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Last Updated: May 30th, 2008 - 10:07:12
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Government in Action
As Federal Govt pensioners receive their pay checks
Jan 24, 2008, 08:51
| | The decision of the Federal Government to forge ahead with the accelerated settlement of arrears of pension and gratuities owed retired civil servants, military personnel and other category of its workers has renewed public confidence in the machinery of government as a compassionate and supportive institution.
Part of President Yar’Adua’s seven point agenda is the promotion of good governance and improvement in the living condition of Nigerians. Before this momentous saga began to unravel, it was estimated that government’s pension liabilities were over N2trillion, a mind bogging figure. By tackling it head-on, the Yar’Adua administration is making a loud statement of prioritizing the welfare of the citizenry ahead of bureaucratic red tape and paucity of funds adduced as reasons for past failures.
The exercise began with the settlement of arrears owed disengaged workers of the defunct national carrier, Nigeria Airways. Over 4000 pensioners in this category shed tears of joys when they were handed over their well deserved but long delayed checks. A spokesman described it as the happiest day of his life. Several thanked the President and officers of his administration for their courage and commitment to the welfare of retirees.
The Military Pension Board on January 14 2008 flagged off the first phase of the payment of the estimated N2billion pension and arrears and gratuity owed military pensioners and next of kin of the departed.
Chairman of MPB, Brigadier General Bitrus Kwaji said the exercise was to ensure that officers and men, ratings, airmen, discharged soldiers as well as next of kin of deceased personnel who have not been on the payroll of the board but have attended the NAFRC 1 of 2007 at the Army Resettlement Centre in Lagos receive their entitlements.
On the list of recipients included are the 64 ex-officer who fought on the side of Biafra during the country’s civil war, next of kin of deceased senior officers and aircrew members who lost their lives in the ill-fated military plane crash, Dornier 228 of September 17 2006 in Benue state and all other military pensioners with genuine outstanding pension arrears.
The payments came with an assurance that medically boarded ex-soldiers long excluded from the military pension scheme will enter the payroll from next February.
Defence minister, Alhaji Yayale Ahmed who graced the payment exercise alongside service chiefs said the payment was as a result of President Umaru Musa Yar’Adua resolve to settle all outstanding pension arrears and ensure a stable and good quality of life for military pensioners.
The Defence minister noted that the process for the payment of retirees has been simplified by the MPB and called on beneficiaries to furnish the board with their respective bank details to enable it service the accounts for their monthly entitlements.
On the inclusion of ex-officers who fought on the Biafran side during the civil war, Alhaji Yayale said the event marked the culmination of the reintegration process that started “the very moment the civil war ended”.
General Kwaji in his remarks observed that “it is the resolve of the board to make life better for our senior citizens by ensuring that all of them have access to their monthly pension without stress from this year, adding “this is the least we can do for you”.
Simultaneously the Presidential Task Force on the Payment of Police Pensions has been issuing out gratuities and pension to retired police officers and next of kin of deceased officers and men. Various payments were made to beneficiaries depending on their qualification. A retired Chief Superintendent of Police for instance was paid N2.5million, while an Inspector was paid N800,000.
After years of painful search for the right formula and years of agonizing wait for entitlements the Nigerian pension system has become a remarkable success story.
Currently there sits a national Pension Commission responsible for managing the collection and payment of pensions to retirees. The scheme is a contributory one with strong private sector participation. A worker contributes contributed 71/2 percent of his monthly basic while his employer, private or public, contributes 71/2percent, totaling 15percent to a fund managed by a licensed Pension Funds Managers. Members of the Armed Forces contribute only 21/2 percent while their employers pay in 121/2percent, bringing their total to 15percent as well. So far over N600billion has been contributed to the fund meaning that the future of pensions in Nigeria is strong and stable, nothing to worry about. By the time the various agencies complete the documentation and harmonization of the identities of beneficiaries, the process of paying pensions and gratuities would become easy and workers would genuinely look forward to retiring from active service.
The Yar’Adua administration has also fulfilled its pledge to pay Nigerian workers the 15percent salary increase negotiated between the leadership of organized Labour and the previous government. Arrears of the increase have been accommodated in a supplementary appropriation budget passed by the National Assembly and payment effected in nearly all Federal Government offices.
Members of the Armed Forces and the Police have also had their emoluments revived upwards in recent weeks to underscore the administration’s determination to improve the living conditions of the Nigerian family through empowerment of the worker.
Concurrently government is pursuing a vigorous poverty alleviation and wealth creation strategy aimed at empowering people outside public service employment and boosting national productivity.
© Copyright 2006 nigeriafirst.org
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