Retirees in Anambra, Ebonyi, and Enugu States have expressed deep frustration over the delays in their pension payments, urging the Federal Government to eliminate the bureaucratic hurdles that hinder timely disbursement for retired civil servants across Nigeria.A recent survey by the News Agency of Nigeria (NAN) revealed that many retirees are facing prolonged waits for their pensions, with some individuals waiting as long as two years after retirement.
Numerous retirees reported receiving only partial lump sum payments—either 50% or 25%—despite having made consistent contributions during their years of service.Highlighting the retirees’ plight, Mr. Julius Okafor, who retired in 2022, shared his ongoing struggles, noting that he has yet to receive his gratuity or monthly pension, reflecting a broader issue faced by many in similar situations.
– A retiree lamented that despite submitting all necessary documents, his pension administrator has not paid him, leaving him reliant on friends and relatives for support, which he finds painful.
- Okafor expressed his frustration, stating that after serving the country for 35 years, he is now living from hand to mouth and called on the government to eliminate bureaucratic hurdles causing delays in pension disbursement.
- Mr. Emmanuel Nwaiwu, who retired in 2024, urged the Federal Government to implement a system that ensures retirees receive their lump sums immediately upon retirement, followed by regular monthly pension payments.- Nwaiwu highlighted the increasing backlog of payments as more workers retire, complicating the payment process further.
- In Ebonyi, stakeholders in Abakaliki have called for an overhaul of the National Pension Commission (PENCOM) to enhance the contributory scheme and address delayed payments to retirees.
- Dr. Mathew Odono, a retired Director of the National Orientation Agency (NOA), expressed concern about the situation, noting that he has yet to receive either his gratuity or monthly pension since retiring in March 2024.a
- Odono stated, “It’s a worrisome situation, I retired in March 2024 and as I am talking to you, I have never gotten a kobo. We applied during the period of retirement but up till today, we have yet to get something.”
- The former Director emphasized the need for the federal government to address the pension issue and overhaul the processes, particularly within PENCOM, to protect retirees.
- Mrs. Happiness Okonkwo, a Legal Practitioner, supported the call for reforming the pension commission and urged a review of the Pension Reform Act, 2024, to secure the future of civil servants.
- Okonkwo criticized the situation, stating it is unjust to withhold individuals’ savings after 35 years of dedicated service.
- Dr. Arinze Udechukwu, Zonal Coordinator of Leadway Pension Administrator, identified the government’s slow remittance of pension funds as a primary cause of the delays.
- Udechukwu explained that under the Pension Act, retirees are entitled to receive a portion of their pension as a lump sum, with the remaining amount distributed as monthly payments.
- He also advised civil servants to proactively join pension schemes that provide guidance on savings and investments to ensure their financial security.
- Additionally, Udechukwu recommended that civil servants learn a trade while still employed, noting that it can be challenging to acquire new skills after retirement.
- Lawyer and rights activist Mr. Julius Ezema has urged the government to require pension fund administrators to process pensions six months before a civil servant’s retirement, ensuring timely payment of benefits.
- Ezema emphasized that timely pension payments would alleviate undue hardship and suffering for retirees, highlighting that many face serious financial difficulties—or even death—while waiting for their entitlements.What you should know:
- In 2004, the Federal Government of Nigeria enacted the Pensions Reform Act (PRA 2004), which introduced the Contributory Pension Scheme (CPS).
- The act made it mandatory for both public and private sector employers and employees to contribute towards the retirement benefits of employees.
- Since the introduction of the pension administration in Nigeria, it has faced challenges such as inadequate funding, poor management, low coverage, lack of awareness, and a weak regulatory framework.
