Union Faults Pension Reform Bill

The Nigerian Union of Pensioners (NUP) says the bill seeking  to  increase  lump sum withdrawal of contributory  pension to 75 per cent will not be in the interest of the retirees in the long run.
The President of NUP, Dr Abel Afolayan said this in an interview with newsmen in Abuja.
The Pension Reform Act 2014 had stipulated 25per cent or 50 per cent lump sum withdrawal for would-be retirees, depending on the amount contributed by the retiree.
However, concerned Nigerians and unions of contributory pensioners had advocated an upward review of the lump sum withdrawal.
The agitation had resulted in the introduction of a bill in the Senate seeking an upward review to 75 per cent
Afolayan said the move to raise the lump sum withdrawal could result in a situation where the retirees that contributed little would exhaust their balance on time after the withdrawal.
Afolayan  said: “our take is that 75 per cent is too much, if you take 75 per cent  lump sum, you will have 25 per cent left.
“And the 25 per cent will be spread over a number of years, look at me this is my 27th year in retirement. If you have 25 per cent left, and you exhaust it in 15 years or so, what happens after you exhaust the 25 per cent.
“That is why we are saying  between 25 and 50 per cent lump sum is  enough, it is  adequate and the balance of 75 or 50 per cent will spread over 20 years or more.
“Because if  you say  you will die quickly, look at that old man there, 30 years after retirement, imagine, if he was under Contributory Pension Scheme (CPS), and has exhausted  his contribution, what will he fall back on.’’
Afolayan also said that the Federal Government had agreed to be paying five per cent of monthly salary bill to the Central Bank of Nigeria (CBN) to upset the accrued rights of retirees who retired in the Defined Benefit Scheme (DBS).
On moves and present debates to exclude some paramilitary organisations from the CPS, the NUP president said: “our position is that the Para-military should not exit the CPS, they should remain.
“Because over the years if they exit, government may find it difficult if not impossible, to pay their entitlements.