Retired employees of the Lagos State Water Corporation, LSWC, have petitioned Governor Babatunde Fashola, pleading with him to intervene and ensure payment of their entitlements.They urged the governor to do this, if necessary, by deducting from source the subvention to the parastatal to ensure they are paid their benefits.
In an SOS letter to Governor Fashola, the retirees recalled that after the Federal Government introduced the new contributory pension scheme, the Lagos State Government keyed into it in 2007 to ease payment of workers pensions and gratuities after retirement.
According to them, “The new scheme requires both employees and their employers to contribute 7 ½ % each, making a total of 15 % of the retirees’ salaries to the coffers of Pension Funds Administrators (PFAs) on a monthly basis till maturity date.
The LSWC embraced this scheme as directed by the state government in 2007. Since then all workers that had more than three years to their retirements contributed a token 7 ½% of their salary towards the scheme while Lagos Water Corporation, LSWC, contributed 7 ½%, but till date the chunk of funds deducted by LSWC were not remitted to the PFA as required by law.
“Thus on retirement, each worker under the new scheme will collect their benefits/ personal emoluments within a period of two weeks; but as at today no staff of LSWC has collected a dime from the scheme since 2010 till date. This is contrary to the fundamental intentions of the new pension scheme. As at today, about 300 staff of LSWC and numerous retirees from other public agencies of Lagos State Government are affected.
“Consequently, retired staff of the Lagos State Water Corporation have been going through untold hardship, such as ill-health, inability to pay children’s school fees, and inability to meet social commitments and self care. Many have died and those alive cannot pay their house rents and meet other obligations, causing untold embarrassment to the affected retirees. The question is: Is it a curse for someone to work for his state government?
They added: “We appeal to the Lagos state government, the custodian of LSWC, Governor Babatunde Fashola, to quickly intervene in this matter by deducting from source the subvention given to these agencies and also institute a legal frame work for defaulters who refuse to remit such funds to the appropriate authorities (PFAs). We shall be grateful if prompt action is instituted that will bring relief to the enormous problems of Lagos State Water Corporation retirees.”
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