The Federal Government has failed to remit the pension contributions of most of its workers into their Retirement Savings Accounts under the Contributory Pension Scheme since October last year.

The Federal Government has failed to remit the pension contributions of most of its workers into their Retirement Savings Accounts under the Contributory Pension Scheme since October last year.

The Federal Government has failed to remit the pension contributions of most of its workers into their Retirement Savings Accounts under the Contributory Pension Scheme since October last year.

This is contained in the 2016 annual report of the Pension Fund Operators Association of Nigeria.

 “Compliance with regard to remittances of pension contributions from the public sector at both the federal and state levels has lagged notably. While remittances from the Federal Government through the National Pension Commission were last received for September 2015, some states have outstanding remittances dating back over two years,” PenOp stated

The association furthered that the private sector remittances was more regular but not without the present drastic economic environment in the country.

The affected federal workers are those were directly employed by the ministry and are paid by the PenCom with the funds released from the Central Bank of Nigeria.

Also, the FG has defaulted in increasing its contribution into the RSAs of workers in the parastatals by crediting their accounts with 15 per cent of their total monthly emolument two years after the Pension Reform Act, 2014 increased the contribution to 18 per cent (10 per cent for employers and eight per cent for the workers instead of the 7.5 per cent that each was contributing before 2014).

This action by the federal government stands to jeopardize the workers chances of processing their pensions until all arrears are paid together with their accrued rights under the Defined Benefits Scheme

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