Ogun workers reject full implementation of contributory pension

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3 days ago

The Organised Labour in Ogun State rejected the full implementation of the Contributory Pension Scheme, which began on July 1 for the workers in the state government.

The rejection of the contributory pension, according to the workers, was because the Ogun state government had failed to remit over N82 billion that had been deducted from workers’ salaries.

This was disclosed at a press conference addressed by the State Chairman of the Nigeria Labour Congress (NLC), Comrade Hammed Ademola-Benco, on behalf of the organised labour which had in attendance the State Chairman of the Trade Union Congress, Comrade Akeem Lasisi and the State Chairman of Organised Labour, Comrade Isa Olude, at the NLC Secretariat, Abeokuta.

Ademola-Benco said the state government is not fully prepared to deliver on the expectations of the CPS, hence the need for the government to put the scheme on hold until all administrative and financial necessities are in place.

The Labour Unions noted that there are many inconsistencies in the implementation of the Ogun State Pension Reform Law 2008 (amended 2013).

Some of the inconsistencies highlighted are non-existent of the State Bureau of Contributory Pension; non-existent of the mandatory Contributory Pension Board; non-existent of comprehensive register, and, or database on Contributory Pension; non-existent of actuarial valuation of past services of all public servants.

Others were non-existent mandatory life insurance policies for workers supposedly on Contributory Pension Scheme; non-remittance of over N82 billion deducted from workers in the last 17 years to Pension Funds Administrators (PFAs) and non-remittance of N82billion in the last 17 years as the state government counterpart fund to PFAs.

While contributing, Comrade Lasisi, said the Contributory Pension Scheme had failed from its conception, noting that the government had violated the Pension Law.

He said, “There is no doubt, that, workers in the State have contributed immensely to the development of the State. It must be placed on record that the Contributory Pension Scheme failed right from its existence. It has failed its objective. The organised labour is calling for the review of the Pension Law Government should cancel the policy.”

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