The Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS) on Tuesday criticized the federal government over alleged maltreatment of its members.
The National Chairman of NUPCPS, Sylvia Nwaiwu, said in Abuja that members were persuaded to switch from the old Defined Benefit Scheme (DBS) to the Contributory Pension Scheme (CPS) as part of the government’s 2004 pension reform initiative.
He stated that pensioners moved to the CPS in a spirit of sacrifice and patriotism, recognizing that a non-contributory, budget-dependent system was unsustainable with a growing workforce.
However, he alleged that this sacrifice was undermined in 2014, when the federal government exempted certain categories of public servants from the CPS and reinstated them into the DBS it had previously abolished.
He explained, “Because of this discriminatory exemption by the federal government, many workers in publicly funded institutions, such as the Nigeria Police Service, paramilitary, National Assembly workers, etc., are now demanding to exit the CPS.
“Notably, top-level public servants, like retired Heads of Service of the Federation, Accountant Generals, Permanent Secretaries, and Director Generals, who initially promoted the CPS to the government in 2004, have since exempted themselves from the scheme.”
He further noted that the union felt hopeful when President Bola Ahmed Tinubu, who first implemented the CPS policy as Lagos State Governor, assumed office.
However, the 21 months of accrued pension arrears from March 2023 to November 2024, have only seen three months of payments. He expressed concern, calling this an “unfortunate development” and a source of worry for CPS retirees.
He said, “The funds released for accrued rights cover only three of the 21 months due from March 2023 to November 2024. Although we appreciate the release of these three months following our peaceful rally at the Office of the Accountant General of the Federation on October 23, 2024, an 18-month backlog remains. These ongoing issues are deeply concerning for us as retired CPS workers.
“Moreover, CPS retirees were excluded from recent pension increments approved for other public servants, including a 115 per cent increase in 2007, a 33 per cent increase in 2010, a consequential adjustment in 2019 following the national minimum wage increase, a 20-28 per cent increase in 2024, and the new N32,000 minimum monthly pension linked to the current N70,000 minimum wage for workers.”
He added, “Today, CPS retirees are highly marginalized, struggling with severe hardships in Nigeria. Many are bedridden, and many have passed away without receiving the benefits of their years of service.
“As a matter of urgency, we warn those about to join the CPS to consider the potential hardships they may face in retirement, unless drastic changes are made. No one will take these steps but us.”
He also pointed out that retirees who served before the 2004 CPS commencement were initially under DBS but completed their service under CPS, and thus deserve equal rights to pension increments and retirement benefits, like their DBS counterparts.