Buhari settles over N100b retirees’ pension liabilities

By Omobola Tolu-Kusimo

The National Pension Commission (PenCom) has secured the approval of President Muhammadu Buhari to settle all outstanding pension accrued to Federal Government retirees, totalling over N100 billion, The Nation learnt yesterday.

The settlement will include the payment of 2.5 per cent differential in the rate of employer pension contribution for Federal Government retirees and employees which resulted from the increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4(1) of the Pension Reform Act (PRA) 2014.

The payments for retirees and other employees would take effect from July 2014.

This ends the violation of certain sections of the PRA 2014 since 2014 by the Federal Government.

Funds, according to the commission, have already been made available for the settlement of the pension liabilities.

Findings show that retirees who retired over a year ago have not received their pension, contrary to PRA 2014.

With the new development, all retirees would get their pension payments one month after retirement as mandated by PRA 2014.

Director-General of the Commission, Mrs. Aisha Dahir-Umar in a statement expressed joy and relief, stating that the Commission is excited with the development.