pension

October 7, 2024

Constitutional provisions: Pensioners to receive incremental benefits — PenCom

PenCom to engage states not implementing CPS, CDBS

By Victor AhiumaYoung

THE National Pension Commission, PenCom, has given a hint that it is working towards ensuring that public service retirees get pension increments as provided for in the nation’s Constitution.

Acting Director General of PenCom,  Ms Omolola Oloworararan, gave this hint in Lagos.

Among others, Ms Oloworararan, said  “We are working to ensure that pensioners under the CPS and other pension arrangements benefit from pension increments provided for in the Constitution of the Federal Republic of Nigeria, 1999 (as amended).”

The 1999 Constitution of the Federal Republic of Nigeria (as amended) guarantee pensioners’ rights to periodic reviews of their pensions ¹. Unfortunately, the Federal Government and the Minister of the Federal Capital Territory Abuja have not fulfilled their duties to review pensions every five years as required by the Constitution.

The Pension Reform Act (PRA) 2014 objects, functions, and powers include regulating, supervising, and ensuring the effective administration of pension matters and retirement benefits in Nigeria.

PenCom is yet to issue specific regulations, directives, or rules respecting the review of pensions for federal government employees or the FCTA.

The Nigerian Union of Pensioners, NUP has been clamouring for the Constitutional provisions to be implemented.

Increasingly, there are pressures for  non-state actors, especially civil society organisations, CSOs, to institute public interest claims before the National Industrial Court of Nigeria to ensure that the Federal Government and the Minister of the FCTA perform, through PenCom and the Pension Transitional Administration Department, PTAD, respect the Constitutional Provisions.

Recently, NUP Secretary in Kaduna State, Alhassan Musa, described the condition of the retirees as “pathetic”.

Musa, who is also the NUP secretary in charge of the 19 Northern states and the North-West, however, said only retirees in Kaduna State were earning N30,000 minimum pension monthly.

The secretary recalled that the Kaduna state governmnet in 2020 implemented N30,000 minimum pension during the administration of Governor Nasir el-Rufa’i.

According to him,  “The union proposed a 50 per cent increment even under the defunct N30,000 national minimum wage.

“We are anticipating that the 50  per cent increament would be approved in line with the new N70,000 national minimum wage. Even under the Federal Government, some pensioners are receiving N10,000 minimum pension.

“We are hoping that the Federal Government will balance it up so that no pensioner will receive less than N70,000 as his/her monthly pension. “Let pensioners also enjoy the same benefits the workers are enjoying. “If a worker is receiving N70,000 minimum salary, so, let the pensioner enjoy the same.

Musa said workers who retired under the contributory pension scheme, CPS, were facing formidable challenges, noting “Honestly, these people are facing a lot of challenges because some of them retired in the last 10 years, and yet to draw their benefits.

“It is really pathetic, this is happening in Kaduna and other states.

“Even under the federal government, those who retired under the contributory pension scheme are suffering as their accruals are yet to be remitted into their accounts.

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