Symbol of Justice
Amid complaints of slow administration of pension payment by the various Rehabilitation Services Administration (RSA), the National Pension Commission has blamed courts’ bureaucracy for the delay in pension payment.
According to Head, Research and Corporate Strategy, National Pension Commission, Dr. Faruk Aminu, one of the challenges being faced in the administration of pension by the various RSA is that of obtaining Letters of Administration from courts.
Speaking at a seminar for financial journalists in Abuja, he claims courts usually ask for 10 percent of RSA balance before issuing the Letter of Administration, an action he said is capable of scuttling the bids to ensure early settlement of obligations.
He listed other challenges militating against the smooth administration of pension especially to Federal civil servants to include the problem of meeting additional claims arising from early exit occasioned by early retirement.
He disclosed that five percent of the Federal Government’s wage bill being paid into the Retirement Benefits Bond Redemption Fund (RBBRF) Account is insufficient to upset the additional claims arising from early exit occasioned by voluntary and mandatory retirements or death.
The Pencom chief also frowned on delays in remittance of contributions occasioned by non-submission of nominal rolls by the ministries, departments and agencies (MDAs), a development he said is dragging the RSA back in their bids to ensure prompt administration of pension.
Other problems listed include non-submission of updated and/or incomplete nominal rolls indicating changes in grades and levels resulting in non-remittance of right contributions into RSAs and low level of monthly pension.
Also listed is the lack of adequate knowledge about the workings of contributory pension and multiple registrations and lack of clear identification of RSA holders.
He said in most cases, the small balances in employees’ RSAs were grossly insufficient to fund a programmed withdrawal or the purchase of annuity. Other source of worry is the misconception of people who see about 50% of RSA balance as lump sum as well as number of years of benefits payment under Programmed Withdrawal.
However, he noted that pension fund has generated appreciable pool of long term investible funds.