Labour expresses worry over systematic refusal by state govts to join CPS

By allcitynews.ng

Almost nine years after coming into being,
Nigeria Labour Congress (NLC) has raised alarm as only six states with Federal Capital Territory (FTC) out of 36 states have fully joined the Contributory Pension Scheme (CPS).

Expressing worry that only politicians are enjoying the joy of service at the detriment of civil servants whereby they are stylishly shying away from taking care of the future of their workers, Comrade Joe Ajaero lamented that it was unacceptable for state governments to toy with the future of workers under government payroll by refusing to join the scheme.

Under the CPS, the employer and the employee contribute 10 per cent and eight per cent of the workers’ monthly emolument respectively, totalling 18 per cent, which is paid into the Retirement Savings Account of the worker with the Pension Fund Administrator.

The DBS is funded by the government to provide monthly stipends for workers at retirement.

But the organised labour and pension union members in their reactions lambasted the state governments, saying while governors retired into luxury, retirees lived in penury and saw retirement as a death sentence.

Reacting to the PenCom data, organised Labour condemned the defaulting states, saying retirement is now seen as a death sentence because of the poor treatment pensioners were subjected to in the country.

The Head of Information of the Nigeria Labour Congress, Benson Upah, described as sad and unacceptable the failure of states to remit the contributory pensions of active workers.

“The situation is sad and unacceptable. Retirees are deserving of their benefits as and when due. It is immoral that this right is being violated. But there are sanctions in the PenCom Act for a default in remittances. PenCom should exploit this as a first measure.”

It would be recalled that the Pension Apex Body, National Pension Commission (PenCom) expressed shock that as at end of June 2023 only six states and the Federal Capital Territory have fully implemented the Contributory Pension Scheme.

According to PenCom’s second quarter report for 2023, apart from the FCT, states fully implementing the CPS are Lagos, Osun, Kaduna, Ekiti, Edo, and Ondo.

No fewer than 26 states have yet to fully join the scheme.

And it would be recalled that the CPS which was established in June 2004 by the Pension Reform Act (PRA) 2004, fully became working tool after it was re- enacted in July 2014.

For ADVERT Placement;
for EVENT Coverage;
Have story to PUBLISH;
HAVE Breaking story with pictorial evidence
OR wants to assist allcitynews.ng
by DONATIONS,
kindly contact us via ojezand@yahoo.com. Thank you.

Allcitynews.ng’s goal: To interface between policy makers & general public, most influential, informative and reliable issues-based online newspaper, working for unity, peace and development of the Country.

Disclaimer:

Comments expressed here do not in anyway reflect the opinions of allcitynews.ng or any employee thereof. It assumes no responsibility or liability for any errors or omissions in the comments.