PUNCH
The backlogs of pensions owed by the federal and state governments have increased to over N193bn, findings by The PUNCH show.
Although several states such as Zamfara, Benue, Kaduna, Kano, Nasarawa, and others have been clearing the backlogs, it was gathered that the Federal Government had yet to clear over N88bn in contributory pensions, while many states were burdened by pension backlogs estimated at over N105bn.
The spokesman for the National Union of Pensioners, Bunmi Ogunkolade, confirmed to The PUNCH on Saturday that the Federal Government had yet to clear N88bn accrued rights under the Contributory Pension Scheme from March 2023 to date.
The CPS was introduced by the Pension Reform Act of 2004, and under this law, employees and employers jointly contribute to a Retirement Savings Account for each worker, making pensions more sustainable.
The law set the minimum combined contributions at 15 per cent of an employee’s monthly earnings.
The Pension Reform Act of 2014, which amended the 2004 law, further improved the CPS by increasing contributions to a combined minimum of 18 per cent and tightening regulations to ensure compliance by both private and public sector employers.
Speaking with one of our correspondents in Abuja, Ogunkolade said, “The accrued rights of contributory pensioners from March 2023 to date stands at N88bn. It is government debt; they should settle it.”
Also, a source at the National Pension Commission, who asked to be anonymous, said that efforts are being made towards paying the accrued rights.
The official said, “As for the figure, I am not in the position to confirm. But as for the issue of accrued rights being owed on account of the government not releasing the money, that is true.
‘’But efforts have not reached advanced stages. The government is about to conclude its process of ensuring that the money is released to enable the payment to retirees.”
Frustrated by the delayed payment, the pensioners have slated October 23 for a one-day rally in Abuja.
In a letter dated October 17, 2024, and addressed to all state chapters and branches, the CPS retirees under the umbrella of the NUP said the rally would be held Wednesday at the Unity fountain in Abuja.
It read, “Sequel to the resolution reached during our online meeting dated 11th October 2024, on the need to organize a peaceful mega-rally in Abuja to press home and demand the release of funds as well as payment of all our outstanding accrued rights and consequential adjustment arising from pension increments, the CAC Secretariat has come up with the following schedule for the peaceful rally to some designated offices Abuja:
“Office of the Accountant-General of the Federation; Office of the Secretary to the Government of the Federation; National Assembly and Unity Fountain.
