,,,,CPS retirees notify finance minister.
By Dada Ahmed.
The Nigeria Union of Pensioners,NUP, has again appealed to the federal government to expedite action on the lingering floating of Government Bonds to clear outstanding pension entitlements in the Contributory Pension Scheme (CPS).
The timely payment of the entitlements is to avoid a situation where by retirees on CPS will match to the office of the Minister of Finance to demand for their rights.
The threat is contained in a statement signed by the Comrade Sylva C Nwaiwu,National Chairman and
Comrade Bisan John,
Secretary; Central Action Committee (CAC) in Abuja and a copy available to The Reporters in Lokoja on Friday.
The union reminded the federal government of the letter which it said clearly conveyed by the letters under reference by the Office of the Accountant General of the Federation ( OAGF) and the National Pension Commission (PenCom) concerning the need to pay the outstanding pension entitlements.
The Union said that its leadership had the mandate of members to call on
the Honourable Minister to kindly use his good office to ensure that immediate
action is taken toward the processing and release of funds for the payment of
all outstanding entitlements to retirees under the Contributory Pension
Scheme (CPS).
This, the union added, should be within two weeks of the receipt of its letter of appeal by the office of the Minister of Finance or face members’ match to his office in two weeks from now.
The union said:”Should there be no any significant, convincing or positive action by your
office after two weeks of the receipt of this letter, our members shall have no
other option than to march to your office ,enmasse ,to demand for their rights
and will not leave until you have attended to their demands.
“The union and its numerous members across the nation who have become
endangered species in their fatherland, which they had used their youthful
years to serve, wish the Honourable Minister well and do look forward to your
positive action on our matter”.
The Reporters recalls that the cry for justice by pensioners on the contributory pension scheme has gained the attention of the National Pension Commission (PenCom.
According to Arise News,(PenCom) has disclosed that the federal government’s total liability from the implementation of the pension increases in 2007 and 2010 as well as the 2019 consequential adjustment for retirees under the Contributory Pension Scheme (CPS) stood at N314.58 billion in 2023.
This came as PenCom has further sought approval for an increase in pension rates for pensioners under the Defined Benefits Scheme (DBS), following the recent increase in salaries for employees of treasury-funded Ministries, Departments and Agencies (MDAs).
The request for approval for the implementation of new pension template was conveyed in a correspondence by the Director General/Chief Executive, PenCom, Aisha Dahir-Umar to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, which was dated May 3, 2024.
Dahiru-Umar, in a memo:Pencom/DG/CSLD/May3,2024,Pencom,urged the Minister of Finance to direct the implementation of the following benefit of retirees on the contributory pension scheme.
The benefits, she said are:12 % increment in 2007,33% increment in 2010, consequential adjustment in 2019, following the increment in minimum wage and 20 % to 28% increment in 2024.
The commission is seeking to raise the new pension rates under the DBS by between 20 per cent and 28 per cent in 2024.
Dahiru-Umar, while urging the minister to approve the new rates, however, drew attention of the federal government to the omission of pensioners under the CPS in the current rates review.
She said the exclusion of pensioners under the scheme from the implementation of the new and previous pension increases remained a “cause for serious concern”
The DG added that it would amount to a fundamental breach and denial of their constitutional rights as enshrined in Section 173 (3) of the 1999 Constitution, adding that such action would undermine the pension reform of the federal government.
