House of Representatives have requested that the Federal Government should as a matter of urgency urge States and Local Government Councils to ensure full implementation of the Contributory Pension Scheme (CPS) in compliance with the rules set out by the National Pension Commission.
The name adopted for the movement is “Full Implementation of the Contributory Pension Scheme by the Three Tiers of Government and the Private Sector” and it is collectively sponsored by Hon. Julius O. Ihonvbere, Hon. Benjamin Okezie Kalu, Hon. Saidu Mohammed Mustafa and Hon. Abubakar Yahaya Kusada.
Moving the movement on behalf of his colleagues, Hon. Ihonvbere said that the Scheme commenced with the Pension Reform Act, 2004 and was repealed and enacted in 2014 as Pension Reform Act 2014, to institute uniform guidelines and rules that ease administration of retirement benefits for both the private and public sectors in Nigeria.
He mentioned that the repeal of the Pension Reform Act, 2004 was necessitated by the need to make sure that States and Local Government Councils take part in the Scheme and to handle the constraints and failures of the 2004 Pension Reform Act.
Ihonvbere said that Section 2(1) of the Pension Reform Act, 2014 requires all staff within the Public Service of the Federation (States and Local Governments), Federal Capital Territory or the Private Sector to take part within the Contributory Pension Scheme.
According to him, the National Pension Commission had set out tips for the implementation of Contributory Pension Schemes by States Governments, but compliance with the Pension Reform Act, 2014 has remained low.
He mentioned that “Section 4(1) (a) and (b) of Pension Reform Act, 2014 stipulates that employers are mandated to contribute a minimum of 10% of their worker’s monthly emolument and the workers are mandated to contribute a minimum of 8% of their monthly emolument, all collectively saved into the worker’s Retirement Savings Account (RSA) with the Pension Fund Administrator (PFA).
Most of the States in Nigeria are yet to fully implement the Contributory Pension Scheme, and if no measures are put in place to ensure that States adhere to the Contributory Pension Scheme in line with the provisions of the Pension Reform Act, 2014 the objective of the Act, which is to establish a pension system that is sustainable and capable of providing a stable and predictable source of retirement benefits for employees across the country, maybe defeated.
The House has mandated its Committee on Pensions to analyze the extent of implementation of the scheme throughout the 36 States of the Federation and report again to it in 4 weeks for additional legislative motion.
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