The Centre for Pension Rights Advocacy has flayed the Federal Government over its decision to pay N44bn for accrued benefits for retirees between March and September 2023.
In a chat with The PUNCH on Sunday, the director of the centre, Ivo Takor, expressed concerns about the fate of those not included in the payment and slammed the government for adopting a benevolent attitude towards benefits instead of simply meeting its legal obligations.
The National Pension Commission on Friday announced the release of N44bn by the Office of the Accountant General of the Federation, which had been applied to settle the accrued pension rights of retirees, who were duly verified and enrolled, covering March to September 2023 and some deceased employees.
Reacting to the development, Takor, who was an inaugural member of PenCom’s board, noted that while the development might seem like good news for those retirees, “It raises a critical question: What happens to those who retired between October 2023 and November 2024? They are left in uncertainty, waiting indefinitely until the Federal Government decides to act..
“The Pension Reform Act of 2004 was designed to ensure that pensioners do not retire into poverty. Its primary objective, as stated in Section 2(a) of the Act, is to guarantee that every person who worked in the public service of the federation, Federal Capital Territory, or private sector receives their retirement benefits as and when due.
“This provision was reiterated in Section 1(c) of the Pension Reform Act of 2014, which replaced the 2004 Act. At the onset of the Contributory Pension Scheme in 2004, it was clear that both public and private sector employees with accrued pension rights under the old schemes could not be paid in one lump sum. To address this, the Pension Reform Act made provisions for transitional arrangements,” he explained.
He noted that while the transitional provisions for accrued pension rights in the private sector had been working well, the same could not be said of the public sector.
Takor noted that while PenCom had been able to regulate and supervise pension matters in Nigeria in the private sector, ensuring compliance with laws and penalising defaulters, the same could be said for the Federal Government.
“The government has failed to comply with its laws on pension administration. PenCom, being an agency of the Federal Government, is left pleading with the government to fulfil its legal obligations. This ironic situation, where PenCom “begs” the government to honour its responsibilities, highlights a systemic flaw. He who pays the piper calls the tune.
“Instead of adhering to the provisions of the law and redeeming the bonds issued for accrued rights, the Federal Government has adopted a discretionary approach, releasing funds sporadically. For instance, the recent funds only cover retirees from March 2023 to September 2023, leaving others from October 2023 onwards in limbo,” he asserted.
He noted that this piecemeal approach painted a distressing picture of federal retirees, many of whom were left in poverty after decades of service.
“These retirees, waiting for their turn to be included in future batches, are forced to endure hardship and indignity,” averred.
The pension rights activist, therefore, called on the Federal Government to lead by example and comply with its own laws.
“Until then, federal retirees will remain at the mercy of an employer that acts as a benevolent giver rather than fulfilling its legal obligations. This situation not only undermines the integrity of the pension system but also calls into question the government’s commitment to the welfare of its retirees,” he maintained.
Meanwhile, another retiree, Gbadebo Olatokunbo, expressed delight that the government seemed to be taking steps in the right direction with this payment.
Olatokunbo, who is an NTA contributory pensioner, said, “The stated amount was those that retired within that period of the year and were waiting for their settlement with their PTAs, not for very old contributory pensioners.
“Therefore, the issues of the very old contributory pensioners of 2007-2020 or more, were very heavy because PenCom of the old were on sabbatical on several issues on the plights of the contributory pensioners and it would take some time/economic power/political will to get things solved.
“We hope that since things are now moving in the right direction and with time, all pensioners, including both old and new, will have cause to be happy,” he posited.
