All retired federal workers under the Contributory Pension Scheme (CPS) will soon begin to enjoy a N32,000 monthly pension increase, following the approval of a N758 billion bond by President Bola Ahmed Tinubu.
The intervention is aimed at clearing all outstanding pension liabilities and ensuring that retirees benefit from the National Minimum Wage Amendment Act 2024 and its consequential adjustments.
Under the arrangement, N32,000 will serve as the minimum monthly pension for retirees in education, health, security services, and the Armed Forces under the CPS, regardless of their individual savings balance.
President Tinubu had, on August 6, directed the immediate implementation of pension increases and a minimum pension guarantee to provide a safety net for vulnerable pensioners.
An official of the National Pension Commission (PenCom) confirmed that the National Assembly has already concurred with the President’s directive, paving the way for the bond proceeds to be released.
PenCom’s Director-General, Mrs. Omolola Oloworaran, explained that the N758 billion bond would be disbursed across three key categories. She said N253 billion would clear accrued rights of federal workers employed before the CPS began in 2004, or those close to retirement at the time.
Another N387.5 billion will be used to settle pension increases dating back to 2007, while N107 billion is earmarked for the Pension Protection Fund to support low-income retirees.
“This fund is designed to augment pensions for low-income earners so they can earn a living wage. Pension Fund Administrators (PFAs) have also committed to prompt payments once the funds are released, while PenCom will ensure strict oversight,” she said.
Oloworaran stressed that the intervention was necessary to restore confidence in the CPS, which had suffered credibility challenges due to unresolved arrears.
The National Salaries, Incomes and Wages Commission (NSIWC) had last year confirmed that the pension adjustment would add N32,000 monthly to retirees’ benefits, following the enactment of the new minimum wage law.
