The Abia state Commissioner for Finance, Mr Uwaoma Ukandu , has stated that the current administration, under the leadership of His Excellency, Dr.Alex Chioma Otti, remains fully committed to the Welfare of its workforce by resolving to qué into a pension scheme that guarantees dignity, peace of mind and financial security of its workers both in service and in retirement.
The Commissioner who is also the chairman, Abia state Pension Transition Committee, disclosed this while declaring open a Sensitization/Enlightenment programme on the commencement of the implementation of the Contributory pension scheme (CPS),for Abia state public servants held recently in Umuahia.
Ukandu, who said that the programme was very important to ensure that Abia public servants are well informed and adequately prepared to embrace the benefits of the scheme, informed the audience that the CPS, which was launched in 2004 at the Federal level by the administration of Former President Obasanjo is designed to ensure, that every worker is guaranteed timely access to his/her retirement benefits in a sustainable manner. ‘This sensitisation programme is therefore strategically timely to provide an opportunity for our Civil Servants to gain a better understanding of what the CPS is all about, its operations,the benefits and the transition processes of the scheme. It will further provide a platform for addressing facts and clarifying misconceptions that may arise’, he further stated.
Highlightening the uniqueness of the Abia CPS, the Commissioner, disclosed that like every other initiative of Dr. Otti, the Abia CPS is unique as the Abia state government pension reform law 2024, has inbuilt safeguards to ensure that employers and employees contributions are not only made but promptly remitted to the Pension Fund Administrators (PFAs). ‘The law also empowers the pension board to independently deduct as a first line charge and remit the deductions should the state fail to do so. This is the first state that is doing so, what this guarantees is that even after this administration, subsequent administrations will not be allowed to deduct and withhold these deductions which is what is seen in many other states.The safeguards will also ensure that we will not only start well but that it continues’, he stated.
The Commissioner,also noted that that the present administration on assumption of office in May 2023, inherited backlog of unpaid salaries, pensions and gratuities which it has offseted ,and that the implementation of Contributory Pension Scheme in the state will ensure that the issues of arrears of gratuities or pension will not re-occur again.
The Representative of the HOS, the Perm Sec., Ministry of Labour and Productivity, Dim Ijeoma Clara , delivering a speech during the sensitisation programme.
In his remarks, the Head of Service, Abia state, Mr Benson Ojeikere, represented by the Permanent Secretary, Ministry of Labour and Productivity, Dim Clara Ijeoma, reiterated that the implementation of the CPS underscores the commitment of the present Administration to the welfare of its workforce. He also applauded Gov.Otti for demonstrating uncommon political will by assenting to the CPS law, thereby providing a solid legal framework for its full implementation.
Ojeikere assured civil servants that the government remains fully committed to protecting their future citing the CPS as a transparent and sustainable system to guarantee comfort and stability in retirement.
‘The issue of pension administration is one that directly affects the welfare, dignity, and peace of mind of every worker. As civil servants,we devoted the prime years of our lives to public service,and it is only right that there is a secure,transparent and sustainable system in place to guarantee comfort and stability in retirement.
The CPS was established to address the challenges that plagued the old defined benefit system ,such as delayed payments, accumulated arrears and lack of proper funding. CPS ensures that every employee actively saves towards retirement,with contributions made jointly by the employer and the employer, and professionally managed by licensed Pension Fund Administrators (PFAs) under strict regulation’, he further said.
A representative from the National Pension Commision (PENCOM),Sandra Igbokwe, presented an ‘Overview of the CPS implementation in Nigeria highlighting its Benefits, safeguards, stages , Rights of Contributors, Functions of PFAs, Roles of PENCOM, Retiring under the scheme and so on.
In her vote of thanks, the Perm. Sec, Ministry of Finance, Mrs Obi-Chiankwalam Elechi, appreciated the governor,Dr .Alex Otti, for implementing the CPS in the state, while urging all Abia civil servants to embrace the scheme as it will ensure that retirement benefits are paid as and when due.
The event which had in attendance the commissioner of Finance and the chairman, Abia state Pension Transition Committee, permanent Secretaries , Directors, labour leaders, Representatives of PENCOM, selected PFAs, Public servants and other stakeholders in Pension Administration in the state aimed to educate Abia workers on the scheme’s benefits and operations , addressing misconceptions and providing clarity.
