Exposing State Governments’ Status of Implementation of CPS For Their Employees Part 9; By Ivor Takor

WE HAVE for weeks now been discussing state governments’ status of implementation of the Contributory Pension Scheme (CPS) in alphabetical order. Today we will be exposing the status of implementations of Kebbi, Kogi and Kwara states.

Kebbi State

Kebbi state enacted the State Pension Reform Law in 2009. The law was repealed and replaced with Kebbi State Pension Reform Law 2014. The state has put in place other milestones towards implementation of the CPS including the following:

• Established Kebbi State Contributory Pension Scheme Board to oversee the implementation of the CPS in the state;
• Has registered its employees with Pension Fund Administrators (PFAs); and
• Deducting and remitting only 7% of employees’ pensions contributions.

The state is yet to implement any other milestone towards the full implementation of the CPS including the following:

• Yet to commence the remittance of employer’s 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 (RBBRFA); and
• Yet to commence funding of Accrued Rights; and
• Yet to institute a Group Life Insurance Policy.

Employees covered under the CPS are being retired under the Defined Benefits Scheme (DBS) as a result of failure to remit employer’s contributions and accrued rights.

However, what is not known by this writer is whether or not retiring employees’ contributions under the CPS laws are being refunded them, in view of the fact that payment of pension under the DBS, is the sole responsibility of the employer.

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

1. Adamu Aliero from 29 May, 1999 – 29 May, 2007.
2. Usman Saidu Nasamu Dakingari from 29 May, 2007 – 29 May, 2015.
3. Aminu Musa Habib Jega Acting Governor from 24 February, 2012 – 25 May, 2012.
4. Abubakar Atiku Bagudu from 29 May, 2015 – 29 May, 2023.
5. Nasir Idris from 29 May, 2023 – date

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.

Kogi State

Kogi state enacted the State Pension Reform Law on 13 March, 2018. The state has put in place other milestones towards implementation of the CPS including the following:

• Established Kogi State Pension Bureau to oversee the implementation of the CPS in the state;
• Conducted an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS in 2018. However, the state is in the process of revalidating the 2018 actuarial valuation; and
• Commence the process of registering its employees with Pension Fund Administrators (PFAs).

The state is yet to implement other milestones towards the full implementation of the CPS including the following:

• Yet to commence the remittance of employer’s and employees pension contributions;
• Yet to open Retirement Benefits Bond Redemption Fund Account (RBBRFA);
• Yet to commence funding of Accrued Rights; and
• Yet to institute a Group Life Insurance Policy.

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

1. Abubakar Audu from 29 May, 1999 – 29 May, 2003.
2. Ibrahim Idris from 29 May, 2003 – 6 February, 2008.
3. Clarence Olafemi Acting Governor from 6 February, 2008 – 29 March, 2008.
4. Abraham Idris from 29 March, 2008 – January, 2011.
5. Idris Wada from 29 January, 2012 – January, 2016.
6. Yaya Bello from 27 January 2016 – date

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.

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Kwara State

Kwara state presented a Bill on the CPS to the State House of Assembly in 2016. The Bill has not been passed by the State House of Assembly to date.

In the absence of any CPS law in place, the state is yet to implement any other milestone towards the 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 (RBBRFA);
• Yet to commence funding of Accrued Rights; and
• Yet to institute a Group Life Insurance Policy.

Nineteen years after the repeal of the Pension Act 1990 that was of universal application in the federal and states public services in 2004, Kwara state has failed to enacted a law on the CPS for the state public servants.

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

1. Muhammed Lawal from 29 May, 1999 – 29 May, 2003.
2. Bukola Saraki from 29 May, 2003 – 29 May, 2011.
3. Abdulfatah Ahmed from 29 May, 2011 – 29 May, 2019
4. Abdulrazaq AbdulRahman from 29 May, 2019 – date

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.

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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.