Pension

Fed Govt remits N13.2b pension contribution

The Federal Government has released N10.3 billion for payment of pension contributions to pensioners, who retired in November and December 2015, The Nation has gathered.

The government also released N2.9 billion to be paid to other batches of retirees, bringing the amount released to N13.2 billion.

Consequently, the Central Bank of Nigeria (CBN) has paid the monies to Pension Fund Administrators (PFAs), who have commenced payment to retirees some of who confirmed the receipt of such payments to The Nation.

Findings have shown that the last Federal Government retirees to receive pension after retirement were those who retired in October 2015.

This is because retirement benefits payment, which is the last stage of the Contributory Pension Scheme (CPS), has witnessed some setbacks in recent times due to Federal Government’s inability to remit pension contributions and pay accrued rights.

Head of Benefits and Insurance Department, National Pension Commission (PenCom), Lana Loyinmi, affirmed that payments were being made to the retirees.

Loyinmi, however, said the Commission was working with the government agencies that are the direct employers of workers to ensure that more funds are released for payment of accrued pension.

He said: “We are liasing with the government and engaging agencies that are direct employers of these retirees. Retirees from the private sector on the other hand do not have a problem with receiving their pension.

“Part of the challenges of the scheme has been delayed remittance of accrued pension right by federal government in recent times.”

He noted that the way forward is continued engagement of relevant agencies for the release of outstanding accrued rights while steps are taken to alleviate the waiting of retirees before the release of accrued rights.

“Under the institutional framework of the CPS, the employer is mandated to contribute 10 per cent while employee contributes eight per cent of employee’s annual emolument into the Retirement Savings Account (RSAs),” he added.

Interim Association of Contributory Pension Scheme Pensioners President, Comrade Matthew Shittu, confirmed that PFAs have started paying their pensions.

He appealed to PenCom to continue to prevail on the government to pay retirees under the CPS their retirement benefits while they are still alive.

He said if the government had released funds for November and December 2015 retirees, it should also release funds for last year’s retirees too.

The Nation

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