Exposing State Governments’ Status of Implementation of CPS For Their Employees Part 4; By Ivor Takor

We began a couple of weeks ago a discourse on state governments’ status of implementation of the Contributory Pension Scheme (CPS) in alphabetical order. Today we will be focus on the status of implementations of Bayelsa, Benue and Borno states.

BAYELSA STATE:

BAYELSA State enacted the State Pension Reform Law on 17^th July, 2009. The state had initially set up an administrative structure to drive the CPS in the state and local governments services, but the agencies were dissolved in 2021. In their place a 10-man Technical Committee was constituted to drive the implementation of the CPS in the state.

The state repealed its old law and re-enacted a new one, which was signed into law on 30^th December, 2022. The state is yet to implement any other milestone towards full implementation of the CPS including the following:

• Yet to establish a pension bureau to oversee the process of implementation of the CPS;
• Yet to commence the registration of its employees with Pension Fund Administrators (PFAs;
• Yet to commence the remittance of pension contributions;
• Yet to conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;
• Yet to open Retirement Benefits Bond Redemption Fund Account;
• Yet to commence funding of Accrued Rights; and
• No Group Life Insurance Policy.

The following persons led Bayelsa state as governor from the time of the repeal of the Pension Act 1990 in 2004 to date.

1. Diepreye Alamieyeseigba from 29 May, 1999 – 9 December, 2005;
2. Goodluck Jonathan from 9 December, 2005 – 29 May, 2007;
3. Timipre Sylva from 29 May, 2007 – 16 April, 2008;
4. Werinipre Seibarugo (Acting) from 16 April, 2008 – 27 May, 2008;
5. Timipre Sylva from 27 May, 2008 – 27 January, 2012;
6. Nestor Binabo (Acting)) from 27 January, 2012 – 14 February, 2012;
7. Henry Seriake Dickson from 14 February, 2012 – 14 February, 2020; and
8. Duoye Diri from 14 February, 2020 – date.

Nineteen years after the repeal of the Pension Act 1990 that was of universal application in the federal and states public services in 2004, Bayelsa state government, ONLY re-enacted a law on the CPS on 30^th December, 2022 and is still at that level.

Meanwhile former governors and former deputy governors of the state are maintaining lives of luxury with generous life pension, based on the 2003 Pension law enacted for the purpose. Interestingly, early in 2012, the State House of Assembly passed a bill seeking life pension for former speakers, deputy speakers and other former members of the State House of Assembly. The bill suffered a setback simply because the then governor, Henry Seriake Dickson, declined assent to it.

BENUE STATE:

BENUE State enacted the State Pension Reform Law in May, 2019 and is in the process of amending the 2019 law, with the drafting of a new Pension Reform Bill in 2022.

It established a Pension Bureau and has registered employees with Pension Fund Administrators (PFAs). It has commenced deductions and remittance of both employer and employees pension contributions into the RSAs of three (3) tertiary institutions and all the twenty-three (23) local government councils.

However, the employer 10% contribution for local governments employees was stopped in October 2020. The state is therefore remitting only 8% of employees contributions.

The milestones yet to be implemented towards full implementation of the CPS in the state includes the following:

• Yet to commence remittance of 10% employers’ contributions for all other ministries, departments and agencies (MDAs);
• Yet to conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS but has signed a contract with two Actuarial firms to carry out the actuarial valuation for states and local governments employees;
• Yet to open Retirement Benefits Bond Redemption Fund Account;
• Yet to commence funding of Accrued Rights and the state has backlog of pension liabilities; and
• No Group Life Insurance Policy.

The following persons have ruled Benue state as governor from the time of the repeal of the Pension Act 1990 in 2004 to date.

1. George Akume from 29 May, 1999 – 29 May, 2007;
2. Gabriel Suswan from 29 May, 2007 – 29 May, 2015;
3. Samuel Ortom from 29 May, 2015 – 29 May, 2023; and
4. Father Hyacinth Alia from 29 May, 2023 – date.

Benue State is the latest state to join the union of states that have laws for the payment of life pension for former governors and former deputy governors. The bill was passed and assented to in May 2023. The law takes retrospective effect from 1999.

In April as the then governor-elect, Rev. Father Hyacinth Alia, the incumbent governor of the state, had raised alarm over the bill, saying it seeks only the interest of the then outgoing Governor Ortom. It’s left to be seen what he will do with the law, now as governor.

BORNO STATE:

BORNO State drafted a bill on CPS in 2012. The state is however yet to pass the bill into law to provide legal framework for implementation of CPS in the state.

With the absence of any law on the CPS, it is therefore not surprising, that the state is yet to implement any other milestone towards full implementation of the CPS including the following:

• Yet to establish a Pension Bureau to oversee the process of implementation of the CPS;
• Yet to commence the registration of its employees with Pension Fund Administrators (PFAs;
• Yet to commence the remittance of pension contributions;
• Yet to conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;
• Yet to open Retirement Benefits Bond Redemption Fund Account;
• Yet to commence funding of Accrued Rights; and
• No Group Life Insurance Policy.

The following persons have ruled Borno state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date.

1. Mala Kachalla from 29 May, 1999 – 29 May, 2003;
2. Ali Modu Sherrif from 29 May, 2003 – 29 May, 2011;
3. Kashim Shetima from29 May, 2011 – 29 May, 2019; and
4. BabaganaUmara Zulum from 29. AY, 2019 – Incumbent.

Nineteen years after the repeal of the Pension Act 1990 that was of universal application in the federal and states public services in 2004, Borno state only drafted a bill on the CPS for the state public servants in 2012. The state is still at the bill stage.

Meanwhile, Borno state in 2005, enacted the Borno State (Grant of Pension to Governors and Deputy Governors) Law, 2005, which was amended in 2009. The law guarantees a luxury life for former Governors and former deputy Governors of the state for life.

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.

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.