PenCom to start payment of N4.5bn for 2.5% outstanding pension contributions to retirees 2019/2020

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By Favour Nnabugwu

 

National Pension Commission (PenCom) will begin the disbursement of outstanding 2.5 per cent pension contributors to retirees from 2019  to 2020 which amounted to N4.5billion.

PenCom is set to pay all outstanding accruing to retirees from 2019 to 2020 puts at N4.5billion, would get their 2.5 per cent from tomorrow, while those that retired between 2014 to 2018 will get also be settled.

Speaking at the ongoing 2021 Journalists Workshop programme, organised by the PenCom in Lagos today for National Association of Insurance and Pension Correspondents, NAIPCO, the Director-General, PenCom, Mrs. Aisha Dahir-Umar, said, the payment which would begin soon would undoubtedly, boost the RSA balances of the beneficiaries towards better retirement benefits.

While informing the media at the Workshop with the theme, ‘Positioning the Pension Industry in a Post COVID Era’, said the laudable feats of the President of the Federal Republic of Nigeria approved the payment of 2.5 percent differential in the rate of employer pension contribution for FGN retirees and employees.

The feat, she said resulted from the increase in the minimum pension contribution foremployers from 7.5 percent to 10 percent, in line with Section 4(1) of the PensionReform Act (PRA) 2014.

The Presidential approval covered payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that are yet to be paid their retirement benefits.

The PenCom DG also added that the President approved the payment of the back log of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs.

Also, the commencement of payment of the reviewed monthly pension contribution rate by the FederalGovernment is another significant step in ensuring compliance with the PRA 2014.

According to her, “The number of registered contributors under the CPS has grown to 9.38 million while pension fund assets have accumulated to N12.66 trillion as at 30 June 2021″.

“The maintenance of a consistent growth trajectory continues to justify the Commission’s overriding investment philosophyof ensuring the safety of pension fund assets.”

Represented by the Head, Corporate Communications, PenCom, Mr. Peter Aghahowa, the DG noted that the regulator would continuously dish out policies to boost the growth of the pension assets as well as investment options that would ensure that the assets are not depleted.

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