Some states not adopting contributory pension for workers- PenCom
Pension
Some states not adopting contributory pension for workers- PenCom
Nike Popoola
Many states have not yet adopted and fully implemented the Contributory Pension Scheme for their workers, as provided in the Pension Reform Act 2014.
This was disclosed in the first quarter report of the National Pension Commission (PenCom) on ‘Status of implementation of the Contributory Pension Scheme (CPS) and other schemes by State Governments’, obtained by Dailyeconomy on Monday.
The report stated, “There were no changes in the status of the implementation of the CPS and other pension arrangements by states within the period under review. The number of states (including the Federal Capital Territory) with laws on the CPS remained 25 and six states are at the Bill stage.
“Six states have adopted the Contributory Defined Benefit Scheme (CDBS). Two out of the six, i.e. Jigawa and Kano are currently implementing the Scheme (Kano was yet to transfer pension assets for custody), while the four others, Gombe, Katsina, Zamfara and Adamawa were yet to commence implementation of the CDBS.”
The PRA was enacted and signed into law in 2004 to provide a contributory scheme for the payment of retirement benefits of employees in both the public and private sectors.
The Act mandates employees to open the RSAs in their names with Pension Fund Administrators of their choice and notify their employers. The employers have the obligation to contribute 10 per cent, while the workers should contribute eight per cent of the employees’ monthly emoluments into the employees’ RSAs.
