Pension

6 key issues clogging growth of CPS

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Chuks Ufo Okonta

1) Non-payment of Accrued Pension Rights. This challenge, which started in 2014, was essentially triggered by the appropriation of insufficient amounts for payment of Accrued Pension Rights of FGN retirees and further aggravated by late or non-release of full appropriated amounts.

Owing to the challenge, large number of Federal Government employees who retired from March 2020 to March 2021 under the CPS are yet to receive their pensions due.

2) FGN’s non-compliance with the new minimum statutory rate of pension contribution of 18 per cent since 2014.

3) Non-payment of approved 15 per cent and 33 per cent pension increases to pensioners under the CPS.

4) Non-payment of shortfall for payment of full retirement benefits of retired Heads of Service and Permanent Secretaries.

5) Non-payment of FGN Pension Protection Levy. These have created sad and negative impression on the full realisation of the objectives of the CPS in Nigeria.

6) Persistent complaints against certain sections of the Pension Reform Act 2014, which need amendments.

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