Reps To probe FCT Area Councils Over Non Remittance of Pension Contributions

Oluwakemi Kindness

The House of Representatives has resolved to launch an investigation into the failure by the six area councils in the FCT to remit their pension contribution to the Area Council Staff Pension Board.

This, on Wednesday followed a meeting of the House Committee on Federal Capital Territory (FCT) Area Councils and Ancillary Matters and agencies within its purview to defend their 2024 budget performance ahead of their 2025 estimates.

Speaking before the Fred Agbedi led committee, the Director of the Board, Suleman Abdulrahman, said the remittances are not frequent.

“By law and according to the pension reform act, each deduction from salaries in respect to pension is supposed to be remitted seven days after payment of salary, but unfortunately at the area councils that’s not what is happening. Sometimes they owe two to three months before remittance.

“The staff pay their employee contribution which is the 8 percent and 10 percent for the employer. It is remitted to their PFA accordingly from the area councils,” he said.

Chairman of the Committee, Fred Agbedi, who said Committee would embark on budget oversight to all the agencies, tasked the agency to furnish it with the records pertaining to the matter.

“Furnish us with the details so we can know why the area councils are defaulting in their remittance.

“Let someone move a motion for us to investigate the discrepancies and delay in area councils remitting because salaries are paid monthly.

“The Committee should investigate the failure of the remittance from the area councils to the pension account,” Agbedi said.

He directed Clerk to write to all the area councils to furnish the committee with up-to-date remittances of pension contributions on behalf of their employees.

Abdulrahman was queried on why the Board received more than it was appropriated for in 2024.

According to the documents submitted by the Board, pensioner cost total appropriation showed N131, 148, 262 but it received 151, 137, 417.

He explained that this was due to variation in salaries as a result of the change in minimum wage.

“The personnel cost of all FCT staff is centralised with the treasury department and you are aware of the recent salary adjustments as a result of minimum wage which increased the total receipt. We are in touch with the treasury department to get us the supplementary approval so that we can update our records.

“Principally what we do is that we superintend over pension matters in all the six area councils and LEA. Payment of monthly pensions and other benefits that accrue to our prospective retirees.

“Our summary of the budget performance for 2024 was we had a total of N1.1 billion which was the ceiling, which consists of the recurrent, the personnel and overheard.

“The personnel cost, we have 115 percent budget performance. The overhead, we have 40 percent performance, we don’t have capital projects. It’s just a service organisation on change of monthly pensions,” he said.