Politics

FG begins computation to fast-track retirees’ pension fee

The Federal Government has ordered the computation of accrued pension of serving federal civil servants, The PUNCH has gathered.

A memo by the Office of the Head of Civil Service of the Federation, which was obtained by our correspondent on Tuesday in Abuja, mentioned the transfer was in collaboration with the Ministry of Finance and can deal with workers who had been employed on or earlier than June 30, 2024.

The memo mentioned the transfer would allow the federal government to plan forward of time in the direction of the early launch of the entitlement of the employees.

The memo learn: “It has been noticed that one of many causes for the delay within the fee of pension of retired officers is the late launch of their accrued rights underneath the previous Defined Benefit Scheme.

“To allow the federal government plan in the direction of early launch of the accrued rights, there’s a want to reap the information of the officers who’re entitled to the rights.

“Consequently, the Office of the Head of the Civil Service  of the Federation, in collaboration with the Federal Ministry of Finance and different stakeholders, is compiling knowledge of the affected officers who had been employed on or earlier than thirtieth June 2004.

“All involved officers are to notice that filling the shape is obligatory to allow the fee of their accrued pension rights underneath the previous Defined Benefit Pension Scheme, once they retire.

The PUNCH experiences that the Federal Government has did not launch funds for fee of accrued pension rights within the first half of 2024.

The FG had reneged for the complete 12 months 2023, as no funds had been launched regardless of budgetary provisions.

Related News

The launch made within the first quarter of 2023 was for excellent funds in 2022.

This comes in opposition to the backdrop of FG’s failure to implement its coverage on the upward overview of pension quantities underneath the Contributory Pension Scheme for 15 years, in opposition to coverage prescriptions of upward overview each 5 years as stipulated by legislation.

While the legislation stipulates that pensions shall be reviewed each 5 years or along with any federal civil service wage opinions, whichever is earlier, the FG has did not implement pension changes underneath the Contributory Pension Scheme, CPS, because the scheme’s inception in 2004.

The FG’s indebtedness to retirees on accrued pension rights within the final 16 months is estimated at N230bn.

Some pensioner teams have referred to as for a boycott of investing pension belongings in FG securities because the authorities borrowing comes primarily from pension belongings.

At the identical time, the FG had all the time been discovered wanting in complying with the extant pension scheme.

According to a report by the National Pension Commission,  in 2021, the FG launched a complete of N100.2bn for fee of accrued rights which introduced the whole quantity launched by the FG from inception to N980.18bnn.

In March 2022, the FG launched N14.92bn for fee of accrued rights.

However, based on the Pension Fund Operators Association of Nigeria, the FG has launched funds up until February 2023, with no fee made after then.

Source

Co-editor

About Author

You may also like

Politics

Protesting Zamfara neighborhood barricades Govt House, faults troops withdrawal

There was tension in Gusau, the Zamfara State capital on Sunday, as residents of Bini village in the Maru Local
Politics

How to spice up your checking account, cellular pockets safety

Cybercriminals are constantly devising new ways to exploit vulnerabilities and steal sensitive information. DANIEL ADAJI outlines ways to safeguard your