The Accrued Pension Rights represents an employee’s benefits for the past years of service up to June 2004, when the Pension Reform Act (PRA) that birthed the CPS, came into effect.

According to the press statement from PenCom, PRESS RELEASE
PRESIDENTIAL APPROVAL FOR PAYMENT OF OUTSTANDING PENSION LIABILITIES
UNDER THE CONTRIBUTORY PENSION SCHEME
1. The National Pension Commission (PenCom) is pleased to inform all its stakeholders, particularly retirees of
Treasury-funded Federal Ministries, Departments and Agencies (MDAs), that His Excellency, President
Muhammadu Buhari, GCFR, has approved PenCom’s submission on the payment of some critical aspects of
the outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme.
Specifically, the President has approved:
a. Payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded
MDAs that retired but are yet to be paid their retirement benefits, as well as the back log of death benefits
claims due to beneficiaries of deceased employees of treasury funded MDAs.
b. Payment of 2.5% differential in the rate of employer pension contribution for FGN retirees and employees
which resulted from the increase in the minimum pension contribution for employers from 7.5% to 10%
in line with Section 4(1) of the PRA 2014. Payments for retirees and existing employees would take
effect from July 2014.
2. It is worthy to note that subsequently, the Federal Government of Nigeria is expected to continue with the
payment of the 10% rate of employer pension contribution for its employees, thus ensuring a remittance of at
least 18% monthly (employer 10% and employee 8%) as provided by the PRA 2014.
3. Funds have already been made available for the settlement of the above stated pension liabilities.
Accordingly, remittance into the various Retirement Savings Accounts (RSAs) of the affected retirees and
employees is currently being processed. The affected retirees and employees would be notified in due course
by their respective Pension Fund Administrators (PFAs).
4. The settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees and
compliance with the reviewed rate of pension contributions are significant developments, that have resolved
the challenges in these aspects that have lingered since 2014.

The Commission appreciates the effort of the Federal Government at ensuring that the accrued rights arrears are cleared, and thanks the affected retirees of the Treasury-Funded Agencies for their patience.