By Ivor Takor
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We began exposing State Governments’ status of implementation of the Contributory Pension Scheme (CPS) in alphabetical order. We have exposed the status of implementation of Abia State. Today we will be exposing the status of implementations of Adamawa and Akwa Ibom States.
ADAMAWA state enacted the Adamawa state and Local Government CPS law 2013, in July, 2013which seek to establish Contributory Defined Benefits Scheme (CDBS).
In 2020, the state drafted a bill to further ament the CDBS. The state had established two (2) Pension Boards to oversea the implementation process of the CDBS. The state is yet to implement any other milestone towards full implementation of the CDBS.
• Yet to commence deduction and remittence of pension contributions into Trustees accounts.
• Yet to conduct actuarial valuation to determine the quantum of its liabilities and funding gap.
The CDBS doesn’t require the registration of employees and opening of Retirement Savings Accounts (RSAs) with Pension Fund Administrators (PFAs) by employees as is the case with the CPS. Under the CDBS, pension contributions are paid into the Trustees account while in the case of CPS, pension contributions are paid directly into the employees (beneficiaries) RSAs.
The institution of Group Life Insurance Policy is not required under the CDBS. Under the CPS Group Life Policy is mandatory. For instance, it is mandatory for Employers of employees covered by the Pension Reform Act 2014 under Section 4(5) to maintain a Group Life Insurance Policy in favour of each employee for a minimum of three times the annual total emolument of the employee.
Subsection 6 provides that where the employer failed, refused or omitted to make payment for premium as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period.
(This information is available on the website of the National Pension Commission (PenCom)).
Most states that have adopted the CPS, have also adopted this provision of Pension Reform Act 2014 and domesticated it into their pension laws.
The following persons have ruled Adamawa state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Borni Haruna from May 29, 1999 – May 29, 2007
2. Murtala Nyako from May 29, 2007 – February 26, 2008
3. James Shaibu Barka (Acting) from February 26, 2008 – April 29, 2008
4. Murtala Nyako from April 29, 2008 – July 14, 2014
5. Ahmadu Umar Fintiri (Acting) from July 14, 2014 – October 1, 2014
6. Bala James Ngilari from October 1, 2014 – May 29, 2019
7. Bindo Jibrila from May 29, 2015 – May 29, 2019
8. Ahmadu Umar Fintiri 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, Adamawa state government enacted the Adamawa State and Local Government in 2013, established two (2) Pension Boards to oversea the implementation process of the CDBS and stopped at that level.
AKWA IBOM state drafted the Akwa Ibom State Pension Reform bill in 2019. The bill was presented to the State House of Assembly but it’s yet to be passed.
With the absence of any law on the CPS, it is therefore not surprising, that 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; and
• Yet to commence funding of Accrued Rights and no Group Life Insurance Policy.
(This information is available on the website of the National Pension Commission (PenCom)).
The following persons have ruled Akwa Ibom state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
1. Victor Attah from May 29, 1999 – May 29, 2007
2. Godswill Akpabio from May 29, 2007 – May 29, 2015
3. Udom Gabriel Emmanuel from May 29, 2015 – May 29, 2023
4. Umoh Bassey Eno from May 29, 2023 – 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, Akwa Ibom state has only drafted the Akwa Ibom State Pension Reform bill in 2019 for the state public servants. The Bill was presented to the State House of Assembly but it’s yet to be passed.
Meanwhile in 2014 or there about, the State House of Assembly enacted a life pension law for former Governors and deputy Governors, leading to former Governors and former deputy Governors of the state maintaining lives of luxury with generous pension, while the state’s public servants are left with no law to guarantee their pension.
Takor was a two term President of NASU, a two term National Treasurer of NLC and a 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, Kuru-JOS, Plateau State.
