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.
