Yakubu Dogara, Speaker of the House of Representatives and the leadership of Nigeria Labour Congress and Trade Union Congress (TUC) on Thursday warned against any attempt to destroy the legacy achieved through the contributory pension scheme (CPS) which accrued over N6.4 trillion.
In the same vein, regulators of critical sectors of the economy including National Pension Commission (NAICOM); National Insurance Commission (NAICOM); Securities Exchange Commission (SEC); Certified Pension Institute of Nigeria (CPIN); office of the Secretary to the Government of the Federation (SGF) and Nigeria Police opposed the intent of the proposed legislation which seeks to exempt the paramilitary from the CPS.
Dogara and Wabba gave the charge in Abuja at the opening of the public hearing on the bill which seek to amend Pension Reform Act, 2014, to exclude/exempt personnel of various paramilitary and anti-graft agencies from CPS, as well as a bill for an Act to amend the provisions of the Pension Reform Act, to reposition the contributory pension scheme for effective service delivery.
The stakeholders who warned against the return of corruption riddled era of Defined Benefit Scheme (DBS), noted that the Abdulrasheed Maina-led Pension Reform Task Team (PRTT) who was declared wanted by the Interpol over the multi-billion naira pension scandal.
Dogara who urged the Committee and all stakeholders assembled to examine the bills critically to ensure that the stable system built up since the introduction of the mandatory CPS in the 2004 and 2014 Pension Acts are not upset or undermined, by any new legislation or further exemptions under the scheme,” Dogara said.
“We are conscious of the fact that the pension industry has become a crucial sector that is playing a formidable role towards the development of the economy in terms of availability of huge investment funds of about N6.4 trillion provided by the scheme that could be deployed both in the real sector as well as in the capital market sector.
“Furthermore, the role effective pension administration plays in the general well-being of the pensioners cannot be over-emphasised and we as a parliament will always ensure that the efforts of those that labored for the fatherland will always be appreciated through regular and timely payment of pensions and gratuities.
“Any bill therefore that can improve both ends of the sector, that is, the pensioners’ wellbeing as well as the administration of the funds will always be favourably considered by the House,” the Speaker who was represented by Ado Doguwa, Chief Whip, assured.
On his part, Ayuba Wabba, NLC President who spoke on behalf of NLC and TUC, noted that Federal Government had in excess N1.6 trillion pension liabilities under the DBS when the CPS was introduced in 2004.
In his remarks, Hassan Shekarau, chairman, House Committee on Pension informed the stakeholders that the 33 percent pension arrears has been paid to personnel of Nigeria Customs Service; Nigeria Prisons Service and Nigerian Immigration Service.
He added that Federal Government also released the sum of N54 billion to offset backlog of pension arrears while the nine months pension arrears for police retirees is in the offing.
On his part, Roy Ogor, who spoke on behalf of OSGF who spoke on behalf of Federal Government, disclosed that the White Paper issued by Federal Government, prohibits all Ministries, Departments and Agencies (MDAs) as well as paramilitary from pulling out of the CPS to DBS.
He noted that provisions of the exemption bill sponsored by Oluwole Oke (PDP-Osun) contravenes Federal Government’s position, hence called for disregard of the bill.
While urging National Assembly to jettison any proposed legislation that could further compound the socio-economic predicaments of the country and Nigerian workers, the SGF noted that status quo should be maintained to enable the public and private employers to meet their 18 percent pension obligations as encapsulated in Pension Reform Act, 2014.
He lamented that public and private employers are currently struggling to comply with the current contribution of 18 percent as the lingering economic recession affect both public and private employers.
He however noted that rather than the proposed amendment which seeks to exempt paramilitary personnel, the Pension Reform Act has provision for increase in pension contribution by employers.
Representative of Nigerian Employers Consultative Association (NECA) canvassed for introduction of ‘closed pension scheme’ for the paramilitary rather than outright exemption which he noted is detrimental to the well-being of the personnel of various paramilitary agencies.
He maintained that inadequate funding and budgetary would mar the implementation of the DBS as government cvanot afford to wholly fund the pension of the paramilitary personnel.
Similarly, NAICOM which serves as adviser to Federal Government on insurance matters, noted that the CPS has paid N180 biliin annuity as at March 2017, and deepen the development of insurance in the country.
For Ose Igunkorode, chairman, Board of Certified Pension Institute of Nigeria (CPIN), who noted that the the paramilitary personnel who represent 5% of the entire contributors into the pension population, noted that government cannot afford the burden considering the dwindling country’s revenue.
On her part, Anastasia Braimoh, Head Legal Department of Securities and Exchange Commission noted that the contribution into the CPS fund by the 7.5 million subscribers amounted to over N6 trillion was laudable.
She noted that the fund could be used to invest in critical sectors of the economy especially projects such as roads, railway, power, housing among others, just as she warned that pulling out any segment of the Nigerian workers could be detrimental to the economic development of the country.
Oluwole Oke, Chairman, House Committee on Public Procurement who sponsored the exemption bill, explained that Federal Government is to take responsibility for the payment of 100 percent pension for personnel of Nigeria Police Force; Security & Civil Defence Corps; the Nigeria Customs Service; Nigeria Prisons Service; Nigeria Immigration Service; Economic & Financial Crimes Commission; Independent Corrupt Practices Commission; Nigeria Drug Law Enforcement Agency if the amendment scaled through.
However, a cross section of the stakeholders canvassed for transfer of their pension benefits from CPS to DBS.
KEHINDE AKINTOLA, Abuja
