The Lagos State House of Assembly has commended Governor Babajide Sanwo-Olu for his promptness on payment of salaries ever since his assumption of office, urging him to ensure the payment of the remaining pension of some retirees within the space of six months.
Hon. Oladele Ajayi Chairman House Committee on Establishments, Training and Pensions broach the matter in a report presentation on the committee’s investigation into a petition by pensioners during plenary on Thursday presided by the Deputy Speaker Rt.Hon. Mojisola Lasbat Meranda.
The member representing Ibeju Lekki Constituency 2 noted that Governor Sanwo-Olu predecessor’s failure to toe the working modality for prompt pension payment to retirees, who served the state in times past led to the humongous amount of pension left unpaid which stood at a little above 30billion naira but that the governor had offset the said amount to 8billion naira now.
The committee however, lamented the paltry sum given to retired civil servants who rose to the directorship cadre before retirement as pension the highest of which is 70,000 naira per month, they added that this remains the root cause of corrupt practices recorded in the service.
“We have recommended a staggered manner of payment that spans between three to six month for this affected retirees pension of a little above 8billion naira yet unpaid to be paid in full, really the Governor has tried to pay the money bringing it lower from 30billion naira, that is what it was before and this money has been graciously appropriated for in this year’s budget due to the help of our amiable Speaker Rt.Hon.(Dr.)Mudashiru Ajayi Obasa and assented to by Governor Babajide Sanwo-Olu.”
In a dispassionate manner lawmakers took turns to deliberate on the issue of nonpayment of pension as and when due to the affected retirees, declaring as an unwarranted and despicable treatment of the aged individuals, who had put in their best in the service of the state.
Hon. Tobun Abiodun member representing Epe constituency 1 in his contribution, hinted that: “ The Pension Contributory Scheme (PSC) has failed to address the quick dispense of pensions for which it was originally designed.
“In time past when salaries are reviewed pensioners get a raise in what accrues to them as pension but PFA controlled pension is grossly inadequate, they claimed they are investing the funds but no dividend of investment gets back to pensioners.
Hon. Aro Moshood (Ikorodu 2), Hon Kehinde Joseph (Alimosho 2), Hon Olusegun Ege (Ojo 1) and Hon Seyi Lawal (Ikeja 1) all harped on the need for prompt payment of pensions to retirees once they reach the peak of their service years of whether 30,35 years as it were, adding that the reason behind the delay need be unraveled and adequately addressed.
Hon. Setonji David the Deputy Chief Whip however, commended Governor Sanwo-Olu for ensuring the prompt payment of salaries to civil servants.
“It is disheartening that a Director after retiring gets as low as 70,000-naira pension monthly, this I believe gives room for the pilfering culture that now pervades the service as people think about how to break even through fraudulent means before retirement.
“SUBEB has the lion share of the affected retirees, they are teachers and to this extent steps should be taken to promptly address the issue to help alleviate their suffering. Pensioners in main stream, civil servants and the council workers are off the net of those yet to be paid.
“The fact that this is pension thing is a federal law informs the ugly trend if it were to be a state law it would have been subjected to review.” Setonji said.
In its recommendation, the committee’s Chairman Hon Oladele Ajayi state that pensions owed the retirees mostly in the State Universal Basic Education Board (SUBEB) should be paid in full within six months, in order give them the needed relieve.
“That going forward the state government ensure the prompt payment of pensions in full as and when due.
“That a pension law review committee be constituted to address contemporary issues relating to it.”
“That the oracle unit at the state treasury department brace up as it pertains efficiency, thereby hindering continued payment of salaries to already retired individuals.”
The Deputy Speaker Rt. Hon. Mojisola Meranda maintained that laid down procedure of pension payment need be followed to the letter without fail and after a voice vote of lawmakers present adopted the recommendation as the resolution of the house, as it adjourns sitting till Tuesday 20th February,2024.