FG Disburses N44bn for Six-Month Accrued Pensions

The Federal Government has disbursed N44 billion to cover the accrued pension rights of employees in Ministries, Departments, and Agencies (MDAs) who retired between March and September 2023.

The National Pension Commission (PenCom), the regulatory body overseeing the pension sector, confirmed on Saturday that the funds were released by the Office of the Accountant General of the Federation (OAGF) as part of the 2024 budget appropriations for the first half of the year.

According to PenCom, the funds have been deposited into the Retirement Benefits Bond Redemption Fund (RBBRF) account at the Central Bank of Nigeria to partially address unpaid accrued pension rights for retirees under the Contributory Pension Scheme (CPS) from Federal Government Treasury-funded MDAs.

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PenCom explained that the released funds are being used to settle the pension entitlements of verified and enrolled retirees from March to September 2023, as well as some deceased employees. It added that the money has been directly credited to the Retirement Savings Accounts (RSAs) of the affected retirees through their respective Pension Fund Administrators (PFAs).

Retirees are advised to contact their PFAs to complete the necessary paperwork to access their retirement benefits. PenCom has also instructed PFAs to prioritize and expedite the processing of payments to ensure retirees receive their entitlements without delay.

The Commission emphasized its continued commitment to working with the relevant authorities to resolve all outstanding accrued pension liabilities. PenCom assured all retirees of MDAs funded by the Federal Government that efforts to clear pension arrears will remain ongoing until all outstanding obligations under the CPS are fully addressed.

PenCom expressed gratitude for the patience and understanding of the retirees and reaffirmed its commitment to protecting their retirement entitlements.