…Urge FG’s ‘immediate intervention”
Retired Federal Directors, under the Contributory Pension Scheme (CPS) have criticised the scheme, describing it as a “modern slavery tool” that traps retirees in poverty.
In an issued statement yesterday, signed by Lawrence Ojabo, the association’s media and advocacy representative, the retirees urged the Federal Government to abolish the CPS.
They argued that the scheme, which forces retirees into annuity plans or programmed withdrawals managed by Pension Fund Administrators (PFAs) under PENCOM’s supervision, fails to provide adequate financial support. They cited cases where retirees received only a small fraction of their savings as a lump sum, with the rest retained by PFAs for investment.
One retiree, who served for 35 years, recounted receiving only ?26,703.15 monthly since 2016, a sum that barely covers basic living expenses. According to him, “The obnoxious CPS denies us having greater share of lump sum after retirement and dispenses a paltry monthly pension to retirees across the board under this scheme.
“Let us make a case study with one of our retiree ordeal in the hands of CPS. I served the Federal Government of Nigeria from July 15, 1981 and retired in July 15, 2016 on salary grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years
“For all the years I put in, the total balance standing to my credit was #6,745,823.34. Out of this, I was paid a meagre 25% which amounted to #1,686,455.84 while the balance of 75% was greedily retained by PFA for their selfish investment in capital market and other large institution with high returns which is never added to retirees paltry monthly payment while still alive.
“I receive #26,703.15 every month since 2016 till now despite the huge profits declared every year under CPS which can barely buy a loaf of bread at the price of #1000 currently per day for 30 days. The same apply to all our colleagues under this wicked and unfair arrangements.
The association criticised the disparity between CPS and the old Defined Benefit Scheme, where pensions are regularly adjusted for inflation. “My example above with the #26,703.15 monthly earning in terms of American dollars at current rate of exchange #26,703.15 divided by $750 gives just $35.6 dollars which is a far cry of minimum of $1000 dollars recommended globally to move out of poverty”, one of the association’s member noted.
They urged the Federal Government, unions, and Civil Society to intervene, demanding an end to what they see as an exploitative system.
