Reps mull legislation to exempt NASS workers from contributory pension scheme

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3 years ago

The House of Representatives has passed through first reading a bill which seeks to exempt National Assembly’s workers from the contributory pension scheme.

The private member bill sponsored by Hon. Olododo Abdulganiyu seen by Nigerian Tribune further seeks to establish the National Assembly Pension Board.

The proposed legislation seeks to amend the Pension Reform Act, 2004 by amending section 5(1a) of the Principal Act and inserting the words ‘the National Assembly Service’ to read as follows: “The categories of persons exempted from the Contributory Pension Scheme are: the categories of persons mentioned in section 291 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), members of the Intelligent Community and the National Assembly Service personnel.”

Clause 2 of the bill also seeks establishment of the National Assembly Pensions Board for personnel of the National Assembly Service which shall be charged with the responsibility of managing the payment of pensions and gratuities to all personnel of the Service.

As proposed by Hon. Abdulganiyu, the legislation shall “apply to all personnel of the Service including those who had retired before the commencement of this Bill.

“The retirement benefits of personnel referred to in subsection (2) above shall be adjusted to be commensurate with the provisions of this Bill.”

As encapsulated in the bill, the Board shall consist of: the Clerk to the National Assembly; Clerk of the Senate; Clerk of the House of Representatives; Secretary (Human Resources), who will serve as the CEO; Secretary to the National Assembly Service Commission; and Secretary, Finance and Administration.

On the computation of pension or gratuity, Clause 4 provides that: “any pension or gratuity payable to any person under this Bill shall be computed in accordance with the provisions of the Service’s Regulations.

“In computing pensionable service and qualifying service for the purpose of this Bill, any period of service over six months and not included in a completed year shall, for the purpose of the schedule to this Bill as it relates to personnel entitled to a pension, count as one year.”

Clause 5 of the proposed bill also provides that: “There shall be charged on and paid out of the Consolidated Revenue Fund of the Federation, all such sums of money as may, from time to time, be granted by the Federal Government by way of pension and gratuity in accordance with this Bill.”

ALSO READ FROM NIGERIAN TRIBUNE

On the circumstances in which pension may be granted, Clause 6(1) stipulates that: “No pension or gratuity shall be granted under this Bill to any personnel except on his retirement from the Service in any of the following circumstances – after serving for 40 years or attained the age of 65 years, whichever is earlier; upon voluntary retirement after serving for not less than 10 years; upon compulsory retirement under the provisions of Section 5(1) of this Bill; upon compulsory retirement for the purpose of facilitating improvements in the Service, so that greater efficiency or economy may be effected; at any time on medical evidence to the satisfaction of the Medical Board that he is incapable by reason of any infirmity of mind or body of discharging his duties and that such infirmity is likely to be permanent;

It further provides that: “on voluntary withdrawal after having put in not less than five years but less than 10 years continuous service as a personnel: provided that – in respect of paragraphs (c) to (e) above, if the personnel has served for not less than five years but less than ten years before his retirement, he shall be entitled only to a gratuity as specified in the appropriate column of the Table in the Service Regulations;
(ii) if the personnel has served for a minimum of three years but less than five years before he is required to retire, he shall be entitled to an ex-gratia gratuity calculated on pro-rata basis at the rate of-ten percent for every completed year of service.

“Where a personnel retires pursuant to subsection (I) (i) above – if he has completed five years but not up to 10 years in service, he shall be entitled only to a gratuity; if he has served for not less than ten years, he shall be entitled to a pension; If he is required to retire after ten years qualifying service pursuant to the provisions of paragraphs (c) – ( e) of subsection (1) above, he shall be entitled to pensions immediately on retirement even though he has not attained the age of 45 years.”

On the compulsory retirement and retirement on compassionate grounds, Clause 7 provides that: “It shall be lawful for the Board to require a personnel to retire from the Service at any time after he has attained the age of 45 years subject to three months’ notice in writing of such requirement-being given to the personnel.

“A personnel may, on compassionate grounds, be allowed to resign, withdraw or retire from Service, as the case may be, in accordance with the Service Regulations.”

On the minimum and maximum pension, Clause 8 provides that: “A pension granted to a personnel or other rank under this Bill shall not be less than 40 percent of his total emolument. For the purpose of this section, an additional pension granted in respect of injury shall\or be taken into account; but where the personnel is granted such an additional pension under this Bill, the amount so granted together with the remainder of his pension under this Bill shall not exceed one hundred percent of his highest pensionable emolument at any time in the course of his service.”