Exposing state governments’ status of implementation of CPS for their employees part 10; By Ivor Takor
WE HAVE been exposing state governments’ status of implementation of the Contributory Pension Scheme (CPS) in alphabetical order. Today we will be exposing the status of implementations of Lagos, Nasarawa and Niger States.
Lagos State
Lagos State enacted the Lagos State Pension Reform Law in 2007. Amended some sections of the Principal Law in 2021. The state has put in place other milestones toward full implementation of the CPS including the following:
- Established Lagos State Pension Commission (LSPEC) in July 2009;
- Has registered its employees with Pension Fund Administrators (PFAs);
- Deducting and remitting employer and employees contributions consistently based on 10% employer and 8% employees;
- Conducted an Actuarial Valuation to determine the Accrued Pension Rights of employees that transited from the old Defined Benefits Scheme into CPS;
- Funding Employees Accrued Pension Rights consistently;
- Opened Retirement Benefits Bonds Redemptions Fund Account (RBBRFA) for State and Local Governments;
- Has a valid Group Life Insurance Policy for States, Local Governments and 26 Self-Funded Agencies; and
- The state has paid Accrued Pension Rights up to 2022. However, there is no Group Life Insurance Police for 12 Self-Funded Agencies.
Lagos State is among the very few states in the country that are implementing and paying pension in line with their own CPS laws. From the above data, it is obvious that the state is the flagship of the CPS in Nigeria today. Kudos for these great achievements should go to all the past Governors and the incumbent Governor that have ruled the state from 2004 to date.
The following persons have ruled Lagos state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Asiwaju Bola Ahmed Tinubu from 29 May, 1999 – 29 May, 2007.
- Babatunde Raji Fashola from 29 May, 2007 – 29 May, 2015.
- Akinwusi Ambode from 29 May, 2015 – 29 May, 2019.
- Babajide Sanwo-Olu from 29 May, 2019 – Incumbent.
The state has a life pension law in favour of former Governors and former deputy Governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Nasarawa State
The state enacted the Nasarawa State Pension Reform Law in 2005. The law was repealed and a new law was re-enacted in April, 2009. The state further amended its law in 2019 and subsequently drafted a new Bill in 2021
The state is yet to implement any other milestone towards the full implementation of the CPS including the following:
- Yet to establish a Pension Bureau to oversee the process of implementation of the CPS;
- Yet to commence the registration of its employees with Pension Fund Administrators (PFAs);
- Yet to commence the remittance of pension contributions;
- Yet to conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;
- Yet to open Retirement Benefits Bond Redemption Fund Account;
- Yet to commence funding of Accrued Rights; and
- Yet to institute a Group Life Insurance Policy.
Nineteen years after the repeal of the Pension Act 1990 that was of universal application in the federal and states public services in 2004, Nasarawa state enacted a law on the CPS for the state public servants in 2009 and has stopped at that level.
The following persons have ruled Nasarawa state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Abdullahi Adamu from 29 May, 1999 – 29 May, 2007.
- Aliyu Doma from 29 May, 2007 – 29 May, 2011.
- Umaru Tanko Al-Makura from 29 May, 2011 – 29 May, 2019.
- Abdullahi Sule from 29 May, 2019 – Incumbent
Niger State
The state enacted the Niger State Pension Reform Law in 2006. Suspended implementation of the CPS in April 2015 and resumed in 2017 with the amendment of the law in 2017, which extended transition period to 2022. The law was further amended in 2020.
The state has put in place other milestones towards full implementation of the CPS including the following:
- Established Pension Bureau for state and local governments;
- Has registered its employees with Pension Fund Administrators (PFAs);
- Resumed the deduction of employer and employees’ contributions based on 10% employer and 8% employees in 2017;
- Remitted employer and employees’ contributions up to 2020;
- Opened Retirement Benefits Bonds Redemptions Fund Account (RBBRFA)with two PFAs;
The state is yet to implement the following milestones towards the full implementation of the CPS:
- Yet to conduct Actuarial Valuation to determine the Accrued Pension Rights of employees that transited from the old Defined Benefits Scheme (DBS) into CPS;
- Yet to fund employees Accrued Pension Rights;
- Has no valid Group Life Insurance Policy; and
The following persons have ruled Niger state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Abdulkadir Kure from 29 May, 1999 – 29 May 2007.
- Mu’azu Babangida Aliyu from 29 May, 2007 – 29 May, 2015.
- Abubakar Sani Bello from 29 May, 2015 – 29 May, 2023.
- Mohammed Umar Bago from 29 May, 2023 – Incumbent.
The state has a life pension law in favour of former Governors and former deputy Governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Section 210(1) of the Constitution of The Federal Republic of Nigeria 1999 as amended, provides that “Subject to the provisions of subsection (2) of this section, the right of a person in the public service of a state to receive pension or gratuity shall be regulated by law.
Subsection (2) provides that “Any benefit to which a person is entitled in accordance with or under such law as is referred to in subsection (1) of this section shall not be withheld or altered to his disadvantage except as is permissible under any law, including the code of conduct.”
Subsection (3) provides that “Pension shall be reviewed every five years or together with any State Civil Service salary reviews, whichever is earlier.”
Key pension information were sourced from PenCom website.
Comrade Takor was a two term President of NASU, a two term National Treasurer of NLC and an inaugural member of the Board of PenCom. Comrade Takor retired as a Director in federal service and is now a Lagos-based legal practitioner. He is an alumnus of the National Institute of Policy and Strategic Studies (NIPSS), Kuru-Jos, Plateau State.