Ekiti Retirees Reject 15 Per Cent Cut In Pension And Gratuity

By Ayodele Oni

The reward of retired workers in Ekiti state, popularly called senior citizens, may not come in their life time, following an attempt by government to mortgage their entitlements.

Investigations revealed that as at the inception of the Governor Kayode Fayemi administration in 2018, about N15 billion was being owed as pension and gratuity to retired public servants.

In its bid to reduce the debt, the Fayemi government promised to be releasing N100 million monthly. But this, again, has stopped since November 2019, following a drop in revenue.

Still looking for ways to offset the debt, the state government  approached a financial institution to obtain loan at 15 per cent interest, to be deducted from the entitlements of pensioners. But this  move was rejected by the retirees.

A meeting was held last week between Representatives of the Nigeria Union of Pensioners, (NUP) and Ekiti State Government officials in respect of the outstanding unpaid gratuities and pensions.

At the meeting were officials of the financial institution invited by the government to assist in clearing the backlog of unpaid gratuities and pension.

According to proposals put forward by the state government, the financial institution will assist in payment of gratuities with immediate effect, the value cost will be about 15 percent of the pensioners’ gratuity.

“This is going to be voluntary on the part of pensioners.

The other option is to wait till when government will have the ability to pay.”

However, no agreement could be reached at the meeting as the NUP representatives insisted that they would go back home and seek the opinion of the pensioners and a larger meeting will be convened  before a final decision could be taken.

Pastor Oluropo Famubode, one of the representatives at the meeting, explained that  it was true that the  administration wants to secure a loan to settle the outstanding gratuity on the condition that the pensioners will part with 15 percent of their entitlement for this arrangement.

“This appears to me to be most unfair because a pensioner, who was supposed to have taken his gratuity in 2013, for instance,  has already lost a chunk of his money in terms of value. One Million Naira in 2020 is of a lesser value than One Million Naira in 2013.”

Pastor Famubode pointed out that it was only former Governor Segun Oni, in 2007 to 2009, that put smiles on the faces of Pensioners in Ekiti as his administration ensured that retirees got their entitlements three months after leaving office.