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AN OVERVIEW OF THE LAW AND FACTS OF PENSION ADMINISTRATION IN NIGERIA

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law and society

The erosive decay of our moral infrastructures has not only undermined the institutional frameworks for growth, fiscal and policy management in our polity but has also undermined in grave measures the initiatives for post employment benefits for Nigeria workers. Billions of Naira meant for retirees has been stolen.

 

All these facts point to a growing necessity for more and better rules to institutionalize pension reforms and ordered development of our pension System under the regulation of the Nigerian pension commission.

 

What is a pension?

A pension can be defined as a benefit usually money paid regularly to a retired employee or their survivors by private business, federal, state and local governments.

 

It is important to note that employers are not ordinarily required to establish pension benefits for their employees but they do so to attract qualified employees.

 

The first pension plan in the united state was undertaken by the American express company in 1875 for its employees. This pension scheme become generalized and adopted by the governments and states soon thereafter. In Nigeria, in the early 60s through to the 70s, a good pension plan was one of the ways the local, state federal and private interests attracted good and qualified professionals.

 

But since then, the civil services has witnessed massive decay, enlargement of corruption, inefficient and unproductive employees in the backdrop of over blown pension system which has failed to attract the right caliber of qualified and upright personnel into its folds.

 

Is the pension system still relevant in our system which supports the post employment benefits of retirees that has become clearly a burden to the national productivity?

 

For what it is worth, the System of pensions remains a grave burden in dire need of improvisation especially of its ethical infrastructures and administrations to alleviate the suffering and hardship occasioned on our people.

 

By the very nature of pension plans, an employer pays a certain amount of money into a pension fund.

 

When the employee retires, he is entitled to draw pension from the funds. The employer also gives a measure of flexibility to the pension managers who are permitted to invest the funds in shares and stocks to yield further income depending largely on the type of pension plan.

 

Pension plans are broadly divided into two categories. They are the defined benefit plan and the defined contribution plan. A defined benefit plan provides a set amount of benefit to a pensioner. Under a defined contribution plan, the employer places certain amount of money in the employees name to the pension fund and makes no promises concerning the level of pension benefits that the employee will receive upon retirement.

 

Whatever the pension plan, employees are constantly afraid of the loss of their benefits. However in Nigeria, the government remains the largest employer of labour with the advantages of the benefit of availability of additional funds. However when it occurs, such losses creates great hardship to employees. More so that pensions are very important because of their role in the economic security of the state requiring therefore strict monitoring and regulations.

 

In Nigeria, the law governing pension administration is The pension Reform Act 2004 with the created national pension commission providing the ethical framework and regulatory mechanism for pension administration in the country.

 

As part of its role as the regulatory organ, the National pension administration provided ethical guidelines for the minimum capital requirement for licensed funds administrations (PFAs­­),guidelines for fund accounting, risk management. For the appointment of PFAs and PFCs and its regime of sanctions.

 

Unfortunately in spite of the good intentions of the government, pension scams are mind boggling especially in the office of the head of service, pension office where five civil servants according to EFCC REPORT stole N38 Billion FROM THE PENSION FUNDS. Banks are also involved in the organized stealing of these funds by willful collusion and non compliance with CBN guidelines on account opening by turning blind eyes to the KYC rules, (know your customer)  which enabled civil servants to lodge billions of Naira into their accounts without notification by these banks to the appropriate agencies of law enforcement.

 

However, the Joint senate committee on establishment, public service, states and local governments administration with the office of the accountant general of the federation commenced comprehensive intervention process in March 30 2012 which was able to recover all pensioners money trapped in the vaults of commercial banks with the help of the CBN.

 

There are other problems created by pension funds liberation and the poor implementation of the monitoring strategies of PENCOM.

 

There has also been very poor attention on the pension systems in the private sector. There is the need for proper regulation of the pensions system created in the private sector by private businesses. In the United States, The employer’s retirement income security Act was enacted to regulate pension plans created by private businesses other than religious organizations. This distinction is very important.

 

The ERUSA in the USA ensures that the contributions of pension funds promised to employees are made available aside from making rules regulating pension management.

 

ERUSA authorizes criminal penalties for the violations of pension laws and provides civil remedies to violations of pension misuse or abuse.

 

In my view, pensioners in Nigeria should have access to civil remedies and sue their pension managers whether private or public in matters concerning abuse, misuse and stealing of the funds and have improved access to information concerning their pension funds.

 

In addition, the pension commission should have an office for pension crimes investigating department PCID that should be facilitated by lawyers and accountants trained to investigate such sanctionable abuses. In the south east like in many parts of Nigeria, federal contributions to the pension fund has been stolen and there are  so much grave irregularities in pension administration caused often by over centralization, corruption  and the complexities of pension management.

 

Further more; employees under the pension system should be mindful of the benefits of life assurance policies for employees.

 

S.9 (3) of the pension reform Act provides for the Life assurance taken on behalf of their employees.

 

In conclusion, the Nigeria pension system needs better reappraisal. It is designed to fail and corruption remains its greatest foe.

 

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1 Comment

1 Comment

  1. Bernard Beramo

    July 28, 2016 at 1:30 pm

    PFAs may apply a percentage of the pension assets in the retirement savings account towards payment of equity contribution for payment of residential mortgage by a holder of retirement savings account which is subject to guidelines issued by the commission.

    Please what are the guidelines? and if not yet set, when will the guidelines come into operation?

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The Data of Forgiveness

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The Universal Character of Salvation

The most important ingredient in today’s media economy is data. The amount of data available determines how much and how long we can work or play on the internet. Currently, many of the service providers offer unlimited data plans but we know that those “unlimited” plans are not always unlimited. Sometimes, your download speed can get slowed down when you cross a certain point. Today, however, Jesus gives us the divine model of an unlimited plan. It is the unlimited bundle of compassion and forgiveness which never gets slowed downed shut down for maintenance. The theme for this week is that we must learn to forgive without limits no matter the injury committed against us.

In Matthew’s Gospel, today’s teaching on unlimited forgiveness comes after Jesus had told his disciples the parable of the wandering sheep, so it is plausible that some would have wondered among themselves how many times a good shepherd should go after the same sheep if it keeps wandering away. In those days, people believed that forgiveness was limited to three times only – a fourth transgression was not to be forgiven. So, by asking Jesus how many times he should forgive his brother, Peter was probably aiming to increase the limit to seven times. And Jesus makes it clear that we are to forgive others, “not seven times but seventy-seven times” (Matt. 18:22).That means we must dispense an unlimited data bundle of mercy.

In Jesus Christ, we have the forgiveness of a debt we could never pay. Sin is an offence against God and a direct rebellion against his authority and creation. The debt of 10,000 talents mentioned in today’s parable symbolizes the magnitude of the offence that sin causes in God’s eyes, but he is always willing to forgive without limits. However, we can easily cut ourselves off from God’s river of mercy when we refuse to forgive others. We end up restraining God’s mercy and putting ourselves under strict justice. To unfold his mercy without compromising his justice, God leaves each person free to choose between the two. If we insist on strict justice when we are offended, we bring God’s strict justice upon ourselves. But if we offer an unlimited bundle of mercy to others, we draw God’s unlimited data of forgiveness upon ourselves.

The secret to forming a forgiving heart lies in recognizing the evil of our sin and the immensity of God’s goodness in forgiving us. Until we see the ugliness of our ingratitude and selfishness, we will never appreciate the generosity of God’s forgiveness. Let us examine ourselves now to see how much forgiveness we are giving. Is there someone we still cannot forgive even after they have expressed sorrow for their actions? Have we judged someone too harshly because of something they said or did that we did not particularly like? How many times have we failed to help somebody because we are still dwelling on an injury that we suffered many years ago? How many times have we treated someone differently based on preconceived notions or stereotypes? These are some of the factors that shackle us like chains and that disrupt the unlimited data of divine grace in our lives. When we close ourselves off to people or dismiss them based on our preconceptions, mistaken judgments, and prejudices, not only do we make them suffer, we suffer as well.

But it does not have to be that way. Jesus came to free us from and the burden of sin and unhappiness. Forgiveness is like mercury, which runs away when it is held tightly in the hand but is preserved by keeping the palm open. When we lose forgiveness, we lose the ability to give and to receive love because love is the foundation of forgiveness. And since God is the foundation of love, whoever refuses to forgive automatically rejects the love of God. This is the essence of today’s parable and it is highlighted by the contrast between what was owed by each man. The wicked slave owed his master some 10000 talents. In gold terms, that is 350 tons and at today’s price, he owed his master USD21.8 billion. This was way more than King Solomon made in a year which was 666 talents of gold or USD1.45 billion in today’s value (cf. I Kings 10:14). So, this unforgiving servant owed his master what no individual could never payback. In contrast, his fellow servant owed him the equivalent of one talent of gold or USD2.1 million; so a man who was forgiven $21.8b could not let go of $2.1m, and his wickedness landed him in the hands of torturers.

Dear friends, forgiveness is an act of compassion which is expressed in the free choice to pardon one another’s shortcomings every day, and to also pardon ourselves for own mistakes Forgiveness transcends the fear of being wounded again; it is a deliberate act in imitation of the redemptive work of Jesus, the advocacy of the Holy Spirit, and the loving kindness of the Father. The whole point of today’s parable is that our Father in heaven will do the same to anyone who refuses to forgive others. Whoever refuses to forgive is doomed to a life of bitterness, and as the ugly trend continues, the person ends up building invisible walls of resentment around themselves, thereby blocking off not just one’s relationships with other people but with God as well. Forgiveness is not just an emotional expression or a sense of righteousness; it means being merciful not only when there is an explanation or apology, or a promise of amendment from the offender, but even when the offence is deliberate, and the offender is adamant. Forgiveness is a precious gift of grace, which does not depend on the worthiness of the receiver. Forgiveness is what we called to do, and the Lord’s grace is sufficient for us in that regard. Amen.

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Imo Deputy Governor’s giant strides towards revitalizing agriculture

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Imo Deputy Governor's giant strides towards revitalizing agriculture
By Joy Opara

The increasing cost of Agricultural products in Imo State in recent times has continued to be a major source of concern to the citizens of the state.

A critical appraisal of the development of Agriculture in this state reveals that successive governments had neglected this major sector of the economy, over three decades now, and this has adversely affected the revenue of government.

In line with the vision of the “shared prosperity” government of the Hope Uzodinma administration, the revolution of agriculture is among its cardinal programmes for which a high powered committee (on agricultural master plan for Imo State) has been set up.
For the purpose of resuscitating all moribund agricultural industries and facilities in the state, it is not surprising that this committee is headed by a world class Professor of Agriculture and Deputy Governor of Imo State, Prof. Placid Njoku.

The need to diversify the economy cannot be over-emphasized. It is a well known fact that there is no better and more sustainable means of diversifying the economy than through agriculture. It would be recalled that after the inauguration of his committee, the deputy governor went into action, first by visiting all moribund agricultural facilities in the state, which included Adapalm in Ohaji/ Egbema LGA, Avutu Poultry farm in Avutu, Obowo LGA, Songhai farms, Okigwe road, Owerri, ADP farms in Nekede, Owerri West. Others are Acharaubo farms in Emekuku, Owerri North, Imo Rubber Plantation in Obiti, Ohaji/ Egbema, amongst others.
Prof. Njoku in one of his speeches during the tour described agriculture as the economic base of most countries of the world. Considering the dwindling oil revenue, he said it should be a source of worry to people of good conscience that the vision of our founding fathers to generate revenue, food security, economic advancement, industrialization, employment and eradication of poverty was destroyed by successive governments.
The Deputy Governor, who not only is acknowledged as one of the greatest professors of Animal Science, a renowned Agriculturist and former Vice Chancellor of a leading University of Agriculture, the Federal University of Agriculture, Umudike, made it clear that the present government led by Governor Hope Uzodinma is desirous to return agriculture to its former glory.

The Ikeduru-born technocrat and farmer per-excellence said that the 3R Mantra of this administration namely: Reconstruction, Rehabilitation and Recovery is a base for making the dream of Imo State as the food basket of the nation come true.

Noting that government is a continuum, the deputy governor promised that his committee will build upon what is already on ground by rehabilitating the ones that could be rehabilitated and bringing in new facilities where necessary to ensure that the passion of the governor towards agricultural revival is achieved.

Meanwhile, in most of the establishments visited by the committee, it was discovered that indigenes of the communities had badly encroached into the lands and converted them to personal use. Investigations by the committee revealed that agents of some past governments in the state connived with the communities to make it possible, for their personal aggrandizement.

The deputy governor, whose humility has become legendary pledged his total support to the Governor, Senator Hope Uzodinma whom he described as God sent to right all that were done wrong by the previous administrations in the state. He called on all to give this administration the needed support to rewrite the history of Imo State in gold, especially the agricultural sector.

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Child Abuse: A case of betrayal of reciprocal trust

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Child Abuse: A case of betrayal of reciprocal trust
By Christian Uzoukwu

Some years ago, while as a kid, I fell out with my father due to an occasion of sheer disobedience and on that very day, I was given no food and was ultimately battered by hunger. Child abuse includes both acts of commission and omission on the part of parents, guardians as well as care-givers.

These acts have led to a lot of actual and threatened harm meted out on countless number of children. In 2014, the WHO made an estimate of 41,000 children (under the age of 15) that are victims of homicide and other related offences. This estimate, as expounded by this world body is grossly below the real figures due to the views of the society in relation to corporal punishment experienced by children. Girls are always most vulnerable to different forms of child abuse during unrests and in war-thorn territories.

Cases of child abuse can be established in some deadly human vices such as child trafficking, child labour, forced adoption as seen in the one-child policy prevalent in China. In the Asian country, women, by law are only allowed to have one child. Local governments would sometimes allow the woman to give birth and then they would take the baby away stating the mother violated the one child policy. Child traffickers, often paid by the government, would sell the children to orphanages that would arrange international adoptions worth tens of thousands of dollars, turning a profit for the government.

Other striking examples of child abuse are the various forms of violence against the girl-child which involves infanticide, sex-selective abortions, female genital mutilations (FGM), sexual initiation of virgins in some African cultures, breast ironing in some parts of Cameroon – involving the vicious use of hot stones and other tools to flatten the breast tissue of girls who have attained the age of puberty. As if those were not enough, female students are also subject to maltreatments in countries like Afghanistan and Pakistan. This is not to talk of recurring kidnapp of female students in some parts of Nigeria, as we saw in the case of Dapchi and Chibok schoolgirls.

Based on simple analysis, child abuse can be defined as “all forms of physical and/or emotional ill-treatment, sexual abuse, neglect or negligent treatment or commercial or other exploitation, resulting in actual or potential harm to the child’s health, survival, development or dignity in the context of a relationship of responsibility, trust or power”.

This definition by WHO also falls in line with the definition propounded by the United States Centres for Disease Control and Prevention, which says that child abuse are acts of commission. This commission includes “words or overt actions that cause harm, potential harm, or threat of harm to a child”, and acts of omission (neglect), meaning “the failure to provide for a child’s basic physical, emotional, or educational needs or to protect a child from harm or potential harm.

In Nigeria, most cases of child abuse have become cumbersome due to the fact that these acts of abuses are regarded as mere punishments to unruly young ones and by so doing, should be justified and doesn’t call for any further discussion and/or scrutiny. According to various statistical studies and researches, child abuse is a vast societal cankerworm and has four profound tentacles viz:

Physical Abuse: this involves undue hitting, beating, kicking, shaking, biting, burning, strangling, insertion of pepper into the eyes and pubic regions of children, maltreatments from house-help(s) and seniors at boarding/day schools, suffocating and forcing children to live in unwholesome conditions.

Sexual Abuse also includes persuading a minor into acts of sexual intercourse, exposure of the child’s private parts, production of child-related pornographic contents and actual sexual contacts with children.

Psychological Abuse of children can be seen in cases of excessive scolding, lack of proper attention that children should be receiving from their parents and guardians, destructive criticisms and destruction of a child’s personality.

Neglect of children can also lead to children dropping out of schools, begging/stealing for food and money, lack of proper medical care for minors and realities of children looking like ragamuffins.

Consequently, the causes of child abuse can be judiciously related to sex, age, personal history, societal norms, economic challenges, lack of Rights’ Protection Agencies, parents battling with traits of alcoholism and family size. These causative agents of child abuse can bring untold effects upon the society at large and these effects can be emotional, physical and psychological as the case may be, giving rise to individuals with dissociative lifestyles.

Furthermore, the treatment of individuals who have been malformed with respect to the abuses they experienced abinitio, can be a long process because it involves behavioral therapy and other forms of neoteric therapies. Treatments of psyche-related problems are not just a one-day process due to the long-lasting effects of abuses on various conscious mental activities. It is also noteworthy to point out that, prevention is always better than cure and holding fast to this true reality, entails that agencies who have the responsibility of protecting the rights of children must continue to do the needful which requires proper oversights of parent-child relationships.

To conclude this piece therefore, we must agree that untold hardships have been a great challenge for children especially in Africa and some parts of Asia. Children with long histories of abuses turn out to become societal misfits. To this end we encourage that: Children should be given a free platform to express themselves on many topical issues and issues relating to their existence.

Children should also be allowed to freely ask questions on any issue, no matter, how weird it seems to be.

Governments should make regulations outlawing societal norms and values that might amount to child abuses.

Corporal punishments by parents, guardians and care-givers should be discouraged at all levels, thereby making parents/guardians/care-givers who seem to be incorrigible, to face the full weight of justice enshrined in the law of the land.

Education system (both conventional and unconventional) in Nigeria should be able to train up young ones into becoming critical, analytical and evaluative individuals with a view of defending the vulnerable.

And again, since children are said to be leaders of tomorrow, it is pertinent to note that to secure their future, their present existence must be cherished and protected.

Christian Chimemerem Uzoukwu
08100029867 / 09025760804
Admin Critical Thinkers’ Forum.

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