- Adopts CPS, which is rejected by workers
- Retirees cry over unpaid 8 years pensions, gratuities
Ben Eguzozie in Calabar
Governor Bassey Otu of Cross River State (CRS) says the state under his management is passionate about using technology in governance for maximum performance and results. To this end, he said his government has avowed commitment to effectively key into digitalisation for optimal service delivery.
A major plank of this is the e-government, where all government activities are driven by digital platforms. As a result, the governor talked about quickly digitising the state’s contributory pension scheme (CPS) under National Pension Commission (PenCom); seeing that its benefits far outstrip the current manual-driven analogue system.
The governor told participants at a programme in Calabar on the benefits of implementing the CPS, organised by the Ministry of Establishments, Training and Pensions, that injecting modernity in the pension management in the state was sacrosanct in order to remove all the encumbrances associated with the old scheme.
Cross River’s pension scheme has been quite problematic, no different from many of Nigeria’s sub-nationals. Pension in Nigeria is a corruption conundrum. Billions of naira kept to pay pensions are regularly syphoned by those charged with paying the money.
Last year, the state’s pensioners union, Eyo Eyo cried out how they were owed their gratuities and pension benefits for eight years, under the outgone Ben Ayade administration. He said they received their last payment in 2014. The former clearly failed to fulfil his promise of setting aside N50 million monthly to offset pension debts.
Only last Wednesday, October 25, hundreds of the state’s serving workers rejected outright the contributory pension scheme (CPS) just adopted by Governor Otu, claiming that the state government did not follow relevant sections of the pension law before adopting the scheme.
Greg Olayi, Ogbodum Akan and Raymond Afu, chairmen of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Joint Negotiation Council (JNC) in a communiqué issued in Calabar last Tuesday, said, “the workers unanimously rejected the proposed contributory pension scheme pending proper discussions with relevant organs.
“We relied on the provisions of section 5(2) of the Labour Act. Cap L1, Laws of the Federation of Nigeria 2004, believing that the Cross River State Government would seek full consent of the Cross River State’s workers before implementing the scheme.”
But Governor Otu has come out to emphasise that the state would not be left behind in the digitisation wind blowing across the world, hence the need to seriously consider the Contributory Pension Scheme as a factor in the welfare of civil servants in the state.
He assured that his administration will domesticate any of the digital programmes that would create an atmosphere of succour to the people against the hitherto laborious and cumbersome manner of pensions management in the state which subjects implementation to be shrouded in secrecy leading to suspicion and uncertainties.
He said that on account of the analogue system with its attendant delays, inordinate coordination and other unfortunate factors where many beneficiaries died untimely without accomplishing their dreams of enjoying their entitlements on retirement, would be made away with soon.
He pointed out that the CPS programme was packaged to sensitise the workforce as one of the processes of considering the implementation of the scheme in the state.
In particular, Lawrencia Ita, commissioner for establishment, training and pensions, said a major trapping of the new programme is the potential of ushering in freshness in pension administration in the state. She recalls the introduction of the smartcard system, which was vehemently opposed, but later became a frame of reference for the country at large. She advised those viewing the proposal from the negative point of view to reassess their stance, and be disposed to modernity and the technological drive of Governor Otu’s administration.
Additionally, Joe Ajaero, national president of NLC had commended the Cross River government for beginning a process loaded with potentials of huge benefits to workers in the state. He advised that stakeholders should, without bias, digest the proposed policy already captured by the federal government; and domesticated in several states of the federation, with huge multi-faceted benefits accruing to the employers and employees.
The director-general of PenCom, Aisha Dahir-Umar, presenting on “Overview of the Contributory Pension Scheme, Challenges and Milestone Achieved”, said the scheme came into being following the colossal failure of the past approaches which became a liability to both government at all levels, and the beneficiaries. This was principally occasioned by uncertainties, insensitivities, inconsistencies and cumbersomeness which led to the death of many retirees.
She said the ugly past in pension management did not have the credibility expected; and therefore, was trailed by tales of woes and ambiguity. “The old system was tied to the annual budgets which in most cases was not realistic, leading to deficits affecting regular payment of pensions; whereas the new system is totally devoid of such uncertainties,” she said.
