Today 3 December, 2022

More sectors opting out of Contributory Pension as House of Reps adopt committee’s recommendations

More sectors opting out of Contributory Pension as House of Reps adopt committee’s recommendations

Members of the House of Representatives have adopted the recommendations of its Committee on a Bill for an Act to Amend the Pension Reform Act 2014 to exempt the National Assembly Service from the Contributory Pension Scheme.

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Hon. Femi Fakeye who spoke on the synopsis of the Committee’s report, explained that the Bill seeks to guide pension matters for the National Assembly pension services for it to achieve best practices.

To this end, the lawmakers during the voting on the clauses approved Clauses 1 to 19.

Speaking during the debate on the bill about five months ago, Hon. Olododo Cook explained that the proposed amendments provide for the establishment of a Pension Board which shall be charged with the responsibility of managing the payment of pensions and gratuities to all personnel of the Service.

He added that, the bill shall apply to all personnel of the National Assembly Service including those who had retired before the commencement of this bill.

He stated that the retirement benefits of personnel referred to in sub-section (2) shall be adjusted to be commensurate with the provisions of this bill.

Hence, the pension expenditure shall be charged on and paid out of the Consolidated Revenue Fund of the Federation, all such sums of money as may, from time to time, be granted by the Federal Government by way of pension and gratuity in accordance with this bill.

“The proposed legislation states that no pension or gratuity shall be granted to any personnel except on his retirement from the Service in any of the following circumstances. (a) after serving for 40 years or attained the age of 65 years, whichever is earlier; (b) upon voluntary retirement after serving for not less than 10 years; (c) upon compulsory retirement under the provisions of Section 5 (1) of this bill; (d) upon compulsory retirement for the purpose of facilitating improvements in the Service, so that greater efficiency or economy may be effected,” he noted.

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