Niger Delta
Only Eight States Funding Pension Scheme -Okowa
Delta State Governor, Ifeanyi Okowa, has explained that the inability of most state governments to operate the contributory pension scheme was due to huge financial burden they inherited under the scheme.
He said his administration inherited about N100 billion unpaid pension.
Okowa said this in Ughelli during the third session of the 8th Synod of the Ughelli Diocese of Church of Nigeria, Anglican Communion, held at Bishop Agori-Iwe Memorial Church.
He said the financial burden forced 18 out of the 26 state governments that enlisted on the scheme to withdraw, leaving only eight states, including Delta.
The governor stated that, “When I assumed office in 2015, what Delta was owing was over N100 billion and unfortunately, the state government was paying the contribution of the workers.
“We have two types of pensions- the old pension scheme and the contributory pension scheme. “Those on the old pension scheme are paid regularly as we pay salaries, but there is a big challenge with those on the contributory pension scheme.
“It is a good scheme but it will take a very long time to solve the issues associated with it.
“For instance, if somebody had done 15 years before joining the contributory pension scheme, it provides that the government must contribute for those years and it runs into billions of naira.
“Out of 36 states in the country, only 26 states embraced the scheme, but as at today, only eight states are contributing to the scheme and the rest are no longer in the scheme because it is extremely expensive.”
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