The Nigeria Labour Congress (NLC) has claimed that the contributory pension scheme introduced by the federal government is pauperizing and killing workers after retirement.
President of NLC, Joe Ajaero, made this statement at a retirement summit in Abuja.
He said the contributory pension scheme has turned out to be a death sentence for many retirees.
The President said the killing pension has many consequences for the behaviour of workers in active service.
Ajaero, spoke at a retirement summit with the theme “Challenges, Strategies, Prospects and Opportunities at Retirement in Nigeria.”
The NLC President expressed worry that most retired members encounter not just health challenges but many other issues leading to untimely death because of the character and nature of the Contributory Pension Scheme, which according to him pauperizes the retirees financially at retirement.
According to him, the pension scheme has fallen short of its fundamental purpose; to provide for workers in their old age.
“Retirement under the present scheme may therefore become a death sentence for many and this has many consequences for the behaviour of workers in active service.
He frowned at the alleged over N360 billion pension arrears the federal government owes its retirees.
He further stated that the medium for storing Pensions which is the Naira has maintained an unstable value and has kept depreciating over the years.
Ajaero, added that only a stable platform that can truly serve as a solid store of value can sufficiently maintain the value of contributions when workers retire.
He added that pensions were meant to offer security and peace of mind, but the contribution pension scheme for many workers is starkly different.
”The federal government is allegedly owing nearly N260 billion in pension arrears, with federal parastatals accounting for an additional N40 billion.
“Some states have arrears stretching up to eight years.
“In the private sector, reports indicate that many companies are in arrears of up to three years, deducting contributions from workers’ salaries without remitting them to the respective Pension Fund Administrators (PFAs).
“In 2021, PENCOM according to its fourth quarter 2021 report, appointed recovery agents realised from 36 defaulting employers N984.23 million, representing N406.42 million as principal contribution and N577.87 million as penalty.
“The Micro-Pensions designed for the informal sector remain inadequately activated, further complicating the financial security of our informal economy workers.
”The non-contributory pension funds are still subject to severe looting by those who are supposed to manage them without consequences.
“The Maina and the former Accountant General issues are still very fresh in our minds,” he said.
(vitalnewsngr.com)
