Wednesday, 6 April 2016

For federal retirees, rest is bitter after labour


Some unpaid federal retirees
The slogan: ‘rest is sweet after labour’ is not applying to many erstwhile government workers, who served the nation meritoriously in their prime but have now retired into penury and hardship as a result of haphazard or non-payment of their pension stipends, NIKE POPOOLA writes
Neglected after service
Abraham Adigun, 70, used to work in the Federal Ministry of Works until his retirement nine years ago. In June 2015, he left his home in Osun State for the Pension Transitional Arrangement Directorate in Abuja to seek solution to the problem he encounters every month with regards to the payment of his pension.
The payment of his pension stipend was stopped in 2010 without any explanation. The PTAD is currently in charge of the payment of pension benefits to former Federal Government civil servantswho retired from service before 2007 when a new pension scheme was introduced. This old man had been weakened by illness but had to fall back on a reserve energy that even he could not explain where it came from to embark on the risky road journey to Abuja since he could not afford any other means of transportation.
Adigun had torely on a walking stick on which he balanced his gaunt figure as he entered the pension office to lodge his complaint.
“I was employed and posted to the Ministry of Works in 1980 and retired in 1998, after which I got my gratuity and the payment of my pension stipends commenced. But in 2010, my name was removed from the payroll for no reason and I have been lodging complaints ever since.I have been asked to fill several forms,yet my money has not been paid,” he explains while wiping his brows with his right palm.

While pleading with the officers he met at the PTAD office to pay what rightly belongs to him, he says life has been very difficult for him because he can no longer afford to eat good foods and pay his medical bills. The officers who attended to him in PTAD gave him a complaint form to fill. They obtained all his details and made a promise that his pensions would be paid the following month.
This was just their polite way of sending away the senior citizens any time they approached the office with their worries. Five months after, Adigun’s pensions have still not been paid. Frustrated and looking dejected, Adigun travelled from his base in Osun State to the headquarters of The PUNCH in Ogun State to express his pains. He produced copies of the complaint form that he filled at the PTAD office.
“I am suffering because I have not been paid for five years and I am very poor; I don’t want to die without getting my benefits. I have come to tell the whole world that I will travel to the PTAD office in Abuja again; and this time, I will not leave them until they pay me all my pension arrears,” Adigun says while unsuccessfully fighting back tears.
Adigun is not the only one suffering as a result of unfulfilled promises made to the retirees while they were young and in active service of the Federal Government. Legally, the Pay as You Go Pension Scheme entitles them to lump sum payment known as gratuity when they retire, after which they are to be placed on monthly pension stipends until they die. Unfortunately, this has not been their experience.
The National Union of Pensioners says that contrary to its motto that ‘Rest is sweet after labour’, rest is actually bitter after labour for its members. “Unfortunately, it is a curse to serve the government and retire in Nigeria because Nigerian pensioners begin their journey to sorrow, hardship and suffering after retirement,” an official of the NUP says.
Many senior citizens, who served the country in their active days, have been neglected with many succumbing to death early because they were denied their pension benefits. Their inability to eat good foods and pay their medical bills seemingly pushed them to their early graves. In the developed countries, retirees are entitled to lots of social benefits such as free health care and free transportation, among others.
The Nigerian pensioners are not asking for such privileges; they are only asking to be paid their pensions, which they say rightly belong to them. It is worthy of note that yearly, the Federal Government makes financial provisions running into billions of naira for pension payment, but these funds are often siphoned by those handling pension matters.
Over the years, the pension data had been distorted to make it impossible to have accurate information on retirees in the country. While this and other worrisome practices have been on for decades under successive pension regimes, the perpetrators of the fraudulent acts have not been made to face the consequences of their actions.
Unpaid retirees
Eighty-four-year-old Dr. Philomena Odunsi retired in 1994 and was being paid her pension stipends regularly until October 2009 when the payment of her entitlements was stopped. “I did so many verifications with the government and I have been attending pension meetings regularly but I have still not been paid a dime,” she laments. While displayingher bank statements as evidence that she has not been earning pensions, Odunsi complains of lack of money to eat adequately, feed and maintain herself.
Mr. Olasoji Kabiawu, 74, worked in the Survey Division of the Federal Ministry of Works before he got blinded. “I retired in 1999. In 2012, they paid half of my gratuity but since then, I have not been receiving monthly pensions,” he says sombrely. He discloses that he is diabetic and is finding it extremely difficult to pay his medical bills, adding that his landlord has ejected him due to his inability to pay his rent.
Mr. Tabi Andrew, 80, who retired from the Federal Ministry of Works and Housing in 1990, has a similar tale to tell. “They paid me gratuity in 2010 and stopped paying me pension stipends in 2011. I have done several verifications and travelled to Abuja several times yet, I have not been returned to the payroll,” he explains. Andrew laments that life has been difficult because his four children are jobless graduates.
Mr. Tajudeen Alimi, 76, joined the Ministry of Defence in 1968 and retired in 2003. “I collected my gratuity in 2003 but I have not been receiving pension up till now. In 2010, I went to Abuja to complain and they promised to pay but they have yet to fulfil that promise,” he says ruefully.
Mr. Fidelis Akhirebhulu, 74, retired in 2002 from the Federal Ministry of Works and Housing and got his gratuity four years after. However, he has not been receiving his monthly pension stipends. He appeals to the Federal Government to come to his and his colleagues’ aid as they are now seeing the other side of life. “I have no money to treat myself. Is it when all of us die that they will remember us? A hungry man has no friend at all,” he says amidst sobs.
Both Mrs. Olubunmi Williams, 57, and her 73-year-old husband retired from Federal Ministry of Information. “I received pension last in 2010. They are not paying me and my husband pension stipends again; we are only surviving by the grace of God,” she explains.
Fifty-year-old Mrs. Alice Olatunji old retired in 2006 and got her gratuity a year after. “For nine years now, they have not been paying me pension. I beg the government to pay my pension arrears,” she pleads.
Mr. Mojeed Oloro, 80, is sick and cannot walk without assistance. He wife explains that he retired from the Office of the Head of Civil Service of the Federation and has not been paid for eight years.
Mr. Ganiyu Fatai, 63, who retired in 2006 from the Federal Ministry of Youth and Sports, is lucky to have children who are old and caring enoughto help him in his hour of need.
Mrs. Are Safuri, 80, retired from Ministry of Defence in 2005. She says, “After paying the gratuity, the government owes me lots of money, because they have not paid me a dime as pension.”
Mrs. Gladys Aberdeen, 82, retired from the federal civil service in 1979 and her pension was stopped in 2010. While presenting her bank statements, she says she now depends on her children to survive even when she doesn’t want to bother them with her expenses. “They were paying me pension but it became irregular in 2000 before they finally stopped paying me since 2010,” she notes.
Lingering problems
According to analysts, the way the vulnerable old citizens are treated by the government reflects the low value that is placed on human lives in the country. Some of the problems confronting the Nigerian pensioners include non-payment of gratuity and pension, and omission from and arbitrary delisting of retirees from the payroll. Even those on the payroll are not happy because their pensions are not regular and many of them are being short-changed.
The frustrated former workers in different parts of the country have formed associations to fight their cause by coming together to pray for God’s intervention, regularly fill forms and take their complaints to the PTAD.
While addressing some the pensioners at a forum in Lagos, the National President, NUP, Dr. Abel Afolayan, highlighted some of the problems of federal retirees to include non-payment of gratuities of pensioners from 1976 to date, short payment and sudden stoppage of monthly pension stipends without reason.
“There’s breakage of pension payment to some pensioners since November 2012,” he says, while lamenting the non-payment of deceased pensioners’ benefits to their next of kin as well as non-compliance with the constitutional provision of increase in pension allowances.
Afolayan is worried about the non-payment of the pension in May 2004 of federal retirees in seven states by the defunct City Express Bank, which was taken over by United Bank for Africa Plc.
Failed pension reforms
Despite different legislative reforms introduced over the years aimed at correcting the abnormalities in the Federal Government’spension scheme, it is sad to note that things have not worked for the retirees. Some pensioners on the payroll earn less than N1,000 a month, an amount that is not enough to feed a dog for a week. Prior to 2002, the Federal Government used to release money to some state governments on quarterly basis to settle their pension commitments. However, since the payment of the federal share of pension, which used to be the duty of the state governments, was transferred to the office of the Head of the Civil Service of the Federation, the problem has worsened for the retirees.
According to the NUP, pensioners who used to collect their stipends through the community banks were asked to open new accounts with approved banks in the country. After complying with this instruction, the pension stipends of this set of retirees have not been paid since 2005.
Frail pensioners from different states of the federation have had to risk their lives on travelling on bad roads to get to Abuja in order to lodge complaints with the appropriate authorities, which are never addressed.
In 2010, there the government initiated another reform of the pension scheme for its workers when a former Head of Civil Service of the Federation, Oladapo Afolabi, inaugurated the Pension Reform Task Team to be in charge of pension payment. The PRTT, which was headed by Abudulrasheed Maina, employed a different approach to addressing the lingering challenges.
According to him, there was a need to first sanitise the system because it had been observed that the structure of the pension department was porous, which allowed the fund managers to steal monies meant for the pensioners. The PRTT also noticed that pension managers were swindling the system of several billions of naira.
Maina got money from the Federal Government to conduct a general verification of the retirees. Unfortunately, the result of the biometrics verification was inconclusive and was never made official. While sanitising the scheme, he claimed to have uncovered and deleted 73,000 bogus pension accounts, which were opened by government officials in two pension departments.
According to Maina, the PRTT traced and cracked down pension cartels in different parts of the country, thereby, stopping the stealing of billions of naira meant for pensioners on a monthly basis. Despite the measures introduced by the PRTT, the pensioners’ suffering did not subside.
Endemic corruption
The plight of pensioners in the country has not given hope to workers who are still in active service. The workers have the fear that they may not be paid their pensions when they retire. This pushes them to steal government funds when they have access to them. The system is structured in a way that allows misconduct to go unpunished, especially when it is committed by influential people.
For instance, the PRTT tendered a charge sheet to the Senate Committee on Pensions with over 140 counts against 32 persons who were allegedly siphoning billions of naira meant for pension payment. It claimed to have discovered that 44,320 out of the retirees were not on the payroll and recovered about N221bn from pension thieves.
A major worry is that those who were accused of stealing funds meant for the payment of pensions are still walking freely. An example is a former Director, Police Pension Office, Mr. John Yusuf, who was charged with pension fraud. The Federal High Court sentenced him to two years’ imprisonment on each of the three counts preferred against him for conniving with some others to defraud the pension office of N27bn. The convict was given the option of paying N250,000 on each of the count and he promptly paid N750,000 and walked away. The system has thus continued to breed corruption in the society.
New pension directorate
As the pension problems did not get better under the PRTT, the team was dissolved and the management of the scheme was returned back to the Office of the Head of Civil Service of the Federation in 2012. A year later, a new body was set up, which derived its legality from Section 30 sub-section (2) (a) of the Pension Reform Act, 2004. The PRA 2004 had stipulated that all pension affairs should be consolidated under the National Pension Commission, but the law was ignored because of the corruption spree in the system.
The then Head of Civil Service of the Federation, Alhaji Goni Aji, decided to give effect to the legislation. Subsequently, the Federal Government transferred the management of the pension scheme from the OHCSF to the Pension Transitional Arrangement Directorate and released N500m to the directorate to set up its operations. Ms. Nellie Mayshack was appointed to head the new office.
Mayshack says the PTAD has improved the monthly pension payment by ensuring prompt and electronic payment through the Government Integrated Financial Management Information System, as well as unveiling a mechanism for tracking failed payment to pensioners. She explains that the directorate has been able to restore the payment of monthly pension stipends to genuine pensioners removed from the payroll and conducted biometric verification of retirees in some arrears.
“The PTAD has also established a robust complaints resolution mechanism; improved its services for pensioners; tackles reported fraud cases in collaboration with the pensioners, unions and agencies, such as the Economic and Financial Crimes Commission,” she explains. The directorate, she adds, has digitalized pension payment and improved understanding and collaboration with the labour and pension unions, banks and other partners.
“Our federal pensioners are most certainly paid their pension very regularly. The records are there for all to see. However, due to the financial situation in the country, our funds are sometimes a little late getting to us but our pensioners are paid up to date,” Mayshack notes. According to her, many of the pensioners are happy with the arrangement and do compliment the PTAD for its zeal.
Gloomy future
Two years after the PTAD started managing the Federal Government’s pension scheme, many pensioners have died while waiting for their rightful entitlements. The retirees are still complaining of non-payment. It makes one to wonder if there can be an end to their suffering.
The Chairman, Federal Concerned Pensioners, Mr. David Adodo, says many pensioners are still not being paid by the PTAD. According to him, many of the retirees are dying because they cannot afford decent living. “We want the Federal Government to intervene and do an overhaul of the pension scheme because we are seriously suffering,” he pleads.
According to him, the lots of pensioners had not improved since it was handed over to PTAD adding that the pensioners are being treated poorly. “There has not been any improvement in our pension payment, even the banks are not paying those on the payroll regularly and the PTAD is not doing anything about it,” Adodo says. According to him, since the PTAD took over the scheme, most of the retirees have been waiting for verification and immediate payment of their pension arrears, which are not forthcoming.
Mr. Enoch Ogundipe, 74, says the payment of his pension was stopped in 2009. According to him, all promises made by the PTAD to the retirees have not been fulfilled. “The PTAD came to us in Lagos in October 2014 and promised that it would pay by December 2014, that our money was safe in the central bank. We have filled many forms and I have travelled to Abuja four times, but all we have been getting from the PTAD are failed promises,” he says regretfully.
Some of the pensioners on the payroll, who made their bank statements available to The PUNCH, explain that the paymentof their pension stipends is usually delayed for months by the different banks handling the payment. They note that whenever they lodge their complaints with the banks, they are usually told that the PTAD is responsible for their not being paid on time.
The pensioners say they are unsure if the PTAD is actually paying the banks or the banks are keeping the pension funds as fixed deposit for the directorate in order to generate profit. If the PTAD pays the banks, it is its duty to ensure that the retirees’ accounts are credited.

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