Prior to the advent of the contributory pension scheme in 2004, it was a common sight seeing public officials shedding tears at public functions decrying the plights of pensioners. Year in year out pensioners groaned all over the country of their inability to get their entitlements.

Series of engagements by organised labour with the then President Olusegun Obasanjo led to the pension reforms that metamorphosed into the contributory pension scheme.
Effectively from July 01, 2014, the Pensions Act which governs and regulates the administration of the contributory pension scheme for both the public and private sectors came into effect in Nigeria. The Act encourages participation in the contributory pension scheme which applies to two categories of employees. These categories comprise of all employees in the public sector and those in private Organizations with employees numbering 15 and above.

There is also a provision for Private Organizations with less than three employees based on guidelines issued by the National Pension Commission (PenCom). Under the Act, both employer and employee are required to make a minimum of 10% and 8% respectively of the employees monthly emoluments. There is a review of the definition of ‘monthly emoluments” to mean the total emolument defined in the employees’ contract of employment provided it is not less than the total of the employee’s basic salary, housing and transport allowance.

Pension funds can be invested and this includes specialist investment funds and other financial instruments as approved by the Commission. There are penalties for offences of misappropriation of funds, reimbursement or payment by a Pension Fund Administrator (PFA) or Pension Fund Custodian (PFC) to a staff, officer or director.
In situations where the PFC fails to hold funds to the exclusive preserve of the PFA and PenCom or where it applies the funds to meet its own financial obligations, the Act will sanction such appropriately. These are safety nets put in place in the law to safeguard investments of Civil Servants.

Since 2014, over 22 states of the federation have domesticated the Act in their states. This perhaps informed the action of the Comrade Adams Oshiomhole’s administration to put in place a Pensions Law in Edo state, now amended to address the concern of organised Labout in the state by the Godwin Obaseki administration.

With the implementation of the Pension Reforms Act 2014 by the Federal Government more than a decade ago, the road may have not been smooth even though it is indeed a radical departure from the past defined benefit system.

To take this further, Governor Obaseki, recently appointed 15 pension fund administrators to undertake the enrollment of employees in the state public service in accordance with his 2017 budget presentation speech. At the event in Government House, the governor assured that he would do everything possible to resolve outstanding pensions and gratuities.

Obaseki said, “the government has made provision in the budget for the scheme, with the contribution of 10 per cent by government and 8% by workers in accordance with the law in the state.

But in spite of the magnanimity of the new government, the organised labour is spoiling for action against it. The plan is that there would be demonstrations and strike action called by Nigeria Labour Congress and the Trade Union Congress, Edo State.

The grouse of the labour is not clear to many Edo people because from our understanding, government of Adams Oshiomhole carried Labour along all through the design and enactment of the law. I understand, with the amendment, persons who have ten years to go would still be on life pension scheme while those below would actively participate in the scheme.

The governor equally explained that the state government has set up a technical committee which is expected to create a smooth take off of the scheme. According to him, members of the committee are drawn from the state government, labour and representatives from PFMs.

The Governor however, called on workers and other relevant stakeholders to support government in the actualization and realization of this scheme for the benefit of all. While labour on its part is accusing government of “not following the due process of law and legal procedure in the implementation of the Pension scheme.” Labour rising from its SEC-in session issued a strike notice to government. It itemised a plethora of other demands not connected to the pension scheme and noted that it was open to dialogue on how to effectively implement the Contributory Pension .scheme in the state.

From all indications, all is not yet well with the smooth take-off, but the question to ask is: does Governor Godwin Obaseki mean well for workers in the state? The answer is yes. The Governor mean well. He has actually commenced the payment of Pension arrears he inherited from previous regime. Those who never expect it to happen confirmed that they received alerts for their gratuity (pension lump sum), one of them said without lobbying anybody in the new government. That goes to show that the governor truly mean well for workers and pensioners in the state.

It is also pertinent to note that While reviewing the journey so far in the administration of the Pensions Act in Abuja last year, stakeholders in the sector which included labour, employers and others major players pointed the way forward for the continued robust implementation of the scheme. The review showed huge success in the implementation of the scheme nationwide.

Going forward in Edo, it will be important for organised Labour and government to have a dialogue over the continued implementation of the scheme in the state. Labour must appreciate the good intentions and actions of Governor Obaseki. The governor on his part would need to assuage the feelings of organised labour in a way that it becomes a win- win for both parties.

Labour must understand that there is a Pensions Law in Edo State and it is the duty of Governor Godwin Obaseki to enforce it. That is why it would have been important for organsied labour to follow up with the processes that led to the law in the state in the first instance. Resolving to dislocate the economy of the state over an existing law does not make any sense.

Obaseki should see himself as the father of organised labour in Edo and should not allow his anger go down with the sun with them, hence my counsel for a dialogue to end all issues arising from the implementation of the law amicably.
• Mr. Dan Owegie is a chieftain of the Edo State All Progressives Congress (APC).
‘