February 2, 2023

Celebrating Excellence & Integrity

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Retirees to get N5b outstanding employer contributions

Federal Government ‘s retirees of 2019 and 2020 would from today receive about N5billion, representing a differential of 2.5 per cent in the rate of employer pension contribution, the Director-General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has said.
The PenCom chief broke the news at the  Journalists Workshop themed, “Positioning the pension industry in a Post-COVID era”, organised by the commission in Lagos.

She said the retirees would receive the cash from their Pension Fund Administrators (PFAs).

Mrs Aisha Dahir-Umar, who was represented by the Head, Corporate Communications, PenCom, Peter Aghahowa, said this followed the release of funds by President Muhammadu Buhari to offset some vital pension liabilities of retirees of Treasury-funded Federal Ministries, Departments and Agencies (MDAs).

She stated that the payment of the differential in the rate of employer pension contribution resulted from the increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4 (1) of the PRA 2014.She said the commission was working to ensure that active contributors and retirees get their outstanding benefits.

She said: “The emergence of the COVID-19 Pandemic necessitated a review of business processes across various organisations; indeed, it has engendered socio-economic disruptions of the entire global order, with multifarious challenges in conducting hitherto routine activities. It was therefore, imperative for the commission to deepen technological innovation as it seeks to navigate through the challenges imposed by the pandemic. the theme of the workshop highlights the commission’s laudable response to the pandemic through technology and engagement with relevant stakeholders.

“President Buhari recently approved the commission’s submission on the payment of some outstanding pension liabilities of the Federal Government, under the CPS. The Presidential approval covered payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that are yet to be paid their retirement benefits, as well as the back log of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs.

‘’Furthermore, the President also approved the payment of 2.5 percent differential in the rate of employer pension contribution for FGN retirees and employees, which resulted from the increase in the minimum pension contribution for employers from 7.5 percent to 10 percent, in line with Section 4(1) of the Pension Reform Act (PRA) 2014.

“These payments would undoubtedly, boost the RSA balances of the beneficiaries towards better retirement benefits. The settlement of these outstanding accrued pension rights of verified and enrolled FGN retirees would result in reversing a major challenge that has lingered since 2014. Also, the commencement of payment of the reviewed monthly pension contribution rate by the Federal Government is another significant step in ensuring compliance with the PRA 2014”, she added.

She, however, said the pension fund assets had hit N12.66 trillion by last month.

She said the growth in the pension fund assets under the new pension scheme is an indication of prudent and sincere management of the pension fund by the pension operators and the regulator.
She further stated that the number of registered contributors under the CPS has grown to 9.38 million.

“The maintenance of a consistent growth trajectory continues to justify the commission’s overriding investment philosophy of ensuring the safety of pension fund assets.

“The regulator will continue to dish out policies that will enhance the growth of the pension assets as well as investment options that will ensure that the assets are not depleted,” she added.

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