By Victor AhiumaYoung

THE Nigeria Labour Congress, NLC, and its Trade Union Congress of Nigeria, TUC, counterpart, have expressed concerns over the inability of contributors to access the initial 25 per cent of their total contributions into the Contributory Pension Scheme, CPS as stipulated by the Law.

The two labour centres have equally fumed over a situation where the monthly pension of retirees under Defined Benefit Scheme, DBS, is 50 per cent more than retirees under the CPS. They have also insisted the Pension Reform Act, PRA, did not repeal the gratuity, blaming the PRA 2004 for the disruption of the CPS.

In a joint statement, Presidents of NLC and TUC, Joe Ajaero and Festus Osifo respectively, called for a review of the contributory pension scheme.

According to the two central labour organisations, “There is need to review the CPS disrupted by the enactment of the 2004 Pension Reform Act. There are complaints ranging from delay or non-transmission of Contributor’s money to Pension Funds Administration, PFA’s inability to access the initial 25 per cent of total contributions by retirees as stipulated by the Law, etc. Of most concern is the fact that the monthly pension of those who retired under Defined Benefit Scheme earn at least 50 percent monthly Pension more than those who retired under the contributory pension Scheme. We call that this be harmonized in the interest of Justice, equity and fairness.

On gratuity, NLC and TUC, stressed need to reactivate payment of gratuity to public servants, explaining that “the concept of gratuity payment to employees can be likened to the proverbial golden handshake from their employers. Gratuity is a monetary benefit from an employer to an employee at the time of retirement. The public service employees were receiving gratuity until the 2004 Pension Reform Act (PRA), which was silent on payment of gratuity and as such both the Federal and State Governments stopped payment. Meanwhile, the private sector employers are still paying gratuity to their employees. We call for a reactivation because Section 173 of the 1999 Constitution as amended makes provision for the right of a person in the Public Service of the Federation to receive pension and gratuity; after all, political office holders receive terminal benefits.”

They also called for upward review of retirement age in the public service, arguing that “it has become imperative to demand for an upward review of the retirement age and years of service in the entire public service from 60 years to 65 years and 35 years to 40 years.

“The immediate past administration has increased that of teachers and judges, and we are demanding that others be considered. Only few other establishments including the core Civil Service are now left out.”