Pension: Retired Federal Directors Cry Out Against PENCOM, PFAs

ABUJA, FCT, NIGERIA – Retired Federal Directors on Contributory Pension Scheme (CPS) have cried out over the scheme saying it is a modern slavery tool fashioned to annihilate workers to death in abject poverty.

The association in a statement signed by Lawrence Ojabo , media and advocacy , Technical Team Retired Federal Directors on Contributory Pension Scheme urged the Federal government to stop the scheme.

“Stop the exploitation and rip-off under the guise of managing their benefits and entitlement now! In 2004, retirees were compulsorily asked to join Annuity operated by Insurance company or programmed withdrawal under the Contributory Pension Scheme operated by PFAs under the control of PENCOM.

“By virtue of 2014 amended Act, the narrative of retirees plights under CPS does not change the situation any better.

“The obnoxious CPS denies us having greater share of lump sum after retirement and dispenses a paltry monthly pension to retirees across the board under this scheme.

“Let us make a case study with one of our retiree ordeal in the hands of CPS. I served the Federal Government of Nigeria from July 15, 1981 and retired in July 15, 2016 on salary grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years.

“For all the years I put in, the total balance standing to my credit was #6,745,823.34. Out of this, I was paid a meagre 25% which amounted to #1,686,455.84 while the balance of 75% was greedily retained by PFA for their selfish investment in capital market and other large institution with high returns which is never added to retirees paltry monthly payment while still alive.

“I receive #26,703.15 every month since 2016 till now despite the huge profits declared every year under CPS which can barely buy a loaf of bread at the price of #1000 currently per day for 30 days. The same apply to all our colleagues under this wicked and unfair arrangement.

“This is disappointing in a nation that pride itself as giant of Africa and says in it National Anthem that the labour of our Heroes past shall not be in vain.

“Retirees under this scheme worked for their life- saving benefits while those collaborators under CPS enjoy their hard earn benefits in the name of investing their funds for them.

“At this point, one may ask is 35 years working experience in Federal Service not enough to manage ones entitlement. Or is a 60 years matured retiree unable to handle investment that they are handling and in return give just a little fraction to pacify the starving and financially incapacitated retirees under this unholy CPS?

“This sharp practice must stop and condemned by all Nigerians and those in corridors of powers as it might be your turn tomorrow.

“This enslavement and exploitation must stop. We know how to invest and manage our entitlement for our best interest. The #6,745,823.34 if given to me en bloc will earn me yearly income of 674,582.33 at 10% and #56,215.19 monthly as against the #26,703.15 which I have been receiving as monthly pension for the past 7 years without increase.

“Unfortunately, the sad part of this is that every day prices of goods and services are on the increase unprecedentedly, while workers and retirees under the old scheme – Defined Benefit Scheme had their salaries and pension increased across all levels, we in the CPS are abandoned to our fate. We could not get increase.

“We face the same adverse market condition and inflation yet no one to rescue us from this cruelty by PENCOM and PFAs scam. Enough is Enough. Put an end to the abracadabra you are doing under the guise of CPS. The removal of fuel subsidy recently by the Federal Government has not only increased the hardships suffered by retirees, it has also rendered the paltry monthly pension useless.

“My example above with the #26,703.15 monthly earning in terms of American dollars at current rate of exchange #26,703.15 divided by $750 gives just $35.6 dollars which is a far cry of minimum of $1000 dollars recommended globally moving out of poverty…” the association stated.

They call on workers still in active service to join the crusade against servitude under this retrogressive scheme called CPS. “It is a call to duty by all right thinking Nigerians, the union bodies, the National Assembly, the Presidency, etc to rise and defend the retirees from being short changed by giving a living pension while we are still alive and to save us from the greedy but lucrative business set up by PENCOM and PFAs for their own selfish interest under CPS arrangements and designs.

They called on the President of Nigeria. the National Assembly, Head of service, All relevant workers unions, Minister of Labour and all Federal civil servants to intervene and stop the scheme.