Only four States are complying with contributory pensions for workers says PenCom

The National Pension Commission (PenCom) in a recent report has declared that only Benue and 3 other states have remitted their workers pension contributions fully as at December 2021, in line with the mandate of the Contributory Pension Scheme (CPS).

The states are Benue, Lagos, Kaduna and Edo states.

This is contained in the 2021 fourth quarter report, (Q4’21), released by the National Pension Commission, (PenCom)
The commission indicated that five other states of Osun, Delta, Ekiti, Ondo, Anambra and the Federal Capital Territory (FCT), that are also remitting both employer and employee contributions have backlogs in remittances.

Analysis of the report shows that 25 states had enacted pension laws on the CPS, while seven states were at the bill processing stage.

Out of the five states operating other pension schemes, four states adopted the Contributory Defined Benefits Scheme (CDBS), while one state is operating the Defined Benefits Scheme (DBS).

PenCom noted that as part of its mandate, it carried out sensitization workshops, capacity-building programs, and stakeholder engagement meetings during the quarter under review.

It added that it held a meeting with four pioneer Pension Fund Administrators (PFAs) managing majority of the RSAs of employees of Kaduna State to review the solutions proposed by the PFAs and Kaduna State to address the accrued rights liabilities owed to the retired and disengaged employees of the state.