S/West zone leading in pension compliance

The South-West Zone which comprises Ekiti, Lagos, Ogun, Oyo, Ondo and Osun States is the leader among others as far as compliance with the Contributory Pension Scheme (CPS) is concerned.

For instance, all of the states in the geopolitical zone have enacted the Act to establish the Contributory Pension Scheme for civil servants while almost all have commenced the implementation of the scheme which guarantees pleasant retirement for their workers.

Among the states, Lagos State is the most outstanding as it was the first state in the federation to embrace the scheme. According to the National Pension Commission (PENCOM), Lagos enacted the law that enabled it to start implementing the scheme since 2007.

“Indeed, the choice of Lagos State to host our South-West Zonal office stemmed not only from its pre-eminent position as the economic nerve centre of the country but was also justified by its record of being one of the pioneers in implementation of the CPS, having enacted its law in 2007,” Chinelo Anohu-Amazu, acting director general, National Pension Commission, disclosed recently.

The State had fully implemented the CPS with a total of 45,730 employees registered and pension contributions remittance of N46.50billion as at July, 2013. Furthermore, the State had issued retirement benefit bonds of N18.9billion to its retirees and these bonds have been fully redeemed and proceeds paid into the employees’ individual RSAs; while 2,242 employees from the State have retired under the Scheme as at August, 2013.

In the case of Osun State, it adopted the CPS and enacted its law in 2009. It had also made significant progress in its implementation of the CPS, having so far registered 45,106 employees under the Scheme. It had also remitted N4.15billion as pension contributions, while the sum of N1.90billion had been remitted into the Retirement Benefits Bond Redemption Fund Account.

However, the State is yet to renew the Group Life Insurance Policy for its employees in 2013 and had also not carried out an actuarial valuation to determine accrued pension rights of employees. With regards to Ogun State, it adopted the CPS and enacted its law in 2007.

It had also made significant progress in its implementation of the CPS having so far registered 24,902 employees under the Scheme and remitted N10.90billion as pension contributions, while the sum of N3billion had been remitted into the Retirement Benefits Bond Redemption Fund Account held at the Central Bank of Nigeria. However, the State is yet to put in place a Group Life Insurance Policy for its employees.

Ekiti State enacted its law on the CPS in January, 2011 and has also 37,676 employees registered under the Scheme. Ekiti has conducted an actuarial valuation to determine pension liabilities under the old scheme and put in place a Group Life Insurance Policy for its employees.

However, the State is yet to commence remittance of pension contributions into employees RSAs with PFAs. Oyo State has enacted its law on the CPS in January, 2010. However, it is yet to commence the full implementation of the CPS.

Ondo State has only drafted a Bill on the CPS, a copy of which had been reviewed by the Commission and comments duly forwarded to the State. Notwithstanding the zone’s leading role, Anohu-Amazu appealed to the States in the Zone that have not completed necessary processes for full implementation of the CPS to renew their commitment and fast track action on all outstanding issues in order to avail their employees of its many benefits. She said the Commission’s Zonal Office is positioned to facilitate the States’ full compliance with the CPS and provide necessary guidance.

Meanwhile, the South-East Zone is yet to take its rightful place in terms of the adoption and implementation of the CPS, with no state among the five in the zone attaining full implementation status. Three states in the Zone, namely Abia, Ebonyi and Enugu have not enacted the law on the CPS.

Even Imo State which enacted its law on the CPS in 2008 has suspended its implementation. Anambra State had only recently enacted its law on the CPS. The State is now expected to carry out the next steps which include setting up the administrative structures, appointment of PFAs, registration of employees by the PFAs, remittance of pension contributions, conducting an actuarial valuation to determine accrued pension liabilities and opening and funding of a Retirement Benefit Bond Redemption Account (RBBRF) with the CBN.