From Joseph Inokotong, Abuja
Employees of state government in the five South-East zone of Nigeria may be in for hard times after retirement because their respective state governments have not implemented fully the Contributory Pension Scheme (CPS).
This implies that on their retirement from service, the employees would not be able to get their entitlements due to the inability of their state governments to implement the CPS.
Information gleaned from the National Pension Commission (PenCom) shows that aside Anambra State that has implemented partly the CPS, four others – Abia, Ebonyi, Enugu and Imo States are yet to implement the scheme.
Records from the PenCom indicate that Anambra State government in 2013 enacted law on CPS and amended some sections of the law in 2014 and went ahead to register employees with Pension Fund Administrators (PFAs), remitting 10 per cent employer and 5 per cent employee contributions.
The State also “remitted employer pension contributions up to December 2017 and remitted employee pension contribution up to August 2020 for State employees. It “remitted employee and employer pension contributions up to August 2018 for Local Government employees; conducted Actuarial Valuation and opened Retirement Benefits Bond Redemption Fund Account with a PFA, for Local Government employees in line with the State Law”.
However, document from PenCom shows “irregular funding of Accrued Pension Rights for Local Government employees; yet to establish Pension Bureau (implementation being driven by Office of the Head of Service & Joint Account Allocation Committee)”.
It also indicates that Anambra State is “yet to open Retirement Benefits Bond Redemption Fund Account for State employees; yet to commence funding of Accrued Pension Rights for State Employees”, and has “no Group Life Insurance Policy”.
On the other hand, the PenCom record shows that Abia State government enacted Law on CPS in 2017 but it’s yet to establish Pension Bureau; yet to register State Employees with PFAs; yet to commence remittance of Pension Contributions and yet to conduct Actuarial Valuation.
The state government is “yet to open Retirement Benefits Bond Redemption Fund Account, yet to commence funding of Accrued Pension Rights and has “no Group Life Insurance Policy”.
In Ebonyi State, the government “enacted Law on CPS in 2017 (amended the Law and forwarded to the Commission and the Commission communicated its observations on the Law to the State)”.
The State is “yet to establish Pension Bureau; yet to register Employees with PFAs; yet to commence remittance of Pension Contributions; yet to conduct Actuarial Valuation; yet to open Retirement Benefits Bond Redemption Fund Account; yet to commence funding of Accrued Pension Rights” and has “no Group Life Insurance Policy”.
The PenCom document shows that Enugu State government “enacted Law on CPS in 2014; yet to establish Pension Bureau; yet to register State Employees; yet to commence remittance of Pension Contributions; yet to conduct Actuarial Valuation; yet to open Retirement Benefits Bond Redemption Fund Account; yet to commence funding of Accrued Pension Rights” and has “no Group Life Insurance Policy”.
The Imo State government, from the PenCom record “enacted Law on CPS in 2008; yet to establish Pension Bureau; yet to register Employees with PFAs; yet to commence remittance of Pension Contributions; yet to conduct Actuarial Valuation; yet to open Retirement Benefits Bond Redemption Fund Account; yet to commence funding of Accrued Pension Rights”, and has “no Group Life Insurance Policy”.
Analysts say if the trend is not reserved and the five South-East State governments do the needful by implementing the CPS, workers on their retirement may face difficult times as they may not be able access their retirement benefits.