News Politics

Obaseki spends N25bn on pension payment in 4 years

Edo State government says it has so far spent N25,047,472,632.77 on the payment of pension between November 2016 and May 2020.
The state government also said over N4.3 billion of the amount was expended in the payment of arrears to about 3,128 pensioners in the state.
Crusoe Osagie, special adviser on media and communication strategy to Governor Godwin Obaseki, in a statement on Sunday said the amount was part of backlog of outstanding pension arrears owed the pensioners.
Osagie said the expenditure was contained in a Mid-Year Report by the Edo State Pension Bureau as at 30th June, 2020.
According to him, the state government spent a total of N771,714,393.01 between November and December 2016 for the payment of pensions.
“The sum of N 5,371,283,211.09 billion was expended in 2017; N6,452,535,649.08 billion in 2018 and N7,936,681,957.45 billion in 2019.
“For 2020, the government spent N735,069,623.04 million, N736,780,760.18 million, N759,731,334.31 million, N760,620,948.61 million, N759,695,333.23 million and N763,359,423.02 million in January, February, March, April, May and June, respectively,” he said.
He also disclosed that the sum of N81,169,724.24 has been paid to families of 34 deceased employees of the State Public Service since the commencement of the Contributory Pension Scheme (CPS) on January 1, 2017 till date.
Osagie said the deceased were enrollees of the Contributory Pension Scheme (CPS).
He added that the sum of N80,713,446.34 was paid as premium for 9,803 employees in the CPS.
“The sum of N80,713,446.34 million was paid as premium for 9,803 Edo State employees in the CPS. With this payment made, the next of kin of deceased employees receives three times their gross annual salary as benefits. From the commencement of the CPS on 1st January 2017 till date, a total sum of N 81,169,724.24 million have been paid to families of 34 deceased employees of the State Public Service who were enrollees of the CPS.
“Workers who are eligible to register under the Contributory Pension Scheme (CPS) have the benefit of a Group Life Insurance cover that makes provision for beneficiaries of a contributor in the event of death in active service,” he said.
He explained that, as part of policy to minimise the incidence of accumulation of pension arrears by the past administrations, the Obaseki-led government set aside N200 million monthly to defray arrears of pensions dating back to 1996 up to December 2018.
While noting that the state government was committed to the payment of gratuity and harmonisation, he said that the achievement was in furtherance of the government commitment to the welfare of pensioners in the state.
“The State Government exercised political will and has been committed to the payment of pension arrears, monthly pension, death benefits under the Defined Benefit Scheme and government’s 10 percent matching contribution into the employees’ RSA in compliance with the provisions of the Edo State Contributory Pension Scheme Law of 2010 as amended.
“The state has made remittances of contributions of both employees (8 percent) and employer (10 percent) to the PFAs for 39 months. That is from January 2017 to April 2020 which amounts to N5,230,348,954.34 billion. Of this, government’s (employer) matching (10 percent) contribution is N2,905,749,419.08 billion, while that of the employees’ (8 percent) contribution is N2,324,599,535.26 billion,” he stated.
See also  Lukman Urges Consultation: Deciding on APC Chairman Without NWC Input Could Be Damaging