How We Spent N25bn To Pay Pensioners Since 2016 – Edo Govt
The Edo State government says it has spent N25,047,472,632.77 for the payment of monthly pension of 13,081 pensioners from November 2016 to May 2020.
According to the Mid-Year Report of the Edo State Pension Bureau, the government has also expended over N4.3 billion in clearing the backlog of outstanding pension arrears owed about 3,128 pensioners in the state.
A breakdown of the figure shows that the government spent a total of N771,714,393.01 between November and December 2016 for the payment of pensions; expended N5,371,283,211.09 in 2017; while N6,452,535,649.08 and N7,936,681,957.45 were spent in 2018 and 2019 for the same purpose.
“For 2020, the government spent N735,069,623.04; N736,780,760.18; N759,731,334.31; N760,620,948.61; N759,695,333.23 and N763,359,423.02 in January, February, March, April, May and June respectively,” the report stated.
It explained that with the setting aside of N200 million monthly, the Godwin Obaseki administration was able to defray arrears of pensions dating back to 1996 to December 2018.
The government, the Bureau noted, divided the pensioners into batches 37 to 65 and ensured that the backlog was cleared after physical and documentary verifications.
Following the payment of outstanding pension arrears, it revealed that the government would consider harmonisation of pensions and payment of death benefits and gratuity in the weeks ahead.
The Bureau disclosed that an efficient management process has been put in place to fast-track the processing and documentation of retiring officers’ entitlements, thus ensuring a seamless migration from salary payroll to pension payroll.
It stressed that this has minimised the incidence of accumulation of pension arrears that had been a burden before the inception of the present administration.
The report also revealed that civil servants eligible to register under the Contributory Pension Scheme (CPS) have the benefit of a Group Life Insurance cover that makes provision for beneficiaries of contributors in the event of death in active service.
“The sum of N80,713,446.34 was paid as premium for 9,803 Edo State employees in the CPS. With this payment made, the next of kin of deceased employees receives three times their gross annual salary as benefits.
“From the commencement of the CPS on January 1, 2017 till date, a total sum of N 81,169,724.24 have been paid to families of 34 deceased employees of the State Public Service who were enrolees of the CPS,” it noted.
The report stated further, “The state government exercised political will and has been committed to the payment of pension arrears, monthly pension, death benefits under the Defined Benefit Scheme and government’s 10 per cent matching contribution into the Employees’ RSA, in compliance with the provisions of the Edo State Contributory Pension Scheme Law of 2010 as amended.
“The state has made remittances of contributions of both employees (8%) and employer (10%) to the PFAs for 39 months, i.e. from January 2017 to April 2020 which amounts to N5,230,348,954.34.
“Of this, government’s (employer) matching (10%) contribution is N2,905,749,419.08 only, while that of the employees’ (8%) contribution is N 2,324,599,535.26. Also, a Retirement Benefits Bonds Redemption Fund (RBBRF) account has been opened with the Central Bank of Nigeria (CBN).
“This account is being funded monthly to ensure that funds are available to defray the accrued pension rights of employees who have registered for the Contributory Pension Scheme. The RBBRF Account is being funded with 5% of the total monthly wage bill of employees in fulfilment of the provision of the Contributory Pension Scheme Law.”