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The contributory pension scheme was introduced in the Nigeria’s public sector in 1998 to address the limitation of the previous arrangement. In this scheme, both the employer and employee contribute a certain percentage monthly and were being managed by the Pension Commission.
The arduous tasks that retirees undergo before collecting their hard earned benefits usually send jitters down the spine of those still in active service. Invariably, the period of retirement, purportedly meant for resting and relaxation, becomes the time of stress and anguish for the retirees.
But then, in the face of several inhuman treatments and needless hassles usually experience by pensioners across the country, the Lagos State Government stands out in its attitude towards issues relating to the welfare of its pensioners. It will be recalled that the State Government domesticated the Pension Act and signed same into law on 19th March, 2007 and it is instructive to stress that ever since that period the State Government have never defaulted with regards to deducting its own part of the pension fund as at when due.
Indeed, the current administration in the State has made prompt payment of pension and gratuity one of its major obligations. For instance, between May 2017 and March 2018, it has paid N9.3 billion as pension to 2,466 retirees in the state.
This was done through the Lagos State Pension Commission (LASPEC). Equally, from August 2015 to date, the sum of N35.92 billion has been paid into the RSA of 8,731 retirees, deceased and withdrawn staff. The state government had also been consistent in the Pension Reductions and Remittances with the help of automation of the payroll system. In last year alone, government had paid over N9 billion as terminal entitlements of retirees.
There have also been regular deductions of 7.5 per cent of monthly basic salary, rent and housing allowances from the salaries of staff and corresponding 7.5 per cent by the state government into the Retirement Savings Accounts maintained by them with their appointed Pension Funds Administrators (PFAs). This has been achieved due to automation of the payroll which automatically ensures deductions/ remittances of pension contributions.
In March this year, the sum of N1.24 billion was released to pay pensioners in the state. The money was released to pay 183 retirees under the Contributory Pension Scheme (CPS). Recently, at the 49th Benefit Bond Certificate Presentation, Governor Akinwunmi Ambode reiterated his administration’s commitment to pay pensioners in the state promptly. The state has been able to clear the backlog of outstanding pension obligations it inherited upon its inauguration and is equally forging ahead to ensure that fresh liabilities arrears from recent retirements are systematically cleared.
It will be recalled that upon his inauguration, one of the earliest actions of Governor Ambode was the release of the sum of N11bn to pay off pension liabilities owed the mainstream retirees and the retirees in Local Government Areas. This is part of efforts by the present administration to find a holistic solution to the issue of payment of pension entitlements to retirees under the pay-as-you-go pension scheme which was discontinued in April 2007, as well as outstanding accrued pension rights due to retirees under the contributory pension scheme.
Similarly, commencing from August 2015, the State Government developed plans to monthly disburse pension funds to Ministries, Departments, Agencies and Parastatals, including Local Government Areas and State Universal Basic Education Board (SUBEB). Also, between January and June, 2016, the State Government paid more than N41billion to over 9,000 retirees in line with her commitment to pay all pension arrears.
In a bid to acquaint both retirees and active workers on the details of the new current pension scheme, the State Government embarked on a fresh training series with relevant themes. Of the themes in the series, two actually stands out. These are the “I’m Alive” and “Pensioners’ Welfare” series.
‘I’m Alive’ is directed at enrolling the bio data and finger prints of pensioners under the old scheme of Pay As You Go in order to ascertain those who are alive and, therefore, entitled to receive payments under that scheme. The ultimate goal is to ensure that resources are prudently managed. It is also a statement in support of integrating technology into governance and it has brought extensive improvement in service delivery at the Civil Service Pensions Office (CSPO) such that, in most cases, pensioners now need to bring only their Lagos State Resident Identity Cards to the verification centres in order to revalidate their records. This is made possible because of the connectivity and synergies of government activities among different agencies.
Without a doubt, welfare of pensioners holds a prominent place in the plans of the current administration in the State because of its conviction that one of the best means to ensure accountability, efficiency and productivity in the State public service is by taking proper care of the retirees. The underlining basis for this idea is that once those that are still actively engaged in the public service are aware that the system will take adequate care of them when they exit the service, they will definitely put in their best to move the State forward. It is, therefore, the firm conviction of government that its timely intervention in pension issues will go a long way in not only ameliorating the sufferings of retirees in the State, but also in giving its current workforce the impetus to offer their very best in the service of the people.
Pensioners who have spent the most active parts of their lives to serve their nation must not be subjected to ridicule or treated with disdain in their old age. Any society that treats its pensioners with contempt does so at its own peril. Indeed, in other climes, the prosperity and stability of the society is partly sustained on the experience, expertise and wisdom of pensioners. As for those who flagrantly tamper with pensioners fund that are kept in their care on trust, the following words of Suzy Kassem, American philosopher and author are rather instructive: “Anyone who values profit over human life is very dangerous, inhuman and a bad specimen of human beings.”
True democracy cannot exist in a society incapable of supporting the aspirations of every segment of its people. A truly representative government must be able to create the enabling environment for its citizenry to freely express itself in positive ways so that the diverse potentials of its people could be easily harnessed for growth and development. If, indeed, the labour of our heroes past must not be in vain as the composer of the National Anthem puts it, governments across the land as well as all employers of labour must take a cue from the Lagos’ example by taking the issue pensioners’ welfare as a very sacrosanct concern.
Tayo Ogunbiyi
Ogunbiyi of the Lagos State Ministry of Information & Strategy, Alausa, Ikeja

