FG Approves Payment Of Outstanding Pension Liabilities

The Federal Government has given presidential approval for
payment of outstanding pension liabilities under the Contributory
Pension Scheme (CPS).

The Head of Corporate Communication at National Pension
Commission (PenCom) Mr Peter Aghahowa, said this in a statement in
Abuja on Wednesday.

He said that PenCom was pleased to inform all its stakeholders,
particularly retirees of Treasury-funded Federal Ministries,
Departments and Agencies (MDAs) that President Muhammadu Buhari has
approved PenCom’s submission.

The submission was on the payment of some critical aspects of
the outstanding pension liabilities of the Federal Government under
the CPS specifically.

Aghahowa said payment of the outstanding accrued pension rights
was for verified and enrolled retirees of treasury-funded MDAs
retired but yet to be paid their benefits and backlog of death
benefits due to beneficiaries of deceased employees.

Aghahowa said payment of 2.5 per cent differential in the rate
of employer pension contribution for Federal Government retirees
and employees resulted from increase in the minimum pension
contribution for employers from 7.5 per cent to 10 per cent in line
with Section 4 of the Pension Reform Act, (PRA) 2014.

He said that payments for retirees and existing employees would
begin from July 2014.

Aghahowa said the Federal Government was expected to continue
with the payment of the 10 per cent rate of employer pension
contribution for its employees, thus ensuring a remittance of at
least 18 per cent monthly (employer 10 per cent and employee 8 per
cent) as provided by the PRA 2014.

He said the funds had already been made available for the
settlement of the above stated pension liabilities.

Also, he said that remittance into the various Retirement
Savings Accounts (RSAs) of the affected retirees and employees were
currently being processed.

Aghahowa said the affected retirees and employees would be
notified in due course by their respective Pension Fund
Administrators (PFAs).

“The settlement of the outstanding accrued pension rights of
verified and enrolled FGN retirees and compliance with the reviewed
rate of pension contributions are significant developments, that
have resolved the challenges in these aspects that have lingered
since 2014,” he said.

Aghahowa added that the board and management of the commission
reiterated their appreciation to the president for his untiring
support, commitment to the implementation of the CPS and ensuring
the welfare of retirees (NAN)

The Federal Government has given presidential approval for
payment of outstanding pension liabilities under the Contributory
Pension Scheme (CPS).

The Head of Corporate Communication at National Pension
Commission (PenCom) Mr Peter Aghahowa, said this in a statement in
Abuja on Wednesday.

He said that PenCom was pleased to inform all its stakeholders,
particularly retirees of Treasury-funded Federal Ministries,
Departments and Agencies (MDAs) that President Muhammadu Buhari has
approved PenCom’s submission.

The submission was on the payment of some critical aspects of
the outstanding pension liabilities of the Federal Government under
the CPS specifically.

Aghahowa said payment of the outstanding accrued pension rights
was for verified and enrolled retirees of treasury-funded MDAs
retired but yet to be paid their benefits and backlog of death
benefits due to beneficiaries of deceased employees.

Aghahowa said payment of 2.5 per cent differential in the rate
of employer pension contribution for Federal Government retirees
and employees resulted from increase in the minimum pension
contribution for employers from 7.5 per cent to 10 per cent in line
with Section 4 of the Pension Reform Act, (PRA) 2014.

He said that payments for retirees and existing employees would
begin from July 2014.

Aghahowa said the Federal Government was expected to continue
with the payment of the 10 per cent rate of employer pension
contribution for its employees, thus ensuring a remittance of at
least 18 per cent monthly (employer 10 per cent and employee 8 per
cent) as provided by the PRA 2014.

He said the funds had already been made available for the
settlement of the above stated pension liabilities.

Also, he said that remittance into the various Retirement
Savings Accounts (RSAs) of the affected retirees and employees were
currently being processed.

Aghahowa said the affected retirees and employees would be
notified in due course by their respective Pension Fund
Administrators (PFAs).

“The settlement of the outstanding accrued pension rights of
verified and enrolled FGN retirees and compliance with the reviewed
rate of pension contributions are significant developments, that
have resolved the challenges in these aspects that have lingered
since 2014,” he said.

Aghahowa added that the board and management of the commission
reiterated their appreciation to the president for his untiring
support, commitment to the implementation of the CPS and ensuring
the welfare of retirees (NAN)