PENCOM insures retirees of payout week after retirement

The National Pensions Commission of Nigeria (PENCOM) said on Thursday that after retirement, federal retirees will no longer face the problem of long-deferred pension payments.

The committee also stated that the N14.5 trillion pension fund is not sitting still because of the right investments made from it.

Executive Chairman of PENCOM, Aisha Dahiru Umar, stated this in her submission to the Senate Finance Committee which is currently working with government agencies on proposals for the Medium Term Expenditure Framework (MTEF) for 2023 – 2025 and the Fiscal Strategy Paper (FSP).

The PENCOM boss said the backlog of the accrued entitlement component of pension payments to retirees, which has delayed payment over the years, has almost been cleared by the federal government.

According to her, the federal government has paid N49 billion a month for the past 17 years to make up for pensioners’ accrued rights arrears.

“Late payment of pensions to retirees will very soon be a thing of the past as required steps in that direction have been taken by the federal government whose retirees are affected,” she said.

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However, she advised retirees to submit the required documentation a year before retirement to speed up the entire process.

She informed the committee that the N14.5 trillion disposable pension fund is not inactive, as N9.5 trillion of it is invested in Federal Government Security, N1.23 trillion in stocks and 35% of the fund is invested in the money market.

However, the Committee said the annual, repeating N102 million overhead grant given to the agency by the federal government will be removed in addition to the N26 billion entered annually in the Commission’s budget without cash support.

However, the boss of PENCOM revealed that its commission would need an amount of N500 million to acquire offices in the six geopolitical zones.

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