PenCom mandates state contributions for minimum pension access

The National Pension Commission (PenCom) stated that state governments must contribute to the N400bn Pension Protection Fund to enable their retirees to access the newly introduced N52,500 minimum monthly pension. PenCom Director-General Omolola Oloworaran provided these details during the announcement of the Presidential Pension Security Initiative in Abuja.

The minimum pension guarantee is applicable to eligible retirees in the federal public service, state governments, and the private sector. Oloworaran emphasized that this requirement is crucial for the sustainability of the pension scheme, ensuring that funds do not deplete as more retirees are enrolled.

President Bola Tinubu officially activated the minimum pension guarantee, which will benefit 173,209 retirees currently earning below the threshold. Funding will come from the government and the pension industry through the Pension Protection Fund.

Eligible retirees under the Contributory Pension Scheme earning below N52,500 will have their pensions adjusted to meet the minimum amount.