The Public Complaints Commission has organized a seminar to launch a proactive and systemic investigation into the non compliance of private firms on the law establishing the Contributory Pension Scheme.
The investigation became necessary as a result of complaints received by the commission from private sector workers in the state.
The Nigerian Constitution has made contributory pension scheme compulsory for all strata of workers, with specific reference to firms with two or more staff.
Section 4 of Pension Reform Act 2014, provides for a mandatory minimum contribution of ten and eight percent of employee’s monthly emolument by the employer and employee respectively.
In Lafia, the capital of Nasarawa State, less than 15 percent of the organized private sector comply with this law.
The Public Complaints Commission has been inundated with several reports of non compliance by private firms in Lafia.
It is to address this, that the commission is organizing this seminar to unravel the reason for non compliance.
Pension administrators and other experts believe that lack of enforcement by regulatory bodies is the reason for non compliance.
Workers in the state pledge to always bring issues of pension to the knowledge of the commission to achieve the desired result.
This step taken by the commission is expected to get the organized private sector in Lafia to comply with the existing laws to avoid litigations.
The Pension Reform Act 2004 was put in place by the Federal Government to help in addressing the issue of backlog in the payment of Pensions both within the Public Service and for Private firms.
The Law was also designed to ensure that people who have used their productive years to work have something tangible to fall on in retirement.
While lot of State, Local and Federal government agencies have complied with the Law most private firms have been found wanting in compliance with the Law.
