Tag: Pension

  • Workers Group Backs Looming Strike in Ogun State over Unremitted N40bn Pension Fund

    Workers Group Backs Looming Strike in Ogun State over Unremitted N40bn Pension Fund

    The Campaign for Democratic and Workers’ Rights (CDWR) has expressed strong support for its public and civil service workers in Ogun State who are currently threatening industrial action.

    Meanwhile, the workers are demanding the immediate payment of an outstanding N40billion in unremitted contributory pension funds.
    The group called on Governor Dapo Abiodun to promptly remit the 160 months (approximately 13 years) of unpaid pension deductions from workers’ salaries without further delay.

    The Coordinator of the CDWR, Ogun State Chapter, Eko John Nicholas, said in a statement on Tuesday that the organisation stands in solidarity with workers regarding the threats of industrial action in the state.

    According to the statement, “We support all industrial actions, should the APC-led Dapo Abiodun’s government fail to accede to the workers’ demands. More so, we condemn the Dapo Abiodun’s government in the strongest terms for continuously withholding and refusing to remit the deducted pension funds to the Pension Fund Administrators (PFAs), despite repeated calls by workers/unions on the government before now.

    “According to newspapers reports, the workers’ leaderships through the TUC, NLC and JNC (Joint Negotiating Council) wrote to the Dapo Abiodun’s government in a letter dated 17th July 2024. They demanded among other things:  the release of the reports of the committee, which was set up in October 2022 on the contentious issues of the unpaid contributory pension deductions by the same government, and has since refused to make the same public after it findings.

    “The workers also affirmed in the letter that successive governments from Gbenga Daniel through Ibikunle Amosu to the current Dapo Abiodun-led administrations have all defaulted in remitting the contributory pension fund to the Pension Fund Administrators (PFAs).

    “Former Governor Gbenga Daniel owed 25 months before he left office. Ex-governor Ibikunle Amosun paid just only 9 months out of his eight-year tenure, while Governor Dapo Abiodun has not paid a dime since he came into office in 2019”.

    Nicholas explained that the workers said they were compelled to write a letter to the governor because, with less than a year remaining until July 1, 2025—the effective date for the Contributory Pension Scheme as per the 2013 State Pension Reform Law, amended in 2008—there is no evidence to suggest that the government is genuinely committed to implementing this pension scheme, which involves a total of N40 billion over 15 years.

    He added that the government refused to remit to the Pension Fund Administrators the 7.5% contributory pensions deducted monthly from each worker’s salary for over 15 years. While the government (employer) has also failed to pay its counterpart contribution of 7.5% of each worker’s salary, totalling 15% to the PFAs.

    He said: “For us at the CDWR, all this has again underscored the anti-poor and anti-workers capitalist character of the Dapo Abiodun’s government, whose overriding interest is the quest to protect the profits and extravagance/opulence of a tiny few minority at the expense of the hardworking workers and poor people in the state, whose working and living conditions have continued to plummet in the face of the unending hardships and sufferings occasioned by it pro-rich policies including the unremitted contributory pension fund deductions, hike in school fees across tertiary institutions in the state, underfunding of public schools from primary to tertiary levels, privatization and commercialization of social services including health and housing, collapsed infrastructure including roads across the state, imposition of neck-breaking taxes, levies etc.

    “All these have been made worse by  President Bola Ahmed Tinubu’s anti-poor neo-liberal policies of petrol subsidy removal and the devaluation of the national currency.  On the other hand, the elected public officials both at state and federal levels and their big business collaborators live in opulence and luxury at the expense of the populace.”

    “The CDWR, therefore calls on the Dapo Abiodun’s government to without delay make public the committee reports, and in the same vein, pay all the withheld unremitted contributed pension funds to the Pension Fund Administrators.

    “This is important, as the fates of hundreds of thousands of public/civil service workers across the state are presently hanging on the balance after retirements. This is more disheartening given that each of these workers might have served the state meritoriously for over 30 years! Also worrisome is that if all the contributed pensions are adequately remitted is not enough to meet the needs of retirees considering the rising cost of living and inflation.

    “We urge the workers through their various trade unions not to baulk at pressing on their demands, but rather immediately commence sensitization and mobilization of workers through public/mass campaigns including mass meetings in workplaces, leafleting, media campaigns, rallies, sit-ins, symposia etc., as parts of activities to herald the industrial action,  should the Dapo Abiodun’s government refuse to accede to the demands of workers.
    “Above all, we equally urge the workers to be united in their demands, and the struggles to actualising them, and call on the national headquarters of both NLC and TUC to lend support to the Ogun workers demands, and well-meaning groups and individuals including the civil society organisations to give solidarity to the workers,” he said

  • Lagos Pays N2bn Pension Arrears to 644 Retirees

    Lagos Pays N2bn Pension Arrears to 644 Retirees

    Lagos State government has paid N2 billion as pension arrears to another 644 retirees during its 101st retirement bond certificate presentation.
    The Director-General of the Lagos State Pension Commission (LASPEC), Babalola Obilana, described the certificates as more than just financial rewards.

    He said: “They represent the trust and confidence we have in our retirees. They are a testament to the lasting impact you have made. Your dedication has been the bedrock of the goal of a Greater Lagos, and your hard work has set a high standard for those who will carry the state forward.”

    Obilana also reiterated the government’s commitment to paying the backlog of pension arrears.

    He stated: “We have just paid for 2022 and so we are just one year behind. If we continue at this rate, we should soon be up to date with payment, latest by the middle of next year. The governor has shown intention to pay and he will fulfill his word.

    “It is also instructive for the retirees to decide which investment options best suits them. They should decide whether they want program withdrawal or annuity by considering their circumstance and finding what best suits their purpose. They should be extra careful with whatever investment proposal that comes their way.”

    Permanent Secretary in the Ministry of Establishment and Training, Olawale Musa, stressed the government’s readiness to offset the backlogs of pensions. She also urged retirees to keep a balanced lifestyle and manage, knowing well that life in retirement is different from life during service.

    She said: “We’ve been contending with these backlogs and so we promise to clear them very soon. We also want to ensure that retirees get their benefits within one or two weeks of retirement.

    A beneficiary, Abimbola Owolabi, the retired principal of Babs Fafunwa Millennium Secondary School thanked the government for honouring its word. I appreciate God almighty for giving us the opportunity to be part of this presentation. Many started with us but not all are collecting today. I just want to thank everyone who worked to make this a reality.”

  • Oyetola Releases N1.1bn for Payment of Pension

    Oyetola Releases N1.1bn for Payment of Pension

    Gov. Gboyega Oyetola of Osun State has released N1.1 billion for the payment of pensions of retired civil servants in the state.

    A statement by the Head of Service, Dr Festus Olowogboyega, on Monday in Osogbo, said that N 600 million of the money would be for the payment of retired primary school teachers and local government workers.

    Olowogboyega said that the remaining N500 million was approved for the payment of civil servants under the contributory pension.

    He said the selected retirees would get their bonds on June 2.

    Olowogboyega also said that the list of beneficiaries had been pasted on the notice board of the Ministry of Information and Civic Orientation, the State’s Pension Bureau and the Office of the Head of Service.

    He said Gov. Gboyega Oyetola was committed to the welfare of both the retired and active civil servants in the state and would continue to make their welfare his priority.

    • NAN
  • Court to Deliver Judgment in Nyame’s , Others’ Non-payment of Pension Suit Tuesday

    Court to Deliver Judgment in Nyame’s , Others’ Non-payment of Pension Suit Tuesday

    The National Industrial Court has fixed Tuesday to deliver judgment in an ex-governor, Jolly Nyame, and three others suit for non-payment of their pension benefit arrears.

    The other judgment creditors in the suit are Uba Ahmadu, Abubakar Armayau, and Bilkisu Danboyi.

    The judgment creditors had filed the suit against the judgment debtor, the Taraba State Government and the garnishee debtor, the Central Bank of Nigeria (CBN), through a garnishee proceeding.

    Garnishee proceedings are simply a judicial process of execution or enforcement of the monetary judgment by the seizure or attachment of the debts due or accruing to the judgment debtor which form part of his property available in execution.

    Garnishee is a third person in whose hands the debt of the judgment debtor is kept.

    The matter which came up on Monday for ruling before Justice Osatohanmwen Obaseki-Osaghae, had to be adjourned for judgment to enable a pending application to be taken.

    The judge thereafter allowed the judgment debtor through its counsel, D. Sambo to take the application, which she said that judgment will be delivered on with the previous application that had been taken previously.

    The counsel informed the court that he had an application filed on Jan. 24, seeking for the order of the court to set aside the Order Nisi granted in favour of the judgment creditors on Dec. 2,2021.

    He further said that the motion was supported by an 11-paragraph affidavit, attached with one exhibit.

    The counsel in addition submitted that he had also filed a Written Address as his oral submission and urged the court to adopt same.

    The judgment creditors counsel, E. Irhilure on his part responded that he was opposing the application through his own application filed on Jan. 31 supported with a 3-paragraph affidavit attached with two exhibits.

    Irhilure equally said that in addition to the affidavit was a filed Written Address in support, urged the court to adopt as his submission in response as same, and urged the court to dismiss Sambo’s application.

    CBN counsel, I. Wali in his submission informed the court that he was not opposing the judgment debtor’s application.

    The court, therefore, adjourned until Tuesday to deliver judgment on the applications.

    The News Agency of Nigeria ( NAN) reports that the judgment creditors approached the court to seek redress after the judgment debtor failed to obey the court order in a judgment delivered on July 12 ,2019.

    In the judgment, the court had ordered the payment of the sum of N151.1 million being the unpaid pension arrears of the judgment creditors.

    The order of the court however was not obeyed, hence the instituting of the garnishee proceeding by the judgment creditors.

    The judgment which was delivered by Justice Sanusi Kado was for their unpaid pension arrears from May 2013 to Oct.2015.

    The court in the said judgment had ordered 10 equal installments payments commencing from July 2019 on a monthly basis until the final liquidation of the total sum.

    The judgment further stated that failure of the judgment debtors to abide by the decision of the court will attract 10 per cent interest rate.

    NAN also reports that the judgment creditors who were former employees of the judgment debtor upon retirement were paid the sum of N45 million out of their total pension arrears of N196 million.

    • NAN
  • Lagos to Stop Pension for Ex-governors, Deputies Soon

    Lagos to Stop Pension for Ex-governors, Deputies Soon

    Lagos State may soon join the league of  states that have stopped payment of bogus pension to ex-governors and their deputies as a bill has passed the second reading in the state House of Assembly.

    The bill was submitted to the House on November 20, 2020, by Babajide Sanwo-Olu, the state governor.

    Sanwo-Olu is seeking an amendment to the Payment of Pension Law (2017), a move to stop the humongous amount paid to  ex-governors and their deputies.

    The second reading of the bill held on Monday and was presided over by the Speaker of the House, Mudashiru Obasa.

    At least 24 states across Nigeria enacted laws providing generous pensions to their former governors and their deputies.

    In Lagos, for instance, the two elected officials are entitled to houses in Abuja and Lagos, six new cars every three years, 100 per cent of the incumbent governor’s basic salary (for the governor), and free healthcare for their family members, among others.

    If enacted, the bill will scrap payment of these benefits to former governors in the state, including Bola Tinubu, the national leader of the All Progressives Congress (APC).

    Several arguments arose from the second reading of the bill by members of the House, with some in support of the bill.

    Rotimi Abiru, representing Shomolu II, said “The public office holder (Payment of Pension Law 2007)” should be amended rather than repealed.

    “For a person who has served as chief executive of a state, I do not think it is nice denying them of their benefits.

    “I can appreciate that some of them move to other appointments. For these people, there can be a caveat. But for those who serve in that capacity and do not have any other thing to do after office, it may not be something elaborate, but something may be coming to them periodically,” Mr Abiru said.

  • Oyetola Releases Another N708m as Pension Arrears

    Oyetola Releases Another N708m as Pension Arrears

    In furtherance  of his commitment to improve the welfare of retired civil servants and workers of the State, the Governor of the State of Osun, Mr Adegboyega Oyetola, has released the sum of Seven Hundred and Eight Million Naira (N 708,000,000) to offset pension arrears of retired officers of the State civil service.

    Recall that Oyetola recently released about One Billion Naira for pension settlement 17 hours before Christmas, and another Two Hundred Million Naira on the first working day of the year.

    In a press release signed by the Head of Service, Dr Festus Olowogboyega Oyebade, the sum of Five Hundred and Eight Million Naira (N 508,000,000) of the released sum was approved for the payment of retired civil servants, while an additional sum of One Hundred and Fifty Million Naira (N 150,000,000) was approved for the payment of retirees under the contributory pensions scheme.

    He added that an additional Fifty Million Naira (N50,000,000) was approved for the payment of gratuities of retired officers under the old pension scheme.

    According to the release, the list of beneficiaries of the approved sum has been pasted on the notice board of the Ministry of Information and Civic Orientation,  the State’s Pension Bureau and the Office of the Head of Service.

    “Governor Adegboyega Oyetola assures all workers, both serving and retired that all efforts will be made to always give their welfare the priority it deserves”, the statement added

  • Labour Rejects Govs, FG’s Bid to Borrow from N17tr Pension Fund

    Labour Rejects Govs, FG’s Bid to Borrow from N17tr Pension Fund

    Organised Labour has warned the state governors and Federal government to jettison their bid to borrow from the N17 trillion pension funds even as the  Nigeria Labour Congress (NLC) kicked against a similar proposal by Works and Housing Minister Babatunde Fashola to deploy workers’ retirement benefits being managed by Pension Fund Administrators (PFAs) in the development of infrastructure.

    The NLC vowed to mobilise workers nationwide to protest any move to borrow from the money, saying it was the retirement benefit of workers.

    NLC President Ayuba Wabba spoke on the rejection at the 47th National Executive Council (NEC) meeting of the Medical and Health Workers’ Union of Nigeria (MHWUN) in Abuja.

    The Nigerian Governors’ Forum (NGF) had endorsed two proposals to borrow N17 trillion from two sources for infrastructural development.

    They took the decision after receiving a briefing from Kaduna State Governor Nasir El-Rufai, who is the Chairman of the National Economic Council Ad Hoc Committee on Leveraging Portion of Accumulated Pension Funds for Investment in the Nigeria Sovereign Investment Authority.

    El-Rufai told the Forum on proposed National Infrastructure Investment Fund that N2 trillion at nine per cent interest could be accessed through the NSIA.

    In his keynote remarks at the Nigerian pension industry retreat, Fashola said the growing nature of pension funds in Africa had not translated into a better quality of life for the contributors.

    According to him, the accumulated pension funds could be invested in the provision of infrastructure.

    He said pension reforms were beginning to gain foothold across African countries, adding that there is no corresponding impact on the continent, despite growing pension funds and rising number of contributors.

    Fashola said: “The impact on the quality of life on the continent is not yet anywhere near minimum globally acceptable standards.

    “No country to country rail service across most parts of these countries; the highways that connect most of the countries are in a very poor shape.

    “These are roads that can easily be built and tolled to earn income to secure the return of pension funds invested in building them.’’

    The minister said that pension funds could be invested in the construction of roads and building of rail, among other critical infrastructure.

    Wabba, however, warned that the pension fund, which was the savings of workers ahead of their retirement from active service, must not be tampered with.

    According to him, the governors have no constitutional authority over the money which was largely made up of contributory funds from federal and private sector workers.

    He noted that over 18 states were still delaying the implementation of the N30, 000 national minimum wage for workers, lamenting that the governors wanted to borrow from the workers’ pension savings.

    Wabba said: “Pension money is not for borrowing. Pension money is the retirement savings of workers. It cannot be borrowed. It’s like money in your savings account that nobody can borrow the money.

    “You must go through the bank and in this case, you must go through the PFAs and their guidelines; even the guidelines they want to play down, but to the glory of God, the board of PenCom has been constituted.

    “I stand here to represent all of you. We are not going to agree; less than five per cent of the states are keying into the contributory pension. Yet they want to borrow the money. Bulk of the money is from Federal Government workers and private sector workers. So how do you want to borrow from where you have not sown?

    “It’s not free money and let me sound a bit of warning. Any day that we hear the pension fund, our money has been borrowed, I will declare a protest and everybody is going to be on the streets to protect our hard earned money.

    He added: “The money belongs to workers. We contribute that money so that when we retire we can have something for retirement. So they have no say whatsoever, both the principal and the capital belongs to us.

    Let me assure all of you workers from across the length and breadth of this country, to say that our money will be safe. We will do everything possible to ensure that nobody comes to dip his hands into the money. We are not going to allow our standards to be lowered than what obtains in other climes.”

    MHWUN National President Biobelemoye Josiah condemned the Federal Government’s involvement in scuttling strikes through the use of some non-governmental organisations, stressing that workers have legal rights to embark on industrial actions to drive home their demands.

    He said: “In a plethora of cases, the courts have affirmed the right of the workers to embark on strike; that strike is a legitimate weapon available to the trade union to ventilate their grievances especially when the provision is S.41 of the Trade Dispute Act bordering on number of days has been compiled with.”

     

  • Tinubu Backs Sanwo-Olu Over Plan to Stop Pension of Ex-govs, Deputies

    Tinubu Backs Sanwo-Olu Over Plan to Stop Pension of Ex-govs, Deputies

    The former governor of Lagos State, Asiwaju Bola Tinubu, has thrown his weight behind Governor Babajide Sanwo-Olu’s plan to stop payment of pension and other benefits of former governors of the state and their deputies.

    The governor had on Tuesday presented the proposal to the State House of Assembly during the presentation of the 2021 budget proposal an ideal which Tinubu described as a bold step..

    Taking to his Twitter handle on Wednesday, Tinubu said he would encourage other All Progressives Congress, APC, loyalists to do the same.

    Tinubu is the national leader of the APC.

    Tinubu’s tweets read: “Congratulations to Governor Sanwo-Olu over the Y2021 budget which he appropriately christened” Budget of Rekindled Hope”. This audacious and enterprising budget will empower our people and begin to rebuild Lagos State.

    “In particular, I would also like to commend the Governor for the plan to commence the repeal of the Pension Law giving pension packages to former governors and their deputies.

    “This is a bold and courageous move by Mr. Governor and I wholeheartedly support him. I encourage all APC loyalists to do the same.”

    During the presentation of the 2021 budget estimate to the Lagos State House of Assembly on Tuesday, Sanwo-Olu disclosed the plan to repeal the public officers’ pension law which largely benefits former governors and their deputies.

    He hinged the decision to repeal the law on the dwindling fortune of the state.

    His words: “We will be sending an executive bill in a couple of weeks to this honourable house to repeal the pension law.

    “This pension law is for pension paid to former public officers such as the former governors and former deputy governors.

    “The repeal of the act is due to the dwindling revenue to the state government’s account.”

  • Sanwo-Olu Stops Pension to Tinubu, Fashola, Ambode, Others

    Sanwo-Olu Stops Pension to Tinubu, Fashola, Ambode, Others

    Governor Babajide Sanwo-Olu of Lagos State, Tuesday, submitted a bill to the state House of Assembly seeking to abolish pension payments to former governors and their deputies.

    This was one of the highlights of the 2021 budget proposals which the governor presented to the State House of Assembly on Tuesday.

    Tagged Budget of Rekindled Hope, the proposal is estimated at N1.15 trillion.

    Gov. Sanwo-Olu laying the budget before the House of Assembly
    Gov. Sanwo-Olu laying the budget before the House of Assembly

    In a tweet, the governor’s senior special assistant on new media, Mr. Jubril Gawat said the bill will repeal pension payments and entitlements to ex-governors and their deputies.

    “Governor of Lagos State, Mr @jidesanwoolu has announced his intention, through executive bill, to repeal the public office holder (Payment of Pension Law 2007), which provides for payment of pension & other entitlements to former governors and their deputies,” Gawat tweeted.

    If the bill sails through, it would be a smal victory for Lagosians, most of who consider payment of pension to governors and their deputies as not only a waste but also fraudulent.

    It would also help other state governments which cannot fulfill their obligations to their citizens due to excessive baggage amid paucity of funds  to find the moral courage and political will to stop the waste.

  • Kaduna Govt Disburses N1.6 bn For Payment of Pensions

    Kaduna Govt Disburses N1.6 bn For Payment of Pensions

    The Kaduna State Government has released the sum of N1.6 billion for the payment of pensions, gratuities and death benefits to retired civil servants.

    This was disclosed in a statement issued on Saturday by the Executive Secretary of the State Pension Bureau, Salamatu Isa.

    She explained that the bureau has commenced physical verification of pensioners, which she notes is necessary to ensure that only genuine pensioners are paid.

    According to Isa, the move is to ensure that pensioners supplied complete information, including correct account numbers and Bank Verification Number.

    “We commenced payment of gratuities and death benefits on the 15th of September 2020 for batch 10. The state government released the sum of 1.6 billion naira, and we will pay pensioners from the State and 23 Local Governments that have been scheduled in the batch that is ready for payment.

    “We want pensioners and next of kin of those who died to come over for physical verification. We also want to use exercise to collect complete information from the beneficiaries because some of them did not give complete information to the Bureau when they retired,” she said.

    While noting that the bureau is currently paying the 10th batch of retired civil servants who have undergone verification, she lamented that there are people in batch 1-9 whose banks were unable to pay because they supplied incorrect account numbers and BVN.

    She said that the bureau will ensure that all necessary information is supplied before names are forwarded to the banks to prevent a situation whereby pensioners have issues with their banks.

    The Executive Secretary of the Pension Bureau asked civil servants who have retired from the state to come to the bureau with all relevant documents and information required.

    She revealed that current administration inherited huge backlog of unpaid retirement and death benefits running into several billions of naira which previous governments failed to clear, saying it is impossible for any government to clear such amount in one swoop.

    She commended the current administration for regular release of funds to clear the liabilities in batches.

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