Federal Government Begins Pension Payments for MDA Retirees, Clears ₦44 Billion Arrears

As part of the 2024 budget appropriation for the period of January to June, the Federal Government has begun the payment of pensions to retirees in Ministries, Departments, and Agencies (MDAs).

The payment reportedly clears the entitlements of affected retirees from March to September 2023.

Investors King gathered that this payment underscores the government’s commitment to fiscal responsibility, protecting public workers’ welfare, and driving economic growth.

The National Pension Commission (PenCom), the industry regulator, announced on Saturday that the funds were released by the Office of the Accountant General of the Federation (OAGF).

It was disclosed that approximately ₦44 billion was paid as accrued pension rights to settle outstanding obligations to retirees.

According to PenCom, 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 MDAs under the Contributory Pension Scheme (CPS).

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

To ensure the effective disbursement of the payments, PenCom advised affected retirees to contact their PFAs and complete the required 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 statement read.

Furthermore, PenCom reaffirmed its commitment to working with relevant authorities to secure the full settlement of all outstanding accrued pension rights and related liabilities.

“The Commission assures all retirees of FGN Treasury-funded MDAs that these efforts will be sustained until all pending pension liabilities under the CPS are fully resolved,” the statement concluded.