‘Only 3 states are consistent with remitting full Contributory pension’

The National Pension Commission (PenCom) has disclosed that out of the 24 states that have signed onto Contributory Pension scheme, only three and the Federal Capital Territory (FCT) have consistently remitted fully.

The Acting Managing Director, Aisha Dahir-Umar, disclosed this on the sideline of the ongoing third quarter consultative forum for states holding in Lagos

Dahir-Umar, who was represented by Dr. Dan Ndackson, the Head, State Operations Department said: “From the 24 that have enacted laws to implement this scheme, we have eight of them that are making remittances.

“But there are a few states, about two three of them plus the Federal Capital Territory, that are consistent in remitting both employer and employee contributions every month. Apart from that, others have some challenges here and there.”

She said the level of remittances varied, adding that some of the states were remitting full contribution by the employer and the employee.

“Some states are remitting only employee contributions. There are others that remit employer and employee but in an inconsistent manner.”

“What that means is this month they might remit both employer and employee but next month they may remit only employees’, the degree of compliance varies,” she added.

The consultative forum is one of the strategies that the commission has adopted in encouraging states to adopt the CPS scheme.

The Ag DG further disclosed that to date, 24 states have enacted laws on the Contributory Pension Scheme, three have enacted laws on the Contributory Defined Benefits Scheme, six others are at various stages of adopting the Contributory Pension Scheme, two states are at bill stage of a law that is neither Contributory Pension Scheme nor Contributory Defined Benefits Scheme, while one has continued with the Defined Benefit Scheme. Out of the 24 States that have enacted laws on the Contributory Pension Scheme, have commenced implementation of key provisions of the scheme.

She said the scheme has provided a platform for a more efficient and transparent administration of pensions in the Federal Public Service, private sector and Public Service of the states. The scheme has also led to the generation of long term investible funds that already have significant impact on the Nigerian economy.

Lagos State Head of Service, Folashade Adesoye, in her welcome remarks drew the commission’s attention to some aspects of the PRA 2014 which are yet to be addressed, like the transfer window that would allow some employees to transfer from one Pension Fund Administrator to another.