Labour

February 23, 2012

South-West pensioners demand decentralization of pension administration

PENSIONERS in the South-west have called for the decentralization of pension administration to allow state governments to handle the payments of the Federal share of pension on behalf the Federal Government.

Under the umbrella of the Nigeria Union of Pensioners, NUP, South-West zone, they decried incessant verification exercise induced by the Head of Service, HOS, of the Federation with its negative impacts on the senior citizens and suggested that biometric verification exercise should be done once in five years.

In a memorandum submitted to Senate Committee on Establishment, and Public Service Matters investigating the payment and management of pension funds by the Federal, States and local governments, Chairman of NUP in the zone, Chief Eni Olotu, argued that the pension payment system handled by the HOS of the federation had been characterised with problems and short payments.

Chief Olotu who is also the Ondo State Chairman of NUP, however, commended steps taken by the Senate at a time when the welfare and well-being of pensioners were relegated to the background and when hope, confidence and trust had been lost.

According to him, the activities of Task Force Team on biometric verification was charcterised by the poor handling, as witnessed by several casualties recorded nationwide during the exercise, saying mismanagement and abuse of office had become a culture in the system.

He said “Pensioners are still made to come to Abuja for complaints and payment to the joy of officials in the presidency at the detriment of retirees despite the unending verification exercise. The last exercise was complete fiasco verification for future which should be carried out in each local government area of the federation in collaboration with the state chairmen and secretaries along with the chairmen and secretaries in the local government areas.

The ending complaint of non-payment, delayed payment, incomplete or shortchanged payment of pension is a deliberate, callous and experimental exercise to kill retirees. Consequent to the above, decentralization to state will be the panacea to make up leeway.”

Olotu, decried perceived violation of due process in the payment of gratuity, saying “retirees are being subjected to frequent visits couple with unethical influences before payments are released by government officials.”

He called for the speedy passage of new legislations to strengthen pension administration in the country, saying “up to the year 2002 in some states the federal government released money quarterly to each state. Government thereafter cancelled the system and the system was centralized. Since 2003 to date pensioners have either been shortchanged or are not pay rolled. This calls for the restoration of status quo ante.

For example, Ondo State Government pays pensioners before state civil servants are paid monthly salaries. Up till last week, no pensioner has received the federal pension of January 2012.”

Olotu appealed to the Senate Committee to issue a fiat to managers and administrators of federal pensions for the immediate payment of backlog arrears of harmonization, shortchanged monthly payments, retirement and death gratuity.