FG Releases N44bn for Retirees’ Accrued Right Payment

Ebere Nwoji

The federal government has released the sum of N44billion  for payment of Accrued Rights  to its retired workers.

The government’s adviser on pension matters, the National Pension Commission (PenCom) disclosed this in a statement made available to the media.

Accrued rights means the  benefits to which a member is entitled, as of right, under an occupational pension scheme. Such rights include pension awards already received and pensionable service built up so far based on a particular pension age.

PenCom said the above amount was released by  the Office of the Accountant General of the Federation (OAGF) as part of the 2024 budget appropriation for the period January to June. 

The commission said the  funds have been deposited into the Retirement Benefits Bond Redemption Fund (RBBRF).Account at the Central Bank of Nigeria to partially settle unpaid accrued pension rights for retirees of Federal Government Treasury-funded Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme (CPS).

PenCom, said the disbursed funds have been applied to settle the accrued pension rights of retirees who were duly verified and enrolled, covering the period March to September 2023, as well as some deceased employees. 

“Accordingly, the remittances have been credited directly to the Retirement Savings Accounts (RSAs) of the affected retirees through their respective Pension Fund Administrators (PFAs)”.

“All affected retirees are encouraged to contact their PFAs to complete the necessary documentation to access their retirement benefits. PenCom has also directed PFAs to expedite the processing of payments to ensure retirees promptly receive their entitlements,” the commission stated.

According to PenCom, in the meantime, it remains steadfast in its commitment to engaging with relevant authorities to secure the full settlement of all outstanding accrued pension rights and related liabilities. 

It also assured all retirees of FGN Treasury funded MDAs that these efforts would  be sustained until all pending pension liabilities under the CPS are fully resolved”, PenCom assured.

The commission expressed its appreciation to the retirees concerned and reaffirmed its dedication to safeguarding their retirement benefits.

In Nigeria pension system, the accrued pension rights are the benefits an employee is entitled to for his past years of service, up to June 2004. These benefits are in addition to the regular contributions made to the employee’s Retirement Savings Account (RSA). 

The Pension Reform Act (PRA) of 2004 created the Contributory Pension Scheme (CPS). The PRA requires that retiring workers can only access their retirement benefits when their accrued rights are released to their RSA.