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Pensioners in Abia State have rejected the state government’s plan to extend the payment of outstanding gratuities to 2031, describing the timeline as unacceptable and a further denial of their retirement benefits.
The pensioners, under the aegis of their Steering Committee, took the position after an exhaustive deliberation on the progress of their struggle for the payment of outstanding pension and gratuity arrears.
In a statement on the outcome of its meeting, the Steering Committee commended the state governor for finally commencing payment of gratuity after several postponements.
It, however, expressed concern that its findings indicated that more than two-thirds of beneficiaries in the 2001–2010 batch had not received payment.
It further alleged that some of the beneficiaries who had been paid received amounts lower than what they were entitled to.
The pensioners therefore urged the government to ensure transparency in the exercise by publishing the names of beneficiaries paid in each batch, as well as the amounts disbursed to them.
The committee also questioned earlier statements by the Abia State Commissioner for Information that the disbursement would be “in tranches and gradual” and that priority would be given to “oldest arrears first.”
According to the pensioners, the statement raises questions about whether the N10 billion earmarked for the 2001–2010 batch would be sufficient to settle the entire outstanding liability.
They argued that if the funds were adequate, there was no justification for paying beneficiaries in the same batch at different times.
The committee also reminded the governor of his December 31, 2023 promise to clear outstanding pension and gratuity arrears by the end of March 2024.
It said the promise did not involve stretching the payment until 2031, adding that the governor had indicated at the time that he would approach the State House of Assembly for approval of a special fund to facilitate the full settlement of retirement benefits.
The pensioners described the proposed 2031 timeline as a “disservice” to retirees, arguing that the prolonged wait would further erode the value of their benefits amid rising inflation and could result in some beneficiaries dying before receiving their entitlements.
“Many more pensioners may not be alive due to their inability to feed and buy their medications,” the committee warned.
It also questioned the justification for extending the payments to 2031, in view of what it described as improved revenue accruing to the state following the removal of fuel subsidy.
The pensioners recalled that former Abia State governor reportedly paid N32 billion in retirement benefits in 2007, arguing that the current administration should be in a stronger position to settle the outstanding liabilities, given the substantial increase in federal allocations to states.
