JUST IN; President Tinubu approves N758b fund to boost pensions for retired federal workers

JUST IN; President Tinubu approves N758b fund to boost pensions for retired federal workers

Retired federal employees under the Contributory Pension Scheme (CPS) are set to receive a significant boost to their monthly pensions.

President Bola Ahmed Tinubu has approved a N758 billion bond to clear all outstanding pension liabilities, with each retiree receiving a N32,000 monthly increase.

This adjustment ensures that retirees benefit from the new National Minimum Wage Amendment Act 2024 and its consequential adjustments.

The N32,000 will be the new baseline for all retired federal workers, including those in the education, health, and security sectors, as well as the Armed Forces.

The increase will be applied regardless of a retiree’s accumulated savings.

This initiative follows President Tinubu’s directive on August 6 for the “prompt implementation of long-overdue pension increases and a minimum pension guarantee, which would provide a safety net for the most vulnerable pensioners under the CPS.”

An official from the National Pension Commission (PenCom) confirmed that “with the National Assembly’s recent concurrence with the President’s directive, the bond proceeds will soon be available to settle the retirees.”

Another PenCom official provided further detail on the initiative, explaining that the goal is to establish a minimum amount for every retiree.

“The pension increase for CPS retirees and the minimum pension guarantee means setting a baseline amount that every retiree under the Contributory Pension Scheme would receive, no matter how small their accumulated savings are,” the official said.

“This acts as a financial safety net to protect the poorest and most vulnerable retirees from falling into poverty.”

PenCom’s Director-General, Omolola Oloworaran, explained how the N758 billion will be allocated:

N253 billion will be used to clear accrued rights. These are entitlements for federal workers employed before the CPS started in 2004 or those who were close to retirement at the time.

This payment “will put an end to the delays in pension disbursements that have caused frustration in recent months.”

N387.5 billion is committed to settling pension increases dating back to 2007, an issue that has gone unresolved for nearly two decades.

“This administration has decided to take the matter seriously and settle all outstanding pension increases from 2007 till date.”

N107 billion is earmarked for the Pension Protection Fund, which is designed to support low-income retirees.

According to Oloworaran, “This fund is meant to augment pensions for low-income earners to enable them to earn a living wage.”

The Director-General noted that PenCom is working with other agencies to finalize the bond issuance quickly. Once the funds are released, Pension Fund Administrators (PFAs) will credit retirees’ accounts.

“PFAs have committed to prompt payments once funds are available, while PenCom will provide oversight to ensure beneficiaries are paid immediately,” she said.

Oloworaran emphasized that this intervention is critical for restoring public trust in the CPS.

“Confidence in the CPS has waned in recent years due to unresolved liabilities. This payment initiative allows us to rebuild trust and demonstrates that the government is committed to protecting the welfare of ordinary Nigerians,” she concluded.