News

March 4, 2022

Only 4 states complying with Contributory Pension for workers — PenCom

Only 4 states complying with Contributory Pension for workers — PenCom

By Rosemary Iwunze

There are indications that only four states, namely Lagos, Kaduna, Edo and Benue, remitted their workers pension contributions fully as at December 2021, in line with the mandate of the Contributory Pension Scheme, CPS.

According to the 2021 fourth quarter report, Q4’21, released by the National Pension Commission, PenCom, five other states of Osun, Delta, Ekiti, Ondo, Anambra and the Federal Capital Territory (FCT), which are also remitting both employer and employee contributions have backlogs in remittances.

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Analysis of the report shows that 25 states had enacted pension laws on the CPS, while seven states were at the bill processing stage.

Out of the five states operating other pension schemes, four states adopted the Contributory Defined Benefits Scheme (CDBS), while one state operates the Defined Benefits Scheme (DBS).

PenCom noted that as part of its mandate, it carried out sensitization workshops, capacity-building programs, and stakeholder engagement meetings during the quarter under review.

It added that it held a meeting with four pioneer Pension Fund Administrators (PFAs) managing majority of the RSAs of employees of Kaduna State to review the solutions proposed by the PFAs and Kaduna State to address the accrued rights liabilities owed to the retired and disengaged employees of the state.

Vanguard News