National Pension Commission increases retiree payments and automates employer penalties

The National Pension Commission (PenCom) has increased monthly pension disbursements for over 241,000 retirees under the Contributory Pension Scheme. Payments have risen from N12.15 billion to N14.83 billion, a N2.68 billion increase implemented through the ‘Pension Boost 1.0’ initiative to address rising inflation and economic pressures.

Director-General Omolola Oloworaran announced that a N758 billion intervention bond was utilized to clear inherited federal pension liabilities dating back to 2007, a move intended to benefit nearly one million retirees by settling outstanding public sector obligations.

To strengthen compliance with the Pension Reform Act, PenCom has also introduced an automated system to calculate penalties for employers who delay remitting workers’ pension contributions. Under this new system, employers with outstanding penalties will be unable to obtain Pension Clearance Certificates, which may impact their eligibility for government contracts and other business transactions requiring proof of compliance.