The National Pension Commission (PenCom) said late Tuesday that the federal government has released an additional ₦22 billion to settle accrued pension rights for retirees in Ministries, Departments, and Agencies (MDAs) supported by the federal treasury.
The money was sent to the Central Bank of Nigeria’s Retirement Benefits Bond Redemption Fund Account via the Office of the Accountant General of the Federation. Verified retirees who were registered in the Contributory Pension Scheme between October 2023 and January 2024 will get payments using them.
Pension Fund Administrators have already credited the relevant Retirement Savings Accounts with the transfer, which also includes payments for accrued rights owed to deceased employees, according to a statement posted on social media by PenCom.
With this most recent payment, a total of ₦66 billion will be allotted for accrued pension rights in the fiscal year 2024. Pension rights advocates criticized the government’s December 2024 release of ₦44 billion to satisfy rights owed to pensioners between March and September of the previous year.
The government was criticized by the Center for Pension Rights Advocacy, a non-governmental organization dedicated to the welfare of retirees, for what it called “selective” payments. Instead of portraying the payments as optional acts of kindness, the organization contended that the government should concentrate on fulfilling its legal duties under the Pension Reform Act.
However, PenCom has emphasized the need for efficiency and instructed Pension Fund Administrators to speed up the payout procedure for all qualified retirees. To collect their benefits, retirees are encouraged to finish the necessary paperwork with their PFAs.
A recurring problem with Nigeria’s pension system is the delay in paying out accrued pension rights, which has drawn criticism from both advocacy organizations and pensioners. According to PenCom, it is working with federal authorities to create a more long-lasting system that will guarantee pensioners receive their benefits on time.
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According to the commission’s statement, “this release is part of our ongoing commitment to ensure that retirees are not subjected to undue hardship while they await their benefits.”
Many people believe that the Contributory Pension Scheme, which was implemented in 2004, is an essential reform for ensuring the financial stability of Nigerian workers. However, economic concerns like inflation and currency devaluation continue to reduce retirees’ purchasing power, underscoring the continuous difficulties in protecting retirement funds.
Although pensioners applauded Tuesday’s announcement, it highlights the larger systemic problems with Nigeria’s pension system that still need to be fixed.
Important Information: Recipients of the Distribution: This payout is available to retirees from Ministries, Departments, and Agencies (MDAs) who receive Treasury funding and who were enrolled and validated between October 2023 and January 2024. The payment also includes the accrued rights of some deceased employees under the CPS. The allotted amounts have been credited to the recipients’ Retirement Savings Accounts (RSAs) by Pension Fund Administrators (PFAs). Total Amounts Paid in 2024: With this most recent disbursement, a total of ₦66 billion has been distributed for accrued pension rights under the 2024 Appropriation Act. In order to pay accrued pension entitlements for retirees from March to September 2023, including deceased retirees, the Nigerian government already released ₦44 billion in December 2024. Instructions for PFA Payment: To provide prompt access to their pension payments, PenCom has instructed PFAs to expedite the payment process for all verified retirees. To claim their benefits, retirees must fill out the relevant paperwork with their PFAs. The Centre for Pension benefits Advocacy has previously described the selective payouts as insufficient and chastised the Nigerian government for its tardiness in settling accumulated benefits. Instead of taking a “charitable employer” approach to accruing pension entitlements, it urged the government to fulfill its responsibilities under the Pension Reform Act (PRA). Implications for pensioners: It is anticipated that the payout will ease the financial strain that pensioners who are waiting on their pension installments are experiencing. The advocacy groups’ critique, however, emphasizes the necessity of a more thorough and uniform method of meeting accrued pension obligations.
PenCom’s Work: To guarantee that retirees receive their benefits on time and without undue stress, PenCom keeps advocating for process improvements and policy changes. The commission has pledged to collaborate with the government in order to establish a long-term structure for prompt payments.
This recent event emphasizes how crucial it is that the government maintain its commitment to paying pensions and resolving the issues that pensioners encounter under the Contributory Pension Scheme.
