We are paying pensioners at FULL VALUE, Ekiti State Govt – PensionNigeria

We are paying pensioners at FULL VALUE, Ekiti State Govt

The attention of the Government of Ekiti State has been drawn to some media reports insinuating that the State was deducting 25% or any amount from the gratuities of pensioners in the State. These reports are misleading and false.

Ekiti State Government is issuing promissory notes to pensioners at PAR VALUE. This means the notes are issued at the FULL VALUE of their gratuities. If the State owes a pensioner N5m, the note he or she will receive is for N5m, not one Naira less.

However, the promissory note can only be paid in 2022, when Ekiti State Government projects to be able to raise the funds. For pensioners who want their money quicker than 2022, they can choose to discount their notes for 5% – 15% and receive payment from March 2021.

This is OPTIONAL for those who cannot wait till 2022 when the note matures. To compare with the present scheme on which Ekiti State only pays about 20 people at an average of N100m/ month (an increase from N10m/ month paid by the previous administration), only about 250 pensioners would have been in the next two years.

But with this scheme, Ekiti State will offset the gratuities of about 800 people in a much shorter period. This new scheme also ensures that pensioners get paid their outstanding gratuities quicker, to prevent inflation from reducing the value of the money paid. For instance, N5m in 2018 cannot be the same today and N5m today will also not hold the same value in 2022.

Finally, the scheme was designed to be OPTIONAL. So if a pensioner doesn’t want to take the option, he or she can simply hold the note till it matures and walk into the bank to collect the money in full, in two years time.

The first phase will clear arrears from 2012 to 2014, and will subsequently continue till Governor Fayemi leaves office, to clear more years. By the state’s calculation, Ekiti State Government projects to clear arrears till 2016/17 under this scheme.

It will mean a significant reduction in outstanding obligations of over N16 billion, especially at a time when the revenue received by the State is at an all-time low, which shows a strong commitment to the welfare of the pensioners. Pensioners who are interested in the new scheme have already commenced registration as shown in the pictures below.

Read more Ekiti State pension news here

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube

error: Content is protected.