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Chuks Udo Okonta
The National Pension Commission (PenCom) says N10.04 billion is required to fund Minimum Pension Guarantee (MPG) which should carter for shortfall or financial losses arising from investment activities.
PenCom in a presentation to the National Assembly, noted that Section 82(1) of the PRA 2014 provides for the establishment of the Pension Protection Fund (PPF) which is, amongst others, to be utilised for the funding of the Minimum Pension Guarantee (MPG) to be paid to all Retirement Savings Account (RSA) holders who have contributed for a number of years to a licensed Pension Fund Administrator (PFA) and for the payment of compensation to eligible pensioners for shortfall or financial losses arising from investment activities.
It posited that the sources of funding of the PPF includes an annual subvention of one per cent of the total monthly wage bill payable to employees in the Public Service of the Federation, which shall be utilised strictly for the funding of the MPG, stressing that the one per cent of the total monthly wage bill payable to employees in the Public Service of the Federation has been determined as N10,039,161,783.00.
