Time to review pension policy

The public and private sector employees were expected to receive pension claims after their exit from service, and these include voluntary contributors from their earnings, in line with the National Pension Commission policy guidelines. But, retirees from both sectors are not having a happy time in their quest for their money from the relevant agencies mandated for the pension disbursement after their long years of service.
The public sector retirees are worse off than their private sector counterparts due to bad management and lack of funds to pay them. The private sector retirees have a fundamental issue of being given peanuts as start-up lump sum payments and leaving huge amounts of their money spread to longer years for monthly stipends!
What then is the essence of a Nigerian worker that has spent a greater part of their life in service only to be given a meagre amount of first installment and huge balance spread to equally ludicrous monthly stipends?
What are we going to do now so that all Nigerian workers contributing to the pension fund scheme do not suffer? Why not disburse exhilarating start-up money at their initial exit demands? There is thus an urgent need to review the policy governing the pension claims.
First, the current low level of 25 per cent payment to retirees by pension fund administrators should be increased to 50 per cent and the balance 50 per cent for those under this status spread to reasonable monthly dues.
Second, the review should compel PenCom to allow the PFAs to handle the public sector pension matters or proven financial institutions bearing in mind other employment status etc. Meaning that all dues to that effect should be paid to these PFAs directly from the nation’s Consolidated Revenue Fund. This is for the beneficiaries to be credited or paid as and when due.
Third, the mobile phone numbers of public servants on pension fund scheme should be made available to chosen financial institutions or the PFAs for control.
This will beam transparency and accountability on public pension matters. It will also stop the worrisome reported cases of collapsing pensioners queuing for stipend payment, missing records, needless validation issues etc.
Fourth, all tiers of government salary/wages offices should endeavour to keep their respective employees guided and informed of listed monthly pension contribution schedules prepared and forwarded to chosen PFAs.
In other words, once all tiers of government agencies send their respective monthly pension schedules alongside with actual covering payment by bank draft or by other means of payment transfers, they are deemed to have done their part and it is left for the public servants to channel their pension matters to these PFAs or financial bodies.
By so doing, it will be a financial boost to the economy as the funds will be actively circulated within the country performing sectors.
The Nigerian public servants should keep tabs on their allocated pension fund administrators and in the event of not getting their monthly credit alerts from their PFAs, they do not need a whistle-blower to tell them that their pension fund contribution has big questions to answer from the concerned government salaries/wages/pensions office responsible for the fund remittance. There is the issue of documentation which the PFAs need to address.
Their check list for claims should include exited employees’ entry date of employments and of course, terminal employers’ letter and updated vital information.
Lastly, the review should stipulate a time frame of five working days for PenCom and the PFAs to pay exiting beneficiaries.
Therefore, Nigerians expect the National Assembly to rise up now to this PenCom and PFAs’ pension policy review for happy retirement time of pensioners.
Fidelis Ogbaki,
Ibadan, Oyo state

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