Kaduna’s Government Provides N920 Million For Pension And Bonus Payments.

The Kaduna State Government has released N920 million for the payment of gratuities, death payments for government officials who have passed away, and overdue pension obligations.

This information can be found in a statement made on Wednesday in Kaduna by Prof. Salamatu Isah, Executive Secretary of the Kaduna State Pension Bureau.

According to her, the sum paid batch 54 pensions for retirees from the state and municipal governments as well as funeral expenses.

According to Isah, the payout will follow the previous “Defined Benefit System (DBS)”.

The executive secretary also revealed that local government employees will get N520 million, compared to N400 million for state pensioners and retired public officials.

Isah continued by saying that the Pension Funds Administrators will handle the payment made under the Contributory Pension Plan (CPS) (PFAs).

She explained that these funds, or “Accrued Rights,” are the rights of retirees that are given to PFAs rather than specific recipients.

The ODS, according to the News Agency of Nigeria (NAN), was the pension plan in force in Nigeria until 2007, when the CPS, as required by the Pension Reform Act (PFA) of 2004 and 2014, took its place.

In contrast to the CPS, where the cumulative pension at retirement is based on a pension plan in which an employer and employee pay in varied amounts to construct a retirement fund for an individual, under the DBS, the whole pension responsibility is carried by the government.

Unlike the DBS, which is completely reliant on the coffers for financing, the CPS’s pension fund is present from the start and payments may be provided whenever they are due.