The Lagos State Government on Thursday disclosed that it had remitted a sum of N64 billion into the retirement saving accounts (RSAs) of civil servants as contributory pension scheme since the inception of the scheme.

Commissioner for Establishments, Training and Pensions, Dr. Akintola Oke saidsaid there had been regular deductions of 7.5 percent from the salaries of staff and corresponding 7.5 percent by the state government into the retirement savings accounts maintained by them with their appointed Pension Fund Administrators (PFAs).

As at March, 2016, the deduction has cumulatively risen to N64 billion approximately since the inception of the scheme in 2007. Also, since the commencement of the retirement benefit bond certificate presentation in 2010 to over 10,000 retirees/deceased/ withdrawn staff, Lagos has paid accrued pension rights of about N48.08 billion.

Lagos reduced the backlog of terminal entitlements of retirees. Between August 2015 and April 2016, the government had, through the Lagos State Pension Commission (LASPEC) paid N13.701 billion into the Retirement Savings Account (RSA) of 3,069 retirees.

1,294 retired from the Local Government, 745 from the State Universal Basic Education Board (SUBEB), 731 Teachers Establishment Pension Office (TEPO) and 299 from the mainstream service.

The state governor, Akinwunmi Ambode has directed that outstanding pension payment of three years arrears on the 142 percent pension increase as approved by the administration of Asiwaju Bola Tinubu be paid with immediate effect.

The sum of N2.03 billion was paid as pensions between May 2015 and April 2016, and in November 2015, the Civil Service Pensions Office facilitated and completed the payment of severance, pensions and gratuity to 73 disengaged staff of the defunct Eko Today which amounted to N37.17 billion.

The sum of N1.5 billion intervention fund for the payment of outstanding gratuities and pension arrears to Local Government retirees, including the balance of 142 percent pension arrears amounting to N1.77 billion, would be effected as soon as the verification exercise was conducted.

On the issue of pension fraudsters, the commissioner said the government had begun sensitization programmes in all ramifications on the activities of these fraudsters, stressing that apart from drawing the attention of the state government to this unsavoury report, LASPEC had gone further to sensitize the public with the printing of posters and handbills.

Pension funds can be invested and this includes specialist investment funds and other financial instruments as approved by the Commission. There are penalties for offences of misappropriation of funds, reimbursement or payment by a Pension Fund Administrator (PFA) or Pension Fund Custodian (PFC) to a staff, officer or director.

Read more at: http://www.vanguardngr.com/2015/05/key-facts-about-the-pension-reform-act-2014/

The employees who have been involved actively in the contributory pension scheme often complain about recovery of pension after loss of job, the worry centers around the stipulated waiting period after a job loss, the new pension act has now given us a reason to smile as the act has reduced the waiting period for accessing benefits in the event of loss of job by employees from six (6) months to four (4) months. So in a sad case were you lose your job, you can quickly smile to the bank to access your benefits after 4 months.

Finally It is clear that the new pension Act 2014 is quite advantageous to the employees as some keys issues have been addressed such as upward review of the penalties and sanctions,enhanced coverage of the contributory pension scheme and informal sector participation, upward review of rate of pension contribution, opening of temporary retirement savings account for adamant employees and access to benefits in the event of loss of job ......if and only if the PFA's will be fair in their carriage of duties......we are watching.