Delta Not Detached from Pensioners’ Plight, Says Okowa

Delta State Governor, Dr. Ifeanyi Okowa, has said inability of most state governments to operate the contributory pensions scheme in the country was due to huge financial burden inherited under the scheme by them.

Okowa made this known yesterday at the third session of the 8th Synod of Ughelli Diocese of Church of Nigeria, Anglican Communion held at Bishop Agori-Iwe Memorial Church, Ughelli.

He said that the financial burden forced 18 state governments out of 26 that enlisted on the scheme to withdraw, leaving only eight state governments, including Delta State.

The governor explained that aside other intricacies, the major challenge that made the states to withdraw and others never enrolled in the scheme was the huge backlog running into billions of naira.

He stated that in Delta State, his administration inherited about N100 billion unpaid pensions under the scheme, but disclosed that it was being defrayed by the government.

He said that the state government was up-to-date with payment of pensioners in the old scheme, disclosing that they were paid same time every month with public servants in the state.

Okowa pointed out that the government was aware of the plight of the pensioners and wished that he had solutions to the challenges.

“We have two types of pensions, the old pension scheme and the contributory pension scheme.

“Those on the old pension scheme are paid regularly as we pay salaries, but there is a big challenge with those on the contributory pension scheme.

“It is a good scheme but it will take a very long time to solve the issues associated with it.

“For instance, if somebody had done 15 years before joining the contributory pension scheme, it provides that the government must contribute for those years and it runs into billions of naira.

“Out of 36 states in the country only 26 states embraced the scheme, but as at today, only eight states are contributing to the scheme and the rest are no longer in the scheme because it is extremely expensive.