Military leaders benefit from pension law

The National Assembly yesterday brought an end to the controversy over whether past military heads of the federal government should be entitled to pension by approving what amounts to an enhanced pension package for the men through the joint passage of the ‘Remuneration for former presidents, Heads of State, Heads of federal legislative Houses and Chief Justice of the Federation Bill 2010 (SB 153)'.

Currently, the Constitution provides

pension for only the president and the vice president, which, according to the 1999 Constitution, will be equivalent to the salary of the incumbent president. However, the new law introduces the Chief Justice of Nigeria, the Senate president and his deputy, and the Speaker and his deputy, into the league of past leaders to benefit from the pension.

Past leaders to benefit from the act include Yakubu Gowon, Muhammadu Buhari, Ibrahim Babangida, and Abdusalami Abubakar.

The law, however, restricts anybody who has held two offices that are eligible for the perk to only one - the highest of those offices which s/he has held in order of national precedence. Thus, Olusegun Obasanjo will have to choose whether he would want his pension to be paid as former military ruler or as a democratically elected president.

Initially excluded

Military heads of government were initially excluded when the Senate passed its own version of the bill, with the senators saying the enhanced pension scheme was meant to honour only democratic leaders. The thrust of the bill had been to ensure that only democratically elected former presidents are entitled to benefit from the pension package for former presidents.

"This is to discourage other unconstitutional means of getting into power. The only way recognised by the Constitution is through ballot, and not the barrel of a gun," David Mark, the Senate president, had said at the passage of the Senate version of the bill in March this year.

Members of the House of Representatives, however, were of the opinion that this group of past leaders should be included. The past leaders were grouped under the name of ‘Heads of the government of the Federation' in section 4 of the Act that was passed by the Reps.

The clean copy of the Harmonised Bill, approved yesterday and soon to be forwarded to the president for signing into law, supports the House version by listing the retired soldiers as qualified for the new package.

The Senate president, who was himself a retired soldier, and would benefit from the law as Senate president, expressed his gratitude to his current colleagues for passing the law.

Happy days for past leaders

Only past leaders who were impeached are excluded by the law from earning pensions.

"For the avoidance of doubt, the benefits stated in this bill shall not apply to persons removed from any of the offices referred to in this bill by the process of impeachment," the bill stated.

It further states that these past leaders shall be paid an amount recommended from time to time by the Revenue and Mobilisation, Allocation, and Fiscal Commission and approved by the National Assembly as upkeep allowance, in addition to the pension entitlement contained in the 1999 Constitution. This upkeep entitlement is expected to be reviewed (upwards) from time to time, but subject to the approval of the National Assembly.

There is also a provision in the bill which entitles the family of deceased ex-presidents and vice presidents to an annual payment for upkeep of his spouse(s) and education of his children up to university level. However, this spousal upkeep allowance will cease the moment the last spouse of the deceased passes on.

Re-presented

This legislation - excluding the past military leaders - had been passed by the last session of the National Assembly and presented to the then President Olusegun Obasanjo for assent. He, however, did not sign the act into law. The bill was, therefore, re-presented to the current session of the National Assembly for passage and representation to the president.

NEXT had, on January 4, reported the plan by the Senate to review the pay of all former leaders. In the initial plan, the former leaders' package would have been increased from N250 million proposed in the 2010 budget to about N2 billion.

Chairman of the House of Representatives committee on appropriation, Ayo Adeseun, said the money was meant to take care of the former leaders' pension, medicare, yearly vacation abroad, offices, and general maintenance. Allocations for former leaders' welfare began in 2005, when a total of N140 million was set aside for them in that year's budget. Subsequently, the following allocations were made - N105 million (2006), N24 million (2008), and N250 million (2009).

However, no allocation was made in the 2007 budget, although it might have been integrated into another item under the office of the Secretary to the Government of the Federation (SGF). Until 2008, when the allocation was brought under the office of the SGF, it was treated under the Presidency or State House.