The Nigeria Labour Congress (NLC) has said pensioners are suffering because of the inability of the Federal Government to remit accrued pension funds of its retirees under the Contributory Pension Scheme(CPS), which came into force in 2004.
It warned that the future of the CPS was under threat if the government did not move fast to remit the cash.
Speaking at the congress of the Nigerian Union of Pensioners (NUP), NLC President, Ayuba Wabba, said the CPS was being threatened by the non-compliance of its major stakeholders, especially employers.
He decried the prevailing situation whereby retirees under the scheme suffer alot of hardship to access their funds.
According to him, if the challenges in the scheme were not addressed, the scheme would hit the rocks soon.
Ayuba said: “Issues of payment of benefit in Nigeria have become a nightmare. This needs to be addressed.”
NUP President, Dr. Abel Afolayan, highlighted some of the challenges confronting the scheme.
He said the failure of the Federal Government to release funds had made pensioners to suffer deprivation, lamenting that no retiree had been paid since October 2015.
Many next of kin of deceased pensioners, he said, had not been able to access the entitlements of their relations, and that this has made life unbearable for the beneficiaries.
He said: “Many organisations of government and employers have been defaulting on the regular remittances of contributions of workers to their pension fund administrators; this is affecting the philosophy of the scheme.
“Non-compliance with Section 173 (3) and Section 210 (3) of the 1999 Constitution (as amended) and section 15 of the 2014 Pension Reform Act (as amended) stipulates that pension shall be reviewed after every five years or whenever workers salaries are reviewed, whichever one that is earlier. Non-compliance with the provisions of this law by government has made the contributory pensioners lose 15 per cent pension increase of 2007 and 33 per cent increase in 2010.”
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