FG, NLC Condemn Moves To Exempt Paramilitary Agencies From New Pension Scheme

The federal government, Nigeria Labour Congress (NLC), among others, have opposed the bill sponsored by Hon. Oluwole Oke, seeking the exit of paramilitary agencies from the Contributory Pension Scheme (CPS).
They made their position known at the public hearing on the bill, in Abuja, after it had earlier gone through the second reading in the House of Representatives. The federal government represented by the acting Secretary General of Federation(SGF), Dr. Habibat Lawan, said passage of the bill would means that government would be taken care of the pension contributions of the paramilitary agencies.
Eyes Of Lagos gathered that, This, he said, would create further financial burden on the Federal government, who is still struggling to offset its huge pension liabilities, saying, the depleting government revenue sources will not allow FG takes over that responsibility. She called on the National Assembly to reject the bill, as it will destabilise the entire fiscal and financial system of the economy.
In the same vein, the President, NLC, Comrade Ayuba Wabba, said though, the bill is good on the surface, but in reality, it will collapse the pension system. Stating that the labour did not support the move, he noted that most of the agitations of the bill has been taken care of in the Pension Reforms Act(PRA2014), saying, it would amount to futility the activities of the promoters of the new scheme, if this bill is passed into law.
Believing the scheme can be tinkered with to accommodate most concerns raised, he said any amendment now would be too soon, three years after the Pension Reforms Act was amended.
According to him, “Pensioners are satisfied with the current arrangement which gives security to the fund. The Pension Fund Administrators (PFA) don’t have access to the money. It is kept with the Central Bank of Nigeria (CBN) and this gives security to the fund. To make the scheme works better, government must do enough to remit as and when due to ensure smooth and effective CPS.”
Exiting the paramilitary agencies from the CPS, he said, will only add to the financial burden of the federal government who is still struggling to offset its huge liabilities.
Exiting these people will mean taking them back to the old scheme riddled with embezzlement and financial malpractices, he stressed. He, however, urged the government to revisit the gratuity issues to ensure that retirees get their gratuities earlier before their pension entitlement is ready for access.
Earlier, the Inspector General of Police(IGP), Ibrahim Idris, represented by Mr. David Bodo, disclosed that police still wants to remain in the CPS, even as he felt the welfare of the Paramilitary is best taken care of under the new pension scheme.
The director, Centre for Pension Right Advocacy, Dr. Ivor Takor , said passage of such bill will make other agencies to be calling for exit from the scheme, adding that, this would eventually spelt doom for the pension industry.
Speaking on another bill seeking to alter section 7 of the Pension Reform Act (PRA) 2014, to raise pension benefits for those disengaged from work and were unable to secure another job within four months of disengagement, from 25 per cent to 50 per cent of the contributions in their Retirement Saving Account (RSA), the Acting Director General, National Pension Commission(PenCom), Mrs. Aisha Dahir-Umar, said this would affect the monthly pension entitlement of contributors at retirement, as they will have little to get, since they have already taken 50 per cent from it earlier.

No comments