There are many challenges facing us as a nation. One of the most disturbing problems is the plight of pensioners that we see almost on a daily basis. The gory pictures of suffering pensioners collapsing on queues for their meagre entitlements during verification exercises is no longer news. What has been the lot of these special people are the non-payment of their pensions, omission of names from payrolls, under-payment, delayed payment and non-payment of arrears and gratuities.
Retirement, which ordinarily should be embraced with joy, has become a source of sorrow, frustration, panic, agony and replete with fraud. Ironically, the public servant, having put in all his/her life into active service would naturally be expected to be rewarded. His/her immediate returns during service are by ways of salaries and wages while the long time rewards after active service are mainly by pensions and gratuities.
More than anything else, the foremost duty of any responsible government, is to cater for the security and welfare of its citizens. Section 14 of the 1999 Constitution of Nigeria (as amended) provides that the security and welfare of the people shall be the primary purpose of government, despite the jaundiced argument that this provision of the constitution is not justiciable (or enforceable).
No doubt, the old pension scheme has been fraught with some problems, ranging from inadequate funding, leading to incurring of pension liabilities that had made the scheme unsustainable. The Pension Reform Act of 2004 was promulgated that established the Contributory Pension Scheme for the payment of retirement benefits of employees in both public and private sectors of the economy. The Act is a major component of the general economic reforms of the Federal Government, which is aimed at eliminating the challenges that confronted the implementation of past pension policies.
Objectives of the Act include ensuring that every person, who had worked either in the public service of the Federation, Federal Capital Territory or the private sector, receives his/her entitlements as at when due; promoting the framework of uniform set of rules, regulations and standards for the administration and payment of retirement benefits to the public and private sectors. Unfortunately, the Defined Benefits Scheme was described as being poorly-managed, going by an interim report of the Pension Reform Task Team in 2014, which allegedly recovered cash and assets worth over N1.6 trillion. Another demerit is that many private sector employees were not captured under the scheme, as the system is meant to provide full benefits to working people, who retired and applied for benefits at the age of 65 and older or reduced benefits for those retiring and applying for benefits between the ages of 62 and 65.
To improve the scheme, the Pension Reforms Act, 2014 Laws of the Federation, was enacted. It was designed to make the government and workers save up to a given amount of their earnings towards an accumulated funds reserve. Areas of contention still include the failure to harmonise existing beneficiaries under the old scheme with those in the new scheme, failure by the Federal Government and some state governments to remit deducted sums from their workers’ salaries to the PFAs. This trend is more prevalent in the private sector, where many companies do not seem to remit their counterpart deductions to the PFAs, as mandated by the Pension Act.
Benefits of the pension scheme include the availability of huge deposits for bank use through fixed deposits in their coffers. Another is the regular payment of pension entitlements to pensioners. The scheme is also expected to generate over N60 billion in contributions, every year. The use of accumulated funds in individual’s RSAs makes it possible to purchase annuities from insurance companies by providing the needed tonic for businesses in Nigeria. Stock-broking firms equally stand to profit from higher transaction volumes, which the pension funds offer. Mortgage and property development firms are expected to experience greater profits, long-term opportunities for real estates and commercial property.
Despite the financial opportunities inherent in the scheme, the existing system in which basic operations are carried out manually is archaic, manipulative and encourages sharp practices. Of what is the use of the Pension Act, if its regulations can be violated with impunity? Hence, relevant authorities need to urgently address the injustice imposed on pensioners, who are being prevented from reaping where they have sown by a system that is simply not working well. Apart from the agonising experience of pensioners, the situation offers no comfort to workers, who cannot even look forward to retirement with peace of mind. It is a notorious fact that Nigerian workers deteriorate very fast after retirement over lack of care, health issues and uncertainty in what the future holds for them. It is in the quest to safeguard their future that many public servants engage in corrupt practices while in active service.
To revamp and save the system from further decay, those found derailing pension administration should be sanctioned. Apart from the celebrated case of Pension Thief, other offenders have not been known to have been punished. This does not show the strong political-will to put a stop to the impunity. It is becoming clearer by the day that business ventures are badly run by state apparatus because of bad implementation and the lackadaisical disposition to government matters that is seen as nobody’s business. Those in charge of the administration of pensions should be made to remember that retirement will be dawn on them too; sooner or later. There is, therefore, a moral burden on them to adore the elderly and senior citizens, as this is what is obtainable in civilized societies. We can do same in Nigeria, if we are truly ready and committed. Apart from paying them their normal entitlements, reserving of spaces and seats inside buses, trains and aircraft are special ways of showing affection and respect for senior citizens. Free health and social services should be extended to this class of people.
Retirees should not be left to suffer unnecessarily or die in the course of waiting for their legitimate benefits. They have families to cater for and bills to settle. Many of their children are not forthcoming by way of help because they (children) also require assistance to survive because of the biting economic situation. Paying pensioners their entitlements should not be seen as mere favour, burden or liability, as the present arrangement suggests. It is indeed their right. They should, therefore, no longer be treated as outcasts in the land. They are certainly not. Rather, they should be accorded high dignity, respect and total care by both the state and the people. That is what truly we owe our senior citizens.
. Kupoluyi writes from the Federal University of Agriculture, Abeokuta and can be reached via adewalekupoluyi@yahoo.co.uk, @AdewaleKupoluyi.
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