Pensioners Demand N32,000 Pension Rise from Federal Government Under New Wage Act

ACNN NEWS
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Pensioners in Nigeria are calling on the Federal Government to implement the N32,000 pension increase, according to the National Minimum Wage (Amendment) Act, 2024.

During an interview with (NAN) in Abuja on Sunday, retirees reiterated on their need for timely payment of pension increments to help sort essential living expenses such as food, healthcare, and other bills.

Pensioners Face Economic Hardship Amid Stagnant Pensions

The pensioners, who are grappling with rising living costs, urged the government to adjust their pensions in line with the current economic realities. Mr. Etheleert Ibeh, the National Public Relations Officer of the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS), called for the immediate payment of all outstanding pension arrears. He made it clear  that while the national minimum wage has seen multiple increases over the years, pension rates have not been adjusted.

Ibeh made it known that the National Minimum Wage (Amendment) Act requires a proportional pension increase whenever the minimum wage is raised.

“Both pensioners and non-pensioners are facing the same market prices,” Ibeh explained. “Our pensions have not kept up with the rising cost of living. We are struggling to make ends meet on fixed pension amounts.”

Many pensioners are also concerned about their ability to meet basic needs such as rent, medical expenses, and school fees for their children, which have become even more difficult in light of economic challenges.

Health Insurance Issues for Retirees

Mrs. Obialunanma Uzor, a retired Deputy Director, shared her frustrations with pension delays and the loss of her health insurance. Since retiring in May 2024, she has not received any pension payments, and her National Health Insurance Scheme (NHIS) coverage was discontinued immediately after retirement.

“The removal of my NHIS coverage has been a huge financial burden,” Uzor said. “I now have to pay for lab tests and medications out-of-pocket, instead of just covering 10%. Health insurance is essential for us as retirees—we need medical attention now more than ever.”

Calls for Fairer Pension Fund Management

Mrs. Ogheneyukaro Gloria, another pensioner, expressed concerns about some Pension Fund Administrators (PFAs) operating selectively.

“They tend to prioritize pensioners who choose programmed withdrawal while ignoring those opting for annuity,” she said. “Retirees should have the freedom to choose their preferred payment plans. We have the right to make decisions about our own money.”

Gloria urged regulators to closely monitor PFA activities to ensure transparency and fairness for all retirees.

Pensioners Urge Immediate Release of Benefits

Alhaji Musa Adamu, who retired as a Director in May 2024, revealed that he has yet to receive his benefits, leaving his family in financial distress.

“We are still waiting for the Federal Government to release my accrued rights to my PFA so that my pension can be calculated,” Adamu said. “We are hungry, and I can’t pay my children’s school fees. My landlord is pressing me for rent, and I no longer have access to NHIS. Pensioners in Nigeria are suffering.”

Understanding Pension Payment Plans: Programmed Withdrawal vs. Annuity

The two primary pension payment options in Nigeria are:

  • Programmed Withdrawal – A retirement plan managed by Pension Fund Administrators (PFAs), offering monthly or quarterly payments to retirees for life.
  • Annuity – A retirement plan purchased from an approved life insurance company, which provides retirees with a guaranteed monthly or quarterly income for life.

Pensioners continue to push for prompt government action on pension increases, the release of owed benefits, and improved access to healthcare services. These issues highlight the urgent need for reform in Nigeria’s pension system, ensuring that retirees are provided with the financial security they deserve.

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