All retired federal employees under the Contributory Pension Scheme (CPS) are soon to start receiving a N32,000 monthly pension increase.
The sum will be paid to each of them from a N758 billion bond approved by President Bola Ahmed Tinubu for clearing all outstanding pension liabilities.
President Tinubu okayed the bond to ensure that the retirees also benefited from the National Minimum Wage Amendment Act 2024 and Consequential Adjustments.
The N32,000 is the baseline every retiree in the education and health sectors, as well as security and the Armed Forces on the CPS will earn monthly, irrespective of his or her accumulated savings.
President Tinubu had on August 6, directed 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 of the National Pension Commission (PenCom) confirmed to The Nation 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 official of the commission, who shed more light on the initiative, said: “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.
‘’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, had earlier explained how the N758 billion bond for pension payments would be allocated across three critical categories.
She said: “N253 billion of the bonds will be dedicated to clearing accrued rights. These are entitlements due to federal workers employed before the CPS commenced in 2004, and those who had about three years to retirement at the time.
‘’This intervention clears the backlog of accrued rights payments and will put an end to the delays in pension disbursements that have caused frustration in recent months.”
On longstanding arrears, Oloworaran explained that, “N387.5 billion will be committed to pension increases dating back to 2007. That is almost two decades of increments left unpaid. This administration has decided to take the matter seriously and settle all outstanding pension increases from 2007 till date.”
She added that N107 billion has been earmarked for the Pension Protection Fund, which is designed to support low-income retirees.
She said: “This fund is meant to augment pensions for low-income earners to enable them to earn a living wage.
“We are working with relevant agencies to conclude the bond issuance quickly. Once that is done, Pension Fund Administrators (PFAs) will credit retirees’ savings accounts, and retirees will be able to claim their entitlements without delay. PFAs have committed to prompt payments once funds are available, while PenCom will provide oversight to ensure beneficiaries are paid immediately.”
According to Oloworaran, the intervention is central to restoring 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 said.
The National Salaries, Incomes and Wages Commission (NSIWC) had last year announced the pension adjustment, confirming that retirees would receive an additional N32,000 per month following the passage of the new minimum wage law.
