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Since the inception of the contributory pension scheme (CPS) in Nigeria in 2004 through the Pension Reform Act (PRA 2004) – now amended – various states in the federation have been exploring the most suitable pension model to adopt within the framework of the existing law.

Jigawa State stands out among these states as it has pioneered a distinctive approach to pension administration, blending the traditional Defined Benefits Scheme with the newly introduced Contributory Pension Scheme (CPS) to form what is now known as the Contributory Defined Benefits Scheme (CDBS) since 2005.

Despite subsequent amendments to the 2005 legislation in 2015 and 2020, Jigawa State has steadfastly maintained this pension model for nearly two decades, demonstrating its efficacy and adaptability.

In 2005, the Jigawa State and Local Government Contributory Pension Scheme Law was enacted, paving the way for the establishment of the Jigawa (State and Local Government) Contributory Pension Scheme Board. The law underwent subsequent amendments in 2015 and 2020, yet the state’s pension system remained rooted in the Contributory Defined Benefits Scheme (CDBS).

Under the CDBS, employees are not required to register or open Retirement Savings Accounts (RSAs) with Pension Fund Administrators (PFAs). Instead, the state assumes responsibility for remitting 17% of the employer’s contribution and 8% of the employee’s contribution under this unique scheme.

In December 2018, the state conducted an Actuarial Valuation to determine the employees’ Accrued Pension Rights. Unlike other pension models, the CDBS does not mandate the inclusion of a Group Life Insurance Policy.

In a recent development, Mallam Umar Namadi, the Governor of Jigawa State, has granted approval for the formation of a 28-member committee tasked with reviewing and evaluating the state and local government contributory pension scheme board. The committee will be chaired by Alhaji Mustapha Aminu, the Head of the Civil Service, with the Co-Chairmanship position held by the State’s Head of the Civil Service.

Jigawa State’s innovative adoption of the Contributory Defined Benefits Scheme (CDBS) has garnered attention, and the newly established committee aims to ensure the continued effectiveness and efficiency of the state and local government contributory pension scheme board.


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