Status of Implementation of CPS in States as at September 2020
National Pension Commission (PenCom) has released the status of implementation of all States and the Federal Capital Territory (FCT) under the Contributory Pension Scheme as at September 2020.
State Governments continued to make slow unenviable progress in the level of implementation of the Contributory Pension Scheme (CPS) as at September 2020, 16 years after the introduction of the CPS. Although a total of twenty four (24) States and the Federal Capital Territory (FCT) have enacted pension laws under the Contributory Pension Scheme (CPS), we can only rate FCT, Lagos, Osun, Kaduna and Delta as “ok” with room for varying urgently needed improvements.
The issues we noted for the FCT and the Top 4 states are;
FCT – Remittance of pension contributions is irregular for employees of some Area Councils in FCT.
Lagos – Lagos has arrears of accrued rights and the period outstanding is not readily available.
Osun – The State has backlog of unremitted pension contributions and huge arrears of accrued rights.
Kaduna – The State has huge arrears of accrued rights and no provision for settlement of death benefits.
Delta – The State has huge arrears of Accrued Rights and no Group Life Insurance Policy.
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The Federal Government is also not up to date in remittance of Accrued Rights for its employees, as at September 2020, FG had only released accrued rights for its retirees up till September 2019.
The implication of delayed remittance of pension contributions and or accrued rights is that, the retirees of the State or Federal Government will not be able to commence withdrawal from their Retirement Savings Account when they retire until all the pension contributions and or accrued rights are remitted.
Below is the status of implementation of CPS for FCT and the 36 States in Nigeria.
| S/N | STATE | LEVEL OF IMPLEMENTATION | OUTSTANDING IMPLEMENTATION MILESTONES |
|---|---|---|---|
| 1 | Abia | Enacted Law on CPS in 2017. | Yet to establish Pension Bureau. Yet to register employees with PFAs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 2 | Adamawa | Enacted Law on CPS in 2013. Recently drafted Adamawa State Contributory Pension Scheme (CPS) Bill 2020, which seeks to establish a Scheme similar to Contributory Defined Benefits Scheme (CDBS) in the State. | Yet to establish Pension Bureau. The 2013 Law does not provide for appointment of PFAs, while the 2020 Bill proposes custody of pension funds with Board of Trustees instead of PFCs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 3 | Akwa Ibom | Bill on CPS has been in the State House of Assembly | The frist step to adopt Contributory Pension Scheme (CPS) is to pass the Bill, the state is yet to take the first step |
| 4 | Anambra | Enacted Law on CPS in 2013 (amended some sections of the Law in 2014). Registered Employees with PFAs. Remitting 10% employer & 5% employee contributions (inconsistent). Conducted Actuarial Valuation. Opened Retirement Benefits Bond Redemption Fund Account with a PFA for the Local Government employees, as provided by the State Pension Law. Irregular funding of Accrued Rights for Local Government employees. | Yet to establish Pension Bureau (implementation being driven by Office of the Head of Service & Joint Account Allocation Committee). Yet to open Retirement Benefits Bond Redemption Fund Account for State employees. Yet to commence funding of Accrued Rights for State Employees. No Group Life Insurance Policy. |
| 5 | Bayelsa | Enacted Law on CPS in 2009. Established 2 Pension Bureaus (State & Local Government). | Yet to register State Employees. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 6 | Bauchi | Drafted a Bill on Contributory Defined Benefits Scheme (CDBS) in 2015 | The frist step to adopt any Pension Scheme is to pass the Bill, the state is yet to take the first step |
| 7 | Benue | Enacted Law on CPS in May 2019. Established Pension Bureau. Registration of Employees with PFAs is ongoing. Remitting 10% employer & 8% employees’ Pension Contributions for three (3) Agencies. | Yet to commence remittance for the remaining employees covered under the CPS. Yet to conduct Actuarial Valuation Yet to open Retirement Benefits Bond Redemption Fund Account Yet to commence funding of Accrued Rights No Group Life Insurance Policy |
| S/N | STATE | LEVEL OF IMPLEMENTATION | OUTSTANDING IMPLEMENTATION MILESTONES |
|---|---|---|---|
| 8 | Borno | Drafted a Bill on CPS in 2008 | The frist step to adopt Contributory Pension Scheme (CPS) is to pass the Bill, the state is yet to take the first step |
| 9 | Cross River | Drafted a Bill on CPS in 2012 | The frist step to adopt Contributory Pension Scheme (CPS) is to pass the Bill, the state is yet to take the first step |
| 10 | Delta | Enacted Law on CPS in 2008 (amended State Pension Law in 2011). Established 2 Pension Bureaus (State & Local Government). Registered Employees with PFAs. Remitting 10% employer & 7.5% employee Pension Contributions (up to date remittance for State employees, remitted up to April 2020 for Local Governments). Carried out Actuarial Valuation Opened Retirement Benefits Bond Redemption Fund Account with CBN. Funding Accrued Pension Rights. | The State has huge arrears of Accrued Rights. No Group Life Insurance Policy. |
| 11 | Ebonyi | Enacted Law on CPS in 2017. | Yet to establish Pension Bureau. Yet to register Employees with PFAs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 12 | Edo | Enacted Law on CPS in 2010 (amended Pension Law in 2017). Established Pension Bureau. Registered State Employees with PFAs. Remitting 10% employer & 8% employee pension contributions (up to date). Actuarial Valuation is still ongoing as at the reporting date. Valid Group Life Insurance Policy. | Yet to commence funding of Accrued Rights. |
| 13 | Ekiti | Amended pension law in 2017. Established Pension Bureau. Registered Employees with PFAs. Remitting 10% employer & 8% employee Pension Contributions. Carried out Actuarial Valuation | Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 14 | Enugu | Enacted Law on CPS in 2014. | Yet to establish Pension Bureau. Yet to register State Employees. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| S/N | STATE | LEVEL OF IMPLEMENTATION | OUTSTANDING IMPLEMENTATION MILESTONES |
|---|---|---|---|
| 15 | FCT | Covered by PRA 2014. Established 2 Pension Bureaux (FCTA & Area Councils). Registered Employees with PFAs. Remitting Pension Contributions (up to date remittance of pension contributions for employees of the FCTA and LEAs, but irregular for some Area Councils). Rate of contribution is 10% employer and 8% employee. Carried out Actuarial Valuation. Opened Retirement Benefits Bond Redemption Fund Account and funding Accrued Rights. Valid Group Life Insurance Policy. | FCT needs to ensure regular remittance of pension contributions for employees of all Area Councils |
| 16 | Gombe | Enacted a Law on CPS in 2008 but amended the 2008 Law on Contributory Pension Scheme (CPS) to Contributory Defined Benefit Scheme (CDBS) Law in January 2019. | Yet to establish Pension Bureau. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. |
| 17 | Imo | Enacted Law on CPS in 2008. | Yet to establish Pension Bureau. Yet to register Employees with PFAs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 18 | Jigawa | Enacted law on Contributory Defined Benefit Scheme (CDBS) in 2005 and further amended the law in 2015. Established Pension Bureau. Remitting 17% employer & 8% employee pension contributions under the Contributory Defined Benefit Scheme to (10) selected PFAs (Remittances are currently not up to date. The State’s last remittance was up to April 2020.) Conducted Actuarial Valuation as at December 2018. | |
| 19 | Kaduna | Amended Law on CPS in 2016. Established Pension Bureau. Registered Employees with PFAs. Remitting Pension Contributions but reduced the employer’s rate of contributions from 13% to 8%, in violation of the State Pension Law and PRA 2014. The employees’ pension contribution rate remained same (7%). Conducted Actuarial Valuation. Opened Retirement Benefits Bond Redemption Fund Account with CBN. Funding Accrued Rights consistently with 5% of total monthly wage bill. Replaced Group Life Insurance with Sinking Fund to be domiciled with CBN. | The State has huge arrears of accrued rights. Yet to commence setting aside funds in the Sinking Fund Account opened with CBN for settlement of death benefits. |
| 20 | Kano | Enacted a Law on CDBS in 2006 (implementing Contributory Defined Benefits Scheme). Deducting Pension Contributions under the management of the Board of Trustees instead of PFAs. | Yet to establish Pension Bureau/Board. Yet to transfer the pension assets to a Licensed Pension Operator. Yet to conduct Actuarial Valuation. Has huge pension and gratuity liabilities. |
| 21 | Katsina | Drafted a Bill on Contributory Defined Benefits Scheme (CDBS) in 2017 | The frist step to adopt any Pension Scheme is to pass the Bill, the state is yet to take the first step |
| S/N | STATE | LEVEL OF IMPLEMENTATION | OUTSTANDING IMPLEMENTATION MILESTONES |
|---|---|---|---|
| 22 | Kebbi | Enacted a Law on CPS in 2009 (amended some sections of the Law in 2014). Established a Pension Bureau. Registered Employees with PFAs. Remitting only employees’ portion (7.5%) of Pension Contributions. | Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. Employees covered under CPS being placed under DBS at retirement. |
| 23 | Kogi | Enacted Law on CPS in 2018. Established Pension Bureau. | Yet to register Employees with PFAs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 24 | Kwara | Presented Bill on CPS before the State House of Assembly in 2016 | The frist step to adopt Contributory Pension Scheme (CPS) is to pass the Bill, the state is yet to take the first step |
| 25 | Lagos | Enacted a Law on CPS in 2007. Amended some sections of the Principal Law in 2019. Established Pension Bureau. Registered Employees with PFAs. Regular Remittance of 10% employer & 8% employee Pension Contributions. Conducted Actuarial Valuation. Funding Accrued Pension Rights. Recently opened Retirement Benefits Bond Redemption Fund Account with two PFAs for State & Local Governments. Valid Group Life Insurance Policy. | The State has arrears of accrued rights. |
| 26 | Nasarawa | Enacted Law on CPS in 2009. Recently constituted Nasarawa State Assembly Ad hoc Committee on Pension Review. | Yet to establish Pension Bureau. Yet to register Employees with PFAs. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 27 | Niger | Enacted Law on CPS in 2006. Suspended implementation of the CPS in April 2015 but amended its Law in 2017 to extend its transition period to exempt some employees from the CPS. Established Pension Bureau. Registered Employees with PFAs. Stopped remitting 7.5% employer & 7.5% employee Pension Contributions since 2015 but resumed deductions of 10.5% employer & 7.5% employee pension contributions from June 2020. However, contributions remittance to employees’ RSAs yet to commence. | Yet to commence remittance of pension contributions to employees’ RSAs. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 28 | Ogun | Enacted Law on CPS in 2008 (amended the Law in 2013 to extend its transition period). Established 2 Pension Bureaus (State & Local Government). Registered Employees with PFAs. Deducting 7.5% employer & 7.5% employee Pension Contributions but stopped remitting same since 2015. | Not remitting Pension Contributions (The State has huge backlog of unremitted Pension Contributions). Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account, after closing the one earlier opened via PenCom’s assistance. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 29 | Ondo | Enacted Law on CPS in 2014. Established Pension Bureau. Registered Employees with PFAs. Remitting 10% employer & 8% employee pension contributions for workers employed from Sept. 2014, in line with amended Law in 2019. No Actuarial Valuation as employees covered have no Accrued Rights. Valid Group Life Insurance Policy. |
| S/N | STATE | LEVEL OF IMPLEMENTATION | OUTSTANDING IMPLEMENTATION MILESTONES |
|---|---|---|---|
| 30 | Osun | Enacted Law on CPS in 2008. Established 2 Pension Bureaus (State & Local Governments). Registered Employees with PFAs. Remitting 7.5% employer & employee Pension Contributions (remittances of pension contributions are inconsistent resulting in backlog). Conducted Actuarial Valuation. Opened Retirement Benefits Bond Redemption Fund Account with the CBN. Inadequate funding of Accrued Rights. Valid Group Life Insurance Policy. | The State has backlog of unremitted pension contributions and huge arrears of accrued rights. |
| 31 | Oyo | Enacted Law on CPS in 2010 (In the process of amending the Law to commence CPS implementation). | Yet to establish Pension Bureau. Yet to register Employees with PFAs. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 32 | Plateau | Drafted Bill on CPS in 2016 (the draft bill on CPS has been at the State House of Assembly). | The frist step to adopt Contributory Pension Scheme (CPS) is to pass the Bill, the state is yet to take the first step |
| 33 | Rivers | Repealed the Pension Reform Law 2009, re-enacted the Pension Law in 2019 and extended the transition period to commence July 2019. Established Pension Bureau. Registered Employees with PFAs. Stopped remitting 7.5% employer and 7.5% employee contributions in 2016 and 2019, respectively. Conducted Actuarial Valuation. Opened a Retirement Benefits Bond Redemption Fund Account with Premium Pensions, in line with State Pension Law. | Not remitting employer and employee pension contributions since July 2019. Yet to carry out recent Actuarial Valuation. Yet to commence regular funding of the Retirement Benefits Bond Redemption Fund Account. Yet to institute Group Life Insurance Policy. |
| 34 | Sokoto | Enacted Law on CPS in 2007. Registered some employees with PFAs. | Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. Yet to establish Pension Bureau. |
| 35 | Taraba | Enacted a Law on CPS in 2009. | Yet to establish Pension Bureau. Yet to register State Employees. Yet to commence remittance of Pension Contributions. Yet to conduct Actuarial Valuation. Yet to open Retirement Benefits Bond Redemption Fund Account. Yet to commence funding of Accrued Rights. No Group Life Insurance Policy. |
| 36 | Yobe | Operating Defined Benefit Scheme (DBS). However, Committee was inaugurated on the Adoption of CPS in February 2020 | The state is yet to adopt Contributory Pension Scheme (CPS) |
| 37 | Zamfara | Repealed Law on Contributory Pension Scheme (CPS) and enacted Law on Contributory Defined Benefits Scheme (CDBS) in 2019. Remitting only employee portion (7.5%) of pension contributions prior to transit to CDBS but stopped remitting with the enactment of CDBS Law. Employees are exited from the CPS and the contributions are being refunded to the employees, while employees’ RSAs opened under CPS are to be flagged off. | Yet to establish Pension Bureau. Not commenced deductions and remittance of contributions under the CDBS Remittances made under the CPS currently being refunded to employees. Yet to conduct Actuarial Valuation |
Summary of status of implementation of CPS for FCT and the 36 States in Nigeria.
Also Read Some States still don’t have Committee to resolve money with PFAs not in Individual RSAs
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