The Katsina State Government has assured that it will refund pension contributions deducted from the salaries of workers who are close to retirement, in line with the newly reformed pension law.
The Director-General of the Katsina State Pension Management Agency, Alhaji Nuraddeeni Audi, disclosed this during a press briefing in Katsina. He explained that the new pension law, signed into law by Governor Dikko Umaru Radda and which came into effect in November last year, was introduced to improve the welfare of workers after retirement.
According to him, the law is structured into three categories. The first category covers workers with less than five years remaining before retirement. He said the new law has exempted this group from the reformed pension scheme, making them eligible for a refund of all deductions already made from their salaries. He added that further deductions would be stopped and that the affected workers might also benefit from accrued investment returns on the funds already deducted.
Audi explained that a new agency has been established to continue managing the rights and entitlements of these workers, including the payment of their pensions in line with the existing state pension arrangement.
The second category, he said, applies to workers with between five and thirty years of remaining service. He noted that their pension and gratuity benefits would not be less than what is currently obtainable. Under this arrangement, workers would contribute a portion of their monthly salaries, while the state government would also make a corresponding contribution. The funds would be jointly invested to ensure that upon retirement, the worker would receive gratuity immediately and commence pension payments without delay.
He disclosed that from the beginning of the year, seven per cent of workers’ salaries has been deducted, while the government contributes thirteen per cent, bringing the total contribution to twenty per cent. This, he said, is aimed at protecting workers from prolonged delays and difficulties in accessing their retirement benefits, a challenge experienced in some states.
The third category covers workers with more than thirty years remaining in service, as well as newly recruited employees. According to Audi, this group operates under a modern contributory pension system similar to that of the Federal Government. Their pension funds will be managed by licensed and government-approved professional pension fund administrators to ensure transparency, safety and sustainability.
The Director-General dismissed claims that the new pension scheme would result in retirees receiving inadequate or “non-competitive” pensions. He clarified that such challenges are associated with some federal public service pension arrangements and have already been addressed in Katsina State’s new pension law before its enactment.
He urged state workers to disregard misinformation and negative rumours surrounding the pension reform, stressing that the law was designed to reassure employees and enhance their quality of life after retirement.
Audi also commended Governor Dikko Umaru Radda for implementing the pension reform peacefully and for prioritising the future welfare and security of Katsina State workers.
