Workers to FG: Remit our Pension Contributions Accurately & Promptly. This is what FG currently Remits.
Civil Servants in the country have urged the Federal and states governments to ensure that contributions of employees under the Contributory Pension Schemes (CPS) are promptly remitted to the Retirement Savings Account (RSA) in compliance with the Pension Reform Act 2014.
This was one of the decisions contained in the communiqué issued at the end of the 41st National Council on Establishment (NCE) held from Monday, 4th to Friday, 8th November, 2019, in Asaba, Delta State and signed by Mrs. Queenet Iheoma-Hart on behalf of the Director, Communications in the Office of the Head of Civil Service of the Federation (OHCSF).
The meeting expressed concerns on the delays in pension remittance and called on employers to adhere to prompt remittance. The meeting was presided over by the Acting Head of the Civil Service of the Federation and Chairman of Council, Dr. Folasade Yemi-Esan, and was also attended by Heads of Service from 32 States in the Federation and the FCT, Abuja.
The Chairman of Federal Civil Service Commission, National Salaries and Wages Commission, Corp Marshal of the Federal Road Safety Corps (FRSC) and other Federal and State delegates also participated in the meeting. The communiqué also appealed to the government to pay salaries regularly as a way of motivating workers for optimum performance.
PRA 2014 reviewed upwards the rate of pension contributions from a minimum of 15% to 18% of monthly emolument of the employees. Under the new rate, the minimum rate of contributions is 18% of the employee’s monthly emoluments where 10% is contributed by the employer and 8% is contributed by the employee. Five years later, the Federal Government has not implemented the new rate of pension contributions as revised by the PRA 2014.
The Federal Government still remits 15% of the employee’s total monthly emolument. This means that while employees and employers in the private sector are contributing 18% of employees’ total emoluments into RSAs, Federal Government and its employees are contributing 15% of the employees’ total emoluments.