PENSION DELAY: Retired Edo Permanent Secretaries Face 7-Month Wait for Payment
By DADA AYOKHAI
Retired Permanent Secretaries in Edo State are facing a seven-month delay in payment of pension shortfalls under the Contributory Pension Scheme (CPS).
Sources within the civil service maintain that the governor, whose administration has consistently demonstrated commitment to the timely payment of salaries and pensions to serving and retired workers may not be aware that retired permanent secretaries are experiencing delays of up to seven months.
Investigations reveal that a memo authorising the release of outstanding pension shortfalls, along with a proposal concerning their migration back to the Defined Benefit Scheme (DBS), is yet to be forwarded to the governor for approval.
Insiders say the document has overstayed in the Office of the Head of Service.
Under the Pension Reform Act 2014, Permanent Secretaries enrolled in the Contributory Pension Scheme (CPS) are entitled to retirement benefits based on their Retirement Savings Accounts (RSAs). Where the RSA balance falls short of their full statutory entitlement, the employer is legally required to fund the deficit through budgetary allocations.
Guidelines issued by the National Pension Commission further provide that such shortfalls must be paid promptly to ensure retirees receive their full benefits without undue delay.
Pension experts note that once provisions have been made in the budget, administrative processes should not hinder disbursement.
Meanwhile, the Head of Service is said to have met with labour leaders to discuss the matter, and in his usual characteristic manner, assured them that government was working toward resolving the issue without specific timeline given when the outstanding shortfalls would be cleared or when the long overdue memo would be forwarded for executive approval.
Labour representatives, while acknowledging the engagement, are said to be concerned about the absence of a clear implementation schedule, noting that prolonged uncertainty continues to place retired Permanent Secretaries under financial strain.
While the wider workforce has continued to receive pensions as scheduled, retired Permanent Secretaries reportedly depend on the release of government-funded shortfalls to access their complete entitlements, resulting in significant hardship during extended waiting periods.
“There is no reason payments that are statutorily backed and budgeted for should be delayed,” a senior official familiar with the matter stated.
“The governor may not be aware that the memo has not yet reached his desk”, he further added.
The stakeholders are therefore urging the Head of Service to urgently forward the long overdue memo for the Governor’s consideration, expressing confidence that once apprised of the situation, the Governor will act swiftly in line with his administration’s record on promptf salary and pension payments.
When contacted, the state Commissioner for Information and Strategy, Prince Kassim Afegbua, admitted that the state government is owing pensioners not only the permanent secretaries.
According to him, pensioners go through a procees to be paid. “The process depend on the order of priority. There are accumulated ones that we have to clear first. There are backlog of arrears we inherited. We are taking them gradually,” Afegbua asserted.
He maintained that payment of pensions depends on year of retirement. “Somebody who retired now cannot be paid immediately whilst someone who retired five, six years ago are still owed.”
