Dr Hope Nwawolo

By Hope Nwawolo

Some years back, one Mrs. Ogo (not her real name), a federal government civil service senior employee, was diagnosed with the dreaded cancer of the breast. At that time, she had spent 32 years in the civil service and had three more years before retirement. She embarked on expensive treatment for her illness until her savings got drained. Being a widow with children who were not financially stable, Mrs. Ogo gradually missed her treatment for lack of money until she died a year and six months after her diagnosis and less than two years before her retirement. For someone at her career level, she had not less than fifteen million naira in gratuity and mandatory monthly pension contribution put aside as her pension entitlement. Unfortunately, Mrs. Ogo who died because of a lack of funds for continuous medical treatment left so much money behind for those who could not finance her medical care.

It is no longer news that contributors of the Nigerian contributory pension scheme, upon retirement, are paid a monthly stipend far below what they earned while in service, from their accumulated savings, also referred to as pension savings. This does not add up to ensure the improved welfare the government promised workers at the commencement of the scheme. More worrisome than this, is when some employees who have been contributing mandatorily into their retirement savings account for years develop serious medical challenges while still in service, and cannot afford adequate treatment because of the monthly deductions from their salaries.

Many have succumbed to the degeneration of their health while scouting for financial assistance, even when they have their so-called retirement contributions tucked away by the Pension Fund Administrators (PFAs) and Pension Fund Custodians(PFCs), in different investments unknown to them. Upon the demise of such contributors who are not able to pay for adequate medical care, their next-of-kin or beneficiaries will immediately come forward to claim their bulk contributions as stipulated in the Pension Act. This is the irony of having money that cannot be accessed even when urgently needed for medical care.

It is high time policymakers brought up a policy for consideration, whereby a sick pension contributor can have access to his retirement savings account for urgent medical care, whether he is still in service or as a retiree. If approved, it will serve as further motivation for employees to increase their pension contributions as stated in the Pension Act. This is with the understanding that they may need a chunk of it for any unforeseen medical need either before or during retirement. After all, employees desire to enjoy a good life in retirement and if the savings being put aside can ensure that it is achieved or sustained in preparation for retirement, then one of the objectives of the government for the contributory pension scheme would be achieved.

Many have succumbed to the degeneration of their health while scouting for financial assistance, even when they have their so-called retirement contributions tucked away by the Pension Fund Administrators (PFAs) and Pension Fund Custodians(PFCs), in different investments unknown to them. Upon the demise of such contributors who are not able to pay for adequate medical care, their next-of-kin or beneficiaries will immediately come forward to claim their bulk contributions as stipulated in the Pension Act.

Observation has shown that some employees, just like Mrs. Ogo, while in service need money to take care of their health, some of which may be terminal illnesses like cancer. Some may even need funds to go outside the country to seek advanced treatment but this results to begging the public for financial assistance. Some have lost their lives before getting needed assistance while a few lucky ones had families and friends to bear the responsibilities. This is different in some organizations like Nigeria Ports Authority and Chevron that have functional health policies for their employees in service while the retirees and their spouses benefit from health care for life.

For government employees who lose their lives while in service due to a lack of funds to access immediate or continuous medical care, a chunk of their pension contribution goes to those who did not make any contribution to the accounts but become direct or indirect beneficiaries of the contributions; pension fund administrators and next of kin. The PFAs are indirect beneficiaries with the fund in their kitten for as long as the direct beneficiaries (family members) take to obtain a letter of administration before laying claim on the deceased fund. Just as many families have unknown funds in the banks, there is also the possibility of PFAs having the funds of contributors that their children may not know exist. It is also not impossible for some beneficiaries to abandon the claims because of the stress of getting a letter of the administration before accessing the fund.

Therefore, rather than waiting for a pension contributor to be permanently incapacitated before releasing his pension contribution to him, it will be heart-warming to know that a contributor who is seriously ill and in need of money, can request medical funds from his retirement savings account(RSA), to take care of himself. Even if he dies while being treated, his spirit may just find some peace knowing he did not die because of lack of money to seek medical attention.

Hope Nwawolo, Ph.D

[email protected]