Good news! President Buhari releases N54bn to settle pension backlog

The Muhammadu Buhari administration has launched N54 billion to clear part of the backlog of collected pension rights for the years 2014, 2015 and 2016.

Buhari releases N54bn to settle pension backlog

The Director of data, Ministry of Finance, Mr Salisu Danbatta mentioned on Wednesday that N41.5 billion has already been launched to the Nationwide Pension Fee (PENCOM).

The Amount launched used to be for onward payment to those that retired under the Contributory Pension Scheme and who have been but to be paid.

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Danbatta quoted the Minister of Finance, Mrs Kemi Adeosun as pronouncing that N12.5 billion, being prominent for January, February and March 2017, was ADDITIONALLY launched, bringing the total to about N54 billion.

“Despite conflicting demands for to be had cash, President Muhammadu Buhari has at all times expressed issue over the plight of employees and pensioners.

“In Step With this, we have now launched N41.5 billion which clears the arrears inherited from the earlier administration in terms of the period 2013-15 and underpayments in 2016.

“This May Occasionally deliver relief to hundreds of our elders who’ve served and deserve to be paid their entitlements right away and totally,” she said.

The minister mentioned that The Quantity paid ALSO integrated arrears of folks that retired way back to 2013 and had been unable to get right of entry to their pension beneath the contributory scheme as a result of non-fee.

To keep away from future accumulation of pension arrears, Adeosun stated that henceforth “the monthly allocation to the PENCOM in line with the appropriation of 2017 will incessantly be paid along with month-to-month salaries of Ministries, Departments and Companies (MDAs).”

All Federal Government staff started the monthly Contributory Pension Scheme in 2004, consistent with the Pension Reform Act.

The Money the Federal Executive now owes its staff before the commencement of the act, is acknowledged in form of the issuance of Federal Executive Retirement Advantages Bonds.

Upon retirement of an worker, the bonds are to be liquidated and delivered to the steadiness of the retirement Savings account of an worker to get The Amount she or he is entitled.

To make sure that Executive settles backlog of amassed rights, Pension Fund Administrators usually are not allowed to provide retirees get right of entry to to their retirement Savings except the federal Government releases the gathered rights component.

Which Means That a retiree can’t get right of entry to his or her Retirement Financial Savings Account (RSA) during the Pension Cash Directors without the accrued pension rights part.

So for Public Service workers who migrate to the Contributory Pension Scheme (CPS) in 2004, shortly before they retired, they’re entitled to 2 components of retirement benefit.

That’s The contributions gathered of their RSA and their accumulated right from the time they joined the Carrier to the time they migrated to CPS.

The federal public servants who retired due to the fact January 2016, had staged a protest on the Federal Ministry of Finance headquarters in Abuja over their unpaid pension to the tune of N200 billion.

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The retirees beneath the auspices of the League of Federal Carrier Contributory Pension Retirees led via the Coordinator, Mr Chike Ogbechie said that employees who’ve retired in the last 15 months have been yet to obtain their pension.

In reaction to the up to date liberate, Mr Ogbechie when contacted with the aid of the News Company of Nigeria stated that the “N54 billion will clear much of the backlog of our pension, but now not all. So the struggle nonetheless continues”.

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