Obasanjo commends Ibru panel
From Madu Onuorah, Abuja
PRESIDENT Olusegun Obasanjo has described the irregular or non-payment of pensions as "cruelty to the extreme" as he pledged that the ongoing reforms would redress such problems.
In this regard, he thanked the National Assembly and the Senator Felix Ibru led committee for their patriotism in fashioning the pensions bill, which he signed into law at the weekend.
The President, who spoke while signing the Contributory Pension Scheme bill of 2004, also apologized to all pensioners who have experienced deprivations and pain due to unpaid or irregular pensions.
Obasanjo said the current situation on the Public Service, which he said had ballooned without control, and on widespread corruption and the "erroneous" belief that government money was inexhaustible.
He described the signing of the bill as "evidence that we are building a new Nigeria and that all arms of government are not just working together but they are also committed to change for the better."
According to him, "the level of collaboration, co-operation, 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."
Thanking the National Assembly profusely for their patriotism in the enactment of the bill, the President noted that the executive had learnt a very important lesson - "that no matter how important a Bill is to us and no matter how urgently we want to see it passed into law, there is a process and procedure in the National Assembly that must be respected."
Nigeria, he said, is by this bill, making history in terminating the culture of systematic imposition of pain and poverty on those who have given their all to the nation.
His words: "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 finally 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.
"This is nothing but cruelty to the extreme. The current situation arose largely because the public service ballooned without control and because 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 have a tendency to discourage creativity, originality, hard work and patriotism."
The President said that with the Act, which harmonises public and private sector pensions, workers will have money put aside for their retirement as they receive their salaries on a monthly basis when they retire.
He went on: "Even the self employed will have the opportunity to participate in the new scheme. Essentially, this new reliable, transparent and predictable pension scheme vests control of pension funds in the hands of the pensioner. The pension scheme constitutes one significant plank of our economic reform agenda. And I will like to use this opportunity to, once again, call on all Nigerians to join the reform train."
Obasanjo noted that though reforms come with "short-term unavoidable pains," the "long term gains will be plentiful."
He also noted that after eliminating all the corruption and malpractices, pension would be paid as and when due in the transition period before the contributory scheme comes on board.
The President added: "There is still the lingering issue of pensions arrears. During the transitional period, the issue of arrears will require us to come up with a viable strategy and policy that will make those who are owed arrears of pension to be assured that they will get paid. Let me extend my apologies to all pensioners who have experienced deprivations and pains on account of unpaid or irregular payment. Be rest assured that a strategy will be developed to deal with the legitimate and verified arrears."
