PenOp decries delay in accrued rights payment

The Pension Fund Operators Association of Nigeria has raised concerns over the Federal Government’s delay in paying accrued pension rights, which have been outstanding for 18 months.

The Chief Executive Officer of PenOp, Oguche Agudah, disclosed this during an interview on The Morning Show on Arise News TV on Monday.

Agudah explained that accrued rights are entitlements owed to public servants who worked for the Federal Government before the pension reform of 2004.

These rights are in addition to the regular contributions made to the Retirement Savings Accounts of such employees.

However, the Federal Government has failed to meet its obligation to pay these accrued rights for nearly two years.

“If you worked with the Federal Government before 2004, there were some rights you are owed based on your pensions.

“When you retire, those rights are meant to be paid to you in addition to the contributions you have made.

“But the Federal Government has not met this on some occasions since about last year. The accrued rights have not been paid,” Agudah revealed during the interview.

While the Minister of Finance recently communicated a plan to clear the outstanding payments, Agudah confirmed that no action has been taken yet.

When asked if the accrued rights had been cleared, he said, “not yet, not as of today.”

The PenOp CEO highlighted that no accrued rights have been paid since the beginning of President Bola Tinubu’s administration.

The delay continues to create uncertainty for retirees who depend on these funds to sustain their livelihoods.

“For about 18 months, the accrued rights have been owed,” Agudah noted, emphasising the severity of the situation.

The delay in clearing accrued rights has been a long-standing issue, sparking criticisms of the government’s commitment to fulfilling its pension obligations.

The PUNCH earlier reported that the Federal Government released about 25 per cent of the total amount budgeted for pension arrears this year.

However, it has pledged to settle the N88bn earmarked for pension arrears in the 2024 budget.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the commitment when hundreds of frustrated retirees from Nigeria’s Contributory Pension Scheme staged a protest at the Federal Ministry of Finance in Abuja.

The retirees, angered by prolonged delays in the payment of their pension arrears, blocked the main entrance of the ministry demanding an audience with Edun.

Addressing the crowd, Edun disclosed that of the N88bn budgeted for pension arrears in 2024, N22bn had already been disbursed.

He assured the retirees that the remaining funds would be paid by the end of the year, with disbursements set to commence next week.

Edun attributed the pension backlog to challenges within the older system while reaffirming the government’s commitment to resolving the issue.

However, although the minister claimed that about N22bn has been disbursed, it appears that this amount is yet to be used to settle the outstanding accrued rights of affected pensioners.