PenCom Lists Abia, Ebonyi, Enugu, Imo As States With Worst Contributory Pension Scheme

The Abia State government has been listed among worst performers in the Contributory Pensions Scheme (CPS) of the National Pensions Commission in the South Eastern Nigeria.

The country’s pensions regulator, PenCom, made the disclosure in its status of implementation as of December 2023.

PenCom listed Abia, Ebonyi, Enugu and Imo States among worst implementers in the region.

For Abia, Pencom said the state government enacted the state pension reform law on 20th March 2017.

“The State is yet to implement any milestone towards the full implementation of the CPS,” said PenCom.

Contributory Pension Scheme (CPS) is an
arrangement where both the employer and the employee contribute a portion of an employee’s monthly emolument towards the payment of the employee’s pension at retirement.

The CPS was established in June 2004 by the Pension Reform Act (PRA) 2004, which was repealed and re-enacted in July 2014.

PenCom, however, said Abia is “yet to establish a Pensions Bureau to oversea the implementation of the CPS in Abia State.

“The (State) is yet to commence the registration of its employees. Yet to commence the remittance of pensions contributions.”

Abia according to the regulator is yet to conduct actual valuation to determine the accrued pensions rights of employees that would be transiting to the CPS.

Abia has also not opened “Retirement Benefits Bond Redemption Fund Accounts” adding that Okezie Ikpeazu’s government has not commenced funding of the Accrued Pensions Rights.

THE WHISTLER understands that the Abia Government owes 40 months pensions.

Enugu, Imo and Ebonyi States are at almost same level of implementation of the CPS, but Anambra State has made greater success compared to other Eastern states