FG approves N34b for payment to retirees

Chuks Udo Okonta

President Goodluck Ebele Jonathan has approved the release of N34 billion to off-set the outstanding accrued rights of retirees and death benefits of deceased employees of Federal Government under the Contributory Pension Scheme (CPS).

National Pension Commission (PenCom) said the Federal Government had paid as at the end of first quarter this year paid over N270.11 billion to its 48,587 retirees and deceased employees under the CPS.

A statement by Head, Communication Unit PenCom Emeka Onuora, said the approval followed the recommendation made by the Co-coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo Iweala, on the submission made by PenCom to the Government on the status of the account and the huge deficit therein.

He said the Federal Government has, consistently and religiously, been setting aside five of its total monthly wage bill into the Retirement Bond Redemption Account (RBRA) with the Central bank of Nigeria (CBN) for the settlement of the accrued pension rights of its employees since the commencement of the Contributory Pension Scheme as required by the Pension Reform Act, 2004.

He said: “PenCom would like to inform the general public, in particular retired employees enrolled with the Commission, including the Next of Kins (NOKs) of deceased employees that have documented with the Pension Fund Administrators (PFAs) and documents submitted to the Commission, but have not been paid their entitlements   that  President, Commander – In - Chief of the Armed Forces of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan has approved the release of N34 Billon to off-set the outstanding accrued rights of retirees and death benefits of deceased employees of Federal Government under the contributory pension scheme.

“However, the account has been overstretched in recent years with the upsurge of retirements from the Federal Civil Service occasioned by the tenure policy, voluntary retirements and thousands of unredeemed death benefit claims resulting into heavy back log of arrears that cannot be accommodated due to paucity of funds in the account, giving rise to untold hardship to these people.  This special positive intervention by President, therefore, would go a long way in settling those outstanding payments to those categories of beneficiaries and alleviating their sufferings.”

 Onuora, noted that the Commission lauded the President’s magnanimity and deep sympathy to the plight of the retirees and NOKs of deceased employees of the Federal Government as glaringly manifested by promptly and graciously granting approval for this amount to be released to settle those arrears.

“Our appreciation also goes to the Coordinator for the Economy and Hon. Minister of Finance for her continued support to pension reform and commitment in addressing the plight of the retirees.

Our special thanks go to the thousands of retirees and NOKs of deceased employees for their patience and understanding with the Commission during this trying period,” he said. 

He said PenCom calls on the affected individuals to contact their (PFAs) for the payment of their benefits.