RIPPLES IN ARMED FORCES OVER PENSION

–NLC plans mass protest against pension scam

 There has been persistent grumblings in the Nigerian Armed Forces, especially among ranks and files, over non-payment of pension arrears from Pension Fund Administrators (PFAs), Blueprint investigations have revealed.

It is alleged that PFAs, that hitherto handled accounts of the armed forces before their exit from the Contributory Pension Scheme (CPS) in January 2012, are yet to refund arrears due to officers and men of the military by some of the PFAs.

A source, who spoke to our correspondent on condition of anonymity, stated that about 30% of the personnel were paid a token amount ranging from N40, 000 to N140, 000 in October/November 2012.

Investigation further revealed that, while the contributions by the armed forces were deducted at source to various PFAs since the scheme started in 2004, the response to refunds has been very slow.

“We are surprised that when 2.5% individual employee contribution was deducted from our salaries to various PFAs, it was done at once. And that has been the case since the beginning of the programme.

“Why is it now difficult for the PFAs to pay us at once? What has been paid is nothing compared to what most of the officers and men have contributed. Even those who have been paid were shortchanged. And we are not happy. We call on Nigerians, especially members of the National Assembly and other stakeholders to come to our aid. You know we cannot go on strike like civilians,” they pleaded

Further investigations revealed that all the registered PFAs are involved in management of accounts of armed forces. A dependable source told Blueprint that, in some cases, officers and men were just asked to pay to particular PFAs based on directive.

For instance, in the army, our source said, it was based on divisions, while that of navy and air force was based on commands. It further added that all the units and formations under I Division, Nigerian Army, Kaduna, was managed by Legacy Pension Manager Limited, Stanbic IBTC handled 81 division, Lagos, while Pensure handled 81 Division, Enugu.

“It is unfortunate that, up till now, companies like Stanbic IBTC, Future Unity Glanvils, Sigma Vaughn Sterling Pension Managers, Pension Alliance Limited and about 15 others have not yet even started paying any of their clients at all talk less of the likely interest for the years under review,” it further added.

A joint parliamentary section of the National Assembly had in 2011 passed a resolution which out rightly removed members of the Nigerian Armed Forces from the practice of ‘Contributive Pension’. Consequently, the Military Services Pay Offices stopped sending the personnel’s contributions to the PFAs.

Based on this, military retirees hitherto under the Contributory Pension Scheme administered by PENCOM were brought back to the Defined Benefit Scheme under Military Pension Board (MPB) with effect from January. 2012.

Meanwhile, the Central Working Committee of the Nigeria Labour Congress (NLC), after its meeting in Abuja has resolved to mobilise its affiliate unions and state councils across the length and breadth of the country over mass corruption in the pension system.

In a communiqué, which was jointly signed by NLC president and general Secretary, Comrade Abdulwaheed Omar and Chris Uyot, the CWC directed NLC affiliate unions, state councils, friends and allies of organised labour to immediately commence mobilisation for the action.

According to the communiqué, “The Central Working Committee of the Nigeria Labour Congress (NLC) comprising, presidents and general secretaries of affiliate unions of Congress met on Tuesday, March 12, 2013, at the Labour House, Abuja, and deliberated on the growing level of corruption and crisis in the pension industry.

“The congress also expressed dismay that the Presidency neither acknowledged the letters nor responded to the issues which leadership of the Congress publicly raised on the plight of pensioners.”

In a related development, a member of the Central Working Committee (CWC) and national president of Nigeria Union of Pensioners (NUP), Comrade Ali Abatcha, in a chat with Blueprint disclosed that the union had to approach the NLC to come to its aid as some of the members have died while awaiting their entitlements.

Abatcha described as unfortunate the billion of naira of pension fund stolen by some individuals and groups, while most pensioners wallow in abject penury, adding, “We are determined to ensure justice for our members who are owed billions of pension arrears”.

Source: Blueprint