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Tag: pension

  • Lagos pays N1.8bn as pension in 1 year

    Lagos pays N1.8bn as pension in 1 year

    Lagos State Government on Monday said that it paid a total of N1, 846, 396, 965.80 as pension from May 31, 2016 to April 30, 2017.

    The state Commissioner for Establishment, Training and Pensions, Dr Akintola Benson-Oke, made the disclosure at the 2017 Ministerial Press Briefing to mark Gov. Akinwunmi Ambode’s two years in office.

    The event held at Alausa, Ikeja.

    According to Benson-Oke, the population of pensioners in the state’s main stream public service as at February was 8,512.

    He said that the Mr Akinwunmi Ambode-led administration was determined to ensure that pensioners were paid their entitlements as and when due.

    ”In the last one year, the Lagos State Pension Commission (LASPEC) has been ensuring effective regulation, supervision and administration of pension matters in the state’s public service.

    ”We have recorded continued significant reduction in backlog of entitlements of retired employees.

    ”The Lagos State Government through LASPEC has paid a total sum of N1, 846, 396, 965.80 as pension from May 31, 2016 to April 30, 2017.

    ”This administration has been able to maintain the trend of paying entitlements of retired employees monthly since August 2015, ” he said.

    Benson-Oke said that the state government made provisions in its 2017 Budget for the ministry to carry out 78 training programmes for civil servants before the end of the year.

    According to him, the training will deepen civil servants’ knowledge of public service ethos and values as well as develop their leadership and management skills.

  • Senate: Bill for 75% payment of retirees’ contributions scales second reading

    Senate: Bill for 75% payment of retirees’ contributions scales second reading

    The Bill for an Act to amend the Pension Reform Act to provide for definite percentage a retiree can withdraw from his Retirement Savings Account passed second reading at the Senate on Wednesday.

    The Bill is sponsored by Sen. Aliyu Wamakko (APC-Sokoto)

    Leading debate on the bill, Wamakko said that the bill was meant to ameliorate the sufferings of retirees who found it difficult to withdraw their benefits after retirement.

    He said it would enable retirees to withdraw 75 per cent of their benefits as lump sum after retirement rather than the current provision which allowed for withdrawal of only 25 per cent.

    He added that the amendment would also hasten the period of payment as against present practice where retirees waited endlessly to access their benefits.

    “Rather than enjoy retirement after selflessly serving their father land, they continue to remain in misery, pain, sickness and even death.

    “The relevance of the amendment cannot be overemphasized.

    “It seeks to provide succour to retirees in the delay and other difficulties encountered in withdrawing from their retirement savings account.

    “It equally provides for definite and reasonable percentage that the pensioner can withdraw from such account,’’ he said.

    Supporting the bill, Sen. Adamu Aliero (APC-Kebbi) said the bill came at a time when so many retirees went through much hurdle to access their retirement benefit.

    He said it was for a similar reason that the old pension scheme was abolished for a new one in 2004.

    Aliero said, “this is one of the most important bills that seek to radically address the present problem that retirees are facing.

    “When we moved to contributory pension, even after retirement, you have to wait for a given period before you have access to this fund.

    “The issue is, nobody questions how you eat and how you pay your children’s fees. I think that is what this bill seeks to address.’’

    Aliero commended Wamakko for intervening to ensure that retirees received their benefits as at when due.

    Lawmakers present unanimously voted for the passage of the bill to the next level.

    In his remarks, the Deputy President of the Senate, Ike Ekweremadu, who presided at the day’s session, assured that the Senate would continue to pass laws that would contribute positively to the wellbeing of all Nigerians.

    While commending Wamakko for coming up with the bill, Ekweremadu said “I am sure the retirees will be happy with you and indeed the Senate’’.

    He referred the bill to the Committee on Establishment and Public Service Matters and directed that it should be returned to plenary in four weeks.

  • Reps quiz Adeosun, Udoma over N302.4b pension arrears

    Reps quiz Adeosun, Udoma over N302.4b pension arrears

    The House of Representatives yesterday grilled the Minister of Finance, Mrs Kemi Adeosun and her Budget and National Planning counterpart, Udoma Udo Udoma, over the N302.4 billion pension arrears.

    The lawmakers demanded to know what the executive was doing to offset the outstanding pension liabilities both under the Defined Benefit Scheme (DBS) and the Contributory Pensions Scheme (CPS).

    While summoning the ministers last week, House Speaker, Yakubu Dogara  said the ministers and heads of relevant agencies must appear before the Green Chamber to find a realistic solution to the intractable problem of outstanding pension payments.

    But both Adeosun and Udoma while making presentation pleaded for more time to pay the outstanding saying the Federal Government only on Wednesday paid N54 billion out of the outstanding pension arrears.

    The challenge, according to the ministers was due to the inability to reconcile the figures between the relevant pension administration agencies.

    According to Mrs Adeosun, the situation had been on before the current administration and the high pension debt had been “consistent under appropriation for years that lead to the current problem”.

    She told the lawmakers that just a day before her appearance, the Federal Government had released  funds for the payment of pension arrears.

    On his part,  Udoma  said the president has set up a committee headed by the Ministry of Finance to resolve the intractable pension problem which he said was inherited.

    He said the Federal Government was up to date in terms of pensions payments, adding that an efficient and prompt payment of pension and gratuity would soon come into force as soon as the inter-ministerial committee comes up with harmonised data base.

    “Pension is something that the president is really concerned about. He thanks the House for highlighting the issue. He has directed that this is an issue that must be resolved.

    “The numbers will be reconciled and if there is any impact on the 2017 budget, we will approach the National Assembly,” he said.

    The minister also hinged some of the challenges on limited resources, saying government views salaries and pensions  payment with great importance which is the reason for the items being number one priority. “Half of the total of projected revenue in the 2017 budget is to be used to pay wages and pension,” he said.

    But members were not happy with the explanations of the minister. Members such as Betty Apiafi, Zakari Mohammed , Barde Yakubu, Obinna Chidoka, Aliyu Madaki and a host of others, expressed displeasure over this.

    Minority Leader, Leo Ogor said government was a continuum and no excuse would suffice. He said since the ministers have said the president has set up a committee to liaise with relevant pension agencies, “ we should be looking at the time frame with which they will submit their report.”

  • FG clears N54bn pension backlog

    FG clears N54bn pension backlog

    Concerned about the plight of pensioners who retired under the Contributory Pension Scheme without being paid, the Federal Government has cleared the inherited arrears of accrued pension benefit for the year 2014, 2015 and 2016 by releasing N41.5 billion to the National Pension Commission (PENCOM) for onward payment to the retirees.
     
    The Minister of Finance, Mrs. Kemi Adeosun also announced that the sum of N12.5 billion being outstanding for January, February and March 2017 has been settled based on 2016 appropriation, bringing the tally to over N54 billion.
     
    According to the finance minister, “despite conflicting demands for available cash, President Muhammadu Buhari has always expressed concern about the plight of workers and pensioners. Consistent with this, we have released N41.5 billion which clears the arrears inherited from the previous administration relating to the period 2013-15 and underpayments in 2016. This will bring relief to thousands of our elders who have served and deserve to be paid their entitlements promptly and fully.”
    The N41, 566, 565, 184 released to PENCOM was the outstanding appropriated for the year 2014 and 2016 by the National Assembly for the settlement of the retirement benefits of Federal Government employees.
     
    She explained further that “the amount we paid includes arrears and the impact is that those who retired as far back as 2013, who had been unable to access pension under the contributory scheme due to non payment, will now be paid.”
    To avoid future accumulation of pension arrears, Mrs. Adeosun assured that henceforth “the monthly allocation to the PENCOM based on the appropriation of 2017 will regularly be paid along with monthly salaries of Ministries, Departments and Agencies (MDAs).”
  • Dogara, Reps move to tackle pension monster

    Dogara, Reps move to tackle pension monster

    Senior citizens last week took their worsening situation to the Speaker of the House of Representatives, Yakubu Dogara, and left with smiles on their faces.

    Dogara did not offer them money, neither did he offer them a loan but he assured that the case will not only be tackled with the instrumentality of law but promised to take it personally to President Muhammadu Buhari, who he said has zero tolerance for workers’ suffering arising from unpaid dues.

    The visit was initiated by the Speaker with the adoption of a motion by the House on the urgent need to address the N285b owed pensioners in Contributory Pension Scheme (CPS) as well as another N174b owed those on Defined Benefit Scheme (DBS) arising from non-payment of 33 percent arrears.

    The House had resolved that Buhari should approve a bailout to offset the arrears or provide the required funds in the 2017 Budget. The Senate, on the prompting of the House, followed suit with the adoption of the same prayers. Determined to have a firsthand feel of what the senior citizens are going through, Dogara arranged for the meeting and got more than he bargained for.

    Afolayan, accompanied by over 30 senior citizens broke it down and Dogara resolved that the Buhari everybody knows could not have been aware of the sordid picture painted by Afolayan. The 78 year old Afolayan said: “Pensioners have become endangered species and prone to all kind of diseases which are age related and need money for treatment. This is a very important reason why government needs to ensure that pensioners are paid as at when due, especially considering the fact that these old people have used their youthful days to serve this country meritoriously. Now that it is the payback time, the country should not fail them.

    After listing the challenges confronting them, he said “it is in view of the above that I want to use this medium to appeal to the Hon. Speaker to use his God given position to plead with the Federal Government on behalf of the vulnerable Nigerian pensioners to provide sufficient funds in 2017 Budget Appropriation Bill to offset all the pension liabilities.

    “We share the feelings of the federal government as far as the ongoing economic recession is concerned, but as we have mentioned earlier, we have to reiterate that pension should be placed on FIRST LINE CHARGE so that pension payment will not go through the traditional rigorous budgetary allocation process. Our prayers are not many, what we are asking for is provision of sufficient funds in the 2017 Appropriation Bill towards offsetting the outstanding liabilities both under the DBS and CPS Mr. Speaker Sir, your name will be written in gold when the history of the Union is re-written, if this feet is achieved during your time; Needless to remind you that our members are dying daily in pain, penury, frustration and abject poverty without enjoying the fruits of their labour”.

    Moved, Dogara looked at the position of law on the issue with  emphasis that all pensions due to retired public service workers must be paid because it is a constitutionally provided right to be paid their pension. Citing section 173 (1 & 2) of the 1999 Constitution, he stressed that it is the responsibility of the federal government to ensure that pensions earned by the pensioners are paid as and when due, as failure to do this could be a breach of the laws of the country.

    He assured the delegation that the House will ensure that it “speaks and speak with a loud and clear voice” on the need to make this aspect a priority, while casting doubts that President Muhammadu Buhari is aware of the huge debts owed them. “The President is a pensioner himself; he is and I know that he has always been concerned about issues related to salaries and pensions. He has been so concerned that he has extended assistance to state governments to bail them out with funds to pay salaries and pensions at state levels and I believe having taken such steps, he won’t be so unconcerned about his own responsibility to pensioners of the Federal Republic. So, I believe there is a disconnect somewhere and that is what we have to connect now and to see that even if the last person in the state gets his salary and pension, if we don’t address our pensioners at the federal level, we have failed and that message will be delivered by God’s grace”.

  • Dogara to push for settlement of pensioners’ entitlements

    Dogara to push for settlement of pensioners’ entitlements

    The Speaker, House of Representatives, Mr Yakubu Dogara on Wednesday said the House will meet with the Executive to work out a definite plan towards offsetting N200 billion pension due to retired public workers.

    Dogara said this when he received a delegation from the Nigeria Union of Pensioners at the National Assembly Complex in Abuja.

    He said that the House would invite all key players in charge of pension in the country, to appear before the House next week and explain their plans to off-set the arrears.

    Citing section 173 (1) and (2) of the 1999 Constitution, he stressed that it was the responsibility of the Federal Government to ensure that pension earned by the pensioners were paid as at when due.

    “The Right of a person who works in the public service of the federation to receive pension and gratuity shall be regulated by law.

    “Obviously, we have done our own part of the bargain, which is the enactment of the  Pension Reform Act of 2014.

    “If pension is a Right and pensioners must be paid, it means that the Federal Government is indebted and if it is paid, the government is not doing a favour to anybody,” he said.

    Dogara emphasised that the fight against corruption in public service would be greatly enhanced by prompt payment of pensions.

    According to him, this will reduce the temptation to divert public funds by civil servants for use after retirement.

    Earlier, The National President of the Nigeria Union of Pensioners, Dr Abel Afolayan, had appealed to the National Assembly to ensure that sufficient funds were provided to cater for pension liabilities in the 2017 budget.

    Afolayan also appealed that pension should be put on’ First Line’ charge, just as he solicited the assistance of the Speaker to facilitate the payment of outstanding 18 months arrears of the 33 per cent pension increase.

    The House had last week passed a resolution urging the Federal government to offset all pension arrears owed pensioners since 2014

     

  • ‘Insurance firms owe N19.7b pension fund’

    ‘Insurance firms owe N19.7b pension fund’

    The Pension Transitional Arrangement Directorate (PTAD) yesterday accused insurance firms of failing to  remit pension funds totaling N19.7billion.

    Its Executive Secretary, Sharon Ikeazor who spoke at a news conference in Abuja, said only Leadway Assurance has successfully transferred the funds in its kitty to the the e-collection account of the agency with the Central Bank of Nigeria (CBN).

    She also explained that the implementation of the report of the staff audit conducted by the office of the Head of Service for the agency was ongoing and did not rule out the possibility of the five Directors fired recently  from the agency being made to refund some money to government.

    She said the agency saddled with the responsibility of handling pension matters under the Defined Benefit Scheme is working with the Minister of Finance to ensure that all outstanding legacy funds are transferred to the agency in order to have money to defray some of the liabilities arising from the non payment of pensions.

    She said the government will determine wha action to take against the insurance companies that have held the agency to ransom by failing to transfer the funds to the agency.

    Ikeazor said: “The Pension Reform Act 2014 mandated PTAD to take over all pension assets, funds and liabilities of erstwhile Pension Offices and Boards of Parastatals. While these offices and boards have been quick to transfer liabilities to PTAD, the funds and assets have not been forthcoming. We have not been able to access funds to pay our arrears.

    “Since PTAD took over the pension management of parastatals such as universities and colleges of education in August 2015, legacy pension funds amounting to N19, 137,694,619.94 have remained in the custody of the insurance companies.

    “We have issued demand notices on the companies involved, demanding for the transfer of these outstanding funds into our dedicated e-collection account with the CBN. Till date, only Leadway Assurance has paid funds in its custody.

    “We are working closely with the Minister of Finance to ensure that all outstanding legacy funds are transferred to us. This would enable us to defray some of government’s liabilities arising from the non-payment of pensions.”

    She explained that the agency has handed one suspected pension fraudster to the Independent Corrupt Practices Commission (ICPC) for prosecution, while working with the Economic and Financial Crimes Commission (EFCC) and others keying into the government whistle blower (policy),

    “It is no secret that fraudsters would do all they can to defraud innocent people or the system. This had been the case here in PTAD. All reported fraud cases are reported to the ICPC for their investigation and prosecution where applicable.

    “Our collaboration with the ICPC has led to the detention of persons impersonating pensioners who present themselves for verification.

  • Artisans urged to embrace contributory pension scheme

    Workers in the informal sector have been advised to save for retirement by joining the different pension schemes  in the country.

    The Managing Director of Sigma Pensions Limited, Mr Dave Uduanu,  gave this advice at a one-day human resources  conference  in Port Harcourt.

    Uduana organised the workshop for human resources managers in the Pensions Fund Administration from the Southsouth and Southeast.

    He said saving for retirement  would help people to enjoy their old age.

    Uduanu said it was not advisable for people to wait to mop up their lives’ savings at old age and begin to invest it in fishing or other sundry agricultural ventures wondering “what becomes of the person’s fate if the business fails.?”

    The Sigma Pensions Limited boss, who disclosed that Rivers, Edo and Delta, have joined Contributory Pension Scheme,  expressed hope that  Bayelsa, Akwa Ibom and Cross River would join soon because “we owe it as a service to ensure that states in the two geopolitical zones key into the pensions scheme”.

    Uduanu, who stated that his company is targeting about 500,000 workers in the two zones, also explained that the conference was organised “to build knowledge in human resources managers so that they could do their jobs better.”

    In a lead paper delivered at the event, the Head of Corporate Communications and Special Adviser to the Managing Director/ Chief Executive Officer of Indorama Eleme Petrochemicals, Dr Jossy Nkwocha, harped on the need for human resources managers to adopt tools that would bring in efficiency and increased productivity in organisations.

    In the paper titled: “Tools For Increased Personnel Efficiency and Productivity”, Nkwocha said that “there are 12 unmistakable tools of personnel efficiency and productivity” which are: robust human resources management policies and practices; workplace behaviour and corporate etiquette; technology and ICT as well as effective communication.

    Others are time management skills; employee engagement and communication; team building and goal setting; training, retraining certification; employees suggestion scheme; management by objectives; national and international laws and regulations and effective supervision, monitoring and control.

    He also told human resources managers that their functions basically include talent hunt and recruitment; staff training and staff welfare which involves housing, feeding, transportation and healthcare as well as promotion, disengagement and pensions of staff.

    In a paper titled “Wills and Trust”, Adaku Ijara of United Capital, Lagos lectured the participants on the importance of will, how to write and execute it when the time comes.

    The Rivers State Chairman of the Chartered Institute of Personnel Management, Mr Steve Ojeh, spoke on “Effective Performance Management System”, the Southsouth Coordinator of Pencom,  x-rayed “The Pension Industry in the Next Five Years.”

  • Ekiti earmarks N4b for pension

    Ekiti earmarks N4b for pension

    The Ekiti State government has earmarked N4 billion in the 2017 budget for pensions and gratuities.
    Commissioner for Budget and Economic Planning Gbenga Olajide said this yesterday in Ado-Ekiti while presenting the budget analysis.
    The government owes retirees six months arrears of pensions; gratuities were last paid in 2012.
    Olajide said N17 billion has been earmarked for infrastructure of which N3.8 billion will be used to complete the Ado-Ekiti flyover.
    The commissioner said N28 million will be spent for the renovation of 18 secondary facilities and completion and equipping of Oba Adejugbe Hospital, Ado-Ekiti.

  • Pensioners allege threat to contributory pension scheme

    Pensioners allege threat to contributory pension scheme

    The non-payment of the accrued right by the Federal Government may derail the contributory pension scheme, the Nigerian Union of Pensioners (NUP) has said.

    Speaking in Abuja at a meeting with  pensioners in the contributory pension scheme (CPS), the National President of NUP, Dr Abel Afolayan, said it was imperative that the pensioners were organised and unionised.

    Though Afolayan lauded the near-absence of fraud in the CPS since it began in 2004, he said the non-payment of the saving bond by the Federal Government could derail the scheme.

    He said: “There is no doubt that since the inception of the scheme, there was no single case of fraud in the last 10 years of its existence and many pensioners have been able to access their retirement benefits as and when due. But I have observed that in recent times, especially since October 2015 to date,  retirees under this scheme have not been able to access their retirement benefits as a result of the non-payment of the accrued right by the Federal Government through the retirement saving bond.”

    The NUP chief said pension has not been reviewed by the government even when workers’ salaries were reviewed which is in disobedience to Section 173(3) and Section 210(3) of the 1999 Constitution (as amended) and Section 15 of 2014 Pension Reform act (as amended). These sections stipulate that pension shall be reviewed after every five years or whenever workers’ salaries are reviewed.

    Pointing out the inadequacies in the Pension Reform Act 2004, Afolayan identified abolition of gratuities which has now denied employees the opportunity of getting a lump sum when they retire.

    He also added that the National Pension Commission and Pension Fund Admini-strators (PFAs) were yet to specify how pensioners could benefit from returns on investment of their contributions, which has left pensioners the owners of the funds in hardship while PFAs are smiling to their banks.

    Afolayan further said the NUP appeared before the joint committee on budget and appropriation at the National Assembly and submitted a memorandum requesting over N183 billion to fund the accrued right of retirees from 2015 to date as part of efforts to ensure that contributory pensioners entitlements are not denied.