By Omobola Tolu-Kusimo
Federal Government retirees, under the Contributory Pension Scheme (CPS), are agitating against the non-payment of their pension benefits since their retirement last year.
The retirees, under the auspices of Contributory Pensioners Union of Nigeria, rose from a meeting, demanding the payment of the pension.
In the communique signed by the President, Comrade Mathew Shittu, and Secretary, Elijah Akingbade, they noted the reductions in the lump sums and the near meagre monthly pension paid to members.
They expressed the fear over the stoppage of their monthly pension when their contributions to the Retirement Saving Account (RSA) were exhausted with Pension Fund Administrators.
The communique read: “After our deliberations, members noted with dismay the drastic reduction in the lump sums paid to members under the CPS compared to the enhanced retirement benefits paid to our colleagues under the old scheme.
The near meagre monthly pension paid to members under the CPS compared to the regularly enhanced monthly pension paid to our colleagues under the old scheme.
This is against the objective of the scheme which was to assist improvident individuals or individuals who are not thinking or planning for the future by ensuring that they save in order to cater for their livelihood during old age.
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“We fear the possibility that the monthly pension under the CPS may stop when the limited contribution made into pensioners’ Retirement Saving Account is exhausted with Pension Fund Administrators compared to the payment of monthly pension for life for our colleagues under the old scheme.
All the above happenings are against the intent and purpose of the new Contributory Pension Scheme, which asserts that all Retirement Savings Account holders who have contributed for a number of years to a Pension Fund Administration, are expected to be entitled to a guaranteed minimum pension payment for their livelihood in old age.
‘’We are confused in the formulation and implementation concerning Programme Withdrawal and Annuity policies under the CPS.
This is against the objective of the scheme, which was to establish uniform set of rules, regulations and standards for the administration and a management of the scheme.
“Similarly, all those who retired since 2019 are yet to receive their benefits in March 2020 as against the objective of the new Contributory Pension Scheme, which is to ensure that every retiree receives his retirement benefits as when due.
Payment of retirees benefits is being subjected to the dictate of bureaucratic budgetary control in spite of the trillions of naira allegedly build up scheme, thereby returning pension administration and management to the era of old scheme which has defeated the purpose for which the new scheme was established in the first place.
“In view of all that we have stated, members are worried about the payment of the 15 per cent and 33 per cent increases to members as been planned for our colleagues under the old scheme.
The meeting concluded on the hope that the Federal Government would have to rescue members by reviewing the CPS policy with a view to coming up with better modalities for ensuring the payment of retirement benefits to retirees as and when due.
If this is not done, members suggest a possible return to the old scheme which guarantees the payment of retirement benefits to retirees in their old age,” the retirees said.
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