No respite for senior citizens as retirees allege 'massive' corruption in PENCOM, petition Tinubu, NASS, call for pension reforms

Retirees under the contributory pension scheme have petitioned President Bola Ahmed Tinubu and the National Assembly, over what they described as “massive” corruption in pension administration in the country, calling for “a total and holistic review of the scheme managed by the National Pension Commission (PENCOM)

The petition, which was also addressed to the Speaker of the House of Representatives, Ministers of Interior and Labour, the National Human Rights Commission and the National Association of Retired Paramilitary Officers (NAPO), said the aims and objectives of the scheme, which was introduced in 2004, have been defeated as it is now run mostly in favour of only managers of the scheme.

In a petition signed by the President of Correctional Officers Pencom Retirees Association of Nigeria (COPRAN), Plateau State Command, DSC A.I Ayiwulu (rtd), the pensioners said the PENCOM policy, although made in good faith, has caused more harm than good to the public servant retirees who are so called “senior citizens.”

The pensioners alleged that there is so much corruption in the system that it is now practically impossible for retirees, for whom the scheme is meant, to benefit from the scheme.

“In Nigeria there exist three schemes and all the three schemes have different modes of operation which include,” the Senior Citizens wrote. And they include:

I. Defined benefit scheme. Being managed by the Pension Transitional Agreement Directorate (PTAD).

II. Programmed withdrawal. Being managed by PFA.

III. Annuity for life purchased from a life being managed by insurance companies.

“There is too much corruption in the pension system and the funds meant for these pensioners are spent by the managers. This has made the lives of pensioners difficult and unbearable because they are getting only peanuts.

“For example, just 2.5 per cent was approved by the federal government to PENCOM retirees up till date, some are still unpaid simply because of little mistakes in dates and which was the same record that was used to pay a meagre amount of lump sum.

“They used technicality to hold this 2.5%. After public servants have put in their best during their years of active service to their nation and after selfless service and the hard work of these public servants that toiled day and night for their country.

“When they expect their pension benefit it becomes a problem. Those at the top/policy makers become greedy and refuse to pay benefits and gratuities of their hard work. This situation has put most of the pensioners of the PENCOM into untold hardship, abject poverty and misery.

“There is a need for such a policy to be changed or reviewed for the common good and betterment of those concerned and for an effective result.”

“After thirty-five years of diligent selfless service to one’s nation, all one has to show for it are owed gratuities and the inability to provide one’s basic needs and even the needs of one’s family,” they further stated.

Agonizing that retired public servants in the country have been subjected to PENCOM policy, even after tireless cries by the retired public servants of the inadequacy of these PENCOM administrations and their challenges, the retirees enumerated their challenges to include inadequate funding; low returns on investments,which has led to poor and inadequate funds for layout; inconsistent policies which have also led to frequent changes in policies and regulations, which have created to the challenges faced by retirees.

“All our cries for unpaid benefits have been pushed under the carpet and our challenges are getting more difficult by the day. More challenging is the pace at which the country’s economy is moving,prices of goods keep escalating and this also is of great concern,” they cried.

“The Nigerian Army sought to opt out of the PENCOM scheme and their request has been granted, because the pension scheme only created untold difficulties in the lives of these service men who are now retired, unable to provide for themselves and their families.

“In the current situation of the country, there is a high rate of unemployment and a parent after seeing his child/children through school in the hope that when they are done schooling they will get a job and be settled, but the reverse has been the case and the parent who in his old age and is retired is still expected to provide and cater for their needs after years of finished schooling cannot help themselves.”

The pensioners, therefore, sought a holistic approach to addressing these challenges, including policy reforms, increased funding, if not outright removal from the PENCOM policy, which the retirees alleged, has put them in untold hardships, causing them to live below standard, instead of their being sustained and rewarded for their years of dedicated service to their country.