PenCom To Ensure Living Wage For Retired Low-Income Earners

The National Pension Commission (PenCom) has unveiled plans to provide a living wage for retired low-income earners following the Federal Government’s approval of a ₦758 billion pension bond to clear outstanding liabilities under the Contributory Pension Scheme (CPS).

Speaking at a press conference in Abuja after the Quarterly PenCom/Operators Consultative Forum, PenCom’s Director-General, Omolola Oloworaran, described the approval as a major milestone in pension administration.

She noted that the bond, initiated by President Bola Tinubu, aims to restore confidence in the pension system and ensure retirees receive their entitlements without delays.

As part of the initiative, ₦107 billion has been allocated to the Pension Protection Fund (PPF) to support low-income pensioners who may not have accumulated sufficient savings for retirement. Oloworaran highlighted that this marks the first time the Federal Government is directly contributing to the PPF, calling it a significant step toward strengthening pension security.

The ₦758 billion bond will also address long-standing arrears, including:

• ₦253 billion to settle accrued pension rights owed to retirees from Treasury-funded Ministries, Departments, and Agencies (MDAs). Going forward, these entitlements will be included in the monthly personnel cost warrant to ensure automatic and timely payments.

• ₦388 billion to clear unpaid pension increases dating back to 2007, benefitting over 250,000 retirees.

• ₦11 billion to resolve pension shortfalls for university professors, ensuring eligible retirees in academia receive their full salaries upon retirement.

“This landmark intervention fully resolves accumulated pension liabilities, ensuring that retirees receive their benefits without unnecessary delays,” Oloworaran stated.

She commended President Tinubu for his decisive action on pension reform and also acknowledged the Minister of Finance, Wale Edun, for his role in facilitating the initiative.

With the backlog cleared, she said PenCom will now focus on expanding the Micro Pension Plan, which aims to provide structured retirement savings for workers in the informal sector.

Beyond improving pension security, she emphasized that settling these liabilities would strengthen financial markets, boost investment in the pension industry, and enhance economic stability.

PenCom assured retirees that it would collaborate with stakeholders to ensure the smooth issuance of the bond and prompt disbursement of pension payments.