…Zamfara not remitting govt 7.5

BY VICTOR AHIUMA-YOUNG

KANO and three other states in the North-West zone of the country are yet to key-in their workers into the contributory pension scheme, CPS, nine years into the scheme which came out of the Pension Reform Act, PRA, 2004.  The other states are Kebbi, Kastina and Sokoto.

Though Kano state enacted its law on the CPS in 2006, but it is yet to appoint Pension Fund Administrators, PFAs, and has not transferred pension funds for management, while Kastina state drafted a bill on the CPSwhich was reviewed by the National Pension Commission, PenCom, and found to be largely in conformity with the PRA, it has however not translated the bill into law

Although Zamfara state adopted the CPS,  enacted its law in 2005 and registered 63,254 employees and remitted N534.4 million as employee portion of the contributions as at November, 2013, it is yet to commence remittance of employer portion of from the commencement of the CPS.

These were some of disclosures by Acting Director-General of PenCom,  Mrs. Chinelo Anohu-Amazu,  during officially opening of the commission’s North-West zonal office in Kano.

The new regional office has a mandate to effectively extend the Commission’s services to all the seven states in the zone namely; Kano, Jigawa, Kebbi, Kaduna, Kastina, Sokoto and Zamfara states.

Four zonal offices located in Calabar, Awka, Lagos and Ilorin had earlier been opened by the Commission.
The North-East zonal office in Gombe has been established and will be formally commissioned.

A statement by Emeka Onuora, Head Communication unit, PenCom, said “although the Contributory Pension Scheme is one of the most remarkable of initiatives that would bolster productivity and enhance industrial harmony, only three out of the seven states in the North-West zone, have recorded appreciable milestone, while others are at various stages. Jigawa state which was the first out of the thirty-six states in the federation to enact its law on the Contributory Pension Scheme (CPS) in 2005, had appointed Pension Fund Administrators (PFAs) to manage the Pension Funds which have a total value of N16.49 billion as at September, 2013. Kaduna state adopted the CPS and enacted its law in 2007.

It has also made significant progress in its implementation of the CPS, having registered 143,722 employees under the Scheme, with Pension Contributions of N9.46 billion as at October, 2013. The state had conducted an actuarial valuation and determined the accrued pension rights of its employees for their service prior to the CPS and established a Retirement Benefits Bond Redemption Fund which currently has a balance of N1.6 billion. The state is however, yet to put in place, a Group Life Insurance Policy for its employees.

Although Zamfara state adopted the CPS, enacted its law in 2005 and registered 63,254 employees under the Scheme and remitted N534.4 million as employee portion of the Pension Contributions as at November, 2013, it is yet to commence remittance of employer portion of Pension Contributions from the commencement of the CPS. It has also not put in place a Group Life Insurance Policy for its employees.

Sokoto state enacted its law on the Contributory Pension Scheme in 2007 and registered 46,808 employees with PFAs under the Scheme. The state is yet to commence remittance of the Pension Contributions. With regards to Kebbi state, it enacted its law on CPS in 2009 and registered almost 38,000 employees with PFAs under the Scheme. It has however not commenced the remittance of pension contributions.

The status of Kano state shows that it enacted its law on the CPS in 2006. It is however, yet to appoint PFAs and has not transferred pension funds for management. Kastina state drafted a bill on the Contributory Pension Scheme which was reviewed by the Commission and found to be largely in conformity with the Pension Reform Act 2004 (PRA). It has however not translated the bill into law. The compliance status of the states in the North-West zone as indicated clearly shows the imperative for the states to expedite action on the full implementation of the Contributory Pension Scheme.

The acting Director-General appealed Governor Rabiu Musa Kwankwaso to spearhead the compliance of the states in the North-West zone with the CPS.

However, opening the zonal office, governor Kwankwaso expressed delight at the sitting of the North-West zonal office in Kano and assured the Commission of the state government’s support in its Pension Reform activities.

He also promised to re-examine the status of the state in terms of compliance with the Contributory Pension Scheme with a view to the state fully embracing the Scheme.