PenCom Expresses Dissatisfaction Over Reluctance Of Most States To Implement CPS

The National Pension Commission (PenCom) condemned reluctance of most states towards implementing the Contributory Pensions Scheme (CPS), citing that only 10 states and the Federal Capital Territory have fully complied.

This is coming almost two decades after the National Council of States adopted the CPS for all states and local governments.

The Pension Reform Act (PRA) 2014, in Section 2(1), stipulates that the CPS applies to all public sector employees across the Federation, including the Federal Capital Territory, states, and local governments, as well as the private sector.

However, in line with the 1999 Constitution of the Federal Republic of Nigeria (as amended), state governments have the constitutional right to legislate on pension matters within their jurisdictions.

But PenCom noted that to date, many states have not complied to the adoption and implementation of CPS, according to its statement.

PenCom listed that to date, only Lagos, Federal Capital Territory (FCT), Osun, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra, and Jigawa states have fully complied. The Commission commended them and urged other states to emulate them.

According to PenCom, “Several states have enacted laws to adopt the CPS but have not yet made significant strides towards implementation. These states include Abia, Adamawa, Bauchi, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ogun, Oyo, Rivers, Sokoto, Taraba, and Zamfara.

‘PenCom urges these states to accelerate their efforts toward full implementation of the CPS. This includes the timely remittance of both employer and employee pension contributions. By taking decisive action, these states can align with the pacesetters in ensuring a secure and sustainable retirement scheme for their workforce.

“However, PenCom observes that the following states have yet to commence implementation of the CPS: Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe.

“PenCom strongly encourages these states to expedite the enactment of their CPS laws and take immediate steps toward full implementation to ensure a secure and sustainable pension system for their workforce”