The Federal Government has approved a N758 billion bond to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS). According to the National Pension Commission (PenCom), the bond issuance process has commenced, and payments are expected to begin by the end of September or the first week of October.
Key Highlights:
- Bond Issuance: The N758 billion bond will clear accumulated pension debts, including debts owed under the old Defined Benefit Scheme before the introduction of the CPS in 2004.
- Pension Arrears: The bond will settle pension increases that have remained unpaid for nearly two decades, benefiting over 250,000 retirees.
- Pension Protection Fund: The federal government is contributing N107 billion to the Pension Protection Fund to ensure low-income earners receive a living wage in retirement.
- Accrued Rights Payments: N253 billion has been allocated to settle outstanding entitlements for retirees of Treasury-funded Ministries, Departments, and Agencies (MDAs).
Impact on Retirees:
- Prompt Payment: Retirees will receive their benefits promptly, with all arrears cleared.
- Increased Purchasing Power: The bond issuance will put money in the hands of ordinary Nigerians, increasing their purchasing power and overall well-being.
