TheCable

President Muhammadu Buhari has approved payment of outstanding pension liabilities to retired workers of federal government treasury-funded ministries, departments, and agencies (MDAs).

The National Pension Commission (PenCom), in a statement, said the payments would be made to retirees under the contributory pension scheme (CPS).

TheCable had reported that the Pension Transitional Arrangement Directorate (PTAD) received £26.5million pension funds repatriated from the United Kingdom.

According to the commission, Buhari also announced the federal government’s compliance with the reviewed rate of pension contributions.

“Specifically, the President has approved: Payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that retired but 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, ” the statement reads.

“Payment of 2.5% 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% to 10% in line with Section 4(1) of the PRA 2014. Payments for retirees and existing employees would take effect from July 2014.”

As provided by the Pension Reform Act 2014, PenCom said the federal government is expected to continue with the payment of the 10 percent rate of employer pension contribution for its employees, thus ensuring remittance of at least 18 percent monthly (employer 10% and employee 8%).

The commission noted that funds have already been made available for the settlement of the pension liabilities.

It said remittances into the various retirement savings accounts (RSAs) of the affected retirees and employees are currently being processed, adding that they would be notified in due course by their respective pension fund administrators (PFAs).

PenCom described the developments as significant, noting that they have helped to resolve the challenges that have lingered since 2014.