Tag: Pension arears

  • Edo offsets N430 million LG pension arrears in two months

    Edo offsets N430 million LG pension arrears in two months

    To assuage the suffering of pensioners in the state and clear up a backlog of arrears that accrued over two decades, the Edo State Government has released about N430 million through the Joint Account and Allocation Committee (JAAC) in the last two months.

    In a statement, Thursday, the state government said the sum was released as part of Governor Godwin Obaseki’s phased approach in offsetting pension arrears, which accrued over a 20-year period.

    According to the statement, “In August, Edo JAAC allocated N212, 879,888 for settlement of pension arrears, while in September, the sum of N212, 879,000 was set aside for the same purpose out of the N2, 868, 174, 276 that accrued to the 18 local government councils as revenue.”

    “Efforts are ongoing to harmonise the pension system in the state. We want to ensure that those at the local councils enjoy smooth transition to the new pension scheme. This is so that they are on the same scheme with their counterparts in the employ of the state government.”

    Noting that the plight of pensioners was top priority for the administration, the state said, “The sum is for the settlement of arrears of pensioners in local government areas. The pensioners have been protesting for a while and we assured them that we have an elaborate plan to address their concerns. So, it is in this light that we have made arrangement that part of JAAC disbursement addresses pension arrears.”

    The state added that it has been responsive to the suffering of pensioners, many of whom have sacrificed a better part of their life in service to the state, noting, “We are touched by the suffering of pensioners. It is regrettable that we have to deal with these issues, because, as a government, we value the dignity of work.

    “We hope to continue to approach this issue with the phased approach and are confident that in no distant time, the state wouldn’t have to deal with issues such as this anymore.”

  • We are not owing pension arrears – PTAD

    We are not owing pension arrears – PTAD

    The Pension Transitional Arrangement Directorate ((PTAD) has said that it has not holding to any money meant for the payment of 33 percent pension increase for pensioners in the country, saying all monies released by the government has been duly utilised for the purpose it was meant for.

    In a statement from the management, PTAD said it was not in arrears in the payment of pension to pensioner under the Defined Benefit Scheme especially those in the Civil Service, Parastatals, Police and Customs, Immigration and Prison pensioners as the Directorate pays monthly pension as at when due;

    The statement said further that the balance of the outstanding 33% arrears has been included in the total pension liability established and reconciled by the Inter-ministerial Committee on Pension Liabilities which was set up by President Muhammadu Buhari and chaired by the Honourable Minister of Finance.

    The statement reads: “The attention of the Pension Transitional Arrangement Directorate (PTAD) has been drawn to certain misinformation making the rounds concerning the payment of 33% arrears to pensioners under the Defined Benefit Scheme (DBS).

    “These unfounded stories suggested that the Federal Government had released various sums of money to PTAD for the settlement of 33% pension arrears to pensioners and that PTAD is holding on to the money. Nothing could be further from the truth.

    “Ordinarily, the Directorate wouldn’t have responded to these unsubstantiated claims. But having noticed that if these rumours were allowed to continue unabated, they are capable of exposing our pensioners to criminal scams perpetrated by pension fraudsters. It has, therefore, become imperative on the Directorate to set the records straight on the issue of 33%, and indeed other pension related matters.

    “PTAD is not in arrears in the payment of Monthly Pension to Civil Service, Parastatals, Police and Customs, Immigration and Prison pensioners. The Directorate pays monthly pension as at when due;

    “PTAD does not operate any account outside the Treasury Single Account (TSA) and all payments are made via GIFMIS or Remita, depending on the mode of release, as the Directorate is 100% treasury funded;

    “PTAD has settled the 33% arrears for at least one year for each of the Pension Departments. The most recent payments made were to the Police (9 months) and to 22 treasury funded agencies, health institutions, universities and polytechnics which had hitherto not been paid anything out of the 33% arrears. The payment made to the latter group was for 12 months and brought them to par with other pensioners in their category;

    “The balance of the outstanding 33% arrears was included in the total pension liability established and reconciled by the Inter-ministerial Committee on Pension Liabilities which was set up by President Muhammadu Buhari and chaired by the Honourable Minister of Finance (HMF). 

    The Executive Secretary of PTAD served as secretary of the Committee. The Minister of Finance is working tirelessly to ensure that funds are made available to settle these obligations which have been graciously approved by the Federal Executive Council (FEC). Until then, we implore all pensioners to remain calm and await the release and eventual payment of the balance.”

  • Senate to FG: Release bailout funds N174bn for pension arrears

    Senate to FG: Release bailout funds N174bn for pension arrears

    The Senate on Tuesday urged President Muhammadu Buhari to order the immediate release of N174 billion voted in the 2016 budget for payment of pension arrears.

    The upper chamber said that fund was a bailout created in the 2016 budget to redeem all federal government pension indebtedness amounting to over N174billion.

    The lawmakers said that the provision for the bailout for pensioners was seen as a viable alternative to save the ugly plight of the country’s retirees.

    The Senate noted that “if the Federal Government could release bailout funds to pay outstanding workers ‘salaries in the states, similar gesture should be used for the payment of pension arrears, which is its direct primary responsibility”.

    The resolution followed the adoption of a motion entitled, “The untold hardship of pensioners occasioned by federal government’s failure to contribute its statutory share of five per cent to the Pension Redemption Fund” sponsored by Senator Emmanuel Paulker,

    Senator Paulker, in his lead debate noted with concern “the untold hardship our retired senior citizens occasioned by the non-payment of their pension arrears since 2015”.

    He said that pensioner under Contributory Pension Scheme, CPS who retired since 2015 have not been paid their pensions due to the failure of the federal government to contribute its statutory share of five per cent to the Pension Redemption Fund in line with the Pension Reform Act, 2004 amounting to a total sum of N285, 946, 669, 881.

    The lawmaker also disclosed that “about N50billion was appropriated for in 2016 to upset part of the pension arrears, but only a paltry sum of N18billion was released”.

    He further lamented that the pensioners under the Defined Benefit Scheme, DBS which include the Police Pensions, Nigeria Customs Service, Nigeria Immigration Service, Nigerian Prisons Service, Civil Service and other parastatals are yet to be paid their 33 per ecent accrued arrears amounting to N174billion.

    “The delay in payment of pension arrears has put pensioners across the country in a very precarious situations where they wallow in penury, sickness, hopelessness and regret for serving their fatherland diligently only to be abandoned by the government upon retirement”, he said.

    Paulker therefore warned that if urgent steps are not taken to pay the outstanding arrears within the current fiscal year, the much applauded Contributory Pension Scheme may collapse, leading to unimaginable consequences for the pensioners and the country in general.

     

  • I cleared nine years pension arrears owed by PDP – Oshiomhole

    I cleared nine years pension arrears owed by PDP – Oshiomhole

    Edo State Governor, Adams Oshiomhole, on Thursday claimed that his administration cleared eight years gratuity and pensions arrears left behind by the People’s Democratic Party (PDP) controlled government in his state.

    He was reacting to allegations that he has not paid pension arrears and creating problems for the incoming administration in Edo State.

    Oshiomhole, who spoke with State House correspondents in Abuja, explained that the 13 years arrears he met have been reduced to 4 years.

    Stressing that more arrears will be cleared before his tenure expires; he maintained that there is no pension arrears for those already captured in the scheme.

    He said: “The problem PDP has in Edo State is very clear to everyone. First, they had the privilege of presiding over the state for 10 years, from 1999 to 2008. During this period, their records with regards to workers are clear.

    “First, on assumption of office in 1999, PDP government sacked all permanent secretaries because they needed their agents as permanent secretaries. They had to sack the ones they met and appoint fresh ones.

    “The following year, 2000, they sacked over 7,000 civil servants and none of them was paid gratuity or pension. From 1998 when the Army left, to 1999 and to the end of 2008 when I took over, that was a period of 13 years.

    “So we found a pension bill of 13 years, arrears of gratuity and pension not paid by the PDP government including the 7,000 people they dismissed.

    “When I assumed duties at the end of 2008, I had two options. There was this temptation to see that I would be paying those who retired during my tenure. But as a former leader, I asked myself that if an employer was so callous to carry out massive retrenchment of workers as the PDP did by sacking 7,000 workers and did not pay them gratuity, is it the fault of those workers?” he queried

    Continuing, he said: “So, I accepted the fact that government is a continuum. So as we speak today, we have paid all those who pensioned in 1998 and 1999, all those they dismissed in 2000 and those who retired from 2001 to 2011.

    “So I have paid pension arrears of 13 years even though I have been in government for only seven years plus,” he said.

    He pointed out that he would have paid double if he had limited himself to pension bills of those who retired during his tenure.

    Stressing that his government has brought change, he said that pensioners in Edo State, before he assumed office, don’t normally get their pension until they go to the streets.

    He said that some of the pensioners died in the process.

    He added: “But today, those who are already on our pension list, whose gratuity has not been paid, they pay them pensions the same day that we pay salaries.

    “We are not in arrears of one month pension to those who are already in the scheme. I am proud to say that, talking about leaving arrears, I met 13 years arrears and I have reduced it to four years. Before the end of my tenure, we will still pay more and that number of years will still be further reduced. So when you look at these facts, PDP can’t talk,” he said.

    He said that his administration has been able to raised highest civil servant in Edo State to Grade Level 17 from 16 in line with their federal counterpart.

    According to him, his administration has increased minimum wage while other state governors are still debating that it was too high.

    On salary, he said: “We are not in arrears of one month salary in Edo State, we are up to date. For all those who are in direct employment of the state government, including teachers at all levels.

    “We have also gone out of the convention to think outside the box because for me, the most important workers in Nigeria are teachers. If the state cannot deliver on public health, infrastructure, we must not fail to deliver on education because the world is knowledge-driven and is increasingly digitalised.

    “Only nations with educated citizens can cope with the rigors of competition in a digitalised world and we are giving primary attention to that,” he stated.

  • Oshiomhole inherited pension, gratuity arrears -Commissioner

    Oshiomhole inherited pension, gratuity arrears -Commissioner

    The Governor Adams Oshiomhole led administration of Edo, which took over government on November 12, 2008, inherited pension and gratuity arrears from 1998.

    Comrade Didi Adodo, the state Commissioner for Establishment and Special Duties who disclosed this to newsmen in Benin, on Wednesday, said the arrears of these gratuity and pension have been cleared to 2011 by the present administration.

    He said the governor deserve commendation and not condemnation on issue regarding workers welfare, especially the pensioners. 

    Adodo revealed that Oshiomhole rescinded an earlier decision to pay pension and gratuity of only those who retire under his administration, by clearing the backlog left behind by the government of Chief Lucky Igbinedion.

    The commissioner who acknowledged that some pensioners were been owed arrears, however said it was not true that some were been owed arrears of about 42 months.

    “People should know Oshiomhole government has done more to ameliorate the plight of pensioners in the state than any other government.

    “Thousands of pensioners, including the military government of Adamu Iyang and administration of Chief Lucki Igbinedion, who retired thousands of workers without paying any gratuity and pension to any. 

    “When Oshiomhole came in, his jettisoned the plan of paying only those who retire under him. He started by paying from 1998 and as I speak, we have cleared the backlog up to 2011. 

    “We are currently working on the batches, before the pension board was dissolved. In another week or so, these people will receive their entitlements.

    “I do not know where this issue of being owed pensioners 42 months arises from. It is true that we are owing some few months arrears and not as been exaggerated to 42 months.

    “Moreover, the pensioners themselves should be majorly blamed for these arrears. Why I say this is that most of them do not fill their papers on time. 

    “The fact is that the law says someone planning to retire should fill their papers six months before the retirement date. But what we experience is that most don’t, until they are finally retired. Some even do so years after retirement.

    “They don’t know that this thing takes time to process. When they fill on time, we have plenty time to process and not when you do so late, you expect your papers to be processed overnight.

    Adodo who noted that the dissolved pension board has not in any way affected processing of pensioners papers, said that an office has since been opened to take care of that.

    “Yes, the pension board was dissolved sometime last year, but that has not anyway affected processing of papers, as I speak with, work is going on smoothly in the office opened to handle such matter,” stated Adodo.

    The commissioner said the government was working out plan that will see to pensioners receiving their pension immediately after retirement.