Pension crisis: TUC says PenCom may have led workers into a trap

insists on total strike, asks PenCom to prosecute money laundering suspects, if any

Trade Union Congress (TUC) says by the response given by the National Pension Commission (PenCom), it has become clear that workers were deceived into the extra contributions, not knowing that the rules would be changed without consultation.

The chairman, Rivers State chapter of the TUC, Hyginus Chika Onuegbu, reacted in Port Harcourt on Monday, saying the workers would waste no time to shut down the economies of states without any further notice, the moment the rules were changed.

The TUC had alerted the nation that the rule for withdrawal of voluntary contributions to the pension fund, which allowed contributors to withdraw any portion at any time, was about to be changed without consultations with the workers or recourse to the National Assembly.

 Emeka Onuorah, PenCom’s head of corporate communication, had reacted saying the commission had the powers to do so, and said the decision was to forestall attempts to use the scheme to launder money.

Now, Onuegbu countered, daring PenCom to prosecute anyone found using the fund for money laundering. “And for the avoidance of doubt, TUC Rivers State, we will commence the process of shutting down the economy of Rivers state (without any notice or ultimatum) if PenCom goes ahead with these illegal changes in the proposed guidelines without due engagement of the Trade Unions and the workers they represent, and without the due process of law in a constitutional democracy.”

The TUC said it was shocked that what was being dished out to the public was not true. “It is important to clarify that Voluntary Contributions are paid from salaries of workers and deducted at source by the employer and remitted to PenCom through the Pension Fund Administrators (PFA), just like the statutory pension contribution.

“This contribution was first started following the commencement of the 2004 Pension Reform Act which was later repealed and replaced by the 2014 Pension reform Act.  Section 9(5) of the 2004 Pension Reform Act states that “Any employee to which this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account.’’

Since then, 2004, workers have been making voluntary contributions and withdrawing the voluntary contributions as they elect to freely do. This was the impression created by PenCom and the PFAs to lure workers to make additional voluntary contributions, and has been the practice since 2004.”

Onuegbu went on: “How come PenCom have not prosecuted or indicted anybody for laundering dirty money through the Voluntary Contributions since 2004?”

TUC said: “PenCom said that TUC is on the Board of PenCom. That is true. In fact TUC, NLC and NECA amongst others are on the Board of PenCom. But as we make this publication, PenCom’s board has not been reconstituted and PenCom has not engaged representatives of TUC, NLC and NECA on the proposed guidelines. And this is the crux of the matter. Nigeria is operating a constitutional democracy and agencies of government cannot be allowed to operate unilaterally without recourse to the Law and rules of engagement in a democracy.

“If PenCom is sincere about its  intentions, it  should have engaged the leadership of TUC, NLC and NECA to ensure that there is broad stakeholders support for the new guidelines. Even the process of legislation by the National Assembly which led to the enactment of the 2004 and later 2014 Pension Reform act is one of engagement. Public hearing was conducted by the National Assembly and stakeholders made their inputs.

 “We are therefore surprised that a fundamental change in the administration of Voluntary Contribution will be made to the extent that a draft has been issued by PenCom without engaging TUC, NLC and NECA. This is dictatorial and cannot be allowed in a constitutional democracy. We would, as representatives of the workers, be failing in our duties if we allow PenCom become dictatorial and tyrannical in their approach to making fundamental changes.”