LAGOS – The National Pension Commission (Pencom) has reiterated its unalloyed commitment in ensuring prompt payment of Accrued Rights to federal government retirees under treasury-funded ministries, department and agencies (MDA).
Mrs Omolola Oloworaran, the Acting Director General at PenCom who made this known in Lagos recently, added that the persistent delays of fund release for payment of the Accrued Right would soon be the thing of the past as the Commission is working relentlessly in ensuring that the retirees are paid as of when due.
Accrued right represent an employee’s retirement benefits from the date of the employees first appointment till June 2004, when the first pension reform act (PRA 2004) was enacted.
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The accrued right is a major part of the retirement benefit that must be paid into the retirement saving account (RSAs) of retirees before pension fund administrator (PFAs) can process the request for retirement benefits via Lumpsum and program withdrawal or annuity.
Oloworaran, in her keynote address at the workshop on the use of the online enrolment application of pension desk officers (PDOs) of treasury funded ministries, department and agencies (MDA) of the federal ministries government, had assured that Accrued Right would soon be released, adding that concerted efforts have been made by critical stakeholder to ensure that the persistent delays in release of retirees accrued right by federal government becomes a thing of the past.
The acting Director General also confirmed that the current delay in release of funds by the government for the payment of retirees accrued right negates the cardinal objective of the contributory pension scheme (CPS) on payment of retirement benefits as and when due and she assured that situation will soon be resolved.
She said “it is also heart-warming to report to you that concerted effort by the critical stake holder have reached advanced stage to not clears all outstanding pension liabilities of the federal government under CPS, but to also put in place lasting solutions that will address the problem of inadequate funding and delay in fund releases for the payment of accrued right”.
