Lagos verifies non-pensionable staff at sub-state levels

The Lagos State government has conducted a verification exercise on non-pensionable staff in the 20 Local Government Councils and 37 Local Council Development Areas in the State.

The exercise was carried out by the establishment department under the Lagos State Ministry of Establishment, Training and Pensions, in conjunction with the Office of the Head of Service and Office of the Auditor General on the directive of the State Governor, Akinwunmi Ambode.

The Commissioner, Ministry of Establishments, Training and Pensions, Dr. Akintola Benson made this known while speaking with journalists in Lagos.

Question:

Since pension fund administrators are financial institutions, are pension contributions insured just as deposits in banks are insured by the NDIC? What happens to my pension when my pension fund administrator closes shop? -

Ikenna, Abuja Answer:

Dr. Benson stated that the recommendations of the Committee have been approved for implementation by the Governor.

He said the department has also in conjunction with the Office of Transformation, Creativity and Innovation, carried out an exercise on workforce planning and streamlining of contract appointment at the Lagos Water Corporation.

In line with extant provisions, approvals for payment of severance allowance in respect of political office holders who had completed their tenure in office were obtained from the Governor.

He added that the department compiled and submitted the changes witnessed on establishments matters within the last 50 years in Lagos State.

“The approved year 2016 personnel budget signed by the Governor are personnel cost which include basic salary and allowance of N 72.55 billion, personnel cost (consolidated) at N1.9 billion and other personnel cost of N1 million,” he said.

Speaking on the Civil Service Pensions Office (CSPO), he said the department has been processing terminal benefits of staff who exit the system by way of statutory or voluntary retirement like those who disengage on the “Pay As You Go” Scheme.

“In the last one year, the CSPO has achieved a lot. Pensioner population in the main stream stands at 8512 as at April, 2017.

He said the total sum of N1. 84 billion was paid as pensions from May 31, 2016 to 30th April, 2017.

The pension funds and assets in the Retirement Savings Account (RSA) are kept by the PFC and as such the liquidation of the PFA will not affect the funds and assets. Besides, every PFA is expected under the Pension Reform Act 2004 to maintain a statutory reserve fund as contingency fund to meet claims for which it may be liable as may be determined by National Pension Commission.

- PenCom Question:

I recently got a new job. What become of my pension contributions under my former employer?

Answer: - Abdullahi, Abuja

Movement from one employment to another does not affect pension under the new scheme. The reform has removed the bottleneck associated with transfer of service from one organization or sector to another, especially with regard to qualification for pension and the sharing formula for payment of pension as between employers. Send your views, comments and contributions to pension@dailytrust.com