•quiz FCT pension board chair over extra-budgetary expenditure
The House of Representatives on Wednesday unveiled plans to investigate the failure of the six area councils to remit their pension contributions to the FCT area council staff pension board.
The resolution followed the adoption of a motion initiated by members of the House Committee on Federal Capital Territory (FCT) Area Councils and Ancillary Matters, chaired by Hon. Fred Agbedi.
Speaking during the 2024 budget performance and 2025 budget defence, Director, FCT Area Council Staff Pension Board, Mr. Suleman Abdulrahman, expressed grave concern over non-compliance with extant financial regulations.
While noting that the remittances were not frequent, Abdulrahman said: “By law and according to the Pension Reform Act, each deduction from salaries in respect to pension is supposed to be remitted seven days after payment of salary, but unfortunately at the Area Councils that’s not what is happening. Sometimes they owe two to three months before remittance.
“The staff pay their employee contribution which is 8 per cent and 10 per cent for the employer. It is remitted to their PFA accordingly from the Area Councils,” he said.
Worried by the development, Agbedi demanded that the agency furnish it with the records pertaining to the matter.
“Furnish us with the details so we can know why the area councils are defaulting in their remittance.
“Let someone move a motion for us to investigate the discrepancies and delay in area councils remitting because salaries are paid monthly.
“The Committee should investigate the failure of the remittance from the area councils to the pension account,” Agbedi said.
He therefore directed the Clerk of the Committee to write to all the Area Councils to furnish the Committee with up-to-date remittances of pension contributions on behalf of their employees.
Meanwhile, the Committee queried Mr. Abdulrahman on the extra-budgetary expenditure incurred by the Board, above the amount appropriated for in 2024 Appropriation Act.
According to the documents submitted by the Board, the pensioner cost total appropriation was N131,148,262 but it received N151,137,417.
He explained that this was due to variations in salaries as a result of the change in minimum wage.
“The personnel cost of all FCT staff is centralised with the treasury department and you are aware of the recent salary adjustments as a result of minimum wage which increased the total receipt. We are in touch with the treasury department to get the supplementary approval so that we can update our records.
“Principally what we do is that we superintend over pension matters in all the six area councils and LEAs. Payment of monthly pensions and other benefits that accrue to our prospective retirees.
“Our summary of the budget performance for 2024, we had a total of N1.1 billion which was the ceiling, which consists of the recurrent, the personnel and overheard.
“The personnel cost, we have 115 per cent budget performance. The overhead, we have 40 per cent performance, and we don’t have capital projects. It’s just a service organisation on change of monthly pensions,” he said.
In his remarks, Hon. Fred Agbedi said the Committee would embark on budget oversight of all the agencies.
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