Edo Govt: We Have Phased Approach to Addressing Pensioners’ Welfare

The Edo State Government on Monday said it is committed to paying all outstanding pension arrears and gratuity in phases to reduce the debt burden on the state, adding that since the state Governor, Godwin Obaseki-led administration came on board, it has embarked on a holistic strategy to address pensioners’ welfare.

The government said due to the dwindling crude oil production and prices which affected revenue accruing to it from the federal government, it has prioritised the plight of pensioners in the face of competing needs in the different sectors of the state.

In a statement issued  in Benin-city, the Edo State capital, the government dismissed reports that it owed 42 months in pension arrears, noting that they “are false and a misinterpretation of facts.”

The state acknowledged that it has been faithful to the purpose of the Paris Club refund, which was disbursed to states for clearing salary, pension, and gratuity arrears. However, the state government noted that the fund available to it “is not and cannot be sufficient to settle pension arrears that have accumulated for over 20 years. The Paris Club Refund is not restricted to payment of pension arrears and gratuities, but for employees’ emoluments.”

The government explained that only a few pensioners were owed multiple months of arrears, most of whom are captured under the Local Government Pension Board, an institution that is autonomous and independent of the state Pension Bureau.

The state stressed that although pension arrears that led to recent protests spanned for over two decades, it acknowledged the principle of continuity in governance and had put measures in place to address the issues.

According to the state government, “Matters concerning local government pensioners are separately handled by the Local Government Pension Board. Up to this moment, retirees in the local government service fall within the jurisdiction of the Local Government Pension Board. Be that as it may, the issues raised by the protesting pensioners of the local government service are better tackled by the Local Government Pension Board.

“Under the Edo State Contributory Pension Scheme Law, there is a unitary Pension Bureau that will take charge of both the State Civil Service and the Local Government Civil Service staff. When the state Pension Bureau becomes fully operational, after inspection and certification by the National Pension Commission (NPC), it will take over the functions of the Local Government Pension Board. This would be done after the commission conducts due diligence on the state of affairs of the board’s pension liabilities and current pension and gratuity payment status.”