By Dada Ahmed in Lokoja.
Retirees under the Contributory Pension Scheme (CPS) in Lokoja, Kogi State, have begun visiting their Pension Fund Administrators (PFAs) in anticipation of the Federal Government’s commencement of payment of long-outstanding arrears dating back to 2007.
Our correspondent, who monitored activities at some PFAs’ offices in Lokoja on Monday, many several retirees making enquiries about the exact date when payments would begin.
“I am a CPS retiree eagerly awaiting the commencement of arrears payment dating back to 2007. Timely payment of these allowances cannot be overemphasised, especially considering the present economic hardship facing Nigerians,” said Alhaji Aliyu Yahaya, one of the retirees.
Yahaya commended President Bola Ahmed Tinubu, the National Assembly, the Minister of Finance and Coordinating Minister of Economy, as well as the Head of the Civil Service of the Federation, for facilitating the approval of the ₦757 billion bond for the settlement of arrears.
He, however, appealed to the Federal Government to inform retirees of the specific date the payments would begin.
“We are happy that government has seen the wisdom in approving this payment. But the problem is that nobody is certain about when it will actually start,” he said.
The retiree also called on PenCom and other stakeholders involved in the process of payment to expedite action and provide clarity on the payment timeline.
Findings by our correspondent revealed that the arrears cover increments of 15% (January 2007), 33% (June 2010), 9% (April 2019), 20% (April 2023), and a projected ₦32,000 monthly enhancement from July 2024.
According to sources, the Ministry of Finance will direct the Debt Management Office (DMO) to raise funds from the market.
The DMO will then remit proceeds to the Ministry of Finance, which will allocate the funds to PenCom and other pension agencies. PenCom will, in turn, transfer the arrears to PFAs, who will credit retirees’ accounts or transfer to insurance companies for those retirees under annuity.
The source added that the payment, when fully implemented, could nearly double the monthly pensions of many CPS retirees.
