Federal retirees operating under the Contributory Pension Scheme (CPS) are appealing to the National Pension Commission (PenCom) to revise its disbursement policy.
They want the commission to pay the full arrears of their retirement benefits directly into their accounts, rather than spreading the payments out.
The appeal was contained in an open letter addressed to the Director-General of PenCom by the Senior Citizens Association of Nigeria, Retirees Chapter.
This action follows the Federal Government’s recent release of over N758 billion to settle outstanding pension liabilities.
In the letter, signed by National Coordinator Rev. Adio Odejide and National Secretary Prof. Idorenyin Etukudo, the retirees thanked President Bola Tinubu for approving the funds, calling it a major relief after long delays.
However, their primary concern is PenCom’s current policy: it requires that any arrears exceeding N100,000 be spread out over a retiree’s expected lifespan instead of being paid in one lump sum.
The retirees argued that the policy was “not favourable” and urged the commission to pay every entitled retiree—whether on Programmed Withdrawal or Annuity—the full amount due to them at once.
“Our demand is that, no matter the amount that a retiree is entitled to, the entire amount should be paid into the beneficiary’s account since the retirees would have enjoyed this amount if the entitlements were released as and when due,” the letter stated.
The group noted that prompt payment of the arrears would help cushion the economic hardship faced by many retirees amid rising inflation and cost of living pressures.
The retirees also commended the Federal Government for responding to their earlier requests, which included enhancement of monthly pension payments, clearance of backlog arrears, implementation of consequential adjustments, and pension increments.
They expressed optimism that with PenCom’s intervention and the government’s continued support, their long-awaited benefits would soon be fully disbursed.
“If the payment of these arrears is made as desired, it will go a long way in providing the much-needed relief and alleviate some financial burden of the retirees,” the association said.
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