Governor Nasir El-Rufai’s administration says it has released N920 million to settle outstanding pension liabilities, death benefits of deceased civil servants and gratuities.

This is contained in a statement by the executive secretary of the Kaduna State Pension Bureau, Salamatu Isah, on Wednesday.

The statement said the amount covered batch 54 for the state and local government retirees and death benefits, adding that the payment would be in the old ‘Defined Benefit Scheme’.

The Kaduna government disclosed that the pensioners and retired civil servants would get N400 million, while their counterparts from the local government service would receive N520 million.

According to the statement, the payment, under the contributory pension scheme, would be done by the pension funds administrators (PFAs).

“Such savings, known as Accrued Rights, are the retirees’ entitlements paid to PFAs instead of individual beneficiaries,” it said.

The DBS is the pension scheme that was in effect in Nigeria until 2007, when it was replaced with the contributory pension scheme stipulated in the Pension Reform Act (PFA) 2004 and 2014.

Under the DBS, the government bears the total pension obligation against the contributory pension scheme, where the accumulated pension at retirement is based on a pension plan in which an employer/employee contributes in varying percentages to build a retirement fund for an individual.

Under the contributory pension scheme, the pension fund exists from the onset, and payments can be made as at when due, unlike the DBS, which is wholly dependent on the government treasury for funding.

(NAN)