Politics

Why we can’t pay N11bn pension, gratuities arrears —BAUCHI

Bauchi—Bauchi State government has attributed its inability to offset the N11 billion backlog of pension and gratuities to dwindling financial resources.

The State Head of Service, Adon Dalla Gin, who made this known at a briefing at Government House in Bauchi, said the administration of Governor Isa Yuguda inherited a debt of N600 million pension, which it had off set and paid accordingly to pensioners.

He said the state government paid the sum of N239,010, 937.88 monthly to 7,192 pensioners, adding that the number of retirees kept increasing rapidly as a result of massive retirements in the civil service on the basis of 35 years of service, 60 years of age or deaths.

He said: “The state civil service has an average of about 50 retirements on a monthly basis. This therefore accounts for the monthly increase of gratuity monthly which has now reached 11billion naira for both state and local government.

“When this government came into inception, the Governor approved the sum of 300 million naira to upset the outstanding pension and gratituities, but could not because of the dwindling financial resources of the economy”

“The government later reviewed it to N100 million but discovered that it could not afford it and brought it down to N25 million.

‘’The government also had problem of the payment of the N25 million and had to stop the entire process for some time. However, recently the sum of N25 million was paid to reduce the debt.’’

The Head of Service assured that the government would offset the remaining debt as soon as it got funds, adding that government was a continuous process.

He disclosed that the state had introduced a modified contribution Pension Scheme.

Leave a Reply

Your email address will not be published. Required fields are marked *