The Lagos State Government has issued a warning to parastatal CEOs about failing to deduct and credit workers’ contributions to their pension accounts in accordance with the pensions law.
Mrs. Ajibola Ponnle, Commissioner for Establishments, Training, and Pensions disclosed this at a sensitization workshop for CEOs/Directors of Finance and Accounts (DFAs) of government parastatals in Lagos State Pension Law Administration 2007: Process and Sanctions for Defaulting Agencies in Ikeja, Lagos.
Ponnle, who was represented by Dr. Onayele Abiodun, Permanent Secretary, Office of Establishments and Training, lamented that the government, through the CSPO, has had to contend with unending requests for bailouts on payment of pensions and gratuities of retirees who retired from these parastatals, saying that the issue had been recurring despite full payment of subventions to these agencies.
She stated that it had become necessary to sensitize CEOs and DFAs of government-owned agencies/parastatals on the requirements for processing workers’ benefits and the sanctions for non-compliance with the Pension Law of 2007 and that it was expected that after the sensitization, parastatal leadership would no longer hide behind the cloak of ignorance of the law.
“Over the years, there have been a series of requests from parastatals for bailouts from the state government in order to fulfill their statutory responsibilities, despite subventions being paid. This has resulted in employees not receiving their bond payments years after retirement. The State Government had suffered as a result of this.
“In an effort to avert this ominous trend, the Civil Service Pensions Office, in collaboration with the Parastatals Monitoring Office, organized this workshop to sensitize the CEOs/DFAs and Directors (Finance & Accounts) on the provisions of the 2007 Pensions law as they apply to their responsibilities on staff pension payments,” she explained.
Ponnle added that the sensitization was also intended to explain the consequences of defaulting, emphasizing that the workshop was organized to ensure that all parastatals pay on time.
According to her, the trend had become so concerning and embarrassing to the state government because the administration of Governor Babajide Sanwo-Olu did not treat matters concerning pensioners lightly.
“The purpose of this workshop is to educate the management of these parastatals on the 2007 Pensions Law, which provides for the contribution of employers and state government employees to be remitted for staff retirement benefits.
“As a result, the government is advising and employing all parastatals to be aware of their responsibilities and to ensure remittance of deductions in accordance with the pension law of 2007,” she explained.
Source: PM News