President Muhammadu Buhari on Thursday approved PenCom’s submission on the payment of critical aspects of outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme.
In a press release by the management of National Pension Commission, the commission said payments for retirees and existing employees would take effect from July 2014.
The commission further stated that subsequently, the Federal Government is expected to continue with the payment of the 10% rate of employer pension contribution for its employees, thus ensuring a remittance of at least 18% monthly (employer 10% and employee 8%) as provided by the PRA 2014.
While funds have already been made available for the settlement of pension liabilities, the commission said remittance into various Retirement Savings Accounts (RSAs) of the affected retirees and employees is currently being processed, adding that affected retirees and employees would be notified in due course by their respective Pension Fund Administrators (PFAs).
The National Pension Commission further stated that the settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees and compliance with the reviewed rate of pension contributions are significant developments that have resolved the challenges in these aspects that have lingered since 2014.