Some workers in Edo State have angrily rejected their January salary over the deduction of a certain percentage from their salary for the contributory pension scheme.
Governor Godwin Obaseki had said the scheme would kick off in January this year and allocated N6bn for the scheme take in the 2017 budget proposal.
According to reports, Obaseki told the leadership of the Nigeria Union of Teachers that the commencement of the contributory pensions scheme was to mitigate the challenges being faced by pensioners.
He appointed 15 pension fund administrators to undertake the enrolment of employees in the state public service.
Those appointed are: Aiico Pension Managers Limited, ARM Pension Managers (PFA) Limited, Crusader Sterling Pensions Limited, Fidelity Pension Managers Limited, First Guarantee Pensions Limited, Future Unity Glanvils Pensions Limited and Leadway Pension PFA Limited.
Others are: Leadway Pension PFA Limited, Legacy Pension Managers Limited, Pensions Alliance Limited (PAL), Sigma Pensions Limited, Stanbic IBTC Pension Managers Limited, Premium Pension Limited, OAK Pensions and Trust Fund.
Some workers said they rejected the January salary because they were yet to understand details about the scheme.
Organized Labour in the state in a communique issued after an enlarged meeting, described the implementation of the contributory pension scheme as flagrant and a total disregard of due process and rule of law.
It rejected the move to begin implementation and called on the state government to as a matter of urgency stop what it termed the unlawful deductions from workers’ salaries and maintain status quo ante in the interest of peace of harmony.
A top aide to Governor Obaseki, who pleaded anonymity, said there was no going back on the implementation of the pension scheme.
The aide said the Governor would respond at the appropriate time but said the scheme is the best for workers’ interest.
But Governor Obaseki has sent a bill to the State House of Assembly to amend the state’s Pension Scheme of 2010.
A letter signed by Governor Obaseki said the bill, when amended, would enable the state commence the contributory pension scheme to put an end to pension related issues in the state.