Contributory Pension Scheme : Need For Impact Assessment -Olaopa.

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,,,,Life becomes unbearable for retirees on contributory pension scheme, many go into penury– Ntufam.


Some retirees.
Photo credit: Businessday NG.

By Goodluck Ikiebe.

As the goal of any pension scheme is to make the life of retirees comfortable and enjoyable after retirement, the Chairman, Federal Civil Service Commission, Prof. Tunji Olaopa has called for an impact assessment to be conducted on the scheme to guide against unintended consequences on retirees.

Olaopa made the plea when he received the Chairman (Technical Team) of the “Forum of Retired Federal Directors” Mr. Ntufam Oqua E. Eta, on a courtesy visit in Abuja.

Olaopa said he was aware of the challenges of the association; stressing that it was evident from various reforms initiated by the government that they a
were laudable and grand but impact assessments were not conducted on them on a continuous basis.

He noted that some of the past initiatives that constituted the pillars in the country needed to be reviewed on constant basis before they deliver unintended consequences as found in the disparities between Contributory Pension Scheme and Defined Benefit and Gratuity Scheme.

He said it was fundamental to note that when the Contributory Pension Scheme was being implemented, issues would be raised that would test the system; saying that there was no perfect model anywhere in the world as the model kept on evolving.

Quoting Section 171 (3) of the Constitution which says that: “Pensions shall be reviewed every five years”, Olaopa said the demand by the Forum was constitutional and believed every support needed should be given to the organization to achieve their objectives.

He promised to work with them to harness the benefit of the economy of scales that serving and retired bureaucrats could contribute to nation building.

Olaopa asserted that those who retired under contributory pension should equally enjoy periodic review of their pension like those under the defined benefits and gratuity scheme and assured the team of studying their requests, profile them and reduce them to little notes.
He also promised that thereafter, he would identify those agencies critical in driving them and put them in the agendas of those constituted authorities and critical stakeholders so that those challenges raised by the Forum could be tackled head-on.

Olaopa further assured the group that he would engage with the Head of the Civil Service and the Federal Ministry of Finance on their issues at the appropriate time.

As he promised to involve the Forum when the need arises in the course of engaging with appropriate authorities; he saluted the thoughtfulness of the team for organizing the Forum; saying” when civil servants do not organize themselves as a profession they lose a lot.”

Olaopa advised the group to equally consider issues of mentorship, skills building, coaching and guidance in their agenda, aside from welfare and pension matters; stressing that it was high time leadership be provided in the service with Head of Service playing a key role in achieving this.

Flanked by the Hon. Commissioners, Olaopa reiterated his commitment to continue to engage with the retired Directors in examination processes.

He, however, said that the process would be deepend on strength of it. According to him, their experiences are very invaluable to the process.

He explained that acceleration of the mentorship program for the Forum is critical , adding that a lot of technical Committees were being set up that would need trans-disciplinary and multi-disciplinary knowledge of the Forum to be harnessed through their members.

The Commission boss explained that he was very happy that the Forum was established,and described it as a veritable platform to strengthen the link among the Forum, the service and various public administration and management associations.

This ,he added,include National Association for Public Administration and Management (NAPAM) in order to further engender mutual flow of technical knowledge; and also to deepen existing relationships.

Speaking earlier, the Chairman of the Forum, Mr. Ntufam Oqua. E. Eta, congratulated the Hon. Chairman for his well-deserved appointment, saying that their visit was to enlist the support of Olaopa in order to redress the injustices contributory pension retirees are experiencing presently.

According to him, the Forum’s struggle is not for the members alone but for also the next generations to make retirement enjoyable to them.

He said that as many directors retire,they would join their ranks, adding that those retired under the Contributory Pension Scheme as at 2007 and those before that period, under Defined Benefit Scheme, were not equally treated.

He added that those under the Contributory Pension Scheme were marginalized and badly treated, adding that just like many of his colleagues, he has been earning N131, 000 for almost 10 Years when he retired as a Senior Director working at different Ministries. He further disclosed that Contributory Pensioners were excluded from all the four revisions of salaries carried out by the government.

“There was one of 15 per cent in 2007. We were excluded. There was one of 33 per cent in 2010, we were excluded. Another one in 2020, Consequential adjustment of minimum wage. Also in 2019, we were excluded. “Then the present salaries and wages commission circular, that is 28 per cent increment 2024, we have all been excluded”,he said

He also stated that recently,the National Pension Commission issued a circular, copied to various concerned government organisations, particularly the Federal Ministry of Finance,to meet their demands so as to redress the anomaly but all to no avail.

The Forum Chairman said they believed that with huge support from the Federal Civil Service Commission to their cause, challenges faced by the association would be overcome.

He explained that many of their members retired into penury with many having no house or car of their own; while others look wretched.

He further explained that some retirees under the contributory pension scheme had children in schools but could not train them, coupled with those with graduate-children that were jobless and others with health challenges.

He, therefore, pleaded with Olaopa to lend his voice to their struggles in order for them to make life in retirement bearable for to achieve their objectives.

In her comment, a member of the Forum, Mrs. Fatima Jiddum Ahmed, said apart from Pension issues, welfare matters were also important to the Forum. According to her, the Forum has a pool of knowledgeable retired Directors with different professions in its fold.

She stated that many of the retirees were retired quite alright but they were not tired.

She emphasized that the group had a lot they could still contribute to the country, if given the opportunity.

She disclosed that the present organization’s interim Executives came on board immediately after the Forum was established in 2019, adding that the Forum was registered on the 24th August, 2020.
Edited by Dawud Ahmed.

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