PFAs complete refund of savings to military, SSS

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The Pension Funds Administrators have completed the refund of the monies in the Retirement Savings Accounts of the military and security service agencies who were under the Contributory Pension Scheme before.

The National Pension Commission disclosed this in its second quarter report on ‘Update on the refund of pension contribution of the Military and Security Agencies.’

Part of the report read, “In continuation of the refund of pension contributions to Military and Security Agencies personnel following their exemption from the CPS, the commission had, during the quarter under review, processed 2,080 applications for refund.

“In that regard, the sum of N142.13m was refunded to the contributors while N83.67m representing the contributions by the Federal Government was returned to the Contributory Pension Account domiciled with the Central Bank of Nigeria.

“The extended timeline given to the Tripartite Committee for the winding down of the refund exercise ended 30th June, 2019 and the report is being finalised.”

It would be recalled that after the enactment of the enabling legislation which exempted the Military and  security agencies’ personnel from the CPS, a cut- off date of 31st December, 2011 was mutually agreed between the Military Pensions Board, SSA and PenCom for the stoppage of pension payments to the concerned retirees.

From January 2012, the armed forces personnel were exempted from the CPS.

Since then, the Military Pensions Board was directed to be in charge of payment to all military retirees, after which the PFAs were directed to return the funds in their RSAs.

However, the commission has disclosed that the savings from the public and private sectors have continued to grow under the CPS.

The total assets under the CPS rose to N9.32tn as of the end of June 2019.

The funds, which had continued to record a steady rise, hit N8.33tn as of the end of August 2018.

The Pension Reform Act, which introduced the CPS, was inaugurated in 2004 and it provides a contributory arrangement in which the employer and employee contribute to the workers’ RSAs.

Source: PUNCH.

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