Benefit Payment for employees of the Public sector has not been paid for the last 12 Months, (Jan-Dec 2016) this has raise questions as to why the delay with some blaming the Regulator and PFAs, This understandable considering the fact that This are the two stakeholders that having direct interaction with Retirees.
The Pension act is structured in a way that the employee contributes 8% while the employer contributes the remaining 10%, However in the event of an employer defaulting either by delaying or outright failure to pay Then there will be delay in payment at retirement, This is not necessarily the Fault of Pension Commission or PFA which collects the contribution on behalf of the employees, PenCom as an organization do not have outright enforcement Powers and it can only relay on collaboration with other agencies to ensure compliance and even this can only be done to Private organizations in case of Public organizations there is no form of enforcement whatever
In case of delays by the Public sector (Federal Government) there is absolutely nothing that can be done by PenCom or the PFAs apart from continues show of understanding to the Government.
However there is but one Organization that can fight for this National Heroes/Heroines who have served this country for many years some for 35years the ORGANIZED LABOUR they can take up this issue with the Federal Government and ensure its resolved if indeed they have the interest of the workers they represent at heart.
PenCom should also as a Matter of urgency drew the attention of the Federal government to the threat facing the Pension Industry as a result of the delay in paying accrued rights. The Pension Industry as it is today stands out because of its ability to ensure people who retired are paid as at when due and if this benefit is only enjoyed by the Private sector employees then there is no difference between the current and the old scheme.
The Organized Labor in this case NLC and TUC instead of patronizing the government should urgently engage the Federal government to resolve this issue because the outcome is going to be a disaster to not only the Nigerian Workers and the Pension Industry but the Economy (The Pension industry is worth over 5 Trillion mostly invested in Federal bonds).
Another observation by expert in the industry as the fact that the stakeholders instead of fighting to ensure the scheme is bettered is busy fighting for their personal interest and are more interested in fanfares and self-survival.
President Muhammadu Buhari should kindly look into the Pleas of the federal retirees and should raise fund to pay off the 12 Months Backload (It was 14 Months Last week and will be 13 Months in two weeks’ time this is because Nov/Dec 2015 accrued right was only paid Last week and Jan will be added in 2weeks).
Mohammed B.Bello writes on Pensions and contribute this piece from Abuja.
Mohammed B.Bello holds an MSc in Business Administration and has been working in the Pension Industry on and off since 2011.