How budget cuts affect prompt payment of retirees

The reduction in budget proposals submitted to the National Assembly by the National Pension Commission (PenCom) is one of the main reasons that retired federal workers do not receive their retirement benefits as soon as possible.

Conclusions of the Daily Trust show that PenCom in advance calculates the rights of future pensioners and takes into account the same factors in the budget that were submitted to legislators for approval.

The conclusions show that after legislators have reduced the budget, pensioners will have to wait until other budgetary allocations are made to fill the deficit.

For example, a source at PenCom showed that federal government employees in connection with their retirement in 2019 will be affected by the recent cut in the federal government's budget budget by the National Assembly.

According to the source, the reduction of the pension budget by legislators is an absolute sum of the total accrued rights of employees of the federal government in connection with retirement in 2019.

"We attracted legislators and explained to them that the budget proposal is absolute, because if you cut something, it will affect payment. They went ahead and reduced it, "the source said.

The source explained that it is implied that a budget cut will lead to a delay in paying the estimated pensioners until the new budget is approved.

In a recent interview, the head of the corporate communications department of PenCom Peter Agakhov said that pension budgets are absolute figures, and after there are reductions, they affect pensioners.

According to the accrued rights, he said: "These were absolute figures, and after the reduction of the figure you actually declined for some people. So, the money was not released completely. Since the money has not been fully released, there is no way people will get it. "

He further explained that the accrued rights are a component of the benefits of depositors that accrue over time from the time they started working until the moment when the pension reform began.

He explained the process of achieving the absolute figure introduced in the budget as enrollment of employees who are going to retire and after enrollment, the accrued rights for those who will retire, which will be calculated and transferred to the federal government.

"Now they will provide for it and include it in the budget. So, as soon as it is calculated and reported to the federal government, it should be allocated in the budget. When there is an appropriation and when the budget is implemented, it will be released, "he said.

Last year, the federal government issued N54 billion to pay off the assessed rights of pensioners, but the amount is insufficient to pay off all obligations, and the recent budget cuts may increase liabilities.

There were calls for the federal government to collect bonds to pay off accrued accrued rights, so that pensioners could take advantage of their benefits without delay.

Daily data on trust show that many pensioners could not access their retirement benefits because of the government's inability to regulate its accrued rights.

The accrued rights are the advantages that employees who worked in the government had before 2004, when the CPS was introduced.

What seems to be a well-thought-out policy to ensure that the government regulates the accumulated accrued rights, the National Pension Commission (PenCom) directed the PFA to prevent pensioners from accessing their retirement savings until the federal government issues a component of the accrued rights,

For public service workers who migrated to the CPS in 2004, shortly before they retire, they are entitled to two components of retirement benefits: contributions accrued in their retirement savings accounts (RSA) and their accrued rights from the moment they joined the service until the moment they switched to CPS.

In addition to the contributions of pensioners from 2004 to the present, the federal government must pay its accrued rights to retirees before general benefits can be paid.

There were calls for PenCom to allow federal government pensioners to access their RSA balance sheets while waiting for the government to pay the accrued rights.

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