Pension

BAUCHI- Irked by the delays associated with payment of retirement and terminal benefits, some retirees have advocated review of the National Pension Act, to improve their living conditions.  

They also called for proactive regulatory measures to ensure probity and transparency in the management of funds by the Pension Fund Administrators (PFAs).

A cross section of the retirees, who spoke in separate interviews in Bauchi, Dutse and Gombe, said such review was necessary to address challenges militating against effective pension administration in the country.

Mrs Esther Mark, Public Relations Officer, Retired Police Officers Association of Nigeria (REPON) in Bauchi State, urged the National Assembly to expedite action on the review of the National Pension Act 2014.

She also called for an upward review of pension in view of the inflation and rising cost of living in the country, adding that such an exercise would check delays and ease payment of benefits and monthly pension to retirees as at when due.

Mark decried the delays in payment of pension, stressing that the trend exposed them to financial distress in spite of the economic crunch in the country. 

“As a retired DSP, I receive N40,000 monthly pension, while others on other Pencom administrators have had nothing for the past four months.

“We are Nigerian that have worked for our people, and we have family responsibilities, yet we are dying out of frustration due to non-payment of pension,” she said.

She argued that police retirees should be exempted from the PENCOM accredited PFAs, to enable it to manage its pension separately like in the case of the military.

Mr Ahazia Suleiman, a retired worker in Gombe, said that he was yet to receive his terminal benefits 12 months after retirement. 

Suleiman, a former Director with the Voice of Nigeria (VON), said the situation had exposed him to difficulties as he could not cater for the need of his family.

“I’m struggling financially a year after retirement. I need medication but don’t have the money to buy it, so I depend on the goodwill of friends and family members. Without their help, I wouldn’t be able to afford treatment for diabetes and hypertension.

“I also have dependents including children in secondary school and university.

“The challenges I’m facing illustrate the difficulties of the contributory pension scheme. It’s a form of slavery” he said. 

Suleiman called for the re-enactment of the defunct pension regime, to address the infractions and limitations of the PFAs.

Mr Faruk Aminu, who corroborated Suleiman, called for introduction of lum sum payment of pension benefits to workers at the point of exit.

Aminu, a retired worker in Dutse, said that this would enable pensioners to engage in productive activities as well as contribute to social and economic development in the country.

Also, Dr Bachama Nigel, a lecturer in the Department of Economics, Gombe State University, decried lack of transparency in the contributory pension scheme.

He said that employees made monthly contributions to their Retirement Saving Account (RSA), yet they could not ascertained whether the fund are being managed judiciously or not.

“Apart from cumbersome processes in accessing the fund, the amount being paid as pension benefits are dismal considering the inflationary trend.

“Also, the federal and state governments are not remitting funds to the PFAs as at when due, this affects their operations.

“Accessing pension benefits shouldn’t be challenging, and the amounts being paid are barely enough in today’s economy. 

“Retirement should be a time of peace, not a struggle for survival,” he said.

Nigel further recommended for a comprehensive adjustment of contributions to the RSA, to align with economic realities, to ensure that retirees enjoy a decent living.

Similarly, Garba Umar opined that pension should be like conventional banking system where pensioner could withdraw and save money. 

“Pensioners should have unhindered access to their funds at all times. He should be allowed to withdraw his money in whole whenever he so desired,” he said.

Commenting, Ibrahim Bulai, National Pension Commission (PENCON), Kano office, said the Contributory Pension Scheme is an arrangement where both the employer and the employee contribute towards the payment of the employee’s pension at retirement.

He said that monthly pension contributions were being remitted into the employee’s RSA, managed by the PFAs.

The objective, he said, is to ensure seamless payments of retirement benefits to pensioners both in public and private sectors. 

According to him, withdrawals are not permissible by contributors, except at retirement or upon temporary loss of job.

He attributed the delays in accessing retirement benefits to incomplete or incorrect information of the contributor due to non submission of updated nominal roll by MDAs.

“These include vital requisite details such as RSA PIN, date of birth, date of first appointment, grade level and step etc”.

Bulai noted that there was no qualifying period for pension; employers must pay an employee’s pension contribution to the RSA for the period of his service. 

“However, access to the contributions must be in line with the provisions of the PRA 2014.

“A retiree and a holder of a Retirement Savings Account, shall have access to his/her RSA upon retirement, based on condition of service or upon attaining the age of 50 years (whichever is later) or is medically incapacitated.

“Where an employee voluntarily retires, disengages or is disengaged, he/she can have access to 25% of his/her RSA, provided that such employee is unable to secure another employment after 4 (four) months of such.

“As stipulated in Section 7(2) of the PRA 2014, this category of employees is entitled to withdraw not more than 25% of their RSA balances, as at the time of retirement, provided they have been out of job for 4 months and have not secured another employment.

“The timeline for approval of benefits payment is not more than five (5) working days from the date the Commission receives the application and supporting documents from the PFA,” Bulai said. (NAN)