Pension

Exposing State Governments’ Status of Implementation of CPS For Their Employees Part 3

Takor Ivor

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 Anambra and Bauchi States.
ANAMBRA state enacted the State Pension Reform Law, in 2013.
The state appointed five Pension Fund Administrators (PFAs) to register state employees and three PFAs to register Local Government Employees.
The state has been remitting both employer and employees pension contributions from inception up to December, 2017. Remittance stopped from January 2018 – February 2022.
Remittance resumed from March 2022 and has been regular to date for state government employees, while remittance for local governments employees has not been made since March, 2017.
The state has opened a Retirement Benefits Bond Redemption Fund Account (RBBRFA) with a PFA for local governments employees in line with the State law. However, no RBBRFA has been opened for state government employees.
The State is yet to implement the following:
• Set up State Pension Management Board and Local Governments Pension Management Board in accordance with Section 17(1) of the State Pension Reform Law.
• To conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;

• To open Retirement Benefits Bond Redemption Fund Account for state government employees;

• To commence funding of Accrued Pension Rights; and

• To take Group Life Insurance Policy for employees.

(This information is available on the website of the National Pension Commission (PenCom)).
The following persons have ruled Anambra state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Chris Ngige from May 29, 2003 – March 17, 2006
2. Peter Obi from March 17, 2006 – November 3, 2006
3. Virginia Etiaba from November3, 2006 – February 9, 2007
4. Peter Obi from February 9, 2007 – March 17, 2014
5. Willie Obiano from March 17, 2014 – March 17, 2022
6. Charles Chukwuma Soludo from March 17, 2022 – incumbent
In order to guarantee the pension rights of employees of Anambra state and local governments, the incumbent governor, Charles Chukwu Soludo has to take necessary actions towards implementing the outstanding milestones. This will ensure that retirees of the states and local governments are paid their pension, as and when due.
BAUCHI enacted a law on the CPS on 5th August, 2022. The state constituted a Committee to guide the process of implementing the CPS and other reforms needed in pension administration in the state.
The state is yet to implement any other milestone towards 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 take Group Life Insurance Policy for employees.

(This information is available on the website of the National Pension Commission (PenCom)).
The following persons have ruled Bauchi state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Ahmad Adamu Mu’azu from May 29, 1999 – May 29, 2007
2. Isa Yuguda from May 29, 2007 – May 29, 2015
3. Mohammed Abdullahi Abubakar from May 29, 2015 – May 29, 2019
4. Bala Mohammed from May 29, 2019 – incumbent
Nineteen years after the repeal of the Pension Act 1990 that was of universal application in the federal and states public services in 2004, Bauchi state government ONLY enacted a law on the CPS on AUGUST 5, 2022 and is still at that level.
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.”

Takor was a two term President of NASU, a two term National Treasurer of NLC and an member of the inaugural Board of PenCom. Takor retired as a Director in federal public 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.

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