Sunday 28 June 2015

It's Time for 25% Compound Interest On Imo Pension And Gratuity Arrears

An honest investigation of the plight of Imo State pensioners will unfailingly reveal that the negative instinct of survival of the strongest is a trade mark of political leadership in Imo State.  Those elected to protect both the strong and the weak manipulate pliable civil servants to exploit the weak, especially the vulnerable pensioners.  They never lose sleep over non-payment of pension and gratuity benefits.  They dismiss with a wave of hand the provisions of Sections 173 (for federal civil servants) and 210 (for state civil servants) of the Nigerian Constitution on pension.  When the pensioners protest over delay in payment of pension benefits they are denied legitimacy by branding them agents of the opposition parties and therefore not entitled to serious consideration.  To trivialize pension further it has been removed from the Office of Head of Service to the Office of State tax collector where it becomes part of internally generated revenue.
In their address during a courtesy call on Secretary to Imo State Government, Barr. Victor Ibenye Ugbala on January 21, 2011, the Nigeria Union of Pensioners stated that as at that day all the states in the South-South and South-East, with exception Imo State, had paid all arrears of pension and gratuity owed to their pensioners.  They went ahead to itemize the arrears owed to Imo State pensioners as follows:
(1)Non-payment of two months outstanding arrears to the state Civil Service Pensioners.
(2)Non-payment of Five Months Pension arrears to Retired SUBEB Primary School Teachers.
(3)Non-payment of Pensions owed to Pensioners from Orlu and Owerri Sub-Treasuries.
(4)Non-payment of Gratuities.
(5)Non-payment of Gratuities by the Local Government Pensions Board.
(6)Non-payment of over N4b (Four billion Naira) Harmonization Arrears arising from Obasanjo’s Salary Increase in 2000.
(7)Non-payment of Federal Pensions owed to Primary School Teachers who retired from 1991 backwards.
(8)Non-harmonization and Non-payment of N7,500 Minimum Wage, 121/2  and 15% Salary Increase to Imo State Pensioners.
(9)The Union forgot to add Non-payment of 73 months salary harmonization arrears of 1999 and pension increases that would have accrued from routine review of pension every five years that was not from 1999 to date.
On July 18, 2011, His Excellency Owelle Rochas Okorocha, OON, announced to a crowd of pensioners he invited at Dan Anyiam Stadium that all pension arrears would be paid with immediate effect.  This was greeted with a spontaneous applause that shook the pillars of the stadium.  Unfortunately the implementation covered only the two months arrears listed as No. 1 in NUP’s address.  His government inherited these arrears from previous administration of Chief (Dr.) Ikedi Ohakim. The payment was a betrayed expectation as it represented an infinitesimal fraction of billions of naira owed to Imo State pensioners.
In its editorial comment of May 2, 2006, The Guardian accused elected leaders in Nigeria of treating pensioners like dirt under their feet.  This inverted snobbery starts from omission of senior citizens in political campaign manifestos.  We had in Imo State nine gubernatorial candidates for the April 11, 2015 election.  These nine candidates and their political parties cannot pretend that they have not heard or read about how extensively the matter of neglect and abuse of pensioners has been talked about, written about, advocated and never rebutted.  Yet not one of the candidates had a word of hope for the pensioners.  In other words they do not care a hoot about pensioners.  This is an early indication that they will want to inherit assets only forgetting that asset and liability are inseparable companions like the two sides of a coin.  Discrimination against pensioners in Imo State political circles has gained the permanence of Osu caste scandal, hence one time governor of the state called them dead-woods and the present Governor revoked their constitutional right to choose their pension pay points.
Retirement is not a sentence as political charlatans and operators of the system make it appear.  Rather it is gift of years for pensioners to make the most of their life.  This is the time to do those things they did not have the freedom and time to do when in service.  Their talents, wisdom and experience are badly needed in their communities.  When they are active and involved they have a new sense of self-esteem and everybody benefits.  However they can’t live up to this noble role without prompt payment of gratuity and regular payment of monthly pension.
The evil effects of delayed payment of pension benefits on individuals the society and the economy are incalculable as each effect has its own ripples.  In the first place it destroys the integrity of the individuals.  An Igbo aphorism says that it is better to murder a man than to destroy his image.
When pensioners cannot feed themselves and their families they lost parental authority.  When they cannot pay their rents, union dues, Church dues, community dues or renew their vehicle license they lose self-esteem.  When they cannot buy drugs to control high-blood pressure and high blood sugar stroke and long period of paralysis follow.  They are now excluded from public life to suffer the torments of loneliness until death comes as relief.
Non-payment of pension benefits as at when due kills the future of many children of pensioners.  Even when education is free parents still have financial role to play.  The new generation of pensioners are mid-life retirees whose children are yet to leave the family nest.  Gratuity is their severance allowance which ought to be paid before the expiration of their retirement leave.  Dr. Nnamdi Azikiwe’s father was a civil servant when his son got admission into Storor College in the United State of America.  He had to retire at only 23 years of service in order to raise from his severance allowance the sum of £300 which Nnamdi needed to meet all the preliminary expenses for passage and one year’s expenditures in America.  We will never know how many potential Ziks Imo State Government kill their future by delaying payment of pension benefits to their parents.
Non-payment of pension benefits in time is abuse of office that tarnishes the image of government in many ways.  Government is seen as deceitful when it raises hope of payment that flops; and as oppressive when it fails to apologize for the failure.  The civil servants who carry out unlawful orders whether oral or written are not happy because it hurts their integrity.  They know that to withhold pension benefits amounts to conversion of property in their custody into loans to government without the consent of the owners.  It is like a man who keeps money for his community and makes his personal expenses from it without giving account.  This is fraudulent action.  When they do this with gratuity and pension fund they are indirectly and against their conscience teaching the young ones that fraudulent behavior on behalf of the government is permissible.
By 1997 the gratuity of a Permanent secretary was about N600,000.  If government did not pay him then and wants to pay him now will it be just to pay him the N600,000 instead of its equivalent value today?  At that time one tablet of a particular sweet cost 20 kobo.  Today three of the same sweet cost N10 or N3.30k each.  This represents 750% decrease of the value of 20k in 1997 and of N600,000 as well.  If Imo State Government borrowed this N600,000 from a commercial bank it would have been paying 25% compound interest on it. 

Pension and gratuity arrears are extorted loans that must be paid at any time and the only equitable compensation for the pains and sufferings of the beneficiaries is to officially upgrade their gratuity and pension arrears as loans which attract that 25% compound interest government would pay to the commercial bank.  Anything short of this is immoral and a confirmation of The Guardian’s accusation that elected leaders treat pensioners as dirt under their feet and turning retirement into death sentence.
All men of goodwill should in their own ways by prayer and other actions help to see that problems of pensioners are solved.  This fraudulent action against them must stop.  There is no form of corruption more destructive than non-payment of pensioners which sends wrong signals to those still working and predisposes them to various iniquities.  It is said that evil thrives because good men do nothing.  For how long will Imo people tolerate this impunity?
C.E. Ukaegbu wrote from World Bank Hosing Estate, Owerri. (08060850474)

--The Leader News Online

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