Kaduna to pay N30,000 minimum pension this month

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The Kaduna State Government will this month begin paying N30,000 as the new minimum pension for its retirees who are on the old Defined Benefits Pension scheme.

A statement issued from Sir Kashim Ibrahim House on Thursday emphasized that this decision will upgrade 11,511 pensioners who were previously earning less thanN30,000 as monthly pension.

The statement which was signed by Mr Muyiwa Adekeye, Special Adviser on Media and Communication, said that all Government agencies have received a circular from the office of the Head of Service to effect the new pension structure.

“Following the decision of the Kaduna State Executive Council to increase the minimum pension to N30,000 monthly, the Head of Service, Bariatu Y. Mohammed, has issued the necessary circular to government agencies to implement it from March 2020,’’ he said.

According to the Special Adviser, the circular directs ‘’the agencies to comply and implement the directive of the State Executive Council which recently reviewed upward the minimum pension in the state.’’

Adekeye quoted from the circular which was issued on 11 March, saying that the increase is part of the State Government’s ‘’continuous efforts to ensure welfare for both serving and retired public servants.’’

The circular noted that the decision of the State Executive Council “would no doubt improve the living standard of this category of senior citizens.’’

The statement recalled that some of the 11,511 pensioners who will benefit from the new minimum pensionwere receiving pensions as low as N3000 before the increase.

Adekeye further said the decision aligns the minimum pension payable to retirees on the old Defined Benefits Scheme with the new national minimum wage.

“A report presented to the State Executive Council noted that as at November 2019, 6452 of 10,815 state government pensioners earned less than N30,000 as monthly pension. At local government level, 5059 of 9,295 pensioners earned less than N30,000 monthly.

The Special Adviser pointed out that the 11,511 beneficiary pensioners are now better off, ‘’although this upward review will cost the state an extra N200m monthly.’’

Adekeye noted that Kaduna State had began implementing a Contributory Pension Scheme on 1st January 2017, adding that Pencom have assessed the scheme highly.

‘’However, the state continues to discharge its obligations to workers who retired before that date, whose pensions are covered by the Defined Benefits Scheme,’’ he pointed out.

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