The Kaduna State Government has released N920 million for the settlement of outstanding pension liabilities, death benefits of deceased civil servants and gratuities.
“Such savings, known as Accrued Rights, are the retirees’ entitlements paid to PFAs instead of individual beneficiaries,” she said.
The News Agency of Nigeria (NAN) reports that the ODS is the pension scheme that was in effect in Nigeria until 2007 when it was replaced with the CPS as stipulated in the Pension Reform Act (PFA) 2004 and 2014.
Under the DBS, the total pension obligation is borne by government as against the CPS where the accumulated pension at retirement is based on a pension plan in which an employer/employee contribute in varying percentages to build a retirement fund for an individual.
Under the CPS, the pension fund exists from the onset and payments can be made as at when due unlike the DBS which is wholly dependent on government treasury for funding.
