PenCom begins payment of 2.5% pension differentials to retirees

The National Pension Commission (PenCom) says it has commenced payment of the 2.5 per cent differentials of 2004 and 2014 specified by the Pension Reform Act (PRA) to retirees.

Saleem Abdulrahman, head of contribution and bond redemption department at PenCom, said this at the 2021 journalist workshop organised by the commission with the theme: “Positioning the Pension Industry in the Post COVID Era”.

Abdulrahman noted that the beneficiaries were retirees between 2019 and 2020 of the federal government treasury funded ministries, departments and agencies (MDAs).

TheCable had earlier reported that, the federal government approved payment of outstanding pension liabilities to retired workers of federal government treasury-funded MDAs.

As provided by the Pension Reform Act 2014, PenCom noted that the federal government is expected to continue with the payment of the 10 percent rate of employer pension contribution for its employees, thus ensuring remittance of at least 18 percent monthly (employer 10% and employee 8%).

Abdulrahman explained that the commission has also begun computing details of retirees between July 1, 2014, to December 2018 and would pay them soon.

“Some of the retirees may likely get additional lumpsum or enhanced annuity or programmed withdrawal,” he said.

“We have also begun the computation of the active employees to enable payment.”