Lagos, Osun and Kaduna states as well as the Federal Capital Territory (FCT) have remained on the top list of pension compliant states as at Third Quarter of last year.
However, on the bottom list are Kwara, Plateau, Cross River, Borno, Akwa Ibom, Katsina and Yobe states.
This was made known in the National Pension Commission (PenCom) Quarter Three, 2022 Report obtained by The Nation.
According to the report, Lagos, Osun and Kaduna states and FCT have enacted laws on the Contributory Pension Scheme (CPS) and establised Pension Bureau/ Board in line with CPS.
They are also remitting employer and employee contributions; conducted Actuarial Valuation Availability of RBBRFA; Funding Accrued Rights; Payment of Pension under CPS; and have Valid Group Life/Sinking Fund for their employees.
Status of implementation of CPS
On status of implementation of the CPS and other schemes, the report stated that the number of states with laws on the CPS remained 25 as at Q3 2022, with seven at bill stage.
The Bauchi State Government enacted its law on the CPS last August 5.
Meanwhile, five states have enacted laws on the Contributory Defined Benefits Scheme (CDBS) with two out of five states implementing the scheme while the other three – Gombe, Zamfara and Adamawa – are yet to commence implementation.
Emerging issues in CPS’implementation in Kaduna
According to the report, the Kaduna State Pension Bureau requested a meeting with the Commission on July 27, 2022 to discuss its desire to implement its pension arrangement.
The report read: “The move was in the state’s efforts at finding solutions to the debacle of its huge accrued rights liabilities. However, the meeting could not hold due to the two-day public holiday declared on 27 and 28 July, last year, in the state. A new date is yet to be fixed for the meeting.
“The state has, however, requested the requirements for the issuance of a ‘’no objection’’ by the Commission, to enable the PFAs invest in its bonds. A copy of the requirements was forwarded to the Executive Secretary of the Kaduna State Pension Bureau.”
Lagos N2 billion monthly commitment on accrued rights
The Lagos State Government paid N1.5 billion and N1.11 billion for July and August, last year, to settle the outstanding accrued rights being owed to the state’s retirees.
This brings the cumulative payment made by the state from December 2021 and August 2022 to N9.33billion, instead of N18 billion.
Benue State Pension Reform Law 2019
The Benue State Pension Commission forwarded a Draft Pension Bill 2022 aimed at re-enacting a new Pension Law to the Commission, for review.
The Commission has done its work and returned it for comments and observations to the state. The state had incorporated the Commission’s input, but is yet to present the Bill to the state House of Assembly for legislative processing, the report stated.
Ekiti State retirement benefits’ payment
PenCom said the Ekiti State Government on August 4, last year, issued retirement bond certificates totalling N18.84 million in favour of 30 beneficiaries.
“The beneficiaries are the state’s first batch of retirees under the CPS. The Ekiti State Pension Commission (ESPC), via a letter of August 24, 2022, informed the Commission of its intention to implement a Voluntary Contributions (VC) under the CPS for mandatory and exempted employees of the state.
“The state subsequently forwarded a draft VC Guidelines to the Commission for review. The guidelines are being reviewed by the state’s Operations Department and Benefits and Insurance Department of the Commission.”
“The Commission also received a copy of the amended Ekiti State Pension Reform Law 2022, on 5 September 2022. The law has been reviewed from both the operational and legal perspectives and forwarded to the state.”
Bauchi State Pension Reform Law 2022
The Bauchi State Governor signed the Bauchi State and Local Government Pension Bill 2022 on August 5, last year into law.
The law seeks to institutionalise the CPS in the state. The Commission forwarded a roadmap to the state to guide the implementation of the scheme.
Status of refund on Zamfara funds
The Commission finalised and forwarded the report on the refunds of pension contributions to the Zamfara State Government and its employees to the Zamfara State Head of Service, the state’s consultant – Royal Rocks Consulting – and the Speaker of House of Assembly.
Following the review of the report, the consultant had forwarded its observations to the commission and it is being reviewed by the Commission, the report stated