Starrays
By Moses Agbe and Benedict Iorgyer
The management of National Assembly, represented by the Deputy Clerk to the National Assembly, Engr. Bashir Yero, recently raised concerns about issues impeding the effective implementation of the 2023 Pension Act.
The position of the management was made known by the DCNA, Engr. Yero, who stood in for the Clerk to the National Assembly, Mr. Kamoru Ogunlana during a public hearing organized by the House of Representatives Committee on Public Service Matters on the proposed amendments Bill seeking to amend the National Assembly Service Pension Board (Establishment) Act, 2023.
The first issue raised by the management was the composition of the board, which they said the Act stipulates that, “The chairman of the board shall be a retired Clerk of the National Assembly, retired Clerk of the Senate or House of Representatives, retired Deputy Clerk of Senate or House of Representatives, retired Secretary of Human Resources, a retired Secretary of Finance and Accounts, a retired Secretary of the National Assembly Service and a representative of the Parliamentary Staff Association of Nigeria (PASAN)”.
However, the management identified loopholes in the composition of the board, stating that the section gives room for conflict of interest hence it should be restructured. According to Engr. Yero, to avoid such, the National Assembly management recommends that the board should be restructured as follows:
“The chairman should be a person who is retired or is in active service who attain at least the rank of Secretary to Directorate or its equivalent in the service of the National Assembly; two persons representing public interest, each representing northern states, including Abuja and southern states with relevant competencies on pension administration, finance, law and order; the Clerk to the National Assembly or his representative not below the rank of a Director or its equivalent in service; the Chairman of the National Assembly Service Commission or his representative who shall be a serving Commissioner at the Commission.
“Others are a Secretary of the National Assembly Library Trust-Fund or his representative, not below the rank of a Director or its equivalent in service; a person who shall be the Chairman of any chapter of the Parliamentary Staff Association of Nigeria (PASAN) in the National Assembly Service, and one person as the secretary of the board”.
Engr. Yero noted that “The current composition of the National Assembly Pension Board is dominated by retired staff of National Assembly Service, except the representatives of PASAN, the staff union, which raises grave concerns about conflict of interests.
“We believe that there should be representatives of public interest and professionals in the composition of the board”, he stated.
Engr. Yero noted further that, “When beneficiaries are involved in managing the funds, it may undermine the objectivity and integrity of the pension management sources”.
Another issue, which the management called attention to and sought its amendment in the 2023 Pension Act was the management of pension funds. Referring to the 2023 Act, Engr. Yero observed that the section which postulates that, “Pension money shall not be borrowed or used for any purpose” should be amended and captured:
“The contribution may be invested by the board with the objective of safety and maintenance of payers’ account and the amount invested. Pension Fund and assets shall be invested in bonds, bids and other securities issued or guaranteed by the Federal Government and the Central Bank of Nigeria; bonds, bids and other securities issued by the State and Local Governments; bonds, debentures, redeemable properties and other debt instruments issued by corporate entities listed on stock exchange under the investment and security Act (29) 2007; ordinary shares of Public Limited Liability companies on security exchange registered under Investment and Securities Act; bank deposits and bank securities; investment certificates of close-end investment funds or hybrid investment funds with good track records of earning; open-end investment fund or specially open-end investment fund, registered under the Investment and Securities Act or specialized investment fund and such other financial instruments as the board shall approve”.
In addition, the management sought amendment to the template for the computing of retirement benefits in the Pension Act, which Engr. Yero said the management feels is not sustainable. He noted that the current pension act stipulates that:
“Payment of 50% of annual late emolument shall be paid to retired staff as retirement package at the commencement of the mandatory three months retirement leave; payment of 300% annual growth emolument and gratuity shall be paid to retired staff on the terminal or last date of exit; budgetary provision of 50% of annual personnel cost shall be paid into the National Assembly Pension Board and payment of 30% Annual late emolument shall be paid as medical allowance yearly to retired staff”.
However, the management sought that the section should be amended to capture payment of gratuity to personnel, instead. According to Engr. Yero, the management believes that, “Giving the prevailing economic situation of the country, the above provision is not credible and sustainable. However, it is imperative that retirees who earned their gratuity to be paid accordingly”.
He noted that currently, the National Assembly does not pay gratuity to its retirees because there is no provision for it. However, if the pension Act is amended as recommended by the management, the service will commence the payment of gratuity to its retirees.
“It may please the Chairman and Members [Hon. Members] to note that the National Assembly does not pay gratuity as at now. If the Pension Act is amended as recommended, it will enable the service to start paying gratuity to staff who retires from National Assembly Service from May, 2023, considering that budgetary provision has been made for in the 2025 National Assembly Service Budget.
“Against the above concerns, we support the passage of the National Assembly Pension Establishment Act 2025 (as amended), which seeks to revert contributory pension scheme, ensuring a transparent and accountable system; introduce gratuity that fairly compensate retirees for their service, which is the best practice in pension management, and restructure the composition of the governing board to eliminate potential conflict of interest and enhance governance transparency”, he noted.
