Pensioners, governors lock horns over benefits

The relationship between pensioners and many state governments in Nigeria is far from cordial as both have locked horns over retirement benefits.

This development is largely due to dwindling revenues which the federal government had in two different occasions bailed out the states using Paris Club refunds.

However, pensioners and Nigeria Labour Congress have demanded accountability over the bailout funds.

In Edo State, local government pensioners recently ran out of patience, staged protests and obstructed vehicular and human traffic in Benin City over.

In a statement, the state government said a “phased approach” had been adopted to clear the backlog of pension N2.1 billion has been disbursed to offset the bills from January to September, 2017.

In Abia State, the state government had to explain the challenge of meeting retirement obligations despite Paris Club refunds of N16.3 billion.

The state governor, Okezie Ikpeazu, recently revealed that the state committed N11.6 billion to service workers and pensioners wage bill.

He said his government had discovered “sharp practices” in the pension payment system, including about 131 teachers who were supposed to have retired but had been paid N496m.

“The government is determined to convert the monies paid them as either pension or gratuity due them in future,” he said.

In Osun, pensioners protested during the burial ceremony of Governor Rauf Aregbesola’s late mother in the state.

The state government revealed that it had deployed N5.1 billion out of the N6.3 billion second tranche Paris club refund for the payment of salaries and pensions.

In Ebonyi, Pensioners recently made allegations of malpractices in the payment of pensions.

A government statement indicated that Gov David Umahi has already ordered a probe into the allegations and this is coming shortly after he suspended the implementation of the Contributory Pension Scheme (CPS).

Umahi blamed non-payment of pension and gratuities in the state on “criminal padding and inflation of pensions and gratuities.”

Meanwhile, in Delta State, the Association of Contributory Retirees (ACR) protested over owed arrears of pensions and retirement benefits.

A statement signed by the ACR Chairman, Ajueitsi Ovwiroro, accused the state government of defaulting in payment of various entitlements, since 2007.

Ovwiroro stated that as at 2014, the CPS had generated over N18 billion with workers contributing N13.7 billion and yet workers retire without promptly accessing their benefits.

The senior citizens demanded an irrevocable standing payment order (ISPO) to the accountant general of the Federation for the dedication of N500 million monthly from the state revenue allocation to clear the debt.

In Benue State, pensioners recently protested in demand of their 10 months’ pension arrears.

The Presi¬dent, Concerned Benue Civil Pensioners, Mr Peter Kyado, said the state government had failed to clear pension liabilities with bailout funds. Kyado expressed worry that the state still pays N800 as monthly pension and called for harmonisation.

Ironically, despite paucity of funds in states, they are still reluctant to implement the CPS.

Data from National Pension Commission (PenCom) show that 10 states are yet to pass bill on CPS while out of the 26 states that have adopted it, less than 10 have fully implemented the new scheme.

Some states are even still frivolously paying pension to exelected government officials, such as governors, even as they are receiving salaries as senators and Ministers as recently alleged by the Socio-Economic Rights and Accountability Project (SERAP).