By Faith Abule, Abuja
About 25 States including the Federal Capital Territory (FCT) who have enacted pension laws on the Contributory Pension Scheme (CPS), have paid N236.7 billion pension contributions into the Retirement Savings Accounts (RSAs) of their respective workers in the last four years.
The pension contributions was to ensure every worker captured in the new pension scheme known as Contributory Pension Scheme(CPS), has a good retirement life, leveraging on the monthly contributions he or she and employer made cumulatively, while in active service.
The Pension Reforms Act (PRA) 2014 makes provision for employees to remit eight per cent of his or her salary and employer is to make 10 per cent of his or her worker’s salary, making a cumulative 18 per cent that should be remitted into the RSA of each worker on a monthly basis.
However, States who have made most of these pension contributions for their workers, include; Lagos, FCT, Osun, Kaduna, Ekiti, Edo, Delta and Anambra.
Confirming this development at the ‘3rd Quarter 2024 Consultative Forum for States and FCT’ sponsored by the National Pension Commission(PenCom), in Alausa, Ikeja, Lagos on Wednesday, the acting director general, PenCom, Ms. Omolola Oloworaran said, the N236.7 billion remitted occurred between January 2020 and the second quarter of 2024.
According to her, “based on our record as at today, 25 States including the FCT have enacted pension laws on the CPS, while six are at the Bill stage. Six other States have adopted the Contributory Defined Benefits Scheme (CDBS), a hybrid of the CPS and DBS. However, only eight States are fully implementing the CPS, out of the 25 States that have enacted pension laws.”
