FG begins disbursement of N758bn pension arrears, retirees get alerts

Thousands of retirees across the country have begun receiving their long-awaited pension benefits as the Federal Government commenced the disbursement of N758 billion to clear accumulated pension arrears, with some retirees receiving symbolic payments at the inaugural National Pension Leadership Summit in Abuja.

The government also plans to activate a long-delayed minimum pension guarantee and a healthcare program for low-income pensioners.

Secretary to the Government of the Federation (SGF) Senator George Akume said the N758 billion Federal Government Pension Bond was approved to settle accrued pension rights and strengthen the Pension Protection Fund.

Some beneficiaries received ceremonial cheques Thursday as disbursements continue.

“A pension is not a favour granted by the government”, he said, adding, “It is the wage earned, deferred and held in trust. It is a promise”.

“And this administration has resolved that the promise will be kept,” the SGF stated.

The intervention has already reached 957,045 beneficiaries, according to PenCom, clearing liabilities that in some cases dated to 2007.

It includes N387.5 billion for pension increases, N253 billion for accrued rights, N107 billion for the Pension Protection Fund and N10 billion for university professors’ retirement benefits.

The government plans to implement the Minimum Pension Guarantee, a provision of the Pension Reform Act (PRA) 2014 that has gone unused for more than a decade.

The measure would establish an income floor for eligible retirees under the Contributory Pension Scheme, though PenCom has not yet disclosed the benefit level, eligibility rules or funding mechanism.

PenCom also plans to launch PenCare, a retiree well-being program that will initially provide free essential healthcare to 30,000 low-income retirees aged 60 and older.

The pilot targets pensioners receiving N70,000 or less monthly, with expansion planned after the initial phase.

PenCom Director-General Omolola Oloworaran said retirement benefits are now being paid within 48 hours when documentation is complete, replacing delays that previously stretched as long as 21 months.

She said the commission is pursuing further reforms to improve efficiency and expand coverage.

But she warned that many private-sector workers still retire into poverty, urging employers and employees to participate more fully in the contributory scheme.

“A pension system that covers only workers on government payrolls cannot be considered a truly national system,” she said.