The Nation Newspaper

Tag: Pensioners

  • ‘There is need for unity among pensioners’

    ‘There is need for unity among pensioners’

    Despite the numerous advantages that pensioners now enjoy under the Contributory Pension Scheme, the General Secretary of the Nigerian Union of Pensioners (NUP), Elder Actor Zal, in this interview with John Ofikhenua, clamours for payment of arrears as the committee which President Goodluck Jonathan set up to resolve pension crisis stopped meeting since last year

    Why did the Federal Government stop payment of gratuity to pensioners?

    The former TUC President, Comrade Peace informed me that as a result of the implementation of 2004 Pension Act , the Federal Government staff now forgo their gratuity, what do you know about this?

    We have not been seeing any provision that is meant for paying gratuity in the yearly budgetary allocation on pension for retiree. The government has just decided not to pay gratuity.

    Was there a time the act was amended to stop the gratuity for pensioners?

    In fact, we have discussed that at several fora at our NLC meetings, that there is need for government to pay that gratuity to retirees and civil servant because that gratuity will help retirees to start a new life because it is usually paid in bulk. So such payment will help retirees to start a new life and I believe it is because of these problems that made retirees to opt out of contributory pension scheme. Because in the past, some people will go and buy, build houses and if they couldn’t do that when they were in service, with time by getting that gratuity it helps them to get or build a house of their own. We have discussed at NLC meetings several times that government should revisit that decision of not making provision for gratuity and nothing has been done.

    As it is now, it should be a common knowledge that you have pensioners under the old pension scheme and contributory pension scheme, in comparison which one would you choose? Have you had any cause to regret the implementation of the new pension scheme?

    To me personally, the fear is that in the contributory pension, once you exhaust your contributory pension, you don’t have any money left to enjoy the pension continuously. Any increment in the worker’s salary is the same applied to pensioners. In the case of the new one, there is no negotiation for the minimum pension.  No, there is no provision for that. To me personally, that is the only disadvantage of the act.

    This issue of 33.4%, what have you been doing about its implementation?

    We have been crying and in fact, we thank your newspaper, you have always been very supportive by carrying our voices, complaints, and all that. It is really unfortunate that up to this moment that I am talking to you, the civil pensioners have not gotten the new rate, unlike the military, they are enjoying their new rate since last year but this is not so for civilian pensioners.

    Why is this so?

    Well, you know there is this common saying among the military, they call us “bloody civilians.”  So I think it is based on that slogan that could have led to the delay in implementing the civilian increment because we know that pensioners should be treated equally, just like workers, there is no discrimination at the federal. In fact, when they increased the salary, every category of civil servant got their increment at the same time. So we thought that the military and civilian pensioners are pensioners, so they have equal rights.

    Do you see the government succeeding with the PTAD you have in place at the moment?

    It was before the commencement of the contributory pension.  That directorate should have been in place, it is long overdue. And I that have been there, I believe the issue of mismanagement of pension fund wouldn’t have arisen because such a body is supervised by PENCOM and you know PENCOM is a known commission that is doing its job commendably and it is not news that now they keep to contributory pensions which is running into trillions.  So we believe that as an organisation that is supervised under PENCOM, there is hope and we have confidence.

    Just recently, some pensioners who are averse to the leadership of the union made a statement to the ex-chairman of Pension Tax Reform Team into PTAD, should you wake up someday and find out that Maina is now reinstated. What will the organisation do?

    You see, it is something that has been resolved long before now, that the pensioners long before now with their last blood resisted such because reinstating Maina on that reform team would bring a lot of hardship on pensioners rather than making things easy for them. Like you move from state to state and you discover that thousands and thousands of pensioners are not on the pension payroll because they removed their names and when they remove their names, they say, they have paid the pensioners. The money they are supposed to pay the true pensioners, they say they are ghost pensioners. So I don’t know when somebody is still living and you say he is a ghost.

    What do you mean by saying that the pensioners will fight the reinstatement of Maina with the last drop of their blood? Does this mean street protest or seeking redress in the law court?

    Based on the Senate investigation team on the problem of pension administration in Nigeria, from their report, the outcome of their investigation was glaring. During the task force, they recorded the highest mismanagement for fund than ever before. And the record is there, which you can even verify at the Senate. We know that there is no way that our members will be happy with whoever would want to bring back Maina. That is why the problems lingering till today. If you go to PTAD you will see thousands of condemned forms that were submitted by these pensioners they were saying were ghost pensioners and they are still living.

    Does this mean that you will limit your protest to “unhappiness” or which action will you take if you say you will resist his coming back with the last drop of your blood? Will you go to court?

    As I am with you now there is no way I can give you such an answer. It is something that people will have to meet then they will decide the strategy because everything needs to be planned. So when such a thing happens, when we get to the congress it is there that strategies will be taken and decisions will be taken. So for me to tell you what will happen it pre-empts my members’ intention which will be tantamount for such a struggle.

    How is your union pushing for the payment of the outstanding pension arrears?

    It is part of the effort we are making by the last week press conference that was held here which your correspondent attended. So that is part of our efforts. You know in the union, we rely on our check-off dues. We don’t have any other means and the only thing we can do is to draw the attention of the public for sympathy to such. Pensioners are not working for anybody so if you say they will go on strike. The only thing we can do is to make noise through press conference or through protests like one that was held early this month. That is the only way we can put forward our own effort.

    Have you written any letters to the Minister of Finance for her to disburse these outstanding payments?

    We have done that several times. You know that there was a committee set up by the president to find ways of resolving the pension crisis in the country. It was headed by the Secretary to the Government of the Federation. Our union is a member, NLC is represented too, PTAD, Head of Service Office, the Minister of Finance, the Minister of Labour, the Budget Office and PENCOM too. But up till today, the issues still linger on, and we are thinking of going back to NLC and say that you suspended the action that you wanted to on our behalf hold a sympathy strike for pensioners, nothing has been done. That is our next plan now- to go back to NLC to say up till now, nothing has been done. That meeting has since stopped since last year. Nobody is talking about the pensions problems again.

    Is it true that your union is opposed to the re-election of President Goodluck Jonathan?

    You see, there are certain groups that made that statement. As we are, election is a personal view. You cannot imposed your own view on the other person. But we are saying that any government that listens to the plights of pensioners, pensioners will always support such government. Even our state pensioners we have told them that if your governor is paying you well, support him. But if he is not, you know what to do. So that is just it. It is when you are happy that you will be happy with someone if you are not happy there is no way you will. That is just the logic.

    What is your message to all pensioners?

    We call on all pensioners to unite. Whether you are a local government pensioner or parastatal pensioner, federal pensioner or state pensioner, we want pensioners to speak with one voice. We don’t want any division or disunity among the rank and file of the pensioners because united we stand, divided we fall. So my own appeal to pensioners is that we should speak with one voice so that we can fight our common enemy. In the union, there is no discrimination. Anybody from any unit or from any department that you retire whether local government, whether parastatal or pure federal or whether a pensioner from state or tertiary institution, you can aspire to be the president of the union. There is no discrimination. The leadership is not reserved for a particular set of pensioner. It is opened to all pensioners so the better we unite the better we succeed in our struggle.

  • Fed Govt owes NIPOST pensioners three years’arrears

    The Federal Government is owing the Nigeria Postal Service (NIPOST) pensioners three years pension arrears and gratuities, The Nation has learnt.

    Chairman, Association of NIPOST branch of the Nigeria Union of Pensioners, Comrade Steven Shokden, said though they were assured that money would be released by the Budget Office of the Federation, nothing had been paid to them.

    He said some of their members had not been paid their arrears and gratuities since 2011.

    He explained that some of the members were before 2011 paid up to 75 per cent of their pensions and gratuities, while others were paid only 25 per cent.

    Shokden said  there are some pensioners, who died in 1996 and 1997, whose families were yet to be paid their pension benefits, adding that the government is also owing those who were asked to resign 10 per cent severance in lieu of notice.

    He explained that the Budget Office was supposed to release the money to their underwriter, Niger Insurance Plc that would  pay the NIPOST Pension Board.

    He said the Board was aware of the debts.

    ‘’What we learnt is that the money budgeted for these arrears are still with the Budget Office and we do not know when it will be released,’’ he said.

  • 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.

  • 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.

  • ‘One in 10 pensioners is a millionaire’

    Over a million of pensioner households in the UK now have a total wealth of more than £1million, according to analysis by Prudential.

    The retirement company said this growth in wealth was down to a boost in the average value of pension assets, an increase in the value of savings and investments held by retired households and a rise in property values.

    Examining Office for National Statistics data for 2010 to 2012, Prudential found that the number of millionaire pensioner households increased by 69 per cent compared with 2006 to 2008 when the number stood at just over 636,000.

    This means that more than one in ten (11 per cent) of over-65 households in 2010/12 had a total wealth of over £1million.

    Prudential retirement expert Vince Smith-Hughes said: ‘These results challenge a few commonly held perceptions.

    ‘’The figures underline the importance of people saving as much as possible as early as possible in their working lives to enable then to secure a comfortable income in retirement.

    ‘’Even those who will fall into the growing number of pensioner millionaires when they retire need to consider their income options.’’

    Prudential said the average value of private pension assets increased to £82,300 in 2010/12, up from £60,000 in 2006/06. The number of people who have private pension wealth in this period grew to 76 per cent from 73 per cent.

    Less than one fifth (19 per cent) of over-65 households have savings and investments worth more than £100,000 – an increase from 15 per cent in 2006/08.

  • PHCN pensioners shelve planned protest against minister

    But for the quick intervention of the Minister of Power, Prof Chinedu Nebo and the Minister of State, Hon. Mohammed Wakil, the Federal Ministry of Finance in Abuja would have been picketed by aggrieved PHCN pensioners for the non-payment of their four- month  pension.

    The Federal Government owes the pensioners under the auspices of the Nigeria Union of Pensioners NUP (Electricity Sector) N4.5 billion monthly pensions since March, this year while some have not been paid since February.

    The pensioners who were set to embark on a peaceful protest to the Ministry of Finance on suspended the planned protest following a meeting with the two ministers at the Ministry of Power in Abuja and promise to pay within one week.

    NUP President, Comrade Temple Ubani, while addressing journalist in Abuja said the pensioners unanimously agreed to suspend the protest following high level of intervention by the ministers.

    He said the ministers related to them what they have discussed with President Goodluck Jonathan and his willingness to find an immediate solution to their problems.

    He lamented that they have been suffering while some have died as a result of the non-payment of their monthly pension for the past four months, noting that they are also owed gratuities and other pension benefits.

    He said the ministers also informed the pensioners that they were assured by the Coordinating Minister of finance and Economy, Dr. Ngozi Okonjo-Iweala to pay the arrears in one week.

    He said: “We wish to inform the general public and the world at large, about the callous, inhuman and undignified manner the Federal Government of Nigeria has been treating NEPA/PHCN retirees since the advent of reforms in the electric power sector and privatisation of PHCN.

    “The PHCN management at the end of August 2012 failed to pay pensions to our members. The Federal Government had at the time, directed the Market Operator (MO) to stop the payment without any form of consultations or communication with our union. Government also directed Nigeria Electricity Liability Management Ltd/Gte (NELMCO) to assume the responsibility of paying our members monthly stipends with immediate effect, again without our consent or input. This was the genesis of an array of challenges of PHCN retirees up till this moment. Death of reliable data, non-payment of pensions, and other retirement entitlements, delayed release of funds by Federal Ministry of Finance to NELMCO bedeviled the transition.

    “None of the agreements reached with the Labour has been honoured by Government as we speak. These include but not limited to, “Failure to address the superannuation fund deficits to meet outstanding pension liabilities; outstanding pension arrears; non representation of the union in NELMCO Board; outstanding electricity rebates and non-payment of monetisation arrears.”

    Ubani further said that their pension was also wrongly classified as capital supplementation while all other pension funds were captured under Service Wide Vote.

    “NELMCO Pension Appropriation is classified as ‘CAPITAL SUPPLEMENTATION’ while all other pension funds were captured under Service Wide Vote.

  • Pensioners storm National Assembly over 53% increment

    Pensioners storm National Assembly over 53% increment

    Thousands of pensioners yesterday protested at the National Assembly over non-implementation of 53.4 per cent pension increment by the Federal Government.

    The retirees, under the aegis of the Nigerian Union of Pensioners (NUP), condemned the government for not increasing pensions alongside salary increment.

    They said the government’s action breached constitutional provisions.

    Security agents barricaded the outer gate to the National Assembly to prevent the protesters from entering.

    The pensioners formed a human shield around the gate, thereby disrupting human and vehicular traffic.

    The protesters carried placards with various inscriptions. They urged the government to alleviate their plight.

    NUP’s Deputy National President, Dr. Musa Ayuba, in a protest letter addressed to the House of Representatives Committee on Pensions, accused the government of breaching constitutional provisions for failing to increase pensions when workers’ salaries were increased.

    Ayuba said: “There is an unambiguous, constitutional stipulation that pensions should be reviewed every five years or anytime workers’ wages are reviewed, whichever is earlier.

    “To our utter dismay and to disadvantage, this provision of the constitution, which gives solace to the suffering Nigerian civilian pensioners, has never been adhered to by the Federal and state governments at the appropriate time.”

    He regretted that the “high-powered committee” set up by President Goodluck Jonathan, led by the Secretary to the Government of the Federation (SGF), Senator Anyim Pius Anyim, has failed to resolve the grievances of the civilian pensioners.

    The union leader said the union’s meeting with the Minister of Labour and Productivity also yielded no fruit.

    He said: “When we heard that the military pensioners got 33 per cent increase, it was our genuine expectation that it would be our turn. Our expectation has, so far, been futile.

    “Now, the military pensioners are legitimately asking for the full 53.4 per cent increase due to them and, by extension, also due to us civilian pensioners.”

    Last night, no fewer than 10 members of the union were meeting with relevant committees of the National Assembly to find solution to the face-off.

  • Pensioners to get advice on life span

    Pensioners to get advice on life span

    Pensioners will be given estimates of how long they have left to live to help them manage their savings, the British Pensions Minister, Steve Webb, has disclosed.
    Steve Webb said that the Government wants to provide pensioners with a rough life expectancy guide when they reach retirement to allow them to make better financial decisions.
    Experts will take into account factors including gender, where a pensioner lives or whether they smoke, thepensions minister said.
    Life expectancy should be part of “guidance” given to help people decide how much to save.
    In last month’s Budget, George Osborne announced the scrapping of rules that force most Britons to use their pension savings to buy an annuity.
    From next year it will be much easier and cheaper to withdraw money directly from a pension savings pot for other purposes.
    But critics fear that people could end up struggling financially if they spend all their money soon after retiring.
    Mr Webb said that individuals often underestimated their life expectancy.
    “The idea is that you come to think about retiring, [but] you don’t know how long that retirement is going to be,” Mr Webb said.
    “What we do know is people get it wrong and they underestimate how long they’re going to live.
    “At 60 most people will have parents still alive so the best guide they’ve got about how long they are going to live is their grandparents. That is two generations ago so they tend to underestimate how long they are going to live.
    “My idea … is to say to somebody, ‘look, someone of your generation, living in this part of the country, you’ve not smoked, someone like you could easily live for 27 years’.”
    Newly released figures show that life expectancy is rising steadily in the UK with females born now projected to live 82.7 years on average. Average male life expectancy is now 78.9 years.
    However, for those who reach the age of 65, life expectancy is considerably higher, as the overall figure is an average brought down by the numbers who are likely to die young.
    The new figures, from the Office for National Statistics, also suggest that young people with healthy lifestyles from poorer parts of the UK are moving to more prosperous regions.
    Mr Webb said the guidance would be given face to face by savings advisers to any pensioner who requests it.
    •Culled from The Telegraph, London

  • Pensioners seek upward review of returns on savings

    Pensioners seek upward review of returns on savings

    Subscribers to the Contributory Pension Scheme (CPS) are seeking an upward review of the returns on their investment (RoI).

    Those making the call are retired public servants whose salaries are usually low compared to their counterparts in the private sector.

    A pensioner, who retired as a Director from a Federal Government ministry, Mrs Aduloju, is not happy because what she is receiving as pension under the scheme is not enough to meet her basic needs unlike when she was still in service and earning salary.

    She wants the RoI reviewed by Pension Fund Administrator (PFA) and the National Pension Commission (PenCom).

    She said: “I retired in 2013 after serving for 33 years. I am receiving a monthly pension of between N50,000 and N70,000 from my last salary of N450,000 as a director.

    “I think the system should be reviewed because we are getting so much less. The old pension scheme was very clear because you know what you will get as pension based on your number of years in service.

    “By a certain formula, you will know how much you are getting as your gratuity. It was very open. Now we are told that there is a template. What is the template? And if after service of 33 years I am getting N50,000 or even N70,000 per month from my last salary of N450,000 as a director and with the Nigerian situation, it is nothing to sustain me.

    “The old pension scheme paid better, but it is the human factor problem associated with it that did not make it work as it should have.  The new scheme is paying us less and this should not be the solution to pension adminstration in the country. I believe it should be reviewed so that pensioners could begin to receive more as this would encourage workers to look forward to retirement.”

    Another Federal Government pensioner, who also craved anonymity, lamented that what she gets is not enough to cater for her needs in old age.

    The woman, who retired in 2010 after 35 years, said: “If PenCom and PFAs (Pension Fund Adminsitrators) really want us to be happy after retirement, they should find a way of ensuring that we get good return on our investment.

    “How do they want us to survive on this stipend they are paying? I earned N400,000 before I retired as a senior public servant and now they are giving me N50,000. Suppose I live for 30 years before I die, it means all I get after retirement is N1.5 million. This is not a fair deal,” she said.

    A senior official in PenCom who spoke with The Nation on investments said the reason some ex-workers earn low pension is because many of them request to have their PFA pay them over 50 per cent lump sum from their Retirement Savings Account (RSA).

    This reduces the amount they will receive as monthly or quarterly pension because they have received a huge part of the money as a lump sum, he said.

    He advised retirees to take a low lump sum so that their monthly pension can sustain them.

    He, however, noted that the commission was working on mechanisms to enable the PFAs invest outside the country with guarantee that contributors pension would be safe.

    He added that this and some other issues were being considered to boost returns for contributors.

    According to the General Principles in the ‘Guidelines on Regulation of Investment Of Pension Fund Assets’, PFAs shall invest pension fund assets with the objectives of ensuring safety and maintenance of fair returns; shall recruit and retain highly skilled personnel in their investment departments; shall not invest Pension Fund Assets in instruments that are subject to any type of prohibitions or limitations on the sale or purchase of such instrument, except for open/close-end/hybrid funds and specialist investment funds allowed by this Regulation.

    “PFAs shall not trade on margin accounts with pension fund assets, shall not engage in borrowing or lending of pension fund assets and shall not trade in financial instruments with pension”.

  • Pensioners protest non-inclusion at conference

    Over five million pensioners nationwide yesterday protested their non-inclusion by President Goodluck Jonathan in the national conference.

    They described the development as ‘marginalisation’ of the retired civil servants.

    Speaking to reporters, the pensioners under the aegis of the Nigerian Union of Pensioners (NUP), said efforts to send their delegates to the conference proved abortive, thereby preventing them from expressing their problems.

    NUP National President, Dr A.O. Afolayan, represented at a news conference in Bauchi by the Northeast Zonal Chairman, Alhaji Muhammed Inuwa Ahmed, said if government failed to respond to their demands, the union would mobilise its over five million members to protest, threatening that the pensioners would be incited not to vote for anyone who did not listen to and solve their problems.

    “Dear comrades, if our efforts to achieve the purpose of this conference fail, we shall have no alternative than to involve the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC). With the involvement of these two unions, it is certain that workers, who are praying to be pensioners, will join us on a sympathy ground in a nationwide protest, which may likely hold soon,” he said.