Nigerian government moves to address pension fund backlog

In an attempt to address the long-standing problem of pending pension payments, the Federal Government has directed the calculation of outstanding pensions for serving federal civil servants.

According to a memo obtained by our correspondent, the initiative was a collaborative effort between the Office of the Head of the Civil Service of the Federation and the Ministry of Finance.

This move targets employees hired on or before June 30, 2004, with the aim of enabling the government to plan in advance for the release of their entitlements.

The memo highlighted the delay in the release of entitlements accrued under the old Defined Benefit Scheme as a major cause of the backlog in pension payments.

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To address this, the government is collecting data on affected officials, and requiring relevant officials to fill out the required forms to ensure payment of pension rights that have been obtained upon retirement.

The note reads: “It has been observed that one of the reasons for delay in payment of pension to retired officers is the delay in release of their entitlements accrued under the old Defined Benefit Scheme.

“To enable the government’s plan towards releasing the rights that have been collected earlier, it is necessary to collect data on officials who are entitled to these rights.

“Therefore, the Office of the Head of the Civil Service of the Federation, in collaboration with the Federal Ministry of Finance and other stakeholders, is compiling data on affected officials employed on or before June 30, 2004.

“All relevant officials should note that filling of this form is mandatory to enable payment of accumulated pension entitlements under the old Defined Benefit Pension Scheme, upon their retirement.”

This development signals a proactive approach by the government to address the persistent problem of delayed pensions, providing a glimmer of hope for federal civil servants who have long suffered from payment arrears.

By collecting data and calculating the pension funds collected, the government aims to ensure a smooth transition for employees into retirement, reducing the financial uncertainty that often accompanies the end of their working lives.

Nigerian Government moves to address pension backlog first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.