PENCOM URGES STATES TO IMPLEMENT CONTRIBUTORY PENSION SCHEME FOR SECURE RETIREMENT
GREATRIBUNETVNEWS–National Pension Commission (PenCom) is calling on all states and local governments to adopt the Contributory Pension Scheme (CPS) to ensure a sustainable and secure retirement system for public sector employees .
This move aims to guarantee a pension-secure Nigeria, where retirees receive their benefits promptly.
According to PenCom, the Pension Reform Act (PRA) 2014 mandates the CPS for all public sector employees, including those in the Federal Capital Territory, states, and local governments, as well as the private sector ¹ ². However, states have the authority to legislate on pension matters within their jurisdictions, requiring them to domesticate the CPS by enacting appropriate laws.
To achieve full implementation, states must:
– *Pass a CPS law*: Establish a legal framework for the scheme.
– *Establish a Pension Bureau*: Create a dedicated agency to oversee pension matters.
– *Register employees with Pension Fund Administrators (PFAs)*: Ensure employees’ contributions are managed effectively.
– *Remit pension contributions*: Regularly pay employer and employee contributions.
– *Conduct Actuarial Valuation*: Assess pension liabilities and assets.
– *Fund Accrued Pension Rights*: Set aside funds for outstanding pension obligations.
– *Procure Group Life Insurance*: Provide life insurance coverage for employees.
– *Open a Retirement Benefits Bond Redemption Fund Account*: Create a dedicated account for managing retirement benefits .
PenCom commended states like Lagos, FCT, Osun, and Kaduna for their exemplary implementation of the CPS, ensuring timely remittance of pension contributions and prompt payment of retirees’ benefits .
However, some states, including Akwa Ibom, Borno, and Kwara, have yet to commence CPS implementation, and PenCom urges them to take immediate action.
