PenCom eyes MDAs subventions for settlement of over N20bn accrued rights


From left: Compliance Officer, Stanbic IBTC Pension, Mrs. Idu Okwuosa; Managing Director, Zenith Pension Fund Custodian (PFC), Mrs. Nkem Oni-Egbuna; Managing Director, AIICO Pension and Chairman, Pension Fund Operators of Nigeria (PenOp), Eguarekhide Longe; Executive Secretary, PenOp, Susan Oranye; Managing Director, AXA Mansard Pension, Dapo Akinsanya and Managing Director, FUG Pension, Usman Suleiman, at a media retreat organised by PenOp for Pension Correspondents in Lekki, Lagos.

Leave a comment and share

Chuks Udo Okonta

The National pension Commission (PenCom) has urged the Federal Government to use subventions accruable to Ministries, Departments and Agencies (MDAs) for the settlement of the over N20 billion pension accrued rights.

Inspen gathered from a liable source that the the commission took the step to ensure retirees that retired from the fourth quarter of 2015 to date get their benefits.

The Federal Government had in December 2015, paid the third quarter of 2015 pension accrued rights of 99,069 Retirement Savings Accounts (RSAs) and Defined Benefits Accounts (DBAs) holders amounting to N496,58 billion

There are strong indications that the current Outstanding Accrued Rights may increase, when the controversial 2016 budget is passed as the Federal Government only made provision for N50 billion as against N91 billion needed to pay the federal government workers who will retire this year.

Already, the 2015 outstanding accrued right yet to be paid by Federal Government to pensioner stands at N20billion and the figure might rise to N61 billion, if the N41 billion outstanding accrued pension rights for 2016 is added.

Speaking on this development at a media parley in Lagos, the Director General, National Pension Commission (PenCom), Mrs. Anohu-Amazu, said that N91billion request was made by the commission to the budget office for those who are due to retire in 2016 but only N50billion request was granted in the budget.

If the N50billion requested is funded by the government, she said there is going to be a deficit because from PenCom’s figures, N91billion was needed to pay every retiree that will retire in 2016.

It was gathered that the National Pension Commission (PenCom) is working with the government to ensure the outstanding is paid to enable retirees who retired in the fourth quarter and this year, get their benefits.

The Chairman Pension Fund Operators Association of Nigeria (PenOp) and Managing Director, AIICO Pension Managers Limited, Eguarekhide Longe, said the little challenge on accrued rights would be resolved when the government settles down fully, adding that the government before now has been faithful to its pension responsibilities.

Leave a Comment

Your email address will not be published. Required fields are marked *