The Nation Newspaper

Category: Pension

  • £4b tax bonanza as 650,000 cash in pensions

    First official analysis of British Government’s flagship pension reforms showed that more than 130,000 Britons will withdraw money from funds yearly.

    More than 650,000 savers are preparing to take advantage of George Osborne’s flagship pension reforms over the next five years, providing the government with a £4 billion tax windfall, the first official analysis of the scheme has revealed.

    The research has found that under the reforms, which scrap rules that currently force most Britons to buy an annuity, more than 130,000 Britons a year will withdraw money from their pension funds.

    The figures suggested savers will take out around £26 billion from their pension pots in five years, equivalent to just under £40,000 each. This will boost Treasury coffers by £3.8 billion between 2015 and 2020 as pensioners are hit by higher levels of tax, according to the figures.

    Pension experts warn that many savers will withdraw more than they need and could find themselves dragged into the higher rate tax band.

    Tom McPhail, head of pensions research at financial services firm Hargreaves Lansdown, said: “A lot of people are clearly very interested in taking advantage of the new pension freedoms, however many of them probably don’t realise that they could end up losing nearly half their pension pot in tax.

    “It is essential that suitable safeguards are put in place to ensure that they are alerted to the tax implications of taking all their money out. This is undoubtedly clever politics from the Chancellor, but if we’re not careful he could end up creating a one-man pension mis-selling scandal.”

    David Smith, a director of wealth management firm TilneyBestinvest, said: “The big concern is that insurance companies are not going to provide any guidance at all on the tax implications of pension withdrawals.

    “If someone rings up to take their money out, it is vital they are given a warning.”

    Malcolm McLean, a pensions consultant at advisory firm, Barnett Waddingham, said: “There is evidence to suggest that the majority of savers don’t understand these reforms and think they can treat their funds like a bank account.

  • NYSC pensioners plan protest against IGI

    NYSC pensioners plan protest against IGI

    Pensioners of the National Youth Service Corps (NYSC) under the old pension scheme, the Pay As You Earn (PAYE), are planning to protest against the Industrial and General Insurance Plc (IGI) over non-payment of their monthly pensions in the past six months.

    Its National President, Jim Oduak made this known in Abuja while informing the Director-General of the Pension Transitional Arrangement Directorate (PTAD), Ms Nellie Meshack of the development.

    According to him, IGI is their underwriter and has constantly delayed their pensions.  He said the NYSC pensioners are suffering while many have died. He noted that some earn as little as N3,500 monthly pension, which is not paid promptly.

    He said the protest has not been carried out because they need to mobilise members from all over the country for it to hold at the IGI head office in Lagos.

    NYSC Board of Trustee Secretary, Benjamin Eriba said the Federal Government has paid money to IGI for their pension up to May this year, but the underwriter has only paid up to March. He said the firm was appointed for them in 1995, noting that they are considering changing the underwriter and appoint another.

    Meshack, however, warned that the Directorate would not hesitate to deal with erring underwriters, adding that she does not want to single out IGI as the Directorate has gotten complaints about others.

    She stressed that the issue around underwriters owing pensions is germane. “It is not right that underwriters hold on to pensioners’ money. It will seem as if President Goodluck Jonathan does not care about the plight of pensioners,” she said.

    She continued: “But anyone who stands in the way of the mandate, which is ensuring that pensioners get their pension benefits, we will fight such person or institution. It is a new regime with the establishment of PTAD for pensioners under the old pension system in the country.”

    She queried why the Board of Trustees would continue to employ IGI to manage their pension if they have constantly had problems with paying pensioners on time, adding that the Directorate will investigate and deal with the situation.

    IGI’s Managing Director, Rotimi Fashola, who spoke on telephone with The Nation, said IGI owes the pensioners only two months and not six.

    He attributed the delay to failure by the Federal Government to remit money regularly.

  • Pension contributions’ review reasonable, says Suleiman

    The upward review in the rate of pension contribution from 7.5 per cent to 8 per cent for employees and 7.5 per cent to 10 per cent for employers as amended in the Pension Reform Act 2014 is a slight increase that may not arouse any reaction from employers, Managing Director, FUG Pensions, Usman Suleiman has said.

    He spoke withn reporters in Lagos. He said the increase would provide additional benefits to workers’ Retirement Savings Accounts, thereby enhancing their monthly pension benefits at retirement.

    He said employers who have been contributing without being prompted or coerced will find it easy to adjust to the new rate adding that there are employers who were contributing 20 per cent when the minimum contribution was 15 per cent.

    He said: “All those who are in compliance at present, one will expect them to continue to be in compliance in spite of the increase which is minimal. Those who are not in compliance apparently are not complying because of the differences in the percentage but for other reasons.

    “These types of employers are those who do not usually obey the laws. They are the ones that fail to remit PAYE, the taxes deducted from their employees. They fail to remit company tax that they deduct from their suppliers and contractors.

    “It will, therefore, not be surprising if they also fail to remit pension. Such employers will have this increase as an excuse but it really should not be an excuse,” he said.

  • Pensioners decry unpaid 53% increment

    Pensioners decry unpaid 53% increment

    Pensioners have expressed worry that money approved in the 2011, 2012 and 2013 budgets by the Federal Government for the payment of their arrears arising from the 53 per cent increase in the old pension scheme of Pay As You Earn (PAYE) has not been paid.

    The National Union of Pensioners (NUP) Chairman, National Institute for Policy and Strategic Studies (NIPSS) Section, Evangelist Peter Amodu, stated this at a workshop in Abuja.

    It was organised by the Pension Transitional Arrangement Directorate (PTAD) for pensioners in the old pension system.

    He said alleged misappropriated of the cash.

    Amodu said the government was planning to pay from last January,  33 per cent instead of the 53 per cent it announced in 2009.

    He explained that NIPSS is a parastatal and the academic section of the NUP.

    He said the plan by the government to begin payment from this year instead of 2011, would be resisted by pensioners.

    He said: “The Federal Government in 2009 made an announcement to increase pension by 53 per cent in a circular. The Ministry of Finance, Accountant-General and the budget office are aware of the circular and the money was later captured in the 2011, 2012 and 2013 budget and after four years that we have been on this matter, they now want to commence payment from this year.

    “The question that we are asking is where is the money that was captured and approved under the 2011, 2012 and 2013 budget.”

    He said NIPSS pensioners were demanding payment of the three years’ arrears because there were reports that the national leaders of NUP have been compromised and were ready to accept 33 per cent.

    He urged the union executives to reject the 33 per cent.

    NUP National President, Dr. Abel Afolayan said the government owes pensioners the increment of 53 per cent.

    He noted that part of their problem with the government was the non-implementation of 142 per cent increase for some pensioners and 53 per cent pension increase in 2010 that has been reduced to 33 per cent.

    He said: “In 2010, when workers salary was increased by 53 per cent, pensioners also got a 53 per cent increase. The 1999 Constitution as amended in Section 173 sub-section 3 and Section 210 sub-section 3 stipulated that pension must be increased every five years or whenever workers’ salaries are increased, whichever is earlier.

    “The government told us that they reduced the 53 per cent increase to 33 per cent because they are deducting 10 per cent tax, 7.5 per cent contributory pension, 2.5 per cent national housing fund. It is not supposed to be so because pensioners don’t pay tax and are not under the contributory pension or housing fund.”

    Afolayan said the 20 per cent deduction was unjustifiable, adding that they have not been paid the 33 per cent though the government has paid the military. He lamented that they have been abandoned because they are civilians.

  • Kaduna spends N4.7b on pension, gratuity

    Kaduna State Government  said it had spent N4.7 billion on pension and gratuity liability.

    Governor Mukhtar Yero made this known during the distribution of cheques to retirees and families of pensioners in the 23 local governments, local education authorities, Emirate council and chiefdoms in the state.

    According to the Governor, “As at July 2014, I am proud to inform the general public that, we have settled all pension and substantial part of gratuity liabilities totalling N4,747,917,247.52. The balance now left is N1,171,571,663.71 for gratuity, which will be paid as the state finances improve.”

    Yero said his administration inherited huge liabilities of pension arrears for Local Governments pensioners which kept increasing as a result of implementation of the various salary structures and high number of people retiring from the service.

    “This became a major concern of Government considering the plight and the hardship being experienced by the retirees and next of kin of the deceased families.

    “To ameliorate this suffering, the government has resolved to step up action towards cushioning the effect, in spite of paucity of funds in the State.”

    The governor said the state had increased its monthly contributions from N13 million to N65 million, while the 23 local government Councils from N121.8 million to N400.8 million.

    However, 1,080 beneficiaries received cheque worth N642.5 million as accrued pension, death benefits, retirement benefits, pension arrears and arrears for verified pensioners.

  • Ondo appoints Adediji to establish pension commission

    Following the enactment of the contributory pension law by the Ondo State Government, it has appointed the Group Managing Director, Pensionscope Group/Chief Executive Officer Interterms Pension Consultancy, Tai Adediji, a consultant to establish the state pension commission.

    The commission is expected to  coordinate and manage workers’ pension affairs in the state.

    With the appointment, Adediji is expected to bring to bear his experience on pension management, in drawing the template for the commission, draw the criteria for the appointment of the Director-General and relevant officers.

    He will also be responsible for the appointment of Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs).

    Adediji, who was the pioneer Managing Director/Chief Executive Officer of the CRIB Pension Fund Administrator, has contributed to pension industry’s development through article publications, paper presentations at high profiled fora, production of pensionscope radio as well as pensionscope magazine, a monthly professional publication for both pension and insurance industries.

    Commenting on the appointment, Adediji pledged to do his best in ensuring that the state has one of the best pension commissions that can guarantee improved wellbeing for contributors, retirees and other stakeholders.

    He said the enactment of the state’s pension law, especially now that a new pension law has been signed by the Federal Government, will help enhance the moral of the workers.

    He lauded the efforts of the state government in joining other progressive states in laying a secured and prosperous future for its workers and called on workers in the state to reciprocate the gesture of the government by redoubling their contributions to the state’s development.

    He said: “When the Governor Olusegun Mimiko decided to bring in the change by the introduction of the contributory pension scheme in replacement of the Defined Benefit Scheme (DBS), it appears the governor was fully expecting reactions and in some cases rejections to the new scheme simply because a change was about to come.

    “This led to the application of democratic principle by opening up the window to dialogue with virtually all the interest groups. This has worked and averted what would have led to serious crisis in the state.”

  • PenCom:Northeast is least pension compliant

    The Northeast zone is the least compliant in the Contributory Pension Scheme (CPS) in Nigeria, the National Pension Commission (PenCom) has said.

    The zone comprised Taraba, Bauchi, Borno, Gombe, Yobe and Adamawa states.

    However, the Southwest zone is different. It has continued to be the most complaint zone.

    The states in this zone are Lagos, Osun, Ogun, Oyo, Ekiti and Ondo.

    This was contained in a report titled: ‘Status of implementaion of the Contributory Pension Scheme in states,’ released by PenCom and obtained by The Nation.

    According to the report, in the Northeast  zone, Adamawa is yet to commence the implementation of the CPS while Bauchi, Borno, Gombe, Yobe states are yet to enact the law.

    Taraba is yet to appoint Pension Fund Administrator (PFAs) and has not started remittance of pension contributions, is yet to carry out actuarial valuation, commence funding of the accrued rights and yet to put in place Group Life Insurance Policy (GLIP).

     

    Southwest Zone

    In the Southwest zone, all the states have enacted the law on CPS, PenCom said. The report showed that Lagos State has registered its employees and is remitting their pension contributions. It has also funded its accrued rights and put in place Group Life Insurance Policy. The state is, however, yet to transfer the accrued right to either the Central Bank of Nigeria (CBN) for safe custody or licensed PFA for management.

    Osun State has registered its employees, is remitting pension contributions, commenced funding of its accrued right with the CBN and has put in place a GLIP.

    Ogun has registered its employees, remitting pension contributions in arrears, commenced funding of its accrued right with the CBN, yet to put in place the GLIP.  The state extended the take-off date for the implementation of the CPS by 18 years – 2025.

    Oyo has appointed PFAs but is yet to commence registration of the employees, commence remittance of pension contributions, carry out actuarial valuation, commence funding of its accrued right and put in place a GLIP.

    Ekiti has appointed PFAs, commenced registration of its employees, is yet to commence remittance of pension contributions, fund accrued rights but has put in place a GLIP.

    Ondo has enacted law on CPS but is yet to forward a copy to PenCom for review, appoint PFAs, commence registration of its employees, commence remittance of pension contributions, commence funding of the accrued rights of the employees, and put in place a GLIP.

     

    Northwest Zone

    In the Northwest zone, Katsina is yet to enact the CPS law. Jigawa has enacted it, adopted Contributory Defined Benefits Pension Scheme and transferred the pension assets to six PFAs.

    Kaduna has started registration of its employees, remitting pension contributions, commenced funding of its accrued rights, which is domiciled with commercial banks but yet to put in place a GLIP.

    Zamfara has appointed PFAs, registered its employees, started remitting employee portion of pension contributions, yet to commence remittance of employer portion of pension contributions, has not started funding of its accrued rights, yet to put in place the endowment fund in place of a GLIP

    Kebbi has commenced registration of its employees, yet to commence remittance of pension contributions, commence funding of its accrued rights and put in a GLIP.

    Sokoto has appointed PFAs, registered its employees, yet to commence remittance of pension contributions, commence funding of its accrued, put in place a GLIP.

    Kano enacted the CPS law but has adopted Contributory Defined Benefits Scheme. The state is yet to transfer pension assets to PFAs.

     

    Northcentral Zone

    In the Northcentral geopolitical zone, Kwara State is yet to commence the implementation of the CPS.

    Benue and Plateau have only drafted a bill on the CPS and are yet to enact the law.

    Niger is the most compliant in this zone. It has enacted the CPS law, registered its employees, remitting pension contributions, and funded its accrued rights but is yet to renew its GLIP. The state was issued a letter of ‘No objection’ by PenCom for the PFAs to invest in the state’s bond in November 2013 but ISPO yet to be endorsed by the CME/HMF.

    Kogi has appointed PFAs, registered only 5,232 employees, yet to commence remittance of pension contributions, carry out actuarial valuation to determine the accrued rights of the employees and yet to put in place a GLIP.

    Nasarawa has enacted the law but is yet to appoint PFAs, register its employees, commence deduction and remittance of pension contributions and yet to determine and commence funding of the accrued rights.

     

    Southsouth Zone

    The report showed that only Cross River is yet to enact the law in the In the Southsouth zone.

    Akwa Ibom has enacted the law but is yet to appoint PFAs, register its employees, commence remittance of pension contributions, carry out actuarial valuation and commence funding of the accrued rights and put in place a GLIP.

    Bayelsa is yet to register its employees, commence remittance of pension contributions, commence funding of the accrued rights and put in place a Group Life Insurance Policy.

    Rivers has registered its employees under the scheme, partially remitting pension contributions and has put in place Group Life Insurance Policy for the employees, which expired in June 2013. The state is yet to renew the plan. The report also showed that the state commenced funding of its accrued rights, domiciled it with Premium Pension Limited but later stopped.

    Edo State is yet to appoint PFAs, register its employees, commence remittance of pension contributions, carry out actuarial valuation and commence funding of the accrued rights and put in place a Group Life Insurance policy.

    Delta has registered its employees and is remitting pension contributions. It has also funded the accrued rights of the local government employees while funding for the state government employees just commenced. It is yet to put in place Group Life Insurance policy for the employees.

     

    Southeast Zone

    In the Southeast zone, Abia, Ebonyi and Enugu States only drafted bills on the CPS and are yet to enact the law.

    Imo State has appointed PFAs and has registered 3,943 employees. But it is yet to commence remittance of pension contributions. But the Imo State University is implementing the CPS under the auspices of the PRA 2004. However, it is also yet to carry out actuarial valuation and commence funding of the accrued rights as well as put in place a Group Life Insurance policy.

    Although Anambra State has appointed five PFAs, it is yet to register its employees, commence remittance of pension contributions and yet to put in place a GLIP. It has, however, appointed an actuary to carry out actuarial valuation and commence funding of the accrued rights.

    PenCom Acting Director-General, Mrs. Chinelo Anohu-Amazu, said  among the states, is the most outstanding as it was the first state in the federation to embrace the scheme.

    According to her, Lagos enacted the law that enabled it to start implementing the scheme in 2007.

    President Goodluck Jonathan last month awarded a gold trophy to the Lagos State Government for emerging the best state to fully adopt and implement the CPS in compliance with the provisions of the Pension Reform Act 2004.

  • What you need to know about Pension Reform Act 2014

    On July 1, this year, President Goodluck Jonathan signed into law the new Pension Reform Act 2014, which repealed the Pension Reform Act.

    The key objectives of the reform are to ensure contributors receive their benefits as and when due and to assist improvident individuals to save in order to cater for their livelihood during old age.

    As an employee or an employer, there are implications of this change in law that you need to know;

    Access to benefits in event of loss of job

    The Pension Reform Act 2014 has reduced the waiting period for accessing benefits in the event of loss of job by employees from six months to four months. This is done in order to identify with the yearning of contributors and labour.

    Opening of temporary RSA for employees that failed to do so

    The Pension Reform Act 2014 makes provision that would compel an employer to open a Temporary Retirement Savings Account (TRSA) on behalf of an employee that failed to open an RSA within three months of assumption of duty. This was not required under 2004 Act.

    Enhanced Coverage of the CPS and informal sector participation

    The Act expanded the coverage of the Contributory Pension Scheme (CPS) in the private sector organisations with three employees and above, in line with the drive towards informal sector participation.

    Upward review of the penalties and sanctions

    The sanctions provided under the Pension Reform Act 2004 were no longer sufficient deterrents against infractions of the law. Furthermore, there are currently more sophisticated mode of diversion of pension assets, such as diversion and/or non-disclosure of interests and commissions accruable to pension fund assets, which were not addressed by the PRA 2004. Consequently, the Pension Reform Act 2014 has created new offences and provided stiffer penalties that will serve as deterrence against mismanagement or diversion of pension funds assets under any guise. Thus, operators who mismanage pension fund will be liable on conviction to not less than 10 years imprisonment or fine of an amount equal to three-times the amount so misappropriated or diverted or both imprisonment and fine.

    Power to institute criminal proceedings against employers for persistent refusal to remit pension contributions

    The 2014 Act also empowers PenCom, subject to the fiat of the Attorney General of the Federation, to institute criminal proceedings against employers who persistently fail to deduct and/or remit pension contributions of their employees within the stipulated time. This was not provided for by the 2004 Act.

     Upward review of rate of pension contribution

    The Pension Reform Act 2014 reviewed upwards, the minimum rate of pension contribution from 15 per cent to 18 per cent of monthly emolument, where eight per cent will be contributed by employee and 10 per cent by the employer. This will provide additional benefits to workers’ Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement.

    Corrective actions on failing licensed operators

    The Pension Reform Act 2004 only allowed PenCom to revoke the licences of erring pension operators but does not provide for other interim remedial measures that may be taken by PenCom to resolve identified challenges in licensed operators. Accordingly, the Pension Reform Act 2014 now empowers PenCom to take proactive corrective measures on licensed operators whose situations, actions or inactions jeopardise the safety of pension assets. This provision further fortifies the pension assets against mismanagement and/or systemic risks.

    Restructuring the system of administration of pensions under the Pension Transition Arrangement Directorate

    The Pension Reform Act 2014 makes provisions for the repositioning of the Pension Transition Arrangement Directorate (PTAD) to ensure greater efficiency and accountability in the administration of the Defined Benefits Scheme in the federal public service such that payment of pensions would be made directly into pensioners’ bank accounts in line with the current policy of the Federal Government.

     

     

  • 10 years after, retired policemen yet to get pension

    10 years after, retired policemen yet to get pension

    Some policemen who retired about 10 years ago are yet to be paid their pension. They are worried that their years of service to The Nation may go down unrewarded with their pension yet unpaid, reports Omobola Tolu-Kusimo.

    When the Chairman of the House Committee on Public Accounts, Hon. Solomon Adeola Olamilekan recently raised the issue of the N24 billion Police Pension Fund alleged to be missing two years ago, the Coordinating Minister for the Economy and Minister of Finance, Dr. Mrs. NgoziOkonjo-Iweala was quick to refute the claim, saying the money was intact.

    But facts are beginning to emerge that something has gone wrong with the pensioners’ money, as some pensioners have not been paid their pension benefits, or gratuities 10 years after retirement. Frustrated, some of the affected retired policemen have begun to cry out over the non-payment of their pensions and gratuities since their retirement 10 years ago.

    The pensioners who do not belong to any association as they are not allowed to do so while in service, said they were told recently by some senior police officers in the pension department that their pension money has been stolen.

    The police officers are in a dilemma as some have been allegedly duped by fellow officers at the police pension office who promised to facilitate the release of their benefits. Some of the affected pensioners, who spoke to The Nation, said the situation is sad, considering the fact that they have duly served their fatherland and protected the citizenry throughout their active years.

    They said the service of a police officer in the society cannot be overemphasised. They have helped in maintaining public order, preventing and detecting crimes in the state. They have protected life  and property of the people notwithstanding the growing rate of crime coupled with increase in the complexity of civilisation, they added.

    They said: “Without the police, there would have been chaos in the society and the people would live in Hobbesian state of nature in which life would be solitary, poor, nasty, brutish and short.

    “Thus, the police provide the necessary checks against the ambivalence of the human nature, play an important role in the administration of justice and enforcement of law. They are the saviour of our modern civil society.

    “Based on this, the welfare of a police officer should be uppermost in the mind of every responsible government.

    “It is therefore, appalling to find that many retired policemen under the old pension scheme, the Defined Benefits Scheme are still owed pensions and gratuities eight years after retirement.’’

    In this case, the police pensioners majorly affected, are soldiers from the Nigerian Army who got seconded into the Nigeria Police Force. Some of them have died, while some others are sick.

    Sixty-year-old Inspector, Abu Ekundayo, said he has not been paid his retirement benefits eight years after serving the Nigeria Army and Police Force for 27 years.

    He served last with the Lagos State Command, Ikeja, before his retirement on July 1, 2006.

    A letter written on behalf of Ekundayo by the Lagos State Commissioner of Police and signed by Deputy Commissioner of Police, Augustine Obaedo to the Director, Nigeria Police Pension Office on April 7, 2007 stated: “This is to introduce police officer, Inspector Abu Ekundayo who served last with Lagos State Police Command, Ikeja, before retirement on July 1, 2006.

    “Kindly render every assistance at your disposal to enable him collect his retirement benefits.”

    Ekundayo said that despite this letter and his several visits to the Lagos Pension Office before it was moved to the Police Headquarters in Abuja, his case has not been treated.

    Recounting his ordeal to The Nation, he said: “I was receiving salary regularly until I retired in 2006, but I have not received my pension since I retired. I have been suffering and partially blind with no money to eat or go to hospital. I have been living a miserable life.

    “Sometimes ago, when I visited the pension office, which was in Lagos as at the time, with some other retirees who have the same case, a fellow police officer who works in the pension office, said he could help us facilitate the release of our benefits if we give him some money. He collected N50, 000 from me and N25, 000 from another retiree. While we were waiting for him to help us, we didn’t know when he left the pension office and his phone number never went through afterwards and we could not trace him again.

    “In 2011, when a friend and retiree who has the same issue with me went to the Police Pension Office in Abuja, he said they (pension office) confirmed to me that they saw my name in the list of pending pensioners. Usually what happens is for Lagos Command to compile our files and send them to the Pension Office for payment. Under normal procedure, it should not take more than a year for them to pay. Some people who are well connected have received their own pension,” he added.

    Richard Ogundare and Assistant Superintendent of Police (ASP), retired 10 years ago and has not been paid his retirement after serving the Nigeria Army and Police Force for 35 years.

    Ogundare, who served within 1969 and 1979 in the Nigerian Army before he got seconded to the Nigeria Policein 1979, is also aggrieved that the Police Service Commission refused to merge his years of service years in the army with those in the police.

    He petitioned the Chairman, Police Service Commission (PSC), MikeOkiro and copied the Inspector-General of Police, Mohammed Abubakar in the petition written and signed byhis lawyer, Kehinde Hassan Bamibola& Co.

    According to the petition, Ogundare has not received his retirement benefits since he retired in 2004.

    It stated: “We have the authority, instruction and consent of our client to call your attention to inhuman treatment he has been receiving from your Commission after he has duly served his fatherland, Nigeria, meritoriously, formerly as a military personnel from 1969 before he got seconded/enlisted to the Nigeria Police Force in 1979.

    “Our client informed us with documentary evidences that he applied to merge his service years sometimes in 2002 and that the application was not recommended. He would have served for 35 as at December 1, 2004, if the merging application had been granted.

    “However, he served the Nigeria Police meritoriously till April, 2007 before he was retired from the service. It is so painful and we consider it an act unleashing unmerited hardship on our client, that ever since his retirement, he has not received his retirement benefits. He has been suffering and languishing in abject poverty as a result of non-payment of his retirement benefits.”

    The petition further noted that a letter from PSC dated July, 2006, put Ogundare’s retirement date at April 24, 2004, while another letter dated May 3, 2007 with the heading “Retirement Benefits” put the effective date of his retirement at April 24, 2006 with factual affirmation that he was not indebted to the Federal Government.

    “Going by the letter from PSC, he actually applied for merging of his service years comprising the service years with the Nigerian Army from 1969 to the period he joined the Nigeria Police in 1979, but the application was turned down. He was made to serve beyond December 2004 till April 2007. Assuming the merging application was granted, he would have clocked 35 years at the service by December, 2004.

    “He actually served the Nigerian Police Force for 28 years from 1979 to 2007. That, the period between December 2004 and April 2007 should be reasonably computed into his service years for the treatment, calculation and payment of his retirement benefits.

    “We hereby appeal to your good office to pay our client all his retirement benefits as he is in great need of finances for his health and other necessities. The ‘dead does not spend money’ and so he should enjoy what he has laboured for while he is still on earth now. We are looking forward to hearing from you that his retirement benefits have been paid fully,” the petition read.

    Also recounting his ordeal, Ogundare said: “We are demobilized soldiers who fought war between 1967 and 1970 before we were asked to join the Nigeria Police Force.

    “The president at the time was OlusegunObasanjo. He asked us to join the police because it had few officers. Later in 2004, former Inspector General of Police, Sunday Ehindero, asked us to go on voluntary retirement. We obeyed him because we are loyal. But some people did not obey that instruction and worked up to 40 years before retiring. The most painful thing for me is that this group of policemen havebeen paid their pension with some of them receiving eight million naira.

    Ogundare also told The Nation that one of his colleagues also has the same case as his and his name is Paul Odunwa, an ASP who retired in December 12, 2005 after serving for 35 years.He has also not received his pension 10 years after retirement and he is seriously sick, Ogundare added.

    Another pensioner, he said, is AfolabiKosolu, who according to him has lost his sight and can no longer move around to demand for his pension.

    Ogundare appealed to relevant authorities to come to their aid.He also called on the National Assembly to look into their matter.

    Public Relations Officer, Police Service Commission (PSC), Ferdinand Ekpe in his reaction exonerated the commission.He said the PSC does not have anything to do with the pensioners.He said: “PSC does not handle police salaries or pension. Our mandate is to appoint, promote and discipline erring police officers. Any other thing that has to do with police welfare is not part of our business.

    “The pensioners will need to direct their complaints to the Police Pension Office.”

    Efforts to speak with the Managing Director, Pension Transitional Arrangement Department (PTAD), Ms Nellie Meshack and Force Police Public Relations Officer, Frank Mbah, proved abortive as at press time.

    In a statement in March, this year, the minister’s Special Adviser (Media), Paul Nwabuikwu, said: “As we explained in a recent communication, the Coordinating Minister for the Economy and Minister of Finance, Dr. NgoziOkonjo-Iweala, has maintained her stance that N24 billion is not missing from the police pension account contrary to allegations.

    “Therefore, allegations by the Chairman of the House Committee on Public Accounts, Hon. Solomon AdeolaOlamilekan over a so-called missing N24 billion from the police pension account, are ridiculous and false. It is unfortunate that the chairman has persisted in using his privileged platform to disseminate such distortions even though the minister has repeatedly explained to the committee that the money was an overpayment based on the demands of those trying to steal from pension funds, which were successfully blocked and the money returned to the treasury by the minister.

  • Pension: Lagos is most compliant state

    Pension: Lagos is most compliant state

    • Contribution hits N51.6b

    With a contribution of N51.6 billion to the nation’s N4.3 trillion pension fund assets,  and its consistency in the payment of pension benefits to retirees, the Federal Government has declared Lagos State as the best out of the 36 states in the country.

    It also praised the state for adopting and implementing the Contributory Pension Scheme (CPS) in compliance with the provisions of the Pension Reform Act, 2004.

    In recognition of this feat and to further encourage the state, President Goodluck Jonathan awarded Lagos a gold trophy in Abuja, during a dinner organised to commemorate the 10th year anniversary of the CPS in Nigeria.

    The award was received by Governor Babatunde Raji Fashola (SAN). The dinner was also organised as part of the activities for the just concluded World Pension Summit ‘Africa Special’ in Abuja.

    The Director-General, Lagos State Pension Commission, Rotimi Hussain, told reporters that the state has from inception of the scheme in 2007 contributed N51.6 billion, being the monthly deduction of 7.5 per cent from the salary of an employee and the counterpart 7.5 per cent contribution by the state government into the Retirement Savings Account (RSA) of every employee with the Pension Fund Administrators (PFAs).

    He said the state has also paid N26.2 billion as benefits to 4,990 retirees prior to the commencement of the scheme, adding that amendments to the new Pension Reform Act, 2014, will improve pensioners’ benefits in particular, and the scheme in general.

    According to him, the repealed Pension Reform Act, 2004, which has run for 10 years, has been tested by stakeholders in the pension industry, noting that there are  areas in the new law that will be of great interest to the contributors.

    He said: “We have run the Scheme for 10 years and I think it is enough time for us to have learnt from our experiences. Having been tested, we have found the key areas where we needed to fine-tune, change and amend.

    “Drawing from the experience we have gathered, the amendments to the law are meant to improve the system. They are a few key areas that would interest the contributors more. For instance, the increased counterpart contribution from the employer, makes it to have a larger contribution than the worker. Beyond that, there are a lot of other technical areas that are being addressed in a way that there is more transparency. The regulator has also ensured that they can enforce compliance more than it had been able to do.

    “The important thing to know going forward, is that the element is to be able to ensure that we try as much as possible to bring a lot more workers into the net of the CPS, so that we can expand the scheme as well. As it is, the coverage is still relatively low.”

    Hussain,said there is still the need for pension operators to ensure that compliance is enforced, noting that the investment climate has to improve in order to have a veritable avenue for the huge funds.

    Former President Olusegun Obasanjo also received an award for establishing the CPS in 2004. He expressed hope that by 2024 when the scheme would be 20 years, the number of workers in both public and private sectors under the scheme would have quadrupled. He also expressed joy that since inception, the scheme has not been associated with fraud.

    Other states that received awards  were Niger and Delta. Former Minister of the Federal Capital Territory, Mallam Nasir el-Rufai and the pioneer Chairman of the National Pension Commission, Mr. Fola Adeola, were among individuals who received awards for playing big roles in the establishment and implementation of the scheme.