FG fails to remit N35 billion pension funds of workers, says NLC

The Federal Government has defaulted in the implementation of the Contributory Pension Scheme and failed to remit N35 billion contributions meant for its workers to the Pension Fund Administrators (PFA).

Already, the Nigeria Labour Congress (NLC) has written to President Muhammadu Buhari on this issue being perpetrated by some of the ministries and parastatal agencies and demanded immediate remittance of the funds.

Speaking on Tuesday at the opening session of the National Leadership Retreat of the congress in Calabar, Cross River State, the NLC President, Comrade Ayuba Wabba, regretted that the Federal Government had failed to remit the contributions of both itself as an employer and the deductions from employees salaries to the respective Pension Fund Administrators (PFA).

Lamenting the development, Comrade Wabba said: "Let me address the issues that are important to us as organised labour. First is the issue of implementation of the contributory pension scheme. Comrades would recall that we were persuaded to move away from the defined benefit scheme, which was operational in the entire public service of the federation, to the new contributory scheme, in which the workers also contribute part of their monthly salary to fund the new scheme, because of the unavailable funding of the old scheme.

"Eleven years into the operation of this new scheme, and with last year's review of the Pension Reform Act, it has only recently come to our attention that even the Federal Government is not keeping to the letters of this contributory pension scheme, as it has so far failed to remit the contributions of both itself as an employer and the deductions from employees salaries; both totaling N35 billion, to the respective Pension Fund Administrators.

"We have written to President Buhari to draw his attention to this illegality and request him to direct the affected ministries, agencies and parastatals, to immediately remit these funds without further delay to the respective PFAs."

Besides, the NLC president also said the National Executive Council of the congress has received reports about a number of states being in default in the payment and remittance of workers pension deduction and the mandatory employers' deduction, which is referred to as matching fund.

He said the congress leadership, being mandated by the NEC, will soon mobilise workers to ensure that the arrears of workers' salaries, allowances and pensions are cleared by the affected state governments.

He pointed out that the Federal Government too cannot afford to be listed as among the debtors, urging it to rather lead by example.