Pension

Three states faithful to pension remittance – PenCom

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Chuks Udo Okonta

The National Pension Commission (PenCom) has said only Lagos; Edo and Kaduna are states faithfully remitting employers and employees pension contributions.

PenCom in its fourth quarter 2022 report, stated that Lagos; Osun; Kaduna; Delta; Ekiti; Ondo; Edo; Benue; Anambra and Federal Capital Territory (FCT) have embraced remittance of employers and employees pension contributions but Osun; FCT; Delta; Ekiti; Ondo; Benue; and Anambra have backlog of remittances.

The pension sector regulator stated that the Lagos State Government has consistently failed to honour the N2 billion
monthly commitment to clear the accrued rights of its retirees, stressing that as at the end of the 4th quarter of 2022, there was no record of the State fulfilling its monthly commitment of remitting ₦2 billion for the months of October, November and December 2022.

PenCom said only a total sum of N7.83 billion was so far redeemed as against the expected sum of N26 billion during the period, adding that this therefore leaves a cumulative shortfall of N18.17 billion that was yet to be redeemed as at the end of December 2022.

PenCom noted that its Head, States Operations Department led an inspection team to conduct an onsite routine inspection of the Lagos State Pension Arrangements from 12 to 15 December 2022.

The inspection, it said was aimed at assessing the status of implementation of the Contributory Pension Scheme (CPS) by the Lagos State Government and its agencies, as well as the administration of the Defined Benefits Scheme (DBS) in the State.

It said the inspection report is being finalized for management’s consideration and approval.

On management of Ekiti State Retirement Bond Redemption Fund (RBBRF), PenCom submitted that the Ekiti State Pension Commission via a letter of 28 November 2022 informed the Commission of its intention to appoint Veritas Glanvills Pensions Limited as
one of the PFAs designated to manage its RBBRF, adding that the Commission is in the process of consolidating its review of the Portfolio Management Agreement with those received from Investment, Surveillance, and Legal Departments for Management’s consideration and approval for subsequent adoption by the Ekiti State
Pension Commission.

The Commission said it wrote a letter to the new Executive Governor of Ekiti State, His
Excellency Biodun Oyebanji, congratulating him on his swearing in as the Executive Governor of the State and used the medium to highlight the modest achievements made by the State in the implementation of the CPS as
well as the outstanding milestones that still need to be achieved by the State in its
quest at achieving pension sustainability.

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