Budgetary Provision For Retirees’ Accrued Right Is Above Our Control – PenCom

The National Pension Commission (PenCom) has said the Federal Government is responsible for the inclusion of pension accrued right liabilities in the budget.

According to the Head of Corporate Communications Department of the Commission, Peter Aghahowa, the right liabilities is what the government owes retired workers of Ministries, Departments and Agencies (MDAs) and is usually compiled and sent to FG for inclusion in the budget.

“The liability, once we have determined it, would be transmitted to the Federal Government so that adequate budgetary provision would be made. In terms of budgetary provision, it is entirely up to the Federal Government. Once we provide the information for the Federal Government, the funding would have to be provided in next year’s budget. So, that is all outside PenCom,” he said.

Aghahowa disclosed this during the on-going verification and enrolment exercise for FG treasury-funded workers due for retirement in 2020.

Reports have it that the government owes its retirees about one year of unpaid accrued rights, with the number likely to increase as additional prospective retirees are currently being verified and enrolled.

Recall that the pension regulator kick-started the verification exercise for prospective retirees due to retire in 2020 since 1st July.

The sensitization exercise is aimed at educating prospective retirees on the modalities for accessing retirement benefits under the CPS.