The Association of Senior Civil Servants of Nigeria has intensified its campaign for significant changes to the country's pension system, demanding that retirees receive their entire pension savings as a single payment upon retirement.
Union Demands Pension Scheme Overhaul
During the National Executive Council meeting held in Abuja on Thursday, Comrade Shehu Mohammed, the National President of ASCSN, described the current pension withdrawal structure as fundamentally unfair to retirees. He emphasized that the existing system, which permits only 25% lump sum withdrawal at retirement, fails to address the severe economic challenges facing pensioners.
Thousands of federal workers who contributed consistently throughout their careers are retiring into poverty because the current lump sum amount cannot provide meaningful financial support under the prevailing inflationary conditions, Mohammed stated.
Economic Reality Forces Pension Reform Demand
The union leader explained that the growing consensus among contributors favors complete access to their pension savings. The current request from many contributors is that the total money should be paid in bulk so that retirees who are adults can do any investments they desire with their money, Mohammed declared.
He proposed a straightforward legislative solution: amending the Contributory Pension Scheme law by introducing a new clause that would allow contributors to collect their entire pension savings as a single lump sum payment if they choose.
Administrative Delays Compound Pension Problems
Mohammed highlighted another critical issue affecting retirees: excessive processing delays by Pension Fund Administrators and various government ministries, departments, and agencies. These bureaucratic hurdles often force retirees to wait up to two years before receiving their initial payments, significantly worsening their financial hardship during what should be their retirement years.
The union is currently engaging with relevant stakeholders to push for targeted amendments to the CPS that would enable full bulk withdrawals without requiring a complete overhaul of the existing pension legislation.
Broader Worker Welfare Concerns Addressed
Beyond pension reforms, the ASCSN continues to advocate for the settlement of numerous outstanding benefits owed to civil servants across various government agencies. These include:
- Promotion arrears
- Salary differentials
- Duty tour allowances
- Other outstanding benefits
Mohammed also expressed serious concerns about the deteriorating security situation nationwide and urged the Federal Government to comprehensively overhaul the country's security architecture.
Regarding the ongoing debate about state policing, the union leader proposed establishing robust oversight mechanisms to prevent potential abuse by state governors. His suggested oversight structure would include representation from labor leaders, traditional rulers, civil society organizations, religious groups, and student representatives.
Government Acknowledges Union's Role
The Minister of Labour and Employment, while declaring the NEC meeting open, praised the Association for its longstanding commitment to advancing the rights, welfare, and professional development of senior civil servants throughout Nigeria. The Minister described ASCSN as a dependable partner in strengthening the country's industrial relations system.
As a Ministry, we remain fully committed to fostering harmonious industrial relations, promoting decent work, and creating an enabling environment where workers and employers can thrive, the Minister assured delegates.
He emphasized the administration's commitment to social dialogue as a primary tool for resolving disputes and improving workplace conditions, while acknowledging the various challenges affecting different sectors, including economic pressures and workplace transformation driven by technological advancements.
