PenCom begins payment of 2.5 per cent pension differentials to retirees

The National Pension Commission (PenCom) on Monday says it has commenced payment of the 2.5 per cent differentials between the 2004 and 2014 Pension Reform Act (PRA) to retirees between 2019 and 2020 .
Mr Saleem Abdulrahman, Head, Contribution and Bond Redemption Department, PenCom said that the beneficiaries are retirees between 2019 and 2020 of the Federal Government Treasury Funded Ministries , Department and Agencies (MDA’s) .
Abdulrahman stated this at the 2021 Journalist Workshop organised by the Commisison in Lagos, with the theme : Positioning the Pension Industry in the Post COVID Era.
The 2014 PRA as amended establishes a Contributory Pension Scheme (CPS) whereby the employers and employees contributes minimum percentages of the employees’ salary to the scheme monthly .
The minimum contribution for employer is 10 per cent , which is an increase of 2.5 per cent compared to the 7.5 per cent contribution stipulated by the repealed 2004 PRA .
The Act also expect the employer to contribute a minimum of 8 per cent to the scheme monthly .
Abdulrahman explained that the commission had also began computing the details of retirees between July 1, 2014 to Dec. 2018 and would pay them soon
“Some of the retirees may likely get additional lumpsum or enhanced annuity or programme withdrawal .
“We have also began computation of the active employees to enable payment , ” he said.