FG releases another N31.97 billion for Payment of Accrued Pension Rights to 2021 Retirees
The Federal Government of Nigeria has released another N31.97 billion for payment of accrued rights of retirees of treasury funded ministries, department and agencies (MDAs), under the Contributory Pension Scheme (CPS). This is coming just a day after FG released N16.67 billion, thus bringing the total amount released to N48.64 billion.
The Accrued Pension Rights represents an employee’s retirement benefits from the date of 1st appointment till when the contributory pension scheme commenced. For employees of the Public Service of the Federation, where the scheme is unfunded, accrued rights is recognized in the form of an amount acknowledged through the issuance of Federal Government Retirement Benefits Bonds by the Debt Management Office in favour of the employees and the bond issued shall be redeemed upon the retirement of the employee in accordance with the provisions of Pension Reform Act, and the amount so redeemed shall be added to the balance of the retirement savings account of the employee.
The announcement was contained in a statement released by the National Pension Commission (PenCom) today. PenCom said it is pleased to announce the release of an additional N31.97 billion by the Federal Government for the payment of Accrued Pension Rights to 2021 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs). This follows an earlier release of the sum of N16.67 billion, thus bringing the total amount released for payment of the 2021 accrued pension rights to N48.64 billion.
Unfortunately, PenCom still did not disclose the months of retirement in 2021 which the N48.64 billion covers. Based on estimates, this amount could cover 7 to 10 months. The benefits of disclosing the months it covers is that retirees which retirement months are not covered wont have to stress themselves contacting their PFAs to confirm, with this, all retirees who retired in 2021 will have to contact their PFAs to know if they are covered.
Usually, once Federal Government releases accrued rights, the amount for each retiree is transferred into his/her Retirement Savings Account (RSA) with the Pension Fund Administrator (PFA).
The concerned Retirees are advised to contact their Pension Fund Administrators (PFAs) for confirmation, documentation and discussions on the processing of their Lumpsum and programmed withdrawal or Annuity.
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