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Chuks Udo Okonta
Lagos State will commence implementation of the Pension Reform Act 2014 by next year, the Director-General Lagos State Pension Board (LASPEB) Mrs Folashade Onanuga, has assured.
She disclosed this today at the State’s Pension Board One Day Seminar on the Provisions of the Pension Reform Act in Lagos, stressing that the review of the state’s pension law has reached an advance stage and that the forum was organised to get the inputs of stakeholders.
The decision to adopt the changes introduced in the PRA 2014 was reached by all stakeholders in the state.
She noted that all the issued agreed on would be injected in the law, adding that the state wants to forestall having provisions in the law that relevant stakeholders may dislike.
“We believe that where there is a will there will be a way. The workers are the most valued assets, if they are valued and investment made for them in and out of office, they would be more dedicated to their works and that would bring good output. If workers know that their employers are interested in their well being, they would put in their best towards the good of the organisation.
“We have looked critically on the PRA 2014 Act, we have dissected it and we know the ones we would take in the amended law of the Lagos State Government.
“We have reached an advance stage on the amendment; this forum is a public hearing for people in service, and for us to get their buy in. We have concluded all the areas that need to be looked into and we have the provisions we want to put into the law, but we wanted to have their inputs that is the essence of this meeting,” she said.
She noted that the memo on the review of the law which is to be sent to the state executives is ready; adding that it would be one of the first things that will be considered by the state’s newly constituted executives.
The Director-General National Pension Commission (PenCom) Mrs Chinelo Anohu-Amazu, who was represented by Mrs Opeyemi Abodunrin, lauded the efforts of the state government in setting the pace for other states to follow.
She commended the past administration for moving the state’s pension to the next level and urged the present administration to consolidate on the strides already made and ensure the state retains the position it has occupied.
Some key elements in the PRA 2014 Act that may be domesticated by the state are:
Upward Review of Rate of Pension Contribution: The Pension Reform Act 2014 reviewed upwards, the minimum rate of Pension Contribution from 15 per cent to 18 per cent of monthly emolument, where eight per cent will be contributed by employee and 10 per cent by the employer. This will provide additional benefits to workers’ Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement.
Encouraging voluntary contributions and implementation of the Universities (Miscellaneous) Provisions Act 2012, which reviewed the retirement age and benefits of University Professors.