WE HAVE been exposing state governments’ status of implementation of the Contributory Pension Scheme (CPS) in alphabetical order. Today, we will be focusing on the status of implementations of Ogun, Ondo and Osun states.
Ogun State
Ogun State enacted the Ogun State Pension Reform Law in 2008. Amended the law in 2013 to extend its transition period to 2025. The state has put in place other milestones towards full implementation of the CPS including the following:
- Established two Pension Bureaus, one each for the state’s service and local governments;
- Has registered employees of the state and local governments with Pension Fund Administrators (PFAs);
- Deducting and remitting 7.5% of employees’ contributions but stopped remitting both employer and employees’ contributions to their respective RSAs.
RELATED ARTICLE: Exposing State Governments’ Status Of Implementation of CPS For Their Employees Part 10; By Ivor Takor
The state is yet to implement other milestones towards the full implementation of the CPS including the following:
- Conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that transited from the old Defined Benefits Scheme (DBS) into the CPS;
- Commence funding Accrued Pension Rights;
- Open Retirement Benefits Bonds Redemptions Fund Account (RBBRFA) for State and Local Governments; and
- Institute a Group Life Insurance Policy.
The following persons have ruled Ogun state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Olusegun Osoba from 29 May, 1999 – 29 May, 2003.
- Gbenga Daniel from 29 May, 2003 – 29 May, 2011.
- Ibikunle Amosun from 29 May, 2011 – 29 May, 2019.
- Dapo Abiodun from 29 May, 2019 – Incumbent
Ondo State
Ondo state enacted the Ondo State Pension Reform Law in 2014. Amended the Law in 2018 to cover only new employees engaged as from 2014. The state has put in place other milestones towards full implementation of the CPS including the following:
RELATED ARTICLE: Exposing State Governments’ Status of Implementation of CPS For Their Employees Part 9; By Ivor Takor
- Established a Pension Bureau to drive and oversee the process of implementing the CPS in Ondo state;
- Has registered employees with Pension Fund Administrators (PFAs);
- Deducting and remitting 10% of employers and 8% employees’ contributions in line with section 14 of the 2014 State Pension Law;
- The State does not require actuarial valuation given that the CPS law only covers new employees, who don’t have accrued pension rights. Consequent upon this, the state does not require to open a Retirement Benefits Bonds Redemptions Fund Account (RBBRFA); and
- The state has instituted a valid Group Life Insurance Policy.
The following persons have ruled Ondo state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Adebayo Adefaranti from 29 May, 1999 – 29 May, 2003.
- Olusegun Agagu from 29 May, 2003 – 24 February, 2009.
- Olusegun Mimiko from 24 February, 2009 – 24 February, 2017.
- Rotimi Akeredolu SAN from 24 February, 2017 – Incumbent
The state has a life pension law in favour of former Governors and former deputy Governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Osun State
Osun state enacted the Osun State Pension Reform Law in 2008. The state has put in place other milestones towards full implementation of the CPS including the following:
- Established a two Pension Bureaus for the state and local governments to drive and oversee the process of implementing the CPS in Osun state;
- Has registered employees with Pension Fund Administrators (PFAs);
- Deducting and remitting 7.5% of employers and 7.5% employees contributions in line with Section 14(1) of Osun State Pension Law 2008;
- Conducted an Actuarial Valuation to determine the Accrued Pension Rights of employees that transited from the old Defined Benefits Scheme into CPS;
- Opened Retirement Benefits Bonds Redemptions Fund Account (RBBRFA) with the Central Bank of Nigeria (CBN); and
- The state has instituted a valid Group Life Insurance Policy.
The following persons have ruled Ondo state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.
- Adebisi Akande from 29 May, 1999 – 29 May, 2003.
- Olagunsoye Oyinlola from 29 May, 2003 – 27 November, 2010
- Rauf Aregbesola from 27 November, 2010 – 27 November, 2018.
- Adegboyega Oyetola from 27 November, 2018 – 27 November, 2022.
- Ademola Adeleke from 27 November, 2022 – Incumbent.
The state has a life pension law in favour of former Governors and former deputy Governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Section 210(1) of the Constitution of The Federal Republic of Nigeria 1999 as amended, provides that “Subject to the provisions of subsection (2) of this section, the right of a person in the public service of a state to receive pension or gratuity shall be regulated by law.
RELATED ARTICLE: Exposing State Governments’ Status of Implementation of CPS For Their Employees Part 8; By Ivor Takor
Subsection (2) provides that “Any benefit to which a person is entitled in accordance with or under such law as is referred to in subsection (1) of this section shall not be withheld or altered to his disadvantage except as is permissible under any law, including the code of conduct.”
Subsection (3) provides that “Pension shall be reviewed every five years or together with any State Civil Service salary reviews, whichever is earlier.”
Key pension information were sourced from PenCom website.
Comrade Takor was a two-term President of NASU, a two-term National Treasurer of NLC and an inaugural member of the Board of PenCom. Comrade Takor retired as a Director in federal service and is now a Lagos-based legal practitioner. He is an alumnus of the National Institute of Policy and Strategic Studies (NIPSS), Kuru-Jos, Plateau State.
