His name is Moradeyo Ademola David. After working for several years with Solel Boneh/RCC Nigeria Limited, he retired in 1995 and all along he was contributing to the National Provident Fund (NPF) and lately, the Nigeria Social Insurance Trust Fund (NSITF). His NSITF membership number is 95-99-4144182. Moradeyo is alleging now that after submitting the required documents to the NSITF and his employer filled the amendment form to confirm his contribution to the fund, he has not received any payment up till today.

After writing a letter on the issue to NSITF in November 1998, he said NSITF responded in February 1999. Thereafter, Moradeyo submitted all the documents required of him, his head office in Abuja was also contacted for confirmation and a letter of confirmation was dispatched to NSITF branch office in Ibadan.

As if that was not enough, he was asked to bring photocopies of cheques used in making payment to the fund, but he politely directed them to formally write to the company requesting for this. In year 2005, he was asked to go and bring his pay slip after he had retired from active employment in 1995. When he questioned the rationale for such a request, he stated that one of the employees of NSITF said certain unprintable words to him.

"After a long search, I managed to get the last pay slip," Moradeyo noted, adding that he then decided forward a photocopy of the pay slip to the Managing Director of NSITF. Other relevant documents he attached to his letter to NSITF boss were photocopy of NPF statement of account, photocopy of NSITF statement of account, photocopy of his retirement letter, photocopy of certificate of membership card and photocopy of retirement benefit appointment card.

In response to Moradeyo's letter, NSITF, in a letter dated February 16, 1999, said he is not qualified for retirement pension since he has not contributed into NSITF scheme for 10 years. It was, however, acknowledged that Moradeyo would be paid retirement grant.

NSITF's State Manager in Oyo State stated in the letter that "It is pertinent to inform you that you are not qualified for retirement pension having not contributed into the Nigeria Social Insurance Trust Fund Scheme for up to 120 months. The sum of N3,790. 26 which is your ledger balance under the National Provident Fund Scheme represents only 13 credit months in the new scheme by our conversion formula. This gives you a total of 25 months of contributions instead of 336 months you quoted in your letter.

"However, you will be paid retirement grant which is equivalent to your final monthly contribution multiplied by the number of months of paid contribution believing you contributed into the Nigeria Social Insurance Trust Fund Scheme for up to 12 months," NSITF letter explained.

The history of regulated private sector pension scheme in Nigeria began in 1961 with the establishment of the National Provident Fund (NPF), which was established by an Act of Parliament in 1961. Its purpose was to provide income loss protection for employees as required by the International Labour Organisiation (ILO) Social Security (Minimum Standards) Convention 102 of 1952. The scheme covered only employees in the private sector, and the monthly contribution was six per cent of basic salary, subject to a maximum of N8.00 to be contributed in equal proportion of N4.00 each by the employer and the employee.

In 1993, the National Provident Fund (NPF) was converted to a limited social insurance scheme, administered by the Nigeria Social Insurance Trust Fund (NSITF). The NSITF was a defined benefits scheme and covered employees in the private sector working for organisations with a workforce of not less than 5 employees. The initial monthly contribution of members was 7.5 per cent of basic salary, shared in the proportion of 2.5 per cent by the employee, and 5 per cent by the employer, but was later in 2002 revised to 10 per cent of gross salary (comprising basic salary, transport and housing allowances) shared in the proportion of 3.5per centby the employee and 6.5 per cent by the employer.

The Federal Government, in 2004, revolutionised pension management and administration in the country, with the enactment of the Pension Reform Act 2004. The Act assigned the administration, management, and custody of pension funds to private sector companies, the Pension Fund Administrators (PFA) and the Pension Fund Custodians (PFC). The Act further mandated the NSITF to set up its own PFA to compete with other PFAs in the emerging pensions industry, and also to manage the accumulated pension funds of current NSITF contributors for a transitional period of five years.

Against this background, Trustfund Pensions Plc was incorporated by NSITF, in collaboration with other institutional investors and social partners, as a PFA, in accordance with the provisions of the Act.

Responsibilities of Trustfund

Section 42 (4) of the Pension act stipulates that "Where any person who contributed any funds under the NSITF Act has retired before the commencement of this Act, the funds due to him shall be paid to him in accordance with Section 4 of this Act or in lump sum in accordance with the rules and regulations of the National Pension Commission." One has every reason to believe that Trustfund will treat this case accordingly.

As pension fund assets of the NSITF worth billions of naira, have been transferred to Trustfund, it will be reasonable to expect that the PFA will make sure that the pensioner do not suffer any longer. There are many of such a pensioner in the country today who have served their fatherland meritoriously and retired but are made to suffer wants and extreme deprivation due to non payment of their pension benefits. It is high time this disservice to the citizenry is stopped.