Pension

Exposing State Governments’ status of implementation of CPS for their employees part 7

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 Gombe, Imo and Jigawa States.

GOMBE STATE

The state enacted the Gombe State Contributory Pension Scheme Law in 2006. The 2006 law was later repealed and replaced with the Pension Reform Law 2014. Similarly, the state repealed the 2014 law and and enacted the Gombe State Contributory Defined Benefits Scheme law 2019. The State is among states that have opted for the Contributory Defined Benefits Scheme (CDBS).

The state set up a Technical Committee on Pension Reform in 2022. However, it is yet to implement any other milestone towards the full implementation of the CDBS. including the following:
• Yet to establish a Pension Bureau to oversee the process of implementation of the CDBS;
• Yet to commence deduction and remittance of employer and employee pension contributions;
• Yet to conduct an Actuarial Valuation to determine the quantum of the liabilities and funding gap;
The CDBS does not require the registration of its employees with Pension Fund Administrators (PFAs) and does not also require the institution of 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, Gombe state has only enacted a law on the CDBS for the state public servants and stopped at that level.
The following persons have ruled Gombe state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Abubakar Haba Hashidu from 29 May, 1999 – 29 May, 2003
2. Mohammed Danjuma Goje from 29 May, 2003 – 29 May, 2011
3. Ibrahim Hassan Dankwabo from 29 May, 2011 – 29 May, 2019
4. Muhammad Inuwa Yahaya from 29 May, 2019 – Incumbent
The state has a life pension law infavour 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.

IMO STATE

Imo state enacted the Imo State Pension Reform Law (2008) in 2008. 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; and
• 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, Imo state enacted a law on the CPS for the state public servants in 2008 and stopped at that level.

The following persons have ruled Imo state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Achike Udenwa from 29 May, 1999 – 29 May, 2007
2. Ikediala G. Ohakim from 29 May, 2007 – 29 May, 2011
3. Rochas Anayo Okorocha from 29 May, 2011 – 29 May, 2019
4. Emeka Ihedioha from 29 May, 2019 – 15 January, 2020
5. Hope Uzodinma from 15 January, 2020 – Incumbent
The state has a life pension law infavour 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.

JIGAWA STATE

The state enacted the Jigawa State and Local Governments Contributory Pension Scheme Law in 2005. The law was amended in 2015 and 2020.
Jigawa state has implement the following milestones towards the full implementation of the CDBS:
• Set up the Jigawa (State and Local Governments) Contributory Pension Pension Scheme Board to oversee the process of implementation of the CDBS;
• Remitting 17% employer and 8% employees’ pension contributions;
• Conducted an Actuarial Valuation to determine employees’ Accrued Pension Rights in 2018.
The CDBS does not require the registration of its employees with Pension Fund Administrators (PFAs) and does not also require the institution of a Group Life Insurance Policy.
The following persons have ruled Jigawa state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Ibrahim Saminu Turaki from 29 May, 1999 – 29 May, 2007
2. Sule Lamido from 29 May, 2007 – 29 May, 2015
3. Badaru Abubakar from 29 May, 2015 – 29 May, 2023
4. Umar Namadi from 29 May, 2023 – Incumbent
The State is the first state to adopt the Contributory Defined Benefits Scheme (CDBS) in the country and remains the flagship of the CDBS in the country.
The state has a life pension law infavour 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.

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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