The Abia state government under the present leadership of Dr. Alex Chioma Otti , has disclosed that the Contributory Pension Scheme (CPS), will ensure that Abia state civil servants will have a stress-free retirement ,do not suffer or struggle during retirement and have a seamless move from an active life to a retired life.
The Commissioner of Finance, Mr Uwaoma Ukandu, represented by the Permanent Secretary, Ministry of Finance, Mrs Obi-Chiankwalam Elechi, stated this recently in her office, while interacting with newsmen before commencing on a road walk to sentisize Abia workers as the state commences the implementation of the Contributory Pension Scheme (CPS).
Perm Sec, Ministry of Finance, Mrs Obi-Chianakwalam Elechi during the road walk
According to Obi-Chianakwalam, under the CPS, government as well as workers will make contributions towards the retirements of civil servants. She further disclosed that the scheme is geared towards making sure that civil servants, do not suffer or struggle during or at retirement, thereby, ensuring a seamless transition from an active life to a retired life. Describing the scheme, as a laudable initiative that Gov.Otti has brought to the state, she encouraged every worker that has up to 10 years in the service to embrace it as it is for their benefit to ensure a stress-free retirement. Explaing further on the benefits of the CPS, she said that at retirement, a lump sum of money is given, you don’t have to worry whether you are receiving your pension or getting your gratuity,as everything is taken care of.
She also explained that for registration into the CPS, eligible civil servants are required to provide their National Identification Number (NIN), employment letter, staff identification card and a passport photograph in a white background.
Cross section of Abia workers during the road walk
To make the exercise stress free for workers, the Perm.Sectretary disclosed that the Pension Fund Administrators (PFAs), will come to the various ministries, department and Agencies and do the enrollment, as there will not be any need to cluster together in one place.
In her own contribution, the Permanent Secretary, Ministry of Labour and Productivity, Mrs Ijioma Clara Dim, said that she was very happy and elated that God has made it possible for Abia state to commence the CPS, describing the scheme as very powerful and wonderful that will help in the state as it has been helping other states for retirees to be receiving their pensions as at when due.
In their separate submissions, some labour leaders in the state, described the scheme as a good development that will reduce the inconsistencies in pension payment.
Comrade Ogbonnaya Okoro , NLC chairman, Abia state, during the road walk
According to the chairman, Nigeria Labour Congress (NLC), Abia state Chapter, Comrade Okoro Ogbonnaya, the CPS has been enacted into law by the Abia state house of Assembly. ‘By Virtue of enacting the CPS into law, the scheme is backed by law, which makes it a first charge as the government of Abia state must first of all deduct whatever percentage that is for workers pension before any other thing’, he further stated.
Okoro also said that as long as Abia state continues to exist, the scheme will continue to go on even after the present administration. He also disclosed that the contribution for the CPS will in two parts, while the government will contribute 8%, civil servants will contribute 7%, making it a total contribution of 15%. He described the scheme as very safe and commended Gov.Obi for taking a right step in the right direction as it will mark a departure from the past where civil servants may put up to 35 years in service or 60 years and will go home with nothing.
The Perm Sec.( Finance), Mrs Obi-Chianakwalam Elechi, flanked by labour leaders, Com.Okoro Ogbonnaya (NLC) n Com Ihechi Eneogwe(TUC) and the Perm (Labour & Productivity), Mrs Clara Dim Ijeoma during the road walk to sensitize Abia workers on the commencement of the implementation of the Contributory Pension Scheme.
In his own reaction, the former chairman of the Trade Union Congress(TUC), in the state, Comrade Ihechi Eneogwe, thanked God that the government has decided to effectively commence the Contributory Pension Scheme, in the state immediately as it will end the inconsistency in pension payment. Eneogwe further reiterated that henceforth, anybody that retired from the CPS will be sure and be entitled to effective and constant pension payment in the state. ‘The money is deducted at source starting from the Federal Account Allocation Committee (FAAC) to individuals monthly contributions. Gratuity is called Lump sum in the CPS,and a percentage is given unblock once a worker retires to carry out major financial responsibilities before the monthly pension will commence’, he further stated.
In his own part, one of the Pension Fund Administrators (PFA), Fidelity Pension, represented by Mr.Chigbo Arinze, said that the CPS , is a wonderful development that will give Abia workers hope that their tomorrow will be better and a structure that will help everybody. Arinze further explained that with CPS, retirement is guaranteed and retirees will have access to their pensions as at when due as the fund will be well managed ,grow above inflationary rate and also reduce financial burden on government as government has heavy arrears of pension payment.
A cross section of Pension Fund Administrators (PFAs) in a group photograph with the Perm. Sec, Minsty of Finance, Mrs Obi-Chianakwalam Elechi.
‘With this scheme, in the next 5-6 years, Abia state will not have such burdens again. Retirement will be seamless, once you retire, you meet your PFA and they will pay you. The good thing about this is that retirement is guaranteed, workers will have restored hope,they will have confidence that after their 35years, they will get paid as at when due’, he further noted.
Some civil workers spoken with described the CPS as a life changing initiative that will ensure that they did not retire into penury and become financial burdens to people around them. They commended Gov. Otti for ensuring the welfare of workers while urging him to set modalities to ensure that workers will not be ripped off by the PFAs at retirement. They also asked for more further engagements from the PFAs to know what to expect at retirement.
Mr Chigbo Arinze of Fidelity Pension ( One of the PFAs) interacting with new men
The road walk to sensitize Abia workers for the commencement of the implementation of the CPS in the state, kicked off from the Ministry of Finance headquarters at Library Avenue, through bank road, to Ikot Ekpene road, BCA road, enroute to Abia state Sectratiate complex at Ogurube layout and terminated at Finbars road Sectratiate.
Many Permanent Secretaries including , Mrs Obi-Chianakwalam(Finance), Joy Clara Dim (Labour and Productivity), Ikechukwu Oriuwa (Environment), Chigozie Akidi Ekeoma (Poverty Alleviation and Social Protection), Labour Union leaders including Comrade Ogbonnaya Okoro (State chairman, NLC), Comrade Ihechi Eneogwe (former stat Chairman,TUC), top directors from various ministries and a large number of Abia workers participated in the road walk.
