Category: Pension

By Omobola Tolu-Kusimo

BENEUE State Governor Samuel Ortom has apologised to pensioners over the government’s inability to pay pension and gratuities arrears.

Ortom, who spoke in Makurdi, also apologised on behalf of previous administrations, over the unpaid arrears.

He said the state would soon start the Contributory Pension Scheme (CPS) that would ensure that serving and retired workers received their pension entitlement promptly.

Read Also: Kwara pensioners hail quick payment

He said: “I apologise, on behalf of our government, as well as previous administrations in the state, to our workers, both serving and retired, for the inability to find a lasting solution to the pension problem before now.

“One of the most unpleasant realities we met when I assumed duty as governor of Benue was the huge pension liabilities inherited from previous administrations.

“Indeed, the pension problem was competing for attention with the humanitarian crisis arising from the perennial herders’ attacks as well as other challenges of development and governance.”

By Omobola Tolu-Kusimo

THE United Kingdom (UK) Government’s chief scientific adviser has explained why elderly people are more likely to suffer from the COVID-19 coronavirus during an interview with the BBC’s Today Programme.

Sir Patrick Vallance outlined that the mortality rate of COVID-19 cases for people over the age of 80 is around eight percent, he then contrasted this with the mortality rate for children under which is “essentially zero”.

The Government chief scientific adviser stated that this was due to the likelihood of people over the age of 80 to have co-existing illnesses in comparison to any other demographic.

He said: “Older people are vulnerable to all sorts of illnesses more than younger people so it is a bit of aging which makes you vulnerable. There is definitely a situation where if you do have other co-existing illnesses you are more likely to suffer from this in terms of mobility and mortality.

Read Also: Niger govt. earmarks N100m to curtail spread of COVID-19

“So the death rate in this disease changes quite rapidly from essentially zero in children, up to eight or so percent in people over the age of 80. There is quite a steep increase after the age of about 60 and a much steeper increase in people with co-existing illnesses.”

Earlier, Sir Patrick Vallance told ITV’s Peston that a vaccine for COVID-19 is over a year away.

“A vaccine that can be used generally – we’d be very lucky to get one within a year. The Government’s chief scientific adviser added that it would be used “to protect the most vulnerable first”.

Sir Patrick explained that children that are infected with coronavirus may not show symptoms as they experience a “very, very mild illness” compared to older people.

“School closures are one of the things people look at, it’s not the most obviously or necessarily the way in which you’ll get the most change,” he added.

By Omobola Tolu-Kusimo

The Pension Transitional Arrangement Directorate (PTAD) will henceforth relate with pensioners via email or telephone.

In a statement, the Directorate said the decision was taken because of the coronavirus pandemic.

Only when necessary would a pensioner be invited to attend verification, it said.

The statement read: “PTAD wishes to inform the public that in view of the current world health challenges occasioned by the Corona Virus Pandemic, we have made temporary changes to our verification and complaints resolution.

“The procedure would be that pensioners wishing to be verified should submit their documents by email to verification@ptad.gov.nq or by regular mail to Director, Pensioner Support Services Department Pension Transitional Arrangement Directorate.

Read Also: EFCC arraigns PTAD worker for taking N30,000 ‘bribe’

Pensioners will subsequently be invited on a given date to attend verification following review of their documentation.’’

It continued: “Pensioners having complaints should submit their complaints by email to complaints@ptad.gov.nq or can upload their complaints using the complaint link on our website www.otad.ciov.no.

Pensioners with enquiries can also send these by email. PTAD will ensure respond to the needs of our pensioners in a timely manner and provide feedback promptly.

“The Directorate’s greatest concern remains the continued wellbeing of our senior citizens and our staff. These temporary measures are therefore only intended to ensure their safety and comfort.

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.

Read Also: Pay us now, Ojukwu varsity retirees cry out

“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.

By Bola Adegbaju

Though many people still have reserved opinions about insurance, it is important to remind us that there are some policies that are made compulsory by law in Nigeria and which must be obeyed, whether we like it or not.

These policies are either for individuals or businesses and are legally required to be taken up by the property/business owner and occupier.

As an individual or business owner, do you know these insurance policies?

Are you aware of the penalties to be paid by defaulters?

What are these compulsory Insurance policies?

I am sure you will under some things better as you read further.

Why Compulsory Insurances?

You may wonder why the government will make some insurance policies compulsory.

A comprehensive study of all these compulsory policies shows that the purpose is to protect the third party whether in the case of death, bodily injury or property damage.

Hence, the government’s decision to make some insurance policies compulsory.

For instance, how do you handle a situation in which a vehicle hits you or damages your property and the next thing is that the driver starts pleading for mercy. This has been the usual practice and can be avoided with an ordinary third party motor insurance taken by the liable person.

Some Compulsory Insurance Policies In Nigeria And Their Penalties

• Motor Insurance(For owners):

As required by section (53) the Motor Vehicles (Third Party Insurance) Act 1945, the minimum cover required for vehicle owners to use the road is third party only. This insurance is to protect insured’s liability to third party, property damage, bodily injury to, or death of third party.

• Penalty: N100,000 or six months imprisonment or both(first conviction)

N200,000 or one year imprisonment or both(second conviction)

• Employer’s Liability/Workmen’s Compensation Insurance(For Employers): The Employee Compensation Act 2010 (which repealed the Workmen Compensation Act.1987) requires every employer, within the first two years of the commencement of the 2010 Act to make a minimum monthly contribution of 1% of the total monthly payroll of employees to the Employee Compensation fund with Nigeria Social Insurance Trust Fund (NSITF). The fund shall be used to pay adequate compensation to employee or dependants in case of death, injury, disease or disability arising out of or in the course of employment.
• Penalty: N20,000 or one year imprisonment or both(first case)N100,000 or one year imprisonment or both(every subsequent case)
• Public Buildings(For Owners or Occupiers):

Sec 65 of Insurance Act 2003, public buildings include schools, hotels, hospitals, recreation ceters, offices and are to be insured by their owners or occupiers against the hazards of collapse, fire, earthquake, storm and flood.

-Penalty: N100,000 or one year imprisonment or both.

• Building Under Construction(For Contractors or Owners)

Section 64 of the Insurance Act. 2003 requires every owner or contractor of any building un

der construction with more than two floors, must take an insurance policy to  cover liability against construction risks caused by the negligence of the contractor, owner, servants, agents, consultants which may result in death, bodily injury, or property damage to workers or the public. The insurance should also cover collapse of the building.

• Penalty is N250,000 or 3years imprisonment or both.
• Health Care Professional Indemnity(For Health Management Organisations)

According to Section 45 of the National Health Insurance Scheme Act. 1999, all licenced health care providers (Government/private healthcare practitioners, hospitals and maternity centers) must have a professional indemnity insurance to compensate patient and/or their relatives in case of accidents or death resulting from professional negligence.

• Penalty: Revocation of licence.
• Group Life Assurance (For Employers)

Section 9(3) of the Pension Reform Act 2004 makes it compulsory for every employer of labour, with five employees or more, to maintain a life insurance policy in fvour of the employee for a minimum of three times the annual total emolument of each employee. The purpose is to make provision for the dependants of the employees who die in service. Penalty: N250,000 or one year imprisonment or both.

Let me conclude on this note that if you or your business fall under any of these categories stated above, look for an insurance service provider to take up the applicable policy.