Wednesday, 13 April 2016

Details of amended Niger State Pension reform Law

Niger state House of Assembly on Thursday amended the state contributory pension reform law 2006.
The amended portion provided that all those who took up employment before the commencement date of the law be exempted, while those who took up employment at the commencement of the law in 2006 when the pension law came into force are automatically part of the contributory pension scheme.
The House also resolved that workers who were not affected by the new contributory pension scheme as amended, be refunded their 7.5 percent contributions they accumulated since the commencement of the scheme.
The Chairman of the Joint Committee on Labour, Finance, Local Government and Judiciary, Hon Malik Madaki Bosso said, while reading the report of the joint committee at plenary that the new pension law was domesticated in only six out of the 36 states of the federation, showing clearly its unacceptability.
He said other findings of his committee include the observation that retired civil servants found it difficult to access their pension contributions years after retiring from service, because the pension fund administrators deliberately made the process difficult.
Hon. Bosso said workers in the state have always been suspicious of the new pension scheme since its inception in 2006, as the scheme has been unable to fulfill its obligations to workers.
He revealed that workers in the state were against the scheme and would not accept its retention in any guise. However, he said those in support of the scheme gave reasons why the law should not be scrapped.
Some of the reasons the proponents gave were that the old pension scheme has become a burden to the state and that repealing the new pension law was not a good option because of the crisis of funding that led to its emergence.
He said the committee was told that the contributory pension fund was a source of funding for long term infrastructural development in the country and that the financial situation in the state was part of the problem militating against the scheme.
The House after receiving the report collapsed into the committee of whole and considered the committee’s recommendations and passed the amended portions.

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