The Federal Government has taken a significant step towards ensuring the prompt payment of pensions to retired federal civil servants. In collaboration with the Ministry of Finance, the Office of the Head of Civil Service of the Federation has ordered the computation of accrued pension for employees who were employed on or before July 2024.
The aim of this initiative is to enable the government to plan ahead and expedite the release of pension entitlements to retirees. It has been observed that one of the reasons for the delay in pension payments is the late release of accrued rights under the old Defined Benefit Scheme.
To address this issue, the government is compiling data of the affected officers who are entitled to these rights. The Office of the Head of the Civil Service of the Federation, in collaboration with the Federal Ministry of Finance and other stakeholders, has made it mandatory for all concerned officers to fill out a form. This will facilitate the payment of their accrued pension rights under the old Defined Benefit Pension Scheme upon retirement.
It is worth noting that the Federal Government has faced challenges in releasing funds for the payment of accrued pension rights in recent times. In 2023, no funds were released despite budgetary provisions, and the situation continued into the first half of 2024. This has caused frustration among retirees who rely on their pensions for financial stability.
Furthermore, the Federal Government has been criticized for its failure to implement its policy on the upward review of pension amounts under the Contributory Pension Scheme. According to the law, pension adjustments should be made every five years or together with any federal civil service salary reviews, whichever is earlier. However, the FG has not fulfilled this requirement since the scheme’s inception in 2004.
The total amount owed to retirees on accrued pension rights by the Federal Government is estimated to be around N230 billion. Some pensioner groups have even called for a boycott of investing pension assets in FG securities due to the government’s borrowing practices.
In an attempt to address these issues and improve compliance with the pension scheme, the Federal Government has released funds for the payment of accrued rights in the past. However, there have been delays and inconsistencies in these payments, with the last payments
It is crucial for the government to prioritize the timely payment of pensions to retirees who have dedicated their lives to public service. By streamlining the computation process and ensuring the release of funds, the government can fulfill its obligation to its retired civil servants and provide them with the financial security they deserve.
