House of Reps probe FCTA area councils over pension remittance

From Ndubuisi Orji, Abuja

The House of Representatives Committee on Federal Capital Territory (FCT) Area Councils and Ancillary Matters has resolved to probe the alleged non-remittance of pension contributions by the six area councils to the FCT Area Council Staff Pension Board.

The panel took the resolution on Wednesday during a budget review session with the FCT Area Council Staff Pension Board and other agencies under the Federal Capital Territory Administration (FCTA).

The chairman of the committee, Fred Agbedi, also directed the agency as well as the six area councils in the FCT to furnish the panel with a comprehensive report of pension contributions remittances by the respective councils.

Agbedi said, “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.”

The Director of the Pension Board, Suleman Abdulrahman, while briefing the lawmakers, noted that pension contributions remittances by the area councils were not regular.

According to him, “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.”