Retirees under the aegis of the Nigeria Union of Pensioners, Federal Contributory Pension Retiree Sector, yesterday said they are afraid that their pension deductions might have been used for the 2015 general elections.
Addressing a press conference in Abeokuta, Ogun State, the union’s National Chairman, Samuel Kojusola, explained that members who retired since August 2014 were yet to receive any entitlement.
Kojusola also alleged that the National Pension Commission, PENCOM, has not been complying with pension administration which stipulates not less than 50 percent of last pay as at time of retirement as monthly pension.
Instead, according to him, contributory pensioners have been receiving only 20-25 percent of their last salary.
The union also alleged that the Federal Government must have borrowed their money to pay serving workers’ salary “since the Coordinating Minister of the Economy has come out to say they borrowed money to pay the workers.”
He asked why PENCOM would refuse to pay their entitlement while it claimed to have over N4trillion in its kitty.
Kojusola said: “Retirees have been complaining seriously on meagre amount paid as monthly pension either as monthly withdrawal or annuity. Contributory pensioners received only 20-25 percent of their last salary as monthly pension, while the pensioner in the old scheme are paid 80 percent.
“Pension Reform Act 2004 section 4(c) stipulates that retirees will have not less that 50 percent of their last pay as monthly pension as at the date of their retirement. None of the retirees enjoy this amount since the inception of the Act till date.
“It is very disheartening to confirm that workers who retired under the Contributory Pension Scheme since August 2014 till date in the country are yet to have their lump sum or monthly payment settled by National Pension Commission.
“What do they want the retirees to be eating after serving Federal Government of Nigeria for 35 years meritoriously? We suspect that our money in the kitty of PENCOM has been used for 2015 campaigns,” he said.
The union observed that the Act 2014 was enacted to further compound the problems of retirees who had spent the better part of their prime to serve their fatherland.
It further called for a review of the scheme to be limited to workers engaged from 2004 till date, saying that those engaged under the old scheme should be reverted to the old scheme.

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