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The
Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC)
yesterday opposed the proposed exclusion of armed forces personnel from
the National Pensions Commission, saying it could undermine the scheme,
which came into effect in 2007.

At a public hearing
on the bill, jointly conducted by the House of Representatives
Committees on Pensions and Public Service Matters, Peter Adeyemi, who
represented the NLC, said, “Whatever the arguments for the exemption,
we in the congress are of the opinion that the National Assembly should
be extremely cautious in considering this proposal, in order not to
return pension to its 2004 era. We should therefore either individually
and collectively desist from taking any decision that will throw the
pension into chaos,” he said.

Mr. Adeyemi,
suggested that rather than allowing the military to exit from the
scheme, government should rather opt for making full contributions for
the military as against the current payment of some percentage for
them. He, however, called for the strengthening of some areas of the
Act to enhance the effectiveness of the scheme.

In his submission,
the President of the Trade Union Congress, Peter Esele, said removing
the military from the scheme could have a ripple effect with other
sectors demanding exclusion.

Mr Esele argued
that the agitation by members of the armed forces could only undermine
the continued workability of the scheme which was introduced to correct
anomalies that allegedly characterised the previous scheme
superintended by the Military Pensions Board (MPB).

The chairman of the
Pension Fund Administrators of Nigeria, Funsho Doherty, said the
proposed amendment to exclude the armed forces would portend danger for
the administration of pension in the country. He said the move cannot
address the problems confronting pension administration in the country.

Earlier, the
chairman of the House Committee on Defence, who sponsored the bill,
said there is nowhere in the world where members of the armed forces
contribute to their pension, saying the system does not conform with
contemporary realities.

Inconsistencies in payments

The chairman,
Military Pension Board, Bitrus Kwaji, a Brigadie-General, supported the
bill, saying the exclusion of the military from the scheme is borne out
of some challenges confronting the contributory pension scheme under
PENCOM.

According to him, ”
The challenges of the contributory pension scheme as faced by military
retirees have now added impetus to the call for reverting to the old
pension system of pay as you go.”

Mr. Kwaji said the
inconsistencies in payments made by the various Pension Fund
Administrators (PFAs) to officers of same ranks and years of service is
a serious challenge to the scheme. He added MPB was repositioned to
effectively cater for its personnel and has complied with the e-payment
policy of government and timely payment of monthly pension to retired
officers.

Also speaking at
the hearing, Muhammad Ahmad, the Director-General National Pensions
Commission, said that before the commencement of the scheme in 2007
there was wide consultation with stakeholders but that the issues
raised would be addressed.

He advised against
policy reversal as it was counter-productive to the development of the
nation. The bill, titled “Pension Reform (Amendment) Bill 2010” scaled
second reading on May 25 this year.