Good Times Ahead for Military Pensioners

Fri, Nov 7, 2014

By publisher

3 MIN READ

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Ngozi Okonjo-Iweala, minister of finance and coordinating minister of the economy, has assured military pensioners that they will be paid the 53 percent increase in the pension arrears but it will be done in tranches

|  By Maureen Chigbo  | Nov. 17, 2014 @ 01:00 GMT  |

MILITARY Pensioners who are agitating for the federal government to pay 53 percent pension arrears have cause to smile. The government has set up a working group made up of high-level officials from the federal ministry of finance, Budget office and representatives of military pensioners to harmonise positions on pension arrears. They are to also address other issues around the payment of pensions to retired military personnel in the country. The group will be chaired by the Bright Okogu, director general of the Budget Office of the Federation. Other members include the chairman, Military Pension Board, representatives of the military pensioners, the National Salaries, Income and Wages Commission as well as staff of the federal ministry of finance.

The setting up of the group was the outcome of the meeting between a team from the federal ministry of finance led by Ngozi Okonjo-Iweala, coordinating minister of the economy and minister of finance, and military pensioners who had gathered at the ministry earlier on Wednesday, November 5,  in protest against delays in the payment of their pension arrears.

The pensioners who acknowledged that they have been receiving a 33 percent increase on their pensions since August 2013 were also demanding that the increase should be 53 percent to put them at par with their colleagues who are in active service.

Okonjo-Iweala had delayed her attendance at the weekly Federal Executive Council, FEC, meeting to engage the pensioners in an honest and robust session in which both sides spoke their minds freely. The government team which engaged the pensioners included the permanent secretary of the finance ministry, Okugu and the chairman, Military Pensions Board.

Explaining the genesis of the problem, the minister told the pensioners that the 53 percent increase in public sector wages which was implemented in 2010 left government with a very high recurrent budget which poses a significant funding challenge. She said that even though she was not in office when the hike was implemented, government is a continuum and the ministry under her watch, with the strong support of President Goodluck Jonathan has been working hard to address the challenges because soldiers who put their lives on the line to serve the nation deserve the greatest honour and consideration. It was because of this that the federal government has implemented a 33 percent increase in military pensions alone since August 2013 following a recommendation of a government committee.

On the pension arrears, Okonjo-Iweala stressed that government was committed to paying but that, given the realities, this had to be done on an agreed schedule in tranches. “I cannot tell you that everything will be paid at once but I can assure you that you will be paid when we agree on a realistic schedule”, the minister said.

Her proposal for the establishment of the working group to discuss and agree on the level of the arrears as well as the schedule of payment was accepted by the pensioners who nominated representatives to join the group. The representatives of the military pensioners who had spoken passionately about the challenges they are facing because of delayed pension payments later thanked the minister for giving them accurate information and giving them a listening ear.

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