Do Not Destroy Current Pension Scheme- Sobanjo

DG PenCom, Mrs Chinelo Anohu-Amazu

DG PenCom, Mrs Chinelo Anohu-Amazu

In the last 11 months, the federal government has not been able to remit pension contribution as is required in the new contributory pension scheme. Some states are also said to be owing over 24 months.

This trend in the pension industry has brought back the fears that laced the old scheme experienced by the civil servants and retirees.

Mr Olufemi Sobanjo, who is an authority on pension issues has advised the federal government to look for strategic means to disburse outstanding Pension money as accrued to civil servants in other to avoid mockery of the new pension scheme.

In his words, “What this country cannot afford to do is to destroy the current pension arrangement – the contributory pension scheme, because, we have had a terrible bad experience with government managing pensions.”

According to PenCom, (National Pension Commission)  the Body that regulates the Pension industry “From 2014 to date, there has been a decline in budgetary provision in funding the Retirement Benefit Bonds Redemption Fund (RBBF) account and the remittance of monthly contribution, adding that sum of N20.07 billion is required to pay all outstanding accrued benefits for deceased and mandatory retirees of the Federal Government for the periods October to December 2015 and the sum of N79.16 Billion has been computed as the arrears of 15 per cent pension increase owed to 79,961 Federal Government retirees under the Contributory Pension Scheme (CPS) as at December, 2014”.