FG releases N16bn to clear accrued pension rights

The federal government has released the sum of N16.67 billion for the payment of Accrued Pension Rights to 2021 retirees of Treasury-funded Ministries, Departments and Agencies (MDAs).

Daily Trust reports that accrued rights represent benefits for employees of Treasury Funded MDAs who worked up to June 2004, before the Pension Reform Act that gave birth to the Contributory Pension Scheme (CPS) was introduced.

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A statement by the Head, Corporate Communications Department at the National Pension Commission (PenCom), Peter Aghahowa, said the federal government had earlier settled all arrears of accrued pension rights payments to the verified and enrolled retirees up to December 2020.

In July this year, PenCom disclosed that President Muhammadu Buhari had approved the Commission’s submission on the payment of some outstanding pension liabilities of the federal government, under the CPS.

“The Presidential approval covered the payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that are yet to be paid their retirement benefits, as well as the backlog of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs,” the commission had stated.