Read Why Your Parents Are Being Owed Pension And Gratuity
Do you ever wonder why when you ask for money from your retired civil servant parents, they find it difficult to release it at a go?
You may possibly get angry when they tell you they have not been paid their gratuity when you need some bailout money.
Well, some explanation has been given as to why those old parents and grandparents who served the country have not been paid gratuity and pension after retirement.
According to the acting Director-General of the National Pension Commission (PenCom), Aisha Dahir-Umar, some retirees under the Contributory Pension Scheme (CPS) have yet to receive gratuity due to unfunded Defined Benefit Scheme (DBS) backlog owed by the Federal Government.
Also read: Buhari Returns From Turkey
“Pension administration was largely weak, inefficient, less transparent and cumbersome, and marred with corrupt practices.” she said.
“The Federal Government is overburdened with payment of pensions as illustrated by 2016 Appropriation Act which made a provision of N200.17 billion as total pension and gratuity allocation.
“The allocation is still insufficient to fund the liabilities.
“For instance the PTAD’s budget proposal indicated a total annual pension liability of N388.32 billion out of which N255.89 billion constituted unfunded liability inherited by PTAD.
“The measure culminated in the enactment of the Pension Reform Act (PRA) of 2004.
“The PRA was consequently amended by the National Assembly in 2011 and further repealed and replaced by the 2014 PRA” she said.
ALSO WATCH: Lagos Residents To IKEDC - "No Prepaid Meters, No Bills, No Disconnection"