Pension remittance failure: Reps begin probe of FCT Area Councils

The House of Representatives Committee on Federal Capital Territory (FCT) Area Councils and Ancillary Matters declared its readiness to investigate the failure of the six area councils to remit pension contributions to the Staff Pension Board.

The committee arrived at the resolution on Wednesday when Director of the FCT Area Councils Pension Board, Suleman Abdulrahman, appeared before it alongside agencies within its purview to explain their 2024 budget performances ahead of their 2025 proposals.

“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,” he said.

The Committee led by Hon Fred Agbedi demanded that the agency furnish it with the records pertaining to the matter. “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,” Agbedi said, and directed Clerk to write to all the area councils to furnish the committee with up-to-date remittances of pension contributions on behalf of their employees.