The Anambra State Government has initiated an investigation into missing pension funds for local government employees and primary school teachers.
The probe comes after it was revealed that deductions made from these workers’ salaries between July 2014 and 2018 were not remitted to their Pension Fund Administrators (PFAs) as disclosed by the Head of Service, Mrs. Theodora Igwegbe, during a workshop on the Contributory Pension Scheme held in Awka, organized by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC)
She reassured attendees that the government is committed to recovering the unremitted funds. “The governor has set up a committee to look into this issue. I assure you, once the investigation is complete, the funds will be recovered and returned to the PFAs,” she stated.
Mrs. Igwegbe further noted that the state government did not suspend the pension scheme. However, between 2018 and 2022, the government failed to meet its obligation of paying its counterpart contribution of 10% to the PFAs.
“The governor has since directed the Accountant-General’s office to resume the payments, and currently, the state government has no outstanding debts to the PFAs regarding its contributions,” she clarified.
She also emphasized that the problem primarily lies within the local governments and primary schools, which is why the ongoing investigation is focused on discovering what happened to the unremitted funds.
In addition to addressing the missing contributions, Igwegbe mentioned the need to amend the state’s Pension Reform Law. “Anambra enacted its own Pension Law in 2013, but there are defects. The law will soon be reviewed to align with federal legislation for smoother implementation,” she added.
Mr. Princewill Onwuka, Regional Manager at Access Pensions Ltd., advocated for the establishment of a pension board or commission in the state. “A pension board would centralize and streamline the management of pensions, ensuring that all issues are dealt with efficiently,” Onwuka said.
NLC Chairman, Mr. Humphrey Nwafor, who also spoke at the workshop, underscored the importance of educating workers about the contributory pension scheme to ensure they understand their rights and entitlements.
What you should know
- The Nigeria Union of Pensioners (NUP) has revealed that some retirees in the country are receiving as little as N500 to N3,500 per month, underscoring the severe financial hardship faced by many pensioners.
- This issue is particularly dire in several southern and oil-producing states, despite their large allocations from the federation account.
- On the other hand, pensioners in some northern states and the Federal Capital Territory (FCT) fare slightly better, receiving between N3,500 and N18,000 monthly.
- Kaduna State stands out with a minimum pension of N30,000, set in 2020 under former Governor Nasir El-Rufa’i.
