The League of Federal Service Contributory Pension Retirees says the Federal Government will need N204 billion to clear the current backlog of arrears owed its members.
The Coordinator, Mr Chike Ogbechie, who decried the non-payment of allowances and pensions of retirees for 14 months, made this known at a news conference in Abuja.
Ogbechie said that since 2014, the budget for the accrued pension had been inadequate for the payment.
He said the Ministry of Budget and National Planning often reduces whatever is budgeted by the Pension Commission (PenCom) to pay the pensioners yearly.
“And so this year again they have slashed the figure of N113 billion to N50.1 billion.
“So we have made a case to the National Assembly that if the sum of at least N204 billion is not approved for Accrued Pension scheme in the 2017 budget, the backlog will expand.
He maintained that the inadequate budget was responsible for the haphazard release of funds by the Ministry of Finance.
“In the 2016 financial year, funds were released for only five months out of 12, amounting to a total of N18 billion out of the year’s budget of N50 billion.
“We have approached the ministry over the issue and it promised to improve its priority attention to this particular cost centre, but honestly, we are still looking forward to practical fulfilment of same.’’
Ogbechie also said that contributory pension retirees had been short-changed over time because the Federal Government had failed to apply the constitutionally mandated review of pension.
He added that the pension was reviewed twice in 10 years by 15 per cent in 2007 and 33 per cent in 2010.
He pleaded with the Federal Government to take urgent measures to reverse the situation and institute a regime of prompt payment of benefits to retirees.
The Contributory Pension Scheme (CPS) was introduced in 2004 as a reform initiative of the Federal Government to bring about an orderly, reliable and efficient pension system.
NAN
