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Tag: retirees

  • Ogun pays N27bn to retirees in three years

    Ogun pays N27bn to retirees in three years

    Ogun State Government said it paid over N22billion to pensioneers and another N5billion as gratuities in the last three years even as it vowed not to owe any pensioner or worker his due.

    Governor Ibikunle Amosun revealed this yesterday when leaders of the pensioners paid a courtesy call on him in his office at Oke-mosan, Abeokuta.

    Amosun said his administration had cleared the backlog of gratuities owed by the immediate past administration from 2008, adding that the administration cleared  five years backlog of gratuities owed retirees in the state.

    Leaders of the pensioners had earlier requested for the settlement of pension arrears owed them from 2003-2006, implementation of increment on pension from 2010-2011, harmonization of pensions and payment of outstanding gratuities from 2008 among other demands.

    On the harmonization of pensions, the governor explained that the disparities in the amounts paid to the pensioners were determined by the numbers of years served and unequal terminal salaries of the pensioners, adding that it would be unfair for people who did not serve the government for their entire productive years in service before moving elsewhere to earn as much as those who committed the entire working life to the state and completed their service years before retirement.

    The governor added that the last salary earned by the pensioner was what was expected to be paid to them as pensions.

    He was, however, quick to add that the government could look into the possibility of reviewing this pensions.

    Amosun urged the pensioners to show more understanding with the government as he was currently clearing the backlog of pensions and gratuities he never owed, but was inherited, adding that his administration had never defaulted in the prompt payment of salaries  and pensions.

    He promised that the government would have cleared all the backlog of all pensions and gratuities by next year.

    The Chairman of Nigerian Union of Pensioners, Chief Kessington Odukoya, had earlier thanked the governor for prioritising the welfare of the pensioners and pleaded  he continues to put smiles on the faces of the elders who served the state meritoriously.

  • Lagos SUBEB, local govt retirees receive N1.7b pension 

    Lagos SUBEB, local govt retirees receive N1.7b pension 

    Employees ,who retired in Lagos State, have continued to receive their pension as at when due following the state’s commencement of the new Contributory Pension Scheme (CPS) in April 2007. Last week, 437 retirees from the State’s Universal Basic Education Board (SUBEB) and the local government areas, received over N1.7 billion Retirement Bond Certificate. Some of the retirees recount their experiences to Omobola Tolu-Kusimo.

    Four hundred and thirty-seven Lagos State retirees, many of whom are drawn from the State Universal Basic Education Board (SUBEB) and the local government areas, smiled home last week after recieving over N1.7 billion pension from the state.

    The amount is an accumulation of their accrued rights for past service to the state prior to the commencement of the new pension scheme, the Contributory Pension Scheme (CPS) in April 2007.

    Their pension was, however, presented in bond certificates which they will present to the various Pension Fund Administrators (PFAs), who will in turn credit their bank accounts.

    Before now, the state government paid a total accrued right of N22.7 billion to 4,199 retirees from inception of the CPS.

    Besides, the National Pension commission (PenCom) has continued to use state as an example, as it is the only state in the country that has fully complied with the Pension Reform Act 2004, followed by Niger State.

    Director-General, Lagos State Pension Commission (LASPEC) Mr. Rotimi Hussain, who spoke at the first tranche of the 11th Retirement Bond Certificate Presentation to retirees of the state Public Service, said apart from presenting bond certificates, the event was set aside to celebrate the commitment of workers in the state during their service years.

    He said this was a follow-up to the 10th batch held in February this year, adding that it is a confirmation of Governor Babatunde Raji Fashola’s commitment (SAN) to make life worthy and remarkable for all its employees in retirement.

    He said: “Of great importance is the fact that the N17.2 billion has already been domiciled in the respective Retirement Savings Account (RSA) of each of the 437 retirees in addition to their 7.5 per cent monthly contributions and another 7.5 per cent counterpart contribution by the government.

    “It is a thing of joy to confirm that with the presentation ceremony we are witnessing today, Lagos State has tremendously grown its stake in the administration of the CPS in Nigeria having so far paid N24.4 to 4,636 retirees from the public service from inception of the Scheme till date”.

    He urged the retirees to be cautious and careful about the type of business they embark upon after retirement.

    He told them to be sure they are conversant and have a fair knowledge of the business they want to embark upon, so as to avoid falling into the hands of fraudsters.

    He said LASPEC has put the retirees through all they needed to know about the workings of the scheme during the pre-retirement seminars, and it is their fervent belief that they are now in the best position to put the knowledge acquired to use in all their future endeavours.

    He said they are however at liberty to meet their (PFAs) and Insurance firms for further guidance on the procedures and processes of accessing their retirement benefits immediately after the ceremony.

     

    Retirees’ report

     

    The pensioners however gave an account of their service years and retirement under the new scheme as well as how they intend to spend their pension.

    Mrs  Bisi Oluomu, who retired as a teacher from District C, Oshodi Isolo in 2012 after 32 years of service, said she is excited that she is alive to receive her pension although it came in this year.

    She said: “I had to go through all the process required of a retiree under the CPS. I also want to appreciate my husband and my relation for their support since I left service.

    “I am happy to retire today and my advice to workers is that they should prepare ahead for retirement. They should know that it is just like death that would come one day. You just have to prepare a little bit ahead and that’s what I have done. This will help you to be prepared for retirement without fear.”

    When asked if she would choose Programme Withdrawal or Life Annuity for pension payment, she said she believes the Progamme Withdrawal is better, noting that she will consult professionals for advice before she finally makes her choice.

    On the CPS, she said: “I am just collecting the money now and we just received a lecture.

    “I like the new pension system because it does not require the stressful process of the old scheme where you are made to queue under the sun and rain with some people collapsing in the queue. Under this new Scheme, I know where to go and queue. Your PFA would make sure your money is paid in the bank. In Lagos state they even gave us names of PFA and insurance companies that they trust to choose from.”

    Mrs. Julie Aigbe said she joined the Lagos State public service as a teacher in 1979 and retired as the principal of Lafiaji High School in 2012 after serving for 31 years.

    She said: “I am grateful to God for a day like this. After retirement we need to sit back and enjoy the fruit of our labour. Some of us have not handled large sums of money before, so we need to handle it very well so we don’t go bankrupt.

    “I retired two years ago at 50 and as a human being, you will be afraid of what your life will be like after retirement. It is not easy for you to earn salary for 31 years and all of a sudden, it just ended.  You will be happy that God saw you through, but the other feeling that you will have is to face the reality. But I am particularly happy because I am sure that under the new pension arrangement, my pension will be paid to me monthly.”

    Mr. Bola Durojaiye, who retired from Surulere Local Government in 2102 after serving for 16 years, believes the new pension scheme is a departure from the past agreement which is what makes it easier and better.

    “We thank whoever is behind this arrangement and we believe they will still develop it to become better so all we are doing is to pray for the governor and for everyone that has made an impact in the Scheme.

    “I am very happy today because I retired in October 2012 and we are in April, today, in less than two years, he added.

    Mrs. Jesse Okonkwo, who served in Banjo Primary School, Ebute Metta, said she worked for Lagos State for 25 years and Anambra for six years before retiring.

    She said Lagos paid her pension for 25 years and asked her to return to Anambra to receive the balance.

    “They paid me for 25 years and asked me to go to Anambra to collect my remaining pension and that has been stressful for me. I am not happy that my own state is not doing much. Lagos is really trying for us and I just wish I finished my service here in Lagos.

    Earlier, the Acting Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, had said the South-west geo-political zone of Nigeria, comprising Ekiti, Lagos, Ogun, Oyo, Ondo and Osun states, are leading other political zones in the country when it comes to complying with provisions of the Pension Reform Act 2004 and the CPS.

    She said all the states in the zone have enacted their own versions of the pension reform law to enable them establish a contributory pension scheme for civil servants at both states and local governments.

    She said some states in the zone have started deducting pension contributions from their workers’ salaries monthly and remitting same into their RSA domiciled with their preferred PFA.

    She said: “Lagos State has remained special in this regard, being the first state to embrace contributory pension. The state enacted a law that enabled it to start implementing the scheme in 2007, prompting PenCom to locate its zonal office within the state.

    “Indeed, Lagos State by our record, is one of the pioneers in the implementation of the CPS, having enacted its law in 2007. Lagos State is fully compliant with its employees’ registered and pension contributions’ remittance paid regularly. It also issued retirement benefit bonds to its retirees and these bonds have been fully redeemed and proceeds paid into the RSAs.”

    Mrs. Anohu-Amazu said Anambra State only recently enacted its pension enabling law. It is expected that the state would soon set up the administrative structure, appoint PFAs and register its employees under the Scheme, she said.

    She explained that the Pension Reform Act 2004 is meant to address old age, poverty and the sufferings of retirees while accessing their pension.

    The law sought to ensure that every person who has worked in either the public, or private sector gets their pension as and when due; establish a uniform set of rules and regulations for the administration and payment of retirement benefits in both the public and private sectors, among other things, she added.

  • Lagos to pay 426 retirees N1.62b

    Lagos to pay 426 retirees N1.62b

    Lagos State is set to pay another batch of 426 retirees their Retirement Bond Certificate worth N1.62 billion being their accrued rights for past services to the state prior to the commencement of the Contributory Pension Scheme in April, 2007, Director-General, Lagos State Pension Commission (LASPEC), Rotimi Hussain, has said.

    According to him, the retirees are those who retired from the state public service under the Contributory Pension Scheme (CPS).

    He said the retirees would receive their retirement bond tomorrow at the Nigeria Employers Consultative Association (NECA) Hall, Ikeja.

    The LASPEC chief said the ceremony, which is the first tranche of the 11th Retirement Bond Certificate presentation ceremony is a means of appreciating the retirees for showing great commitment and resourcefulness to the state government during their service years.

    He said majority of the beneficiaries of this first tranche were drawn from local government areas and State Universal Basic Education Board (SUBEB).

    He said: “The ceremony is another confirmation of the commitment of the administration of Governor BabatundeRajiFashola (SAN) to make life worthy and remarkable for all its employees in retirement.

    “The achievement so far made by LASPEC in the administration of the CPS is also a result of the commitment the state government placed on the scheme.

    “The state has so far paid a total accrued rights of N22.7billion to 4,199 retirees who retired from the public service from the inception of the scheme till date, thus making it the only state in Nigeria to have attained this status.”

  • More retirees embrace life annuity

    MORE retirees are turning the new pension scheme.

    Under the Contributory Pension Scheme (CPS) governed by the Pension Reform Act 2004, a worker is expected to know what his retirement options are.

    Retirees are expected to have sufficient knowledge of the two retirement options available, which include Life Annuity and Programme Withdrawal (PW).

    PW sold by PFAs pays pension over an expected lifespan until the Retirement Savings Account (RSA) balance runs out. Whenever the retiree dies, the beneficiary under a will or Letter of Administration is paid enbloc the balance in the RSA.

    Life Annuity is sold by authorised life insurance firms. It is a financial contract in form of an insurance product according to which a seller, typically a financial institution such as a life insurance company makes future payments to a buyer, the annuitant in exchange for the immediate payment of a lump sum or regular payments, prior to the onset of the annuity.

    The payment stream from the seller to the annuitant has an unknown duration based principally upon the date of death of the annuitant. At this point the contract will terminate and the remainder of the fund accumulated is forfeited unless there are other annuitants or beneficiaries in the contract.

    Thus a life annuity is a form of longevity insurance, where the uncertainty of an individual’s lifespan is transferred from the individual to the insurer, which reduces its own uncertainty by pooling many clients. Annuities can be purchased to provide an income during retirement, or originate from a structured settlement of a personal injury lawsuit.

    But under the PRA Act, an annuity is purchased to provide an income during retirement for retirees and pensioners in the country.

    Before now, most retires were usually ignorant about how to make the best choice out of the two retirement options available for drawing their pension benefits especially with the problem of de-marketing that was rampant among the PFAs and the insurers in the past.

    At present, both the PFAs and insurers are trying to find a common ground to be their brother’s keeper by explaining the options to the retirees without bickering. This situation seems to be helping the retirees and pensioners their decisions. They tend to have more understanding especially on the life annuity product.

    In an interview by The Nation with some Lagos State retirees during the 10th Bond Presentation by the Lagos State Pension Commission (LASPEC) on the payment options they intend to choose and how they intend to spend their pension gratuity, many opted for Life Annuity while others picked the Programme Withdrawal.

    The retirees were excited and ready for life after retirement.

    A former inspector at the Lagos State Ministry of Education, Isaac Idiogbe, who retired in April 2012, said he was happy to receive his gratuity.

    He said he was prepared for retirement and had chosen the annuity option.

    “I have chosen life annuity and this is because when I pass on, the balance of my money will be distributed to members of my family. There are other things I have in mind. I will go into them with my gratuity,” he added.

    Mr. Hakeem, who worked for 29 years in the Ministry, also choose annuity and wants to invest his gratuity in properties.

    He said: “I believe annuity is better for me because at the time of death, my money will be paid to my beneficiary.”

    Mr. Yemi Yusuf retired in 2009 after serving for 15 years in the Lagos State Ministry of Education said: “I am ready for retirement and I think program withdrawal is better for me. I don’t believe in annuity.”

    The Head of Service, Lagos, Mrs. Oluseyi Williams advised them to be sure of their investment plans before committing their gratuity.

    She said given the responsibility of the office of the Head of Service through its major role of ensuring that the welfare of active and retired employees was given its pride of place, the office had continued to intensify efforts at ensuring that workers continued to live well in retirement.

    She said the state had continued to wax stronger and consistently maintained its leadership position in the operation of the CPS, particularly in issuing bond certificates to retirees.

    She urged the retirees to live within their means and not get involved in any business that could negatively affect their money.

    The Commissioner for Establishment, Training and Pensions, Mrs. Florence Oguntuase, said her ministry had made it a priority to ensure that the retirees’ entitlements were paid promptly.

    ‘’Our resolve is to ensure that this money you have collected is not only invested wisely, but also enjoyed by you in old age,’’ she said.

  • ‘Southwest retirees guaranteed good retirement’

    Workers and retirees in the Southwest geo-political zone are assured of a comfortable and rewarding life when they are no longer in paid employment going by their contribution under the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom) has said.

    The six states in the zone are Lagos, Osun, Ogun, Ekiti, Ondo and Oyo. They are all at various stages of implementing the CPS with Lagos at the forefront, having contributed about N47 billion as at July last year.

    PenCom enjoined the Southsouth, Southeast, Northwest and Northeast zones in the country to emulate the Southwest by keying into the scheme to secure the future of their retirees.

    According to a report by the pension regulatory body, out of the 36 states in the country, 21 has enacted laws on the CPS while 14 others are at the stage of passing the bill into law.

    Adamawa State is however the only state that is yet to commence any action towards implementing the CPS, PenCom noted.

    While five of the Southwest states have enacted the laws domesticating the scheme, one of the states has a bill seeking to give the scheme legal teeth pening before the state legislature.

    Four out of the five states that have enacted their laws have made significant progress in the implementation of the CPS in their respective states, PenCom added.

    Acheivement by states

    Part of the achievements of the state is the setting up of structures in their respective states to supervise the administration of pensions and other benefits in both the states and local governments areas.

    Following the enactment of the CPS law by Lagos State in 2007, the Lagos State Pension Commission (LASPEC) was established. Osun enacted its law in August 2009 and established two distinct Bureaux namely; Bureau of Public Service Pension (BPSP) and the Bureau of Local Government Staff Pension (BLGSP). Ekiti enacted its law in January 2011 and established the Ekiti State Pension Commission (ESPC) while Oyo established the Oyo State Pension Commission (OSPC).

    Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu in the report expressed satisfaction with the full implementation of the CPS in Lagos State.

    She said: “PenCom is impressed and would want the other zones in the country to emulate the Southwest by implementing the scheme. The level of implementation in the Southwest is quite encouraging.

    Lagos State

    While Lagos State has fully implemented the CPS, Osun State is in the process of achieving a full implementation status. Ekiti State has taken substantial steps but is yet to commence remittance of pension contributions. On the other hand, Oyo State only enacted law on the CPS while Ondo State is at the bill stage.

    Mrs Anohu-Amazu noted that in Lagos, a total of 45,730 employees have been registered as at 12 July 2013, while it has remitted a total sum of N46, 495,937,321 into its employees’ RSAs as at July 2013.

    Also, the state has consistently funded the accrued rights of its employees with an additional sinking fund for N100 million every month being invested and managed directly by LASPEC.

    She added that the state issued retirement bonds worth N18.9 billion to its retirees as at August 2013. These bonds were redeemed immediately and the proceeds paid into the employees individual RSAs.

    “As at August 2013, 2,242 employees from the state have retired under the CPS and are currently enjoying their pension. A total of 1,575 retirees are on programmed withdrawals while the remaining 667 of the retirees are assessing their pensions through annuities.

    “PenCom had also actively engaged the state throughout its implementation process and has provided the support and guidance required in resolving several implementation challenges”, she said. .

    Osun State

    Speaking on Osun State, She said: “The state has also made significant progress by registering 45,106 employees under the scheme and is remitting pension contributions on a monthly basis into the various RSAs of the employees. As at July 2013, a total sum of N4,150,907,363 had been remitted as pension contributions.

    “The BLGSP had carried out an Actuarial Valuation to determine the accrued rights of the serving employees while the BPSP was yet to carry out same for the State employees. A total sum of N803,384,604 had so far been remitted to the Retirement Benefits Bond Redemption Fund Account (RBBRFA) of the State Bureau while N1,093,175,030.35 had similarly been remitted into the RBBRFA of the Local Government Bureau. “

    To help the state resolve its implementation challenges, Mrs. Anohu-Amazu said, PenCom actively engaged it throughout by providing support and guidance required.

    “In April 2013, the Commission held a training workshop for the accounts and pension desk oficers in the state aimed at building the capacity of the participants on the operations of the CPS. The State had similarly commenced reaping the benefits of the CPS, having raised funds from the pension industry following the issuance of a letter of ‘No Objection’ by the Commission for PFAs to invest in the Osun State Development Bond 2012.

    “The major setback on implementation of the CPS in the State is the failure to renew the Group Life Insurance Policy for the employees in 2013 and failure to carry out actuarial valuation for the State employees to establish their accrued rights, despite the fact that it has only one year left before the employees start retiring under the CPS. The Commission conducted a maiden inspection of the two pension Bureaux in May and June 2013, respectively.

    Ekiti State

    Giving an account of Ekiti State, she said the State has so far registered 37,676 employees under the Scheme but is yet to commence remittance of pension contributions.

    She said: “The State had conducted an actuarial valuation and determined the pension liabilities of its employees under the old scheme, but is however yet to open an RBBRFA with the Central Bank of Nigeria or any of the PFAs for domiciling the funds meant to redeem the liabilities.

    “It also put in place a Group Life Insurance Policy for its employees. The Commission actively engaged the State in its implementation process and has provided the support and guidance required in resolving several implementation challenges. In April 2013, the Commission held a training workshop for the Pension Desk Officers and staff of the ESPC. The workshop was aimed at building the capacity of the participants on the operations of the CPS.

    Oyo State

    In the case of Oyo, she said the State enacted its law in January 2010.

    A copy of the law was received and reviewed by the Commission and its observations and comments were forwarded to the state for necessary action. The state is, however, yet to commence full implementation of the CPS.

    “In order to expedite the process of registering the State’s employees under the CPS, the State was advised to appoint PFAs and allocate MDAs and also give the Commission feedback in this regard. The Commission is, however, yet to receive any response from the state.

    Ondo State

    “Ondo State has only drafted a Bill on the CPS and copy of the Bill was reviewed by the commission and its observations and comments were forwarded to the state for incorporation before the law is enacted. The state is, however, yet to enact the law,” she said.

    Chairman, Pension Fund Operators Association of Nigeria (PenOp), MisbahuYola, said there is need for all states to comply with the scheme.

    According to him, the association is embarking on enlightenment campaigns and devising measures to get non-compliant states to key into the scheme.

    He added that the structures in place are safe and transparent from the regulator, to the administrator and the custodian.

  • Retirees urge Lagos on N4b pension arrears

    Lagos State pensioners under the old scheme, ‘Pay As You Go’, have appealed to the Lagos State Governor, Babatunde Fashola to pay pensioners their outstanding pension arrears of about N4 billion accumulated since the administration of former President Olusegun Obasanjo.

    Chairman, Association of Retirees, Lagos, Chief Rasheed Olu-Ajayi, said the money accumulated following the 142 per cent increment was approved by 2000.

    Olu-Ajayi, however said Governor Fashola has paid 36 months, amounting to N5.6 million about four years ago, adding that there has been an increase of 15 per cent, six per cent and 33 per cent after the Obasanjo’s administration.

    He said the retirees under the scheme include 12,000 local government employees, about 8,000 teachers from the teaching services, civil services and other parastatals.

    He lamented that pensioners are dying every day wondering con if the remaining pensioners will ever live to enjoy the benefits before they pass on.

    He commended the governor for regular payment of monthly pension.

    He said: “Other state governors that came on board now have been settling some of their arrears although they have limited number of pensioners. I cannot just challenge without thanking the governor for the monthly payments because without the monthly payment over the years, things would have been worse for us.

    “We have made our pleas that our arrears be paid and we have even gone spiritual. We have threatened but what can we do? We cannot go on strike. It would be the worst for us. We are just pleading with the state government and we are hoping that Governor Fashola will pay us as part of his parting gift to us.

    “There are some of us who are over 80 years old now. They are still attending meetings to see when they are going to get their fund.”

  • Retirees lament govt’s failure to review pension

    THE Nigerian Union of Pensioners, University of Lagos (UNILAG) chapter, has expressed concern over the Federal Government’s failure to increase the monthly pension of its members by 50 per cent, as promised.

    They spoke during the celebration of World Pension Day at the UNILAG Staff School Hall.

    The union’s Vice Chairman, Mr Babatunde Sanni, lamented that the the government made the promise since July 2009.

    “When they did not pay it and we threatened to protest, the President called a meeting and said it would be reduced to 33 per cent, but up till now, we have not gotten anything,” he said.

    The Treasurer, Mr Thomas Adeoye, also faulted the Federal Government for increasing the salary of military pensioners by 33 per cent when the civilians fought for it.

    “We fought for an increase in our pension and instead of attending to it, government went ahead to increase that of the military. Are they scared of them? We fought for it, we should get it too,” he said.

    The Chairman, Mr Andrew Adeosun said the pensions are no longer adequate to meet their needs and urged the Federal Government to introduce minimum pension, like minimum wage.

    “Our monthly pension in most cases cannot take care of our fundamental needs. There is, therefore, urgent need to introduce minimum pension for pensioners if our lives is to be better than what it is now.

    “Senior citizens, who spent their hay days serving their fatherland for more than 30 years meritoriously, should not be made to regret their honest services. Properties confiscated from pension thieves should be auctioned and the proceeds realised should be appropriated and spent on settling pensioners,” he said.

    Adeosun, represented by Mrs Sola Olanrewaju, the Assistant Secretary, added that the high unemployment rate has further worsened their lot as their wards cannot take care of them because they do not have jobs.

    He told members to eat balanced diet, drink responsibly if they have to, avoid stressful situations, sleep very well and do moderate exercises.

    Mrs Rukayat Akpamkpa, Director Medical Services, UNILAG Medical Centre, talked to the pensioners on how to take care of their health.

    She said: “Check your health regularly. Don’t wait until you fall ill before you go to the hospital.”

    She focused on high blood pressure, stroke, diabetes and heart failure She said: “If you see any sign, go and treat it before it results to severe complication. Eat balanced diet, do not eat too much carbohydrate, protein, or fat, instead eat fruits.”

     

  • PHCN retirees want pension in recurrent expenditure

    President, Nigeria Union of Pensioners (NUP), Electricity sector, Chief Temple Ubani has urged the Federal Government to make provision for their pension and gratuity in the recurrent budget.

    He said putting their money in the recurrent budget would lead to consistent payment of the retirees, rather than through the Nigeria Electricity Liability Management Limited (NELMCO) saddled with the payment of pensions to the Power Holding Company of Nigeria (PHCN) pensioners.

    Ubani told The Nation that NUP members have claims on gratuities, pension arrears and death and accident benefits.

    He further said the Federal Government has since August this year, stopped pensions payment to electricity workers who are under the old pension scheme through NELMCO.

    The NUP chief said the situation had put many pensioners under undue hardship, lamenting that government has been insensitivity to challenges facing the group. He said that government has not been treating the problems of the union with the seriousness it deserves.

    He said: “Before now, PHCN was paying our pension after we retired. However, in view of the power sector reform and privatisation, the Federal Government established an agency called Nigeria Electricity Liability Management Limited (NELMCO) to be responsible for the payment of pensions to the current PHCN pensioners.

    “Although we are now captured in the budget with the Ministry of Finance paying our money to NELMCO, which has been paying us, but recently, they stopped the payment.”

    He explained that NELMCO started paying them since August last year, adding that every year, budgetary allocation is made to NELMCO and disbursed quarterly but they have been struggling to pay.

    The development, he said, was sometimes due to perennial problems between the National Assembly and the Presidency.

    “This is why we are appealing to the government to provide our monies in recurrent budget. Our arrears also have to be put in perspective,” he said.

    Speaking on the privatisation and transfer of PHCN assets to the new investors, Ubani said that as senior citizens in the sector, they are worried as to who will pay pensions of the workers that are affected by the new developments in the sector.

    “We do not oppose privatisation since government has decided it’s the way to go, but wondered who will pay the pension of the retirees, since they do not have any relationship with the new buyers,” he noted.

  • PenCom begins verification, enrolment of Fed Govt’s retirees

    PenCom begins verification, enrolment of Fed Govt’s retirees

    The National Pension Commission (PenCom) has started a nationwide verification and enrolment exercise of all employees of Treasury Funded Ministries, Departments and Agencies (MDAs) of the Federal Government that are due to retire between January and December, 2014 for payment of their retirement benefits.

    PenCom spokesman, Emeka told The Nation that there were mistakes and complications in the process of getting necessary data of the contributors.

    This, according to him, necessitated early commencement of the verification exercise so that all loose ends would be tightened early enough.

    On why the transfer window for contributors to the scheme has not been thrown open for them to change non-performing Pension Fund Administrators (PFAs), in line with the Pension Reform Act 2004, he said it was due to data gathering problems.

    “The commission is aware that the transfer window is an important aspect of the Contributory Pension Scheme but there are a lot of complications.

    “There is the need to sort out issues that has to do with data. The commission is working hard to forestall the challenge of multiple registration which can mar the system if not properly done.

    “As a result, the commission does not want to continue with mistakes that has been discovered and has decided not to rush but ensure a genuine process of the transfer window,” he said.

    Onuoha said at the moment, some MDAs have different data base of their employees, but the commission does not intend to rely on them, adding that the National Data Department of PenCom had been working on how to get the best out of the situation and would come up with a solution soon.

    In line with the Pension Reform Act 2004, PenCom contributors under the new pension scheme who are dissatisfied with the services being rendered to them by their Pension Fund Administrators (PFAs) would have the opportunity to transfer their Retirement Savings Account (RSA) from one PFA to another.

    Section 11(2) of the Act provides that the employee may, not more than once in a year, transfer his RSA from one PFA to another without adducing any reason for such transfer. This provision is intended to facilitate pension assets portability in the pensions industry, and enhance healthy competition among the PFAs.

    It said notwithstanding, Section 11 (2) of the PRA 2004, the provisions of this regulation apply to a single transfer of RSAs in a calendar year, adding that subsequent review of the regulation would address multiple transfers of RSAs within a calendar year.

    PenCom noted that RSA transfers shall only be effected quarterly; namely first, second, third and fourth quarters, adding that, however, an RSA holder seeking subsequent transfer of his/her RSA shall be eligible for such transfer after 12 months.

    PenCom said failure by PFAs/PFCs to provide support to RSA holders shall attract a fine of N100,000 per RSA and N10,000 for every month of violation.

    Similarly, a monthly sanction of N100,000 per RSA shall be imposed on any PFA who violates the law.

    Onuoha further said PenCom has began a verification and enrolment of employees of Treasury Funded MDAs of the Federal Government who are to retire between January and December 2014 for the payment of their benefits.

     

  • Ekiti pays N4b gratuity to retirees

    Ekiti pays N4b gratuity to retirees

    The ekiti State Government has paid N3,879,844,473.63 as gratuity to retirees.

    The Chairman of the State Pension Commission, Chief Oluwole Ojo, said the money had been paid to 1,755 retirees across the 16 councils.

    Speaking with reporters in Ado-Ekiti, the state capital, Ojo said workers who retired between April, 2013 and January, 2014, were covered by the payment.

    He said: “This is the largest single gratuity payment in the state’s history. It is another point of reference for which we must commend Governor Kayode Fayemi.”

    On the hiccups in pension payment, Ojo said: “The situation cannot be changed for now, as we must ensure that those being paid are those who actually deserve to be paid.

    “On-sight verification and payment of pensioners is not unique to Ekiti. We have to see those we want to pay.

    “There are situations where the pension of dead pensioners are being collected by their next of kins. This is wrong. Pension is paid to only the living.

    “Also, the same set of personnel oversee the payment of gratuity and pension.”

    On the need to recruit new hands to ease the payment, he said the commission cannot recruit new hands as the process was “sensitive and complicated”.

    Ojo said: “We also know that pension payments have become popular lately, owing to fraud being perpetrated by some pension personnel in some states.

    “Even when mistakes are actual and unintentional, people are quick to read meanings and raise suspicions. We therefore have to be careful about recruiting new hands.”