admin
|
FG Accumulates N135bn Pension FundFG Accumulates N135bn Pension Fund
Vanguard
Emma Ujah,
Asst Business Editor
26 June 2007
Federal Government has accumulated a total of N135 billion through its monthly contributory pension which commenced in July 2004, the Director-General of the National Pension Commission, Mr. Kabir Ahmad, has disclosed.
He told journalists in Abuja, yesterday, that N35 billion out of the total sum has been placed in the Redemption Account with the Central Bank of Nigeria to meet the needs of retirees that needed cash.
"Contributions that have been made by the Federal Government from July 2004 to May is N100 billion, excluding the N35 billion for the Redemption Fund Account with the Central Bank of Nigeria. That one is dedicated for the Retirement Benefit Bond, while the regular contribution is to their respective Retirement Savings Account", he said.
Mr Ahmad who spoke after the opening of the sensitization seminar on Federal Government Retirement Bond for retiring Federal Government workers, in Abuja, yesterday, explained that with the new scheme, Federal Government workers could now retire happily, as their benefits could be fully paid.
According to him, the 2004 Pension Act provides that the rights to retirement benefits for the past service prior to the commencement of the Act of each Federal Government employee who was not exempted from the contributory Pension Scheme would be recognized and acknowledged through the issuance of a bond.
He explained that the bond would be redeemed only upon the retirement of the employee holding it, adding, "government has approved that the bonds shall be redeemed upon retirement". The bonds would have a fixed coupon rate of 5% non-tradable; exempt from taxes; certified and could be redeemed after the submission of all documents indicating that the holder had been duly retired from service.
The Debt Management Office (DMO) would act as the Issuer on behalf of the Federal Government; while the Central Bank of Nigeria and the Ministry of Justice would act as Registrar and Solicitors to the issue, respectively. Under the arrangement, each employee would fill a Federal Government retirement form and physically enroll with the PenCom which would actuarially determine the value of the accrued right, collate employees' information and forward same to the CBN, for necessary action.
The orignal copy of the bond would be retained by the PenCom, while it would issue two certified copies to the beneficiary and the PFA where he or she had opened a Retirement Savings Accounts. Upon retirement or attaining the age of 50 years, the balance standing to the credit of his/her Retirement Savings Account (RSA) would be made up of: value of the bond; monthly pension contributions from July 2004 to the date of retirement; and Group Life insurance (for those who might die in active service).
Copyright © 2007 Vanguard
|
