FG allocates N14.9bn for pension arrears payment

The Federal Government has allocated N14.92bn for the payment of accrued rights for retirees under the Contributory Pension Scheme (CPS).

The release of the fund was contained in a document by the Commission adding that the amount released would cover the payment of four months arrears.

PenCom said it was limited in the payment of retirees’ accrued rights as it could not force the Federal Government to comply with the new contribution rate.

The commission had said that since the review of 2004 pension reform Act in which the government’s contribution to workers Retirement Savings Account was upgraded from 15 per cent to 18 per cent, the Federal Government was yet to commence its implementation as its contribution to employees RSA has remained at 15 per cent.

But with the Federal Government’s approval, the amount for each retiree will be transferred into their Retirement Savings Account with the Pension Fund Administrators.