Nigerian govt moves to address pension backlog

In a bid to address the long-standing issue of delayed pension payments, the Federal Government has directed the computation of accrued pension for serving federal civil servants.

According to a memo obtained by our correspondent, the initiative is a collaborative effort between the Office of the Head of Civil Service of the Federation and the Ministry of Finance.

The move targets employees employed on or before June 30, 2004, with the aim of enabling the government to plan ahead for the early release of their entitlements.

The memo highlights the delayed release of accrued rights under the old Defined Benefit Scheme as a major contributor to the pension payment backlog.

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To address this, the government is compiling data on affected officers, making it mandatory for concerned officers to fill out the required form to ensure the payment of their accrued pension rights upon retirement.

The memo reads: “It has been observed that one of the reasons for the delay in the payment of pension of retired officers is the late release of their accrued rights under the old Defined Benefit Scheme.

“To enable the government plan towards early release of the accrued rights, there is a need to harvest the data of the officers who are entitled to the rights.

“Consequently, the Office of the Head of the Civil Service of the Federation, in collaboration with the Federal Ministry of Finance and other stakeholders, is compiling data of the affected officers who were employed on or before 30th June 2004.

“All concerned officers are to note that filling the form is mandatory to enable the payment of their accrued pension rights under the old Defined Benefit Pension Scheme, when they retire.”

This development signals a proactive approach by the government to tackle the perennial issue of pension delays, providing a glimmer of hope for federal civil servants who have long suffered from payment backlogs.

By harvesting data and computing accrued pension, the government aims to ensure a smoother transition for employees into retirement, alleviating the financial uncertainty that often accompanies the end of their service.

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