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21 states key into contributory pension scheme

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NO fewer than 21 states have now fully embraced the Contributory Pension Scheme, CPS, a fall-out of the Pension Reform Act, PRA, 2004, which discontinued the flawed Pay As You Go, PAYG, scheme.

Similarly, 14 other states at various levels of enacting their CPS laws following a robust interaction with National Pension Commission, PenCom, the Federal Government appointed regulator for the industry. There were parts of a communiqué issued at the end of a one-day annual workshop for Labour, Insurance and Finance Correspondents as well as Business Editors and National Pension Commission, PenCom, interactive session in Abuja, the Federal Capital Territory, FCT.

The Director-General of PenCom who attended the opening ceremony had earlier highlighted the objectives of organising the Workshop as providing a platform to interact with the general public through the media as well as discuss the Commis-sion’s achievements, challenges and receive feedback on the performance in the supervision and regulation of pension matters in Nigeria.

According to the communiqué, participants who noted the efforts made so far by PenCom in securing the compliance of employers to the provisions of the PRA 2004, however saw the need for increased level of compliance and pledged support for PenCom to take appropriate measures, including legal action against defaulting employers.”

The communiqué said “The Commission continued to collaborate with state Governments in their efforts to implement the Contributory Pension Scheme and gained enormous support from sister regulatory agencies and the Bureau for Public Procurement (BPP) ensuring successful implementation of the Contributory Pension Scheme in Nigeria. So far, 21 states have adopted the Contributory Pension Scheme while 14 others are at various levels of enacting their CPS laws.”

“The Contributory Pension Scheme has 5.28 million NigerianS registered with 54,558 retirees from the public and private sectors, who have received a total of N151.52 billion as lump sum payments and about N1.77 billion as monthly pension.

Furthermore, assets worth N2.94 trillion have been accumulated as at the end of September, 2012.  The Commission has successfully completed its goal to raise the Capital requirements for the Pension Fund Administrations, PFAs, from a minimum of N150 million to N1billion.

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