Retired federal workers under the Contributory Pension Scheme (CPS) are set to receive an additional N32,000 monthly pension.
The increment will be funded from a N758 billion bond approved by President Bola Ahmed Tinubu to clear outstanding pension liabilities.
The initiative ensures that CPS retirees benefit from the National Minimum Wage Amendment Act 2024 and its consequential adjustments.
The N32,000 monthly payment has been set as the baseline for all retirees in the education and health sectors, as well as security personnel and members of the Armed Forces, regardless of their accumulated savings.
On August 6, President Tinubu directed the prompt implementation of long-overdue pension increases and a minimum pension guarantee to provide a financial safety net for vulnerable pensioners.
Officials of the National Pension Commission (PenCom) confirmed that with the National Assembly’s approval of the President’s directive, the bond proceeds will soon be available for disbursement.
A PenCom official explained that the increase and minimum pension guarantee establish a baseline for all CPS retirees, ensuring that even those with minimal savings are protected from poverty.
PenCom’s Director-General, Omolola Oloworaran, outlined how the N758 billion bond will be allocated: N253 billion for clearing accrued rights of federal workers employed before the CPS began in 2004 and those close to retirement at that time; N387.5 billion for pension increases dating back to 2007; and N107 billion for the Pension Protection Fund, designed to support low-income retirees.
Oloworaran assured that once the bond issuance is concluded, Pension Fund Administrators will credit retirees’ accounts promptly, with PenCom providing oversight to ensure timely payment.
She added that the intervention is vital for restoring confidence in the CPS, which has been weakened by years of delayed payments.
Read Also: https://fusionchronicles.ng/bus-plunges-into-taraba-river-casualties-feared/
The National Salaries, Incomes and Wages Commission had earlier confirmed that retirees would receive the N32,000 monthly increase following the passage of the new minimum wage law.
