The unimaginable and catastrophic experience in the process of collecting the retirement benefits by retirees led to the passage of the Pension Reform Act 2004 during Olusegun OBASANJO’S regime.

The Act repeals the Pension Act, 1990 and established a uniform contribution pension scheme with a view to encouraging savings among employees.

The Pension Reform Act 2004 repeals all previous legislations regulating the administration of pension benefits in the country.

But in July 2014, President Goodluck Jonathan signed into law another pension reform known as the new pension reform Act 2014 which repealed the pension Reform Act 2004.

The key objectives of the 2014 reform was to ensure contributors receive benefits as and when due and also to assist individuals save in order to cater for their livelihood during old age.

Pension is a regular payment made during a person’s retirement and taking from an investment fund or account to which a person and his or her employer contributed during his or her time as an active member of the labour force.

The rate of contribution under the act is a minimum of 10% for employers and 8% for employees.

At retirement,with the new development a retiree is entitled to an initial lump sum of nothing less then 25% and not more than 50% of his or her last salary before retiring. This is stretched for a period of 18yrs or a lifetime.
Initially, retirees were entitled to 50% of their retirement savings Account as lump sum otherwise known as gratuity but it was later reviewed downward to 25%.

This according to the National Pension Commission was due to complaint by retirees that their monthly pension was too small to meet their obligations.

But there is an allegation that pensioners are no longer paid 25% but 20%.

Although Pension Fund Administrators debunked this allegation.

An official of a PFA, Mr. Tokunbo Adebayo said it is not possible to give 20% because 25% is backed by law.

Some retirees in an interview vowed not to accept 20% if such arrangement is finally proposed.

A pensioner, Mr. Christian Tonode shared his experience when he got his 50% lump sum on retirement in 2003.

According to him,he was partially happy because the amount solved half of his problem,but at thesame time he felt cheated having worked for thirty five years,contributing to the nation’s economy without receiving what could guarantee him to project further in life.Meaning that the government and the pension managers are mortgaging his life.

The money in question belonged to the pensioners… It is difficult for the owner to put the money where his or her vested interest is.

Principal stakeholders and pension managers keep the money on behalf of the owners.Are there no interest charged on the money kept in financial institutions?

What are they doing with the remaining amount without recourse to the interest such amount could have generated for a period of time.

”They can’t tell me that they are not making use of my money…they utilize the money,rake in the interest and enjoy every other things associated with it.

”WHO ARE YOU TO DICTATE THE WAY I UTILIZE MY MONEY”Having worked for thirty-five years,I should be able to decide how I live my life”queried the retiree.

Some powerful individuals are making fortune from our efforts. If l fixed my money in a bank or invested in financial institutions l know how much l will earn without depleting my deposits.

Some senior citizens in an interview advised government workers to start thinking of what to do after retirement and not to rely on pension during retirement,because it doesn’t work the way new pension act reel it out.

Many aspiring pensioners want government to invest at least 50% of each workers RSA in treachery bills and bond, so that by the time they retire the accrued interest would be added to their account which will sustain them even in time of challenges.

PENSION ADMINISTRATORS OR HUMAN EXPLOITERS?!?

There are no two ways about it…All of us will get old one day…..in few years to come it will be your turn!?You will definitely retire and leave that job and beautiful office you admire so much.

According to investigations,there are strategic and fast trending pension manipulations which government and civil servants should redirect their attention and focused with a view to containing the trend !??

The Senate recently had made a move to adjust the Pensions Act to enable retirees withdraw up to seventy five percent of their cumulative savings.

The liberty being propose according to some retirees should even extend to allowing pensioners withdraw their whole sum. The law could also give pensioners the liberty to either withdraw their total sum or give the Pension Administrators the kind of investments they want!?

??After spending sixty years or thirty five years of active service to ones nation gathering all types of experiences, financial or fund administrators among others even the so called PFA still termed you as novice; believing you don’t know how to handle your hard earned entitlements!??

A retiree gave an insight into what happened in 1984 when his father retired from service in the then Ondo State where he was paid his full entitlement.

According to him,his father used his money to renovate his house,invest in a bottling company as a distributor which he enjoyed throughout his life and remained fulfilled before he passed on.

He took the remaining to purchase a 504 saloon car then at the rate of N9,500.00k.
The man of course satisfied himself and also lived long.Some of his friends in the same category are still living,if you want to hear from them.

He suggested each pensioner should be given liberty to decide what to do with their money and nature of investment after retirement.

He equally gave the following explanations as regard on going manipulation by stakeholders who are involved in doing business with pensioner’s fortune.

”?I will make a simple illustration here: MR. A retires at sixty and has =N=20m as his savings.

He accesses 50% of =N=20m which equals =N=10m. The balance of =N=10m is to be spread over 180 months (15years) and MR. A earns =N=55,555 monthly for 15years and he stops earning anything because he is expected to die at 75.

If MR. A will be allowed to have his total sum of =N=20m, ceteris paribus (all things being equal), he could invest in the Money Market or Government Treasure Bills. Currently and authoritatively =N=20m fetches up to 15% on a 70 days tenor. Meaning =N=20m gives about =N=3m per annum. Please Divide =N=3m by 365 days and multiply by 30 days,this will give MR. A, a monthly earning of =N=246,575 without depleting his capital of =N=20m!??”

What are we saying?We are no fools.
”Why have we been quiet? Nigerians should wake up from this very deep slumber. The sum given to an average pensioner is not up to the interest the Administrators rake in on pensioners’ capital.

This manipulation/exploitation made the PFAs the richest entities even richer than Nigeria its self!?”

The Current Pension Act needs to be abolished or reformed in favour of suffocating and dying PENSIONERS…not the rich. This is with intent to retrace our steps back to do the needful”

The ‘Cry with dripping waters’ from Pensioners’ faces, if allowed to go dry on their faces will definitely spell doom on the lives of some people who thought they are making it with the pensioners fortune.

The Federal Government of Nigeria is at liberty to put smile on the faces of PENSIONERS….

The Federal government is advised to lay hands on the ”Reports of United Nations Joint Staff Pension Board…General Assembly Official Records Fifty-Fifth Session Supplement No 9[A/55/9] New York…2000 for more understanding and accuracy.

A WORD IS SUFFICIENT FOR THOSE ENDOWED WITH WISDOM…