years of waiting, PenCom said the affected retirees and employees would be notified in due course by their respective Pension Fund Administrators (PFAs).
PenCom said the government has made significant achievement by the settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees in compliance with the reviewed rate of pension contributions that have resolved the challenges that have lingered since 2014.