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Educate Me on Retirement Benefits

I would want to know what happens to the retirement benefits of an employee who is already under a pension scheme existing before the commencement of the new pension scheme.
I would also want to know how the Federal Government would fund the redemption bonds, as well as the accrued benefits.

Mumunni Abba,
P.O. Box 2210
Gamji
Sokoto State

At the National Pension Commission (NPC), Maitama District Abuja, the enquiries of Mumunni Abba were taken up with a top official of the commission who revealed that Employee’s right to accrued retirement benefits for the previous years he/she has been in employment is guaranteed by the Pension Reform Act 2004.
In case of the public service of the Federation and the Federal Capital Territory, where pension scheme was unfunded, the right would be acknowledged through the issuance of a “Federal Government Retirement Bond,” to such employee. The bond will be redeemable upon retirement of the employee.” The official added that the Federal Government has established a Retirement Benefit Bond Redemption Fund Account in the Central Bank of Nigeria (CBN).
In the case of funded pension schemes in the public service of the federation and the private sector, employers shall undertake actuarial valuation of the employee’s accrued benefits and credit the Retirement Savings Accounts (RSAs) of its employees with such funds and in the event of any deficiency, the shortfall shall become a debt and shall be treated with same priority as salaries owed. The employer shall also issue a written acknowledgment of the debt and take steps to meet the shortfall.”
“Pension Boards in the private sector existing before the coming into force of the Pension Reform Act 2004 will continue to administer the pensions of the existing pensioners and the National Pensions Commission (NPC) will supervise such boards,” the official said. However, on the Public Service, the official said that the Pension Departments had been created to carry out the functions of the relevant pension boards or offices in the public service of the federation and the Federal Capital Territory with a view to making regular and prompt payment of pension to existing pensioners.”

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