PenCom Drags Nigeria's 2017 Pension Liabilities At N113.02bn

The National Pensions Commission (PenCom) has put the federal government’s total pension liabilities for 2017 at over N113.02 billion.
 

The amount will cover 16,267 enrolled employees and 9,652 estimated deceased employees of the federal government as well as employees yet to be enrolled by the Commission, to be included in the 2017 budgetary provision of the federal government.

The commission said the sum of N72.70 billion is being earmarked for 16,267 civil servants who are to mandatorily retire in 2017 (inclusive of 1,569 civil servants who retired before 2017 but had not been provided for previously).

According to the commission, the sum of N19.14 billion will also be set aside for 9,652 estimated death claims (20 per cent marked up 2016 submitted claims as at August 2016). An additional N21.17 billion is set aside for estimate of employees yet to be enrolled by the Commission (2016 estimate marked up by 20 per cent).

These were contained in a memorandum submitted by the commission to the Senate Committee on Establishment and Public Service at the Budget Defence Session on the 2017 Budget Estimates for Appropriation.

PenCom Director General, Mrs. Chinedu Anohu-Amazu further sought for the sum of N10.19 billion to pay all outstanding accrued benefits for deceased and mandatory retirees of the Federal Government for the periods September to December 2014 as well as the sum of N41.71 billion being the shortfall in the 2016 Budget Appropriation.

The commission also requested for approval of the sum of N31.37 billion for outstanding mandates for seven and a half months in 2016 in order to effect payment of outstanding accrued benefits for deceased and mandatory retirees of the Federal Government.

Also included in its 2017 budget proposal is the sum of N440.04 million to cater for the shortfall in the retirement benefits of 24 retired Heads of Civil Service of the Federation and Federal Permanent Secretaries who had earlier enrolled with the Commission and 16 Federal Permanent Secretaries scheduled to retire this year.

Meanwhile, the commission’s total appropriation in 2016 was N849.92 million, although N259.70 million was released, representing an average of about 30.6 per cent. However, it generated the sums of N10.37 billion and N11.77 billion in internally generated revenue (IGR) in 2015 and 2016 respectively.
 

The commission however, proposed the sum of N849.92 million, made up of N99.92 million in overhead costs and N750 million in capital subvention for its 2017 operations.

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