About N1.56 billion has been paid to 500 Next of Kins (NOKs) of deceased pensioners of Nigerian Telecommunications Limited (NITEL), and its mobile subsidiary, MTEL, by the Pension Transitional Arrangement Directorate (PTAD).
Its Executive Secretary, Sharon Ikeazor, who made this known in a statement to newsmen, said the NOKs are beneficiaries of deceased Nitel and Mtel pensioners, who died after service under the Defined Benefit Scheme (DBS).
She said the NOKs have completed the process of documentation and have been cleared for payment by the Federal Auditors, adding that the timely payment was achieved through diligent verification exercise conducted by Directorate to authenticate genuine NOKs before payment was made.
She assured those who are yet to be paid of the Directorate’s commitment to see that all NOKs receive their entitlement.
Meanwhile, a group of pensioners, under the aegis of Association of Retired Federal Senior Public Officers of Nigeria (ARFESPON), has urged both the Federal Government and Pension Transitional Arrangement Directorate (PTAD) to make specific statement on the outstanding 20.4 per cent deductions from their pension entitlement made by the Goodluck Jonatham’s administration since 2010.
Although, ARFESPON expressed its appreciation to PTAD for the recent six months’ arrears of the 33 per cent it paid to its members, it, however, said both PTAD and the government have decided to sweep the outstanding 20.4 per cent arrears of deductions from their entitlements for eight years under the carpet without any comment, despite several calls by the various pensioners’ group for government to pay attention to their complaints.
ARFESPON Lagos Chapter President, Mr Olufemi Odewabi, while addressing the media on the outstanding arrears at the group’s secretariat in Lagos, said it was painful that government has decided to turn deaf ear to their calls for payment of this huge outstanding arrears.
He said for almost eight years, his members and other pensioners’ groups have been calling on the government to direct attention to this, but neither the government nor its agency for retirees under the Defined Benefit Scheme (DBS), which is the PTAD, has deemed it fit to issue a statement in that regard.
Odewabi said this is the time for the Muhammadu Buhari-led administration and Sharon Ikeazor-led management to make a statement on the eight years outstanding pension arrears of benefits, noting that they will continue to ask for their money.
He explained that the eight-year 20.4 per cent arrears were incurred by the government when it effected 53.4 per cent increase in workers’ salaries and pensioners’ benefits.
He said a committee was set up by former President Goodluck Jonathan to look into the 53.4 per cent increase in pension entitlements, but that the committee suddenly woke up to factor in some illegal deductions from pensioner’s benefits.
He said: “The committee recommended the following deductions from pensioner’s benefits which include Tax, Contributory Pension Scheme, Housing and National Health Insurance Scheme (NHIS), all totaling 20.4 per cent deductions and recommended that only 33 percent of the increase effected by the government should be paid to pensioners.
“This is a rape on the right of the pensioners. It is obvious that the conclusion of the committee that reviewed the approved 53.4 per cent increase for pensioners acted in nullity and was even not logical in arriving at such conclusions.
“As reviewed in the white paper report, it was stated that the committee believe that out of the 53.4 per cent increase Tax, Contributory Pension, Housing, NHIS totalling 20.4 per cent should be deducted, which makes them arrive at the conclusion that only 33 per cent out of the 53.4 per cent should be granted over eight years.”
He argued that 20.4 per cent of 53 per cent is not 33 per cent, rather it is 10.68 per cent, adding that if 20 per cent of the granted increment is to be deducted, 20 per cent of 53.4 per cent cannot be 33 per cent.
He further stated that the calls for the review of pension increase were wrong and deliberate intention to short change pensioners, and were constitutionally wrong and tantamount to economic sabotage.
He questioned the tax deduction, adding that pensioner’s benefits are not supposed to be taxed. He also questioned the deduction for the CPS when they are under the DBS.
He urged the government to review the illegal deductions and ensure payment of the eight years’ arrears of 20.4 per cent deducted by the Jonathan administration’s committee.
