Lagos State remits over N46.50bn pension contributions

Chuks Udo Okonta

 

 

The Pension contributions remitted by the Lagos State Government stood at N46.50 billion as at July, Inspen has learnt.

 

Acting Director-General National Pension Commission (PenCom) Chinelo Anohu-Amazu, who disclosed this in Lagos, said the State had fully implemented the Contributory Pension Scheme (CPS), as it has registered over 45,730 employees.

 

She noted that the State had also issued retirement benefit bonds of N18.9 billion to its retirees and these bonds have been fully redeemed and proceeds paid into the employees’ individual Retirement Savings Accounts (RSAs); while 2,242 employees from the State have retired under the Scheme as at August, 2013.  

 

Benchmarking Lagos State with other States in the South-West, Anohu-Amazu, said Osun State has adopted the CPS and enacted its law in 2009, adding that the State had made significant progress in its implementation of the CPS, having so far registered 45,106 employees under the Scheme and remitted N4.15 billion as pension contributions, while the sum of N1.90 billion had been remitted into the Retirement Benefits Bond Redemption Fund Account.

 

She noted that Osun State is yet to renew the Group Life Insurance Policy for its employees in 2013 and had also not carried out an actuarial valuation to determine accrued pension rights of employees. 

 

She said: “With regards to Ogun State, it adopted the CPS and enacted its law in 2007. It had also made significant progress in its implementation of the CPS having so far registered 24,902 employees under the Scheme and remitted N10.90 billion as pension contributions, while the sum of N3 billion had been remitted into the Retirement Benefits Bond Redemption Fund Account held at the Central Bank of Nigeria.

 

“However, the State is yet to put in place a Group Life Insurance Policy for its employees. In the case of Ekiti State, it enacted its law on the CPS in January, 2011 and has also 37,676 employees registered under the Scheme.

 

“Ekiti has conducted an actuarial valuation to determine pension liabilities under the old scheme and put in place a Group Life Insurance Policy for its employees. However, the State is yet to commence remittance of pension contributions into employees RSAs with PFAs.

 

“Oyo State has enacted its law on the CPS in January, 2010. However, it is yet to commence the full implementation of the CPS. Ondo State has only drafted a Bill on the CPS, a copy of which had been reviewed by the Commission and comments duly forwarded to the State.”

 

She urged the States in the Zone that have not completed necessary processes for full implementation of the CPS to renew their commitment and fast track action on all outstanding issues to avail their employees of its many benefits.