•Legally binding upward review suspended for 15yrs
The FG’s indebtedness to retirees on accrued pension rights in the last 16 months is estimated at N230 billion. According to the 2024 Appropriation Act, provision for Pensions, Gratuities & Retirees Benefits declined to N673.01 billion from N854.81 billion budgeted in 2023. Oyetan said: “Funds were last released in February 2023, however, approval for March and April has been made but no money has been released.”
He said: “PenCom should give us the total amount of outstanding accrued benefits and also give us an estimate for the next five years so that we know how to pursue it from the government. He said: “The situation is very appalling because lawmakers are taking millions every month. The reason why former President Obasanjo created the CPS is that benefits will not be delayed, but unfortunately, the reverse is the case.
“Due to the waiting period, some retirees who would have had access to health care are deprived and they die early. Life expectancy in Nigeria is less than 70yrs which means they have cheated death; yet they wait for an average of one year before they access their funds. This is very pathetic.” “The second issue has to do with the constitutional provision for an increase in pension. Section 173 of the 1999 Constitution provides that “Pensions shall be reviewed every five years or together with any federal civil service salary reviews, whichever is earlier.
“The omission of listing the federal government in Section 2.8 of PenCom’s Regulation on Investment of Pension Fund Assets may have been based on the assumption that the federal government would fully implement the CPS as mandated by law. Onuoha said: “Essentially, what we do as pension fund administrators is to hunt for values for our customers.