•Signs contributory bill
The cloud that hitherto surrounded the fate of millions of Nigerian pensioners was cleared on Friday for the better with President Olusegun Obasanjo signing into law the much awaited contributory pension scheme Act 2004.
Aware of the experience of irregular payment of their pension money deprivations and frustrations that the pensioners have suffered and gone through in pursuit of the payment of their pensions he also apologized to them for their bitter and regrettable experiences.
He described the non-payment or irregular payment of pensions as “cruelty to the extreme” throwing the blamed on the mentality of the Public Service that had an erroneous belief that government money was inexhaustible.
He said: “This is nothing but cruelty to the extreme.
The current situation arose largely because the Public Service ballooned without control, of the belief that government money was inexhaustible and the widespread corruption that we are all familiar with. I can assure you all that this new process will correct these anomalies. Situations of unpaid or irregular pension have clearly encouraged indolence, corruption, divided loyalty and inefficiency in the system. The systematic irregularities and deformities that we are rectifying with this Act also has a tendency to discourage creativity, originality, hard work and patriotism.”
The Act he said harmonises public and private sector pensions, and would compel workers to put some of their money aside for their retirement as they receive their salaries on monthly basis when they retire.
The signing of the bill into law he said was and “evidence that we are building a new Nigeria and that all forms of government are not just working together but they are also committed to change for the better.
The level of collaboration, cooperation, dialogue and understanding that underscored the work on the bill itself is a lesson in the art of political management.
We are building a new architecture of political engagement in the interest of democracy and our people”.
“For the very first time in a long period, we are going to start building up a stock of funds that is not “hot money” that could be available for long term development in agriculture, industry, manufacturing, information technology, mining and infrastructure. In addition, we are firmly set on the path to eliminate the humiliating and embarrassing situation where a worker gives his or her energy, creativity and productivity to the nation in meritorious service and gets to the point of retirement only to find that the pension funds are not just there.
In his reaction to the signing of the pension bill into law, Labour Minister, Dr. Hassan Lawan said: “First of all, I will want to congratulate the Nigerian workers because this a day of victory for them.
The Pension Reform Act removes all the problems the pensioners in this country have been experiencing.
“We are all witnesses to the experiences of Nigerian workers after they have put in their best in terms of mental and physical energy, intellectual capacity and at the end of the day, a lot of our workers suffer, roaming the streets because we have not been careful.
“But this is a revolution in the era of pension reform. All pensions will be paid as at when due and most of the problems associated with this will be a thing of the past. So, there is no nation that will surpass us in the area of caring for the people who have worked hard for the socio-economic and political development of the country. I congratulate Mr. President.
“Most of the reforms the president is carrying on, people may not realise the benefits now, but they are meant for Nigerians yet unborn. A lot of people are going to benefit from this. Well, I believe this is the only solution to the problem of pension.
Deputy Senate President Ibrahim Mantu who spoke to
state House correspondents said that the bill was a
permanent solution to the problems associated with the
payment of pension in the country. He gave an insight
into the law saying “We increased the contribution
from five to seven per cent for both the employee and
employer. That means 15 percent of your monthly or
annual earnings. This scheme primarily is to protect
the civil servants because the private sector has its
own kind of scheme.
“So, there is no point you have wasted all your years
saving for the rainy day and when the rainy day comes
what you have already saved cannot serve the purpose.
