Pension

Only 25 States Have Enacted Pension Law- PenCom In 2021

BY NKECHI NAECHE-ESEZOBOR–A total of twenty-five states of the federation had enacted pension laws on the CPS as at the end of 31st December, 2020, the National Pension Commission has said. 


According to report released by the commission, seven states were at the bill stage while five  states were operating other pension Schemes. 


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


PenCom said during the year under review, Benue state commenced the implementation of the CPS and remitted the backlog of 10% (employer) and 8% (employee) pension contributions from the month of March 2020 to December 2020, on behalf of employees of three (3) MDAs and 21 Local Government Councils in the state.


PenCom however said status of implementation of the CPS in States and the FCT as at 31 December 2020, remained largely unchanged compared with the corresponding period of 2019. 


BusinessToday News online gathered  that nine states are remitting pensions’ deductions of both the employers (state governments) and employees (public servants), two states are remitting deduction from only the employees.

The report further shows that 5 states have enacted laws on the CPS which are substantially in tandem with the provisions of the PRA 2014, while seven other states have drafted bills on the CPS and are currently undergoing the legislative processes towards their passage into laws.

Five states have embarked on the Contributory Defined Benefits Scheme, CDBS.Meanwhile, following the launch of the RSA Transfer System in November, 2,799 aggrieved Retirement Savings Account (RSA)a  holders have transfered N18,898,848,438.79 billion during the maiden RSA Transfer Quarter in 2020, from their former Pension Fund Administrators (PFAs) to new pension administrators.

According to report release by the commission a total of 2,799 RSA holders initiated the transfer of their RSAs from their PFAs to other PFAs during the maiden RSA Transfer Quarter in 2020.


It added all the 22 PFAs were involved in the transfer, as transferring and/or receiving PFAs.

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