Reps panel to probe FCT area councils over ‘irregular’ pension remittances

A house of representatives committee has resolved to probe the federal capital territory (FCT) area councils for defaulting in the remittances of pension contributions to the staff pension board.

The house committee on FCT area councils and ancillary matters passed the resolution on Wednesday when Suleman Abdulrahman, director of the area council staff pension board, appeared before the lawmakers.

Abdulrahman told the committee that the pension remittances by the area councils have not been regular.

“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 is not what is happening. Sometimes, they owe two to three months before remittance,” he said.

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

Fred Agbedi, chairman of the committee, asked Abdulrahman to provide details of the violation of the Pension Reform Act to aid the panel’s investigation.

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

“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 asked the committee’s clerk to write to all the area councils to request up-to-date pension contribution remittances for their employees.

The committee also quizzed Abdulrahman on the expenditure of the board, noting it spent more than what was budgeted in 2024.

However, Abdulrahman explained that the extra expenses were for recurrent expenditure due to the increase 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 the minimum wage, which increased the total receipt,” he said.

“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.”

Agbedi said the committee would enhance its oversight function to ensure prudent use of public funds.