By Olasunkanmi Akoni & Monsur Olowoopejo

Last week Lagos State pensioners converged at the state Secretariat Alausa, Ikeja to receive retirement bond certificates in accordance with the implementation of the state contributory pension scheme,  a fallout of  Pension Reform Act, PRA, 2004.

The State Government at the ceremony,  issued over N1billion retirement bond certificates to over 100 statutorily retired employees, making it the first state in Nigeria to implement the new Pension Reform Act.

Speaking on the issuance of the bond certificate to the beneficiaries by the State Pension Commission, Governor Babatunde Fashola said; “The development had put paid to the apprehension, fears and doubts being expressed by the employees of the state government with respect to their pension benefits under the old scheme.”

Represented by the State Head of Service, HOS, Mr. Adesegun Ogunlewe, Governor Fashola said the  bonds could be redeemed immediately as arrangements had been made to have the retirement savings account of the bond recipients credited with the bond values.

He said that the amount credited into individual retirement saving account along with contributions from April 2007 when the scheme took off in the state and salary at the point of exit,  would determine what an employee would “receive as a lump sum and regular monthly income”.

The governor noted that the benefits due to deceased employees had also been fully taken care of as their retirement bond certificates were ready and would be presented to their next of kin of the named administrator of their estate.

A cross section of the beneficiaries

Governor Fashola said:  “Fears can now be laid to rest as the state government has delivered on its promise. Our word is our bond. We promise, and we deliver. So, this land mark event should finally put paid to apprehension, fears and doubts be expressed by the employees of the state government. The benefits will be duly honoured and paid as and when due. The recipients now have complete control over your retirement saving account as letters of clearance have been forwarded to their respective Pension Fund Administrators.”

“We expect the appointed pension fund administrators to ensure that bottlenecks may militate against the prompt release of approvals for payment of entitlements from regular regulator are drastically reduced if not completely eliminated. Our people are valuable to us. We want to be able to look back in the not too distant future and thank God for the decision the state government took in the best interest of the workers. The state government through the state Pension Commission is poised to protect the interest of all registered workers under the scheme.”

Fashola explained that the state government created a retirement bond redemption fund account funded on monthly basis to provide for the past service pension liabilities, which had been actuarially determined and made up of both gratuity and pension rights of every employee in service as at March 31, 2007.

PENCOM DG says feat historic
Earlier in his  address, the Director-General National Pension Commission, PENCOM, Alhaji M. K..Ahmad said; “There is no state in the country that has taken the step taken by the Lagos State Government. The state pension commission has been empowered by all the tiers of government in the state. To us, this is a very important achievement. Even though at the national level, national Pension Commission still face stiff challenges in other to get public servants to buy into the idea, you are lucky and by the grace of God the sky is the limit.”

While commending the feat, Alhaji Ahmad said:  “Today is historic, not only in Lagos State but the entire country. Lagos State is the first in Nigeria. We have a safe and sound pension industry and  whatever contributions  made by the workers; we will ensure that all contributions by the workers would be kept intact. And when the time for collection of bonds arises, they will collect their full benefits.”

Beneficiaries hail Fashola
Speaking with Pension and You, at the presentation,  Mr. Mufutau Dasuki, a beneficiary whose next of kin, Mr. John Kashimawo collected on his behalf, said Dasuki died in January after brief illness but was expected to retiree in March 2010.

He said: “The new pension process is very simple, as he was asked to provide the necessary document for the process.”

According to another beneficiary, Mrs. Alphosus Gbolahan who spent 35 years in service, “ I feel great, the old system was a terrible one, we did not experience any stress. I want to enjoin other civil servants in the country sign up to the scheme. The new scheme is a reality. We have our money in our account now.”

Mr. Kayoed Adigun, another civil servant who also spend 35 years in service as a driver. He said “I join the civil service in 1975 and I retired in July, 2010. These new system is easy to access compared to the old scheme. My boss who resigned from the service some years ago through the old system, he spend one and half years to process his retirement benefits before he was paid.”