The National Pension Commission has revealed that the federal government released N13.89 billion for the payment of the pension of retired workers in the country. The payment is for the accrued pension rights (ACR) of retirees of treasury-funded ministries, departments and agencies (MDA’s) in 2022, the commission said.
In a statement signed by the management, PenCom said the payment will cover employee benefits up to June 2004, when the Contributory Pension Scheme (CPS) came into effect.
The CPS was established under the Pension Reform Act of 2004, which was repealed and replaced with the Pension Reform Act in 2014.
It mandates a minimum contribution of 10 and eight per cent of employees’ monthly emolument by the employer and employee respectively, and it is paid into the employee’s Retirement Savings Account (RSA).
“Accordingly, PenCom is processing remittances into the various retirement savings accounts of the affected retirees, and their pension fund administrators will notify them in due course” the statement highlighted.
PenCom commended the efforts of President Muhammadu Buhari for his ‘support and commitment’ to the implementation of the CPS and ensuring the welfare of retirees.