A House of Representatives committee has resolved to investigate the six area councils of the Federal Capital Territory (FCT) over alleged irregularities in pension remittances. The committee's decision follows testimony from the director of the area council staff pension board, who revealed that the area councils have been delaying pension contributions to the board, violating the Pension Reform Act.
A House of Representatives committee has resolved to investigate the six area councils of the Federal Capital Territory ( FCT ) for their alleged failure to remit pension contributions to the staff pension board on time. The committee on FCT area councils and ancillary matters passed the resolution on Wednesday after Suleman Abdulrahman, director of the area council staff pension board, appeared before the lawmakers.
Abdulrahman revealed that pension remittances by the area councils have been irregular. According to him, the Pension Reform Act mandates the remittance of pension deductions seven days after salary payments. However, area councils often delay remittances for two to three months. He explained that employees contribute 8 percent of their salaries to their pension funds, while employers contribute 10 percent. These contributions should be remitted to the Pension Funds Administrators (PFAs) by the area councils. Fred Agbedi, chairman of the committee, requested Abdulrahman to provide detailed information about the violations of the Pension Reform Act to assist the panel's investigation. Agbedi urged the committee to move a motion for a comprehensive investigation into the discrepancies and delays in pension remittances. He emphasized that salaries are paid monthly, and the committee should scrutinize the reasons behind the consistent failures to remit pension contributions. The committee secretary was instructed to write to all the area councils, requesting up-to-date pension contribution records for their employees. The committee also questioned Abdulrahman about the board's expenditure, noting that it exceeded its 2024 budget. Abdulrahman clarified that the additional expenses were attributed to recurrent expenditures resulting from the recent minimum wage increase. He stated that the board is collaborating with the treasury department to obtain supplementary approval for budget adjustments to reflect the increased personnel costs. Abdulrahman emphasized the board's role in overseeing pension matters for all six area councils and the Local Education Authorities (LEAs). He highlighted their responsibility for ensuring the timely payment of monthly pensions and other benefits to retirees. Agbedi concluded by stating that the committee would strengthen its oversight functions to ensure the responsible and efficient use of public funds
FCT Pension Remittance Investigation Lawmakers
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