Section 41: Federal Capital Territory Retirement Benefits Bond Redemption Fund.

(1)
There shall be opened in the Central Bank of Nigeria, an account for the management and investment of funds to be known as the Federal Capital Territory Retirement Benefits Bond Redemption Fund (in this Act referred to as "the Federal Capital Territory Redemption Fund") in respect of the Federal Capital Territory.
(2)
The Federal Capital Territory shall pay into the Redemption Fund an amount not less than 5% of the total monthly wage bill payable to employees in the service of the Federal Capital Territory provided that the Commission shall, by the end of every calendar year, determine the adequacy of the Redemption Fund against the projected pension liability of the Federal Capital Territory arising from normal, voluntary and mandatory retirements and death of employees in service and advise the Budget Office of the Federation of shortfall, if any.
(3)
The Federal Capital Territory Treasury shall, on receipt of advice from the Commission pursuant to sub-section (2) of this section, ensure adequate appropriation for the shortfall and subsequent payment.
(4)
The amount in the Federal Capital Territory 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) (b) of this Act.
(5)
The obligation of the Federal Capital Territory to the Federal Capital Territory Retirement Benefits Redemption Fund shall be a charge on the Revenue Fund of the Federal Capital Territory.
(6)
The Commission shall, upon the failure of the Federal Capital Territory to redeem any bond issued within one month of its due date, demand such redemption in writing from the Federal Capital Territory.
(7)
Upon the failure of the Federal Capital Territory to redeem the' bond within one month of the receipt of the Commission's demand, the Commission shall issue a request to the Accountant-General of the Federation who shall thereafter deduct directly from the Federal Capital Territory allocation from the Federation Account, the value of the bond and credit either the Redemption Fund Account with the Central Bank of Nigeria or the Retirement Savings Account maintained by the affected employee with his Pension Fund Administrator.
(8)
Payments into the Redemption Fund shall cease after all the retirement benefit bonds issued under section 15 (1)(b) of this Act have been redeemed.