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Only 20 out of the 36 states have joined the CPS – PenCom report

According to a National Pension Commission (PenCom) report titled ‘Level of implementation of the Contributory Pension Scheme by states as of June 2021’, 20 states have yet to begin paying pensions to their retirees after deciding to join the Contributory Pension Scheme (CPS) and only 25 of the 36 states in the country had approved laws to join the CPS.

These states are Lagos, Osun, Kaduna, Delta, Ekiti, Ondo, Edo, Benue, Kebbi, Niger, Rivers, Ogun, Bayelsa, Kogi, Anambra, Abia, Taraba, Imo, Sokoto, Adamawa, Ebonyi, Nasarawa, Enugu, Oyo and the Federal Capital Territory.

However, according to the report, only 5 states out of the 25 were paying pensions to retirees under the CPS and funding the accrued rights. These are Lagos, Osun, Kaduna, Delta, and the Federal Capital Territory.

Anambra, Abia, Taraba, Imo, Sokoto, Adamawa, Ebonyi, Nasarawa, Enugu, and Oyo states have yet to create pension bureaux after implementing CPS legislation.

Seven states, according to PenCom, are in the process of drafting legislation to enable them to transition from the previous scheme to the CPS. These are Kwara, Plateau, Cross River, Borno, Akwa Ibom, Bauchi, and Katsina states.

Five states, Jigawa, Kano, Yobe, Gombe, and Zamfara, on the other hand, have chosen different pension plans.

PenCom’s Head of Corporate Communications, Peter Aghahowa, reacted to the news by pointing out that each state had its own unique characteristics.

“The process of enacting the law comes first; then you’ll put the institutions in place. For example, you’ll need to set up a pension bureau and train people to understand how the CPS works. Then you start encouraging state personnel to register with the PFAs so that remittances can begin. Apart from that, the government must have the political will to implement, deduct, and remit pensions.” he explained.

Source

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