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PenCom debunks N3m salary package, says no employee earns more than N1m per month – The Whistler Newspaper

By on September 17, 2022 0

The National Pensions Commission on Saturday slammed false reports that the lowest paid employee earns around N3 million a month.

PenCom in a press release made available to THE WHISTLER said that contrary to the claims of the spoilers, the highest paid official in the Commission earns less than 1 million naira.

There have been reports (NOT THE WHISTLER) that lawmakers discovered that the commission was budgeting N12 billion for 500 employees in a year.

Aminu Suleiman, a member of the finance committee of the Kano State House of Representatives, said that with a budget of 12 billion naira for 500 employees, it means that on average, an employee goes home with 24 million naira per year.

“An average of 2.4 million naira per month. Are you telling me that the most junior staff at Pencom earn up to 2.4 million naira per month? ” He said.

But in response, the Commission said in a statement that it is totally illogical and unlikely for the lowest paid to earn a monthly salary of £3million.

The statement reads in part as follows: “Following the false and misleading reports about the National Pensions Commission (PenCom) compensation scheme circulating in traditional and social media, it has become necessary to set the record straight. in the interest of the Nigerian public.

“It is alleged that the lowest paid PenCom employee earns a salary of £3m a month. This has fueled all sorts of false allegations and unfair innuendos.

“The public is invited to note that the assertion is absolutely false. The Commission’s highest-paid civil servant earns less than £1million a month. It is therefore totally illogical and unlikely that the lowest paid earn a monthly salary of 3 M₦.

“We understand that there is an element of possible mischief and blackmail to the Commission’s compensation package. From our understanding, it appears that someone calculated all the personnel costs, including training, staff severance plan and employer pension contribution, and divided the total by the number of Commission employees and concluded that the lowest paid employee receives a monthly salary of ₦3m. There is a clear difference between staff costs and staff salaries.

The Commission noted that upon its inception in 2004, the federal government mandated the Board of Directors to adopt an employee compensation policy that compares favorably to government comparators in the financial services industry, such as the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC) and the Securities and Exchange Commission (SEC).

He added that section 25(2)(b) of the Pensions Reform Act 2014 also empowers the Board of the Commission to set the remuneration, allowances and benefits of employees.

The statement added: “Moreover, the Presidential Committee on Consolidation of Public Sector Emoluments, led by the late Chief Ernest Shonekan, former Head of the Interim National Government, has made a number of recommendations which guide the Board of Directors. of PenCom in its compensation review. exercises.

“One of the recommendations is that the salary structure of self-funded agencies should be compared to that of their private sector comparators in order to ensure relativity in these agencies and to attract and retain high caliber professionals.”

He further explained that the Shonekan Committee, which was established by former President Olusegun Obasanjo in 2005, also recommended that the salary structure of regulators be compared to the sectors they oversee.

This is to avoid regulatory capture, and that an annual salary increase should be undertaken to account for the inflation/cost of living adjustment and that establishments can strive to reach the 50th percentile and beyond. above their private sector comparators.

“We made all of these facts known in a recent submission to the House Finance Committee on the Commission’s compensation package.

“We also stated that the last review of the compensation program was carried out in 2017 with the approval of the Office of the Secretary to the Government of the Federation (OSGF).

“No reviews have been conducted for the past five years, which has affected the Commission’s ability to attract, hire and retain staff with competitive skills.

“The public is therefore implored to ignore the false and malicious information about the staff compensation program. The Commission has nothing to hide and will continue to operate a transparent and accountable system,” the statement concludes.