Written by Sarah NEGEDU

17 states fail to contribute to workers’ pension

Almost five years since passage of the 2014 Pension Reformed Act in the country, most states are yet to fully implement the Contributory Pension Scheme in their domains.

According to the National Pension Commission, PenCom, 15 states are still making no pension contribution for their employees despite enacting the law in their states.

The commission in a report on ‘Implementation update by the State Governments’ listed the states that are yet to commence the remittance into workers’ RSAs and accrued rights funding to include, Sokoto, Ekiti, Kogi, Bayelsa, Nasarawa, Oyo, Katsina, Akwa Ibom, Edo, Benue, Kwara, Plateau and Cross River.

Other states in this category are Enugu, Abia, Ebonyi, Taraba, Bauchi, Borno, Gombe, Yobe and Adamawa.

According to the report, while a state is yet to start funding its accrued rights to its employee, one other state is even yet to commence the process of enacting a law to reform its pension system.

As at June 2018, only 12 states among those that have enacted the Contributory Pension Scheme laws have been making remittance into workers’ RSAs and accrued rights funding.

The commission stated that the states that had commenced remittance of pensions in the workers Retirement Savings Accounts and were funding their accrue rights were Lagos, Ogun, Kaduna, Niger, Delta, Osun and Rivers states.

In the report, PenCom stated, “Twelve out of the 36 states had commenced remittance of contributions into the RSAs of their employees. Similarly, eight states have commenced the funding of their Retirement Benefit Bond Redemption Fund Accounts.”

PenCom noted that as of the first quarter of 2018, the number of states that had enacted laws on the CPS stood at 27, while eight states were at the bill stage.

It disclosed that the states that had commenced the funding of the RSAs but not funding the accrued rights were Zamfara, Kebbi, Ondo and Anambra.

PenCom stated that Imo State had yet to commence remittance of its workers’ pension contributions but that the Imo State University was currently implementing the CPS under the auspices of the Pension Reform Act 2014.

Imo State, it added, had yet to start funding its accrued rights.

It stated that Kano State had yet to transfer its pension assets or commence the funding of accrued rights.

The commission said it developed a road map covering a period between 12 and 18 months for the engagement of labour unions, state employees, state governments and other stakeholders to positively influence states’ compliance.

As part of the plan and in order to ensure smooth implementation, the commission stated that it conducted training for workers in some of the states.

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