TheCable

The office of the secretary to the government of the federation (SGF) and some stakeholders have kicked against the proposed exemption of paramilitary organisations from the contributory pension scheme.

Roy Ogor, a representative of Habiba Lawal, acting SGF, made the position known at the public hearing organised by the house of representatives committee on pension.

The committee had organised a public hearing on a bill to exclude paramilitary personnel and anti-graft agencies from the contributory pension scheme.

He told the lawmakers that the provision of the exemption bill contravenes federal government’s position, so it should be jettisoned.

While noting that status quo should be maintained to enable the public and private employers meet their 18 percent pension obligations as provided for in the pension reform act, 2014, Ogor urged the national assembly to jettison any proposed legislation that could further compound the socio-economic predicaments of workers.

He also noted that public and private employees were currently struggling to comply with the current contribution of 18 percent as the lingering economic recession affects both public and private employers.

According to him, rather than the proposed amendment to the law, the pension reform act has provision for increase in pension contribution by employers.

Earlier, Yakubu Dogara, speaker of the house of representatives, described the pension industry as a crucial sector that would play a formidable role in the development of the economy.

“We are conscious of the fact that the pension industry has become a crucial sector that is playing a formidable role towards the development of the economy in terms of availability of huge investment funds of about N6.4 trillion,” Dogara said.

Also speaking, Ayuba Wabba, president of the Nigerian Labour Congress (NLC), said the federal government had in excess N1.6 trillion pension liabilities under the Defined Benefit Scheme (DBS) when the CPS was introduced in 2004.