Yobe Only State Yet To Implement PenCom CPS
The National Pension Commission (PenCom) has stated that Yobe state remains the only state that is yet to take any step towards the implementation of the contributory pension scheme (CPS).
The CPS was established under the Pension Reform Act to replace the Defined Benefits Scheme (DBS).
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The commission disclosed this in a document on its website entitled, ‘Status of Implementation of the Contributory Pension Scheme (CPS) by States and the FCT as at March 2019′.
The PenCom further disclosed that workers covered by the group life insurance policy are those in the Federal Capital Territory (FCT) and Kaduna State only.
The commission came to this conclusion in accordance to Section 4 (5), of the Pension Reform Act, 2014 which states that “Every employer shall maintain a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.
“Where the employer failed, refused or omitted to make payment as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period,” Sub-section (6) of the same section states.
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Figures from the commission showed that as of March 2019, only 27 states enacted laws on the CPS while the states like Lagos, Ogun, Kaduna, Niger, Delta, Osun and Rivers commenced remittance of pensions to workers’ Retirement Savings Accounts (RSA) and were funding their accrued rights were.
