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PenCom seeks N10.03bn to pay minimum pension

Pencom

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The National Pension Commission says it needs N10.03bn to commence the funding of the minimum pensions for retirees under the Contributory Pension Scheme.

It stated that the funding of the Pension Protection Fund would include an annual subvention of one per cent of the total monthly wage bill payable to employees in the public service.

“The one per cent of the total monthly wage bill payable to employees in the public service of the federation has been determined as N10.03bn,” it stated.

According to the commission, Section 82(1) of the Pension Reform Act 2014 provides for the establishment of the PPF, which is to be utilised for the funding of the minimum pension guarantee to be paid to all Retirement Savings Account holders who have contributed for a number of years to licensed Pension Fund Administrators.

Part of the funds would be used for the payment of compensation to eligible pensioners due to shortfall or financial losses arising from investment activities.

It would also be funded from the annual pension protection levy paid by PenCom and all licensed pension operators at a rate to be determined by the commission from time to time.

 


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Haruna Magaji: Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com
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