Addressing the plight of pensioners in Nigeria

Bennett Ezechukwu, 55, is a headmaster in one of the primary schools in Oguta Local Government Area of Imo.

He is visibly worried that five years to his retirement from service, he has yet to build a house in his hometown, Mgbele.

Ezechukwu knows that it is somewhat a mirage for him to think that he could build a house with his gratuity, which will run into millions of naira.

This is because many civil servants in the state, who retired over 10 years ago, have yet to receive their gratuities.

``My main worry is not about my retirement from service; it is about what I will do whenever I retire.

``I am afraid because in the last 10 years, most of the retirees, especially teachers, have not received their gratuities, not to talk of their monthly pension,'' he moans.

Ukaegbu Arisa is a secondary school teacher in Abia State. The man combines teaching with some business in order to make ends meet.

Arisa often tells a willing listener that he is ready to retire at any time if the payment of his terminal benefits is guaranteed, as he would be able to channel his gratuity into strengthening his part-time business.

However, teachers are not the only group of workers that are having problems with the prompt payment of their terminal benefits, as other public servants in the employ of federal, state and local governments are having similar problems.

Many pensioners blame the harrowing experience they usually encounter in getting their terminal benefits on the old pension scheme, which they describe as defective.

They note that the old Defined Benefits Scheme (DBS) arrangement is fraught with many problems, adding that it has, therefore, exposed the pensioners to some traumatic experience.

Daniel Amaugo, a retired Chief Veterinary Officer, formerly working in Abia State's Ministry of Agriculture, laments that the agonising delay in the payment of retirement benefits has led to the death of many retirees.

He urges the government to address delays in retirement benefits' payment, stressing that such delays tend to encourage government workers that are still in service to engage in corrupt practices.

``After seeing the treatment meted out to retirees, serving officers are usually tempted to falsify their age in order to remain in service; they also engage in fraudulent activities to amass wealth, in preparation for life after service,'' Amaugo says.

However, the contributory pension scheme, which was introduced by the Federal Government, is aimed at redressing some of the problems associated with the payment of terminal benefits to retirees.

Under the scheme, workers and their employers jointly contribute 15 per cent of each worker's salary and the contribution is managed by Pension Fund Administrators.

In spite of some minor drawbacks noticed in the scheme such as delay in the registration of prospective retirees, many pensioners have praised the government for introducing the scheme.

For instance, Chiadikobi Abarikwu, the Chairman of the Abia chapter of the Nigeria Union of Pensioners (NUP), lauds the Federal Government for initiating the contributory pension scheme.

He urges all the government workers to sign up for the new scheme so as to avoid facing harrowing times after retirement.

``To avoid difficult times after retirement, I advise civil servants to embrace the contributory pension scheme,'' he says.

Abarikwu, however, urges the government to decentralise the operations of the old pension administration for retirees who are not accommodated by the contributory pension scheme.

He stresses that due to the nature of the old pension system management processes, some gaps are created for the embezzlement of pension funds.

Abarikwu underscores the need to restructure the old pension administration system, saying that it will save the country's pensioners from their troubles, largely induced by the prevalence of fraud in the system.

``It is also wrong to always ask pensioners to go to zonal headquarters and Abuja for revalidation and verification exercises,'' he adds.

Abarikwu insists that such exercises ought to be decentralised in a way that will enable pensioners to verify their status at liaison offices in their states and local government areas.

Nevertheless, Simeon Muforo, a retiree who now runs a building materials' business, says that workers have nothing to fear about retirement if they ``have been able to save for the rainy day.

``Truly, life begins after retirement if one has something to fall back on immediately he or she joins the league of senior citizens.

``If you intend to enjoy your retirement, you should start planning right from the day you join service. You must be aware that you will certainly retire one day; you should, therefore, start putting things in shape, it is wrong to wait till the last year.

``If you adopt this approach, you will certainly not gallivant around when you are old, all in the name of politics,'' Muforo says.

However, some pensioners blame their plight on officers responsible for the payment of pension benefits, alleging some of them often demand for bribe and other forms of inducement.

Daniel Egbeogu, the Chairman Abia State Local Government Service Commission and Pension Board, insists that life will get better for pensioners, if the government tackles the myriad challenges facing pension management in the country.

``For instance, before my appointment in October 2011, pensioners in Abia State were owed 13 years' gratuity.

`` I sent a memo to Gov. Theodore Orji and in the last four months, he has released N100 million for the payment of some gratuity arrears,'' he says.

Egbeogu says the state government has been able to settle workers' gratuities up to 2002, urging the three tiers of government to live up to their responsibilities to pensioners.

He, nonetheless, advises pensioners to be courageous enough to report any official who demands inducement before treating pension matters to appropriate authorities.

Egbeogu, however, pledges that the commission will continue to be transparent in the management of local government pensions.

``I am not unaware of reports of some aberrations by pension officials, but pensioners should come forward and report such incidents, '' he says.

Egbeogu stresses that if pensioners report cases such as fraud and demands for bribe, it would a long way in checking corruption and other forms of malfeasance in pension administration.

Observers, nonetheless, stress the need to tackle the plight of pensioners in a pragmatic way.

This is partly because all things being equal, today's workers are tomorrow's pensioners, some of the observers add.