Budget cuts, extend wait for retiree benefits

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The reduction in the budget for pensions and retiree benefits in the 2024 budget has led to further delays in paying retirement benefits to Federal Government retirees and deceased employees.

The 2024 Appropriation Act indicates a significant 21% decrease in the allocation for pensions and retirees’ benefits compared to the previous year, dropping from N854.81 billion to N673.01 billion. This reduction has dashed the hopes of affected retirees, prolonging their wait for much-needed payments.

Mrs. Aisha Dahir-Umar, Director General of PenCom, attributed the delays to budgetary constraints. She explained that inadequate and delayed funding for the payment of Accrued Pension Rights, especially for those employed before the introduction of the Contributory Pension Scheme in 2004, has contributed to the backlog. Despite efforts to secure more funds from the Federal Ministry of Finance, the government faces its own budgetary limitations, prolonging the plight of retirees awaiting their benefits.

Source: Vanguard

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