Retirees Get N22bn Pension Payout from Federal Government

The National Pension Commission (PenCom) said late Tuesday that the federal government has granted an extra ₦22 billion to pay out accrued pension rights for retirees in Ministries, Departments, and Agencies (MDAs) that get funding from the federal treasury.
Deposited into the Central Bank of Nigeria’s Retirement Benefits Bond Redemption Fund Account, the money were distributed via the Office of the Accountant General of the Federation. These funds will be utilized to compensate confirmed retirees who joined the Contributory Pension Scheme between October 2023 and January 2024.
With Pension Fund Administrators already crediting the relevant Retirement Savings Accounts, PenCom verified in a social media announcement that the transfer also includes payments for accrued entitlements owed to departed employees.

This most recent payment brings the total amount allotted for accrued pension rights to ₦66 billion for the fiscal year 2024. To satisfy rights owing to retirees between March and September of the previous year, the government disbursed ₦44 billion in December 2024, while pension rights campaigners criticized the decision.
For what it called “selective” payments, the government was criticized by the Center for Pension Rights Advocacy, a non-governmental organization dedicated to the welfare of retirees. The group contended that rather than portraying the payments as altruistic gestures, the government ought to concentrate on fulfilling its legal duties under the Pension Reform Act.

Nonetheless, PenCom has instructed Pension Fund Administrators to emphasize the importance of efficiency and speed up the payout procedure for all qualified retirees. In order to obtain their benefits, retirees are encouraged to finish the necessary paperwork with their PFAs.
Nigeria’s pension system has long been plagued by the delay in paying out accrued pension rights, which has drawn criticism from both advocacy groups and pensioners. PenCom has stated that it is working with federal authorities to create a better long-lasting system to guarantee that pensioners get their benefits on time.

The commission stated in its statement that “this release is part of our ongoing commitment to ensure that retirees are not subjected to undue hardship while they have to wait for their benefits.”
Since its introduction in 2004, the Contributory Pension Scheme has been considered a crucial reform for safeguarding the financial prospects of Nigerian workers. Pensioners’ purchasing power is still being undermined by economic headwinds like inflation and currency depreciation, underscoring the continuous difficulties in protecting retirement funds.

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Despite being welcomed by pensioners, Tuesday’s news highlights the larger systemic problems with Nigeria’s pension system that still need to be fixed.
Essential Information: Those who will benefit from the payment: This payment is payable to retirees from Ministries, Departments, and Agencies (MDAs) who receive Treasury funding and who were enrolled and validated between October 2023 and January 2024. The payout has also taken into account the earned entitlements of some deceased employees under the CPS. Beneficiaries’ Retirement Savings Accounts (RSAs) have been credited with the allotted monies by Pension Fund Administrators (PFAs). 2024 Cumulative Disbursements: This most recent announcement raises the total amount paid out under the 2024 Appropriation Act for accumulated pension entitlements to ₦66 billion. The Nigerian government initially made ₦44 billion available in December 2024 to cover the accrued pension rights of retirees, including those who passed away, who were born between March and September 2023. Instructions for Payment to PFAs: For all verified retirees, PenCom has instructed PFAs to expedite the payment process so that they can receive their pension benefits on schedule. For the purpose of claiming their benefits, retirees must finish the proper paperwork with their PFAs. Support and Criticism of Delayed Payments: The Nigerian government has faced criticism from the Centre for Pension entitlements Advocacy for its tardy settlement of accumulated entitlements, citing the selective reimbursements as insufficient. In order to resolve accrued pension entitlements, it demanded that the government fulfill its responsibilities under the Pension Reform Act (PRA) rather than taking a “charitable employer” position. Repercussions for pensioners: It is anticipated that the payout will ease the financial strain that pensioners who are waiting on their pension installments are experiencing. Nonetheless, the advocacy groups’ critique emphasizes the necessity of a more serious and uniform strategy for meeting accrued pension commitments.
PenCom’s endeavors: PenCom is still working to streamline procedures and change policies so that retirees can get their benefits quickly and without undue stress. The commission is dedicated to collaborating with the government to provide a long-term structure for on-time payments.
This recent event highlights the significance of the government’s ongoing commitment to upholding pension commitments and resolving the issues that pensioners encounter under the Contributory Pension Scheme.