The South-West Zone which comprises Ekiti, Lagos, Ogun, Oyo, Ondo and Osun States is the leader among others as far as compliance with the Contributory Pension Scheme (CPS) is concerned.

For instance, all of the states in the geo-political zone have enacted the Act to establish the Contributory Pension Scheme for Civil Servants while almost all have commenced the implementation of the scheme which guarantees pleasant retirement for their workers.

Among the states, Lagos State is the most outstanding as it was the first

state in the federation to embrace the scheme. According to the National Pension Commission (PENCOM), Lagos enacted the law that enabled it to start implementing the scheme in 2007.

“Indeed, the choice of Lagos State to host our South-West Zonal office stemmed not only from its pre-eminent position as the economic nerve centre of the country but was also justified by its record of being one of the pioneers in implementation of the CPS, having enacted its law in 2007”, Mrs. Chinelo Anohu-Amazu, Acting Director-General, National Pension Commission, disclosed during the opening of the Lagos zonal office of PENCOM in Lagos recently.

The state had fully implemented the CPS with a total of 45,730 employees registered and pension contributions remittance of N46.50 billion as at July, 2013. Furthermore, the state had issued retirement benefit bonds of N18.9billion to its retirees and these bonds have been fully redeemed and proceeds paid into the employees’ individual RSAs; while 2,242 employees from the state have retired under the scheme as at August, 2013.

In the case of Osun State, it adopted the CPS and enacted its law in 2009. It had also made significant progress in its implementation of the CPS, having so far registered 45,106 employees under the scheme. It had also remitted N4.15 billion as pension contributions, while the sum of N1.90 billion had been remitted into the Retirement Benefits Bond Redemption Fund Account. However, the state is yet to renew the Group Life Insurance Policy for its employees in 2013 and had also not carried out an actuarial valuation to determine accrued pension rights of employees.

With regards to Ogun State, it adopted the CPS and enacted its law in 2007. It had also made significant progress in its implementation of the CPS having so far registered 24,902 employees under the scheme and remitted N10.90 billion as pension contributions, while the sum of N3 billion had been remitted into the Retirement Benefits Bond Redemption Fund Account held at the Central Bank of Nigeria. However, the State is yet to put in place a Group Life Insurance Policy for its employees.

Ekiti State enacted its law on the CPS in January, 2011 and has also 37,676 employees registered under the scheme. Ekiti has conducted an actuarial valuation to determine pension liabilities under the old scheme and put in place a Group Life Insurance Policy for its employees. However, the State is yet to commence remittance of pension contributions into employees RSAs with PFAs.

Oyo State has enacted its law on the CPS in January, 2010. However, it is yet to commence the full implementation of the CPS.

Ondo State has only drafted a Bill on the CPS, a copy of which had been reviewed by the Commission and comments duly forwarded to the State. Notwithstanding the zone’s leading role, Anohu-Amazu appealed to the states in the Zone that have not completed necessary processes for full implementation of the CPS to renew their commitment.