Retirees’ Entitlements: Matters Arising

The issue of non-payment of pension and gratuity to government retirees years after retirement from active service has over the years been a subject of public discourse in the nation’s polity.

Perhaps moved by this touchy national issue, the former Minister of Justice and Attorney-General of the Federation, Chief Richard Akinjide recently took a swipe at government at various levels over the mind-boggling issue. His words: “It is breach of contract for any government to deny its retirees the payment of pension and gratuity.”

He observed that since the nation’s economy is not static, it was necessary that pension and salary be seen as index link in view of the prevailing purchasing power, and called on government to fulfil its obligation to their workers by ensuring the early payment of pension and gratuity.

Not done with the issue, he intoned: “When a salary earner is retired and not paid his benefits, it means that he has been shortchanged,” and insisted that the benefit of the civil service is the security and the certainty it afford workers who expect that at the time of retirement, they are paid their benefits.

Sadly, an average retired Nigerian worker had over the years been literally wailing over the non-payment of his pension and gratuity. There were confirmed reports that some retired workers even died before their entitlements could be paid.

Apparently worried by public outcry, the last administration established the National Pension Commission (PENCO), with an Act by the erstwhile National Assembly, in order to give legal teeth to the commission. This was greeted with applause by the general public, especially the retirees.

Indeed, the contributions of Nigerian workers and employers to the contributory pension scheme now stand at N847 billion, according to report from the pension commission.

But it is rather unfortunate to hear that some states in the country are yet to implement the laudable scheme in spite of the awareness campaigns mounted by the federal authorities, thus hanging the fate of their retired staff in the balance. This is sad, to say the least!

Worse still, a section of the private sector had also reportedly refused to implement the National Pension Scheme, for some inexplicable reasons, an attitude that is giving concern to the authorities of the commission, in view of the anticipated plights of the retired staff of such firms.

It is therefore imperative to ask the Federal Government to wade into the issue and prevail on such defaulting state governments and firms to implement the pension scheme, in order to lay a good foundation for their retired staff.

Agreed, there had been fears over the ‘safety’ of the funds so far contributed to the scheme. But the provisions of the Pension Act, squarely allay such fears, especially the various levels of risks involved in the management of the contributed funds.

Again, the federal authorities should rise to the occasion and direct some of the contributors (state governments) to remit promptly, their contributions to the contributory pension scheme. That way, the future of the retired staff would be assured.

That said, one sure way to implement the National Pension Scheme is for the National Assembly to step into the matter. This, it could do, by directing the committee concerned to work with the management of the National Pension Commission.

That way, the committee would be able to identify the defaulting state governments, as well as a section of the private sector, and thereafter roll out the sanctions against such recalcitrant states and firms.

The future of the Nigerian retired worker must be protected and assured, no matter whose ox is gored. Yes, time has come when a retired worker should smile home rather than cry home. The contributions by employers of labour to the pension scheme, appears to be the only sure way.

But when shall we stop to weep for the country’s retirees for not getting their entitlements years after retirement from active service? Their plights must end one day!