The Kaduna State House of Assembly has passed a bill into law that allows retirees in the state to access 25% of their retirement benefits, even if the state government has not fully made its contribution.
The law aims to address the financial hardships faced by retirees, who previously could not access their entitlements until the state government’s contributions were confirmed.
The bill, sponsored by Ali Kalat, a member representing Jema’a Constituency, was approved after a report was presented by Emmanuel Kantiyok, Chairman of the Joint Special Duties and Judiciary.
Speaker Yusuf Dahiru led the passage of the bill.
Kantiyok noted that the new law would provide significant relief to retirees who have long struggled to access their benefits
“We have made it easy for the retirees to, at least, access 25% of their benefits irrespective of whether or not the state government has paid its share. The retirees in Kaduna state can heave a sigh of relief,” he stated.
Previously, retirees had to wait until the state government had made its contributions before they could access any part of their entitlements.
With the new law, they can now access a portion of their benefits without having to wait for the government’s share.
Improving retirees’ welfare
The bill was introduced by Kalat due to the poor conditions faced by many retirees in the state. Expressing his satisfaction with the passage of the bill, Kalat urged the state government to expedite its payment of retirement contributions to ensure that retirees can access their full entitlements.
“I am happy that the bill has been passed into law. The poor condition of retirees in the state was what prompted me to sponsor this bill. I urge the state government to hasten the payment of its share of the retirement contribution,” Kalat said.
Retirees present at the Assembly expressed their appreciation for the law. Idris Danasabe, Public Relations Officer of the National Union of Pensioners, Kaduna Chapter, emphasized the long service many retirees had given to the state, only to face financial hardship upon retirement.
“Many of us spent 35 years in service, but we were left to languish in poverty and hunger. This law now allows us to access what we have contributed, and we are very happy,” Danasabe said.
The new law is seen as a significant step toward improving the financial welfare of retirees in Kaduna State.
What you should know
Retirees across Nigeria have expressed frustration over delays in receiving their pensions, with some waiting for up to two years after retirement.
- Many retirees report only receiving partial lump sum payments despite making consistent contributions throughout their careers.
- There have been increasing calls for the federal government to address the bureaucratic obstacles that are causing these delays.
- Many stakeholders are urging for an overhaul of the National Pension Commission (PENCOM), as the delays continue to create significant hardship for retirees.
- In response to the growing concerns, the Federal Government has announced plans to begin addressing the pension backlog for retirees under the Contributory Pension Scheme (CPS) starting next week.
- Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun emphasized the government’s commitment to making pension payments with available funds from the current budget.
- He acknowledged the challenges posed by the backlog of pension contributions and assured retirees that resolving these issues was a priority.
- Edun also revealed that a coordinated effort, involving the Office of the Head of Service, the Minister of Budget, and other stakeholders, was underway to address the backlog sustainably.
“We are committed to paying it. It has to be paid this year. We are committed to doing that starting from next week,” Edun explained.
Additionally, the Minister suggested that the government might raise funds through the capital market to clear the pension backlog once and for all, indicating a proactive approach to solving the ongoing pension challenges.