• As Chairman, Delta State Bureau of State Pension, Agbele, parleys with retirees, policymakers
When he took office in 2015, the Delta State Governor Ifeanyi Okowa’s top two priorities were to steer the economy away from a cliff, and embarked on total infrastructural development of Delta State. Indisputably he has achieved both in his 8 years in office, but policy on retirement never emerged as a priority. Still, Governor Okowa is leaving his mark on retirement and pension reform for the State’s Civil Servants.
On assumption of office retirement crisis was a topline worry for Governor Okowa, because there were backlog of unpaid salaries, pension and gratuity of State’s servicing and retired civil servants. His predecessor appeared blindsided to the distress of civil servants in the State
Apparently, as a moral responsibility to meet his electioneering promises, Governor Okowa heads-up paying all the arrears of salaries, pension and graduities.
It is known fact that in the past most of the civil servants who should be building a nest egg for retirement simply don’t have one, but Governor took it as a moral responsibility to consistently pay the State counterpart funding of the Contributory Pension Scheme (CPS), a program designed to patch one of the biggest holes in the Civil Service safety. And at the same, he pays all retired civil servants their pensions and graduities upon retirement.
Upon this premise, Tuesday 7th February, 2023 was the usual office activities at the Delta State Secretariat Asaba, but soon turned to beehive of activities as expectant crowds of retirees, policymakers and pension-experts poured into one of the conference halls to partake in the one day advocacy with the Association of Contributory Retirees (ACR), Labour in Pension Fund Management Committee (PFMC) organized by the Delta State Bureau of State Pension.
The conversation, moderated by the Delta State Chairman of Bureau of State Pension, Mr. Agbele C.C., lasted about two hours of convivial interaction with rich explanations.
Mr. Agbele spoke candidly about the legacy of Governor Okowa, pointing out that the Governor has shown moral goodwill towards the plight of workers/retirees.
The chairman recalled that the CPS came into reality to address the genuine concerns bothering on the tales of woes that besieged the pension industry at the beginning.
Explaining the measured the State Governor has taken to alleviate the plight of the civil servants in the State, Mr. Agbele said, “leadership of Senator Dr Ifeanyi Arthur Okowa has shown political goodwill towards the plight of workers. The consistent release of funds since the coming on stream of the current administration for the defrayal of accrued right underscores this administration’s belief in the guiding principle of the CPS, sincere empathy for the retirees and commitment to the successful implementation of the scheme in the State.
“Some of the modern in-roads we have made include the payment of Junior Staff retirees up to January 2023 and Senior Staff retirees up to September 2020.
“Suffice to mention that the debt stock announced by the Bureau has been cleared to a reasonable level. It is expected that with two more monthly releases in 2023, the Bureau would have successfully cleared the Accrued Rights backlogs of 2020 submissions.”
Furthering on the Governor’s intervention funds, Mr. Agbele clarified that, “the Governor Okowa has graciously released the sum of N7 billion intervention Funds (in three tranches) of N2 billion, N2.5 billion and N2.5 billion in March, November and December respectively. This, in addition to the regular N500 million monthly release has led to the speedy defrayal of Accrued rights backlogs payment to September 2020. It is also worthy to mention that the regular release of N400 million into the RSAs of workers has continued without any hitch.
He threw more light to the participants on the payment of Harmonized Difference, he said, “harmonization difference was derived from your call to Government for a review of Accrued Rights formally based on old rate.
“This, in all fairness is a kind gesture of Government, even though this gesture has generated an additional burden of N16 billion for Government. You are all aware that the defrayal of this burden commenced in April, 2022 and is being pursued with vigour for which we sue for your continuous cooperation and understanding as this is carried along with regular payment of other retirees.”
For effective digitization and data collation, the Chairman explained that, “Incidentally, the Bureau has established and maintained an ICT company database for the capture, compilation and update of retiree/workers benefits.
“For us at the Bureau, I make bold to say that we have been able to record tremendous success even in the face of daunting institutional challenges that has attended the administration of the CPS in the State.”
Also presenting the challenges of the bureau, he added, “realistically and from our practice so far, the CPS is bound to present some short-term teething challenges. Some of these challenges, though, are enough to discourage some employers from embracing it, such challenges are the enormous powers the Pension Reform Act 2004, (as amended) bestowed on Pension Fund Administrators (PFAs) and National Pension Commission (PenCom). This has left the Bureau with little or no power of control over the PFAs.
“I therefore, encourage you all to be attentive and participate in the programme, ask questions that bother you as well as make contributions that would steer the course of the Contributory Pension Scheme in Delta State.”
Resource persons at the advocacy programme include Comrade Bolum Nwachukwu who represented Joint Negotiating Council of Trade Unions Delta State. He spoke on Update on Pension Contribution while Mr. Frederick Enyadike from Office of the Accountant General, Delta State spoke on Commitments of Government towards payment of pension benefits.
Looking on the legacies, the goals and honoures the Governor have achieved in the past eight years, “thank you Governor Ifeanyi Okowa” was the word of the day, as many participants expressed positive views about the Government.
Mr Lawson Efenudu, Secretary of Delta State Pension Bureau, told TimeAfrica that, “the Governor has hauled Delta State to a place where it is smarter and on high pedestal of excellence.'” the retirees said.
According to him, Delta State has undergone rapid change in the last seven years by no small means.
“This remarkable journey of Governor Okowa launched reforms that meet the aspirations of Delta State Civil Servants,” he said.
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