Why FG Retirees Didn’t Get Pension For A Year-Pencom

 Most  Federal Government workers that retired from March 2020 and this year could not get their pension on the non-payment of their accrued pension rights,the Director-General, National Pension Commission,Aisha Umar has said.

“This challenge, which started in 2014, was essentially triggered by the appropriation of insufficient amounts for payment of accrued pension rights of FGN retirees and further aggravated by late or non-release of full appropriated amounts,” she said

She disclosed  this in  her welcome remarks during the oversight visit of the Senate Committee on Establishment and Public Services to the commission in Abuja,where she also said the challenges included the Federal Government’s non-compliance with the new minimum statutory rate of pension contribution of 18 per cent since 2014; non-payment of approved 15 per cent and 33 per cent pension increases to pensioners under the CPS.

According to her,others are non-payment of shortfall for payment of full retirement benefits of retired heads of service and permanent secretaries; and non-payment of Federal Government pension protection levy.

“These have created sad and negative impression on the full realisation of the objectives of the CPS in Nigeria,” she said.

She said that PenCom appreciated the role played by the Senate committee in the past to move the National Assembly to intervene in the matter of payment of outstanding pension liabilities of the Federal Government.

However, she noted, the challenge had not been because pension liability was a moving target that increases on monthly basis as FGN employees retired.

She said, “Another issue that is worth mentioning to this distinguished committee is the persistent complaints against certain sections of the Pension Reform Act 2014, which need amendments.

“This is normal with every new system and the experience of the CPS in Nigeria is bound to be the same. Consequently, the commission had obtained inputs from critical stakeholders and cataloged their proposed amendments of provisions of the PRA 2014.

“However, as was done in the first review exercise that birthed the present Act, it is imperative to subject the proposed amendments to extensive experts’ and stakeholders’ engagements prior to presentation to the Federal Executive Council and then National Assembly for further legislative action.”