Section 39: Federal Government Retirement Benefit Bond Redemption Fund.

(1)
The Central bank of Nigeria shall establish, invest and manage a fund to be known as the Federal Government Retirement Benefit Bond Redemption Fund (in this Act referred to as "the Redemption Fund") in respect of the Federal Public Service.
(2)
The Federal Government shall pay into the Redemption Fund an amount not less than 5% of the total monthly wage bill payable to employees in the Public Service of the Federation.
(3)
Without prejudice to sub-section (2) of this section, the Commission shall, by the end of every calendar year, determine the adequacy of the Redemption Fund against the projected pension liability of Government arising from voluntary and mandatory retirements, death of employees in service and the right of pensioners to pension review in line with section 173(3) of the 1999 Constitution (as amended), and advise the Budget Office of the Federation of shortfall, if any.
(4)
The Budget Office of the Federation shall, on receipt of advice from the Commission pursuant to sub-section (3) of this section, ensure adequate appropriation for the shortfall and subsequent payment.
(5)
The amount in the Redemption Fund shall be used by the Central Bank of Nigeria, as prescribed by the Commission, to redeem any retirement benefit bonds issued pursuant to section 15 (1) (a) of this Act.
(6)
Payments into the Redemption Fund shall cease after all the retirement benefit bonds issued under section 15 (1) (a) of this Act have been redeemed.