Status of Implementation of CPS in States as at December 2020 – PensionNigeria

Status of Implementation of CPS in States as at December 2020

National Pension Commission (PenCom) has released the status of implementation of all States and the Federal Capital Territory (FCT) under the Contributory Pension Scheme (CPS) as at December 2020.

Twenty-four (24) States of the Federation and the Federal Capital Territory (FCT) have enacted pension laws on the CPS while seven (7) States are at the bill stage in the process of enacting their pension laws for CPS. The remaining five (5) States are operating pension schemes other than the CPS, out of the five (5) States, four (4) States have adopted the Contributory Defined Benefits Scheme (CDBS), while one State, Yobe State, operates the Defined Benefits Scheme (DBS).

Some notable improvements in 4th quarter of 2020 are;
Lagos State submitted its Lagos State Pension Reform Law 2015 (as amended), to PenCom for review, PenCom has communicated its observations to Lagos State. Plateau State began the process of adopting the Contributory Pension Scheme by submitting its draft Pension Bill to PenCom for review and advice. Benue State Government commenced remittance of 10% (employer) and 8% (employee) pension contributions for employees of 21 out of the 23 Local Government Councils in the State from November 2020.

However, the implementation of the Contributory Pension Scheme (CPS) by State Government is still slow and unenviable. Although a total of twenty four (24) States and the Federal Capital Territory (FCT) have enacted pension laws under CPS, but only FCT and four State, Lagos, Osun, Kaduna and Delta, check most of the boxes, furthermore, these Top 5 require varying urgently needed improvements. We have highlighted the issues we noted with the FCT and the Top States below.

The issues we noted for the FCT and the Top States are;

Federal Capital Territory (FCT)

Remittance of pension contributions is irregular for employees of some Area Councils in FCT and no Group Life Insurance Policy for Federal Capital Territory Administration (FCTA).

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Lagos State

Lagos State has arrears of accrued rights and the period of outstanding is not publicly available.

Osun State

Osun State remitted 7.5% employer & employee Pension Contributions up to December 2020 for State employees and there is a backlog of unremitted pension contributions from May 2019 to July 2020. Osun State also has huge arrears of accrued rights.

Kaduna State

Kaduna State reduced the employer’s rate of pension contributions from 13% to 8%, in violation of the Kaduna State Pension Law and Pension Reform Act 2014. Kaduna State has huge arrears of Accrued Pension Rights and the State is yet to commence setting aside funds in the Sinking Fund Account opened with CBN for settlement of death benefits

Delta State

Delta State remits 10% employer & 7.5% employee pension contributions and remitted pension contributions up to April 2020 for employees of the Local Government and up to October 2020 for employees of the State. The State also has huge arrears of Accrued Rights and no Group Life Insurance Policy.

Who can mandate States to comply?

The House of Representatives recently urged the Federal Government to prevail on States & Local Governments to ensure full implementation of Contributory Pension Scheme but it’s sad to note that FG is also not up to date in remittance of Accrued Rights for its employees, as at the time of writing this post, FG had only released accrued rights for its retirees up till February 2020.

The implication of delayed remittance of pension contributions and or accrued rights is that, the retirees of the Federal Government, State or Local Government, will not be able to commence withdrawal from their Retirement Savings Account when they retire until all the pension contributions and or accrued rights are remitted.

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Below is the status of implementation of CPS for FCT and the 36 States in Nigeria as at December 2020;

Status of Implementation of CPS in States – North-Central Zone

S/NStateStatus of Implementation
1BENUEEnacted Law on CPS in May 2019.
Established Pension Bureau.
Registration of Employees with PFAs is ongoing.
Remitting 10% employer & 8% employees’ Pension Contributions for employees of three (3) Agencies and 21 out of 23 Local Government Councils.
Yet to commence remittance for the remaining employees covered under the CPS as at December 2020.
Yet to conduct Actuarial Valuation
Yet to open Retirement Benefits Bond Redemption Fund Account
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy
2FCTCovered by PRA 2014.
Established 2 Pension Bureaux (FCTA & Area Councils).
Registered Employees with PFAs.
Remitting Pension Contributions (up to date remittance of pension contributions for employees of the FCTA and LEAs, but irregular for some Area Councils). Rate of contribution is 10% employer and 8% employee.
Carried out Actuarial Valuation.
Opened Retirement Benefits Bond Redemption Fund Account.
Regular funding of Accrued Pension Rights for both FCTA and Area Councils.
Group Life Insurance Policy for FCT Area Councils and LEAs
No Group Life Insurance Policy for FCTA.
3KOGIEnacted Law on CPS in 2018
Established Pension Bureau.
Yet to register Employees with PFAs.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights
No Group Life Insurance Policy.
4KWARAPresented Bill on CPS before the State House of Assembly in 2016
5NASARAWAEnacted Law on CPS in 2009 (currently in the process of amending its law to commence CPS implementation).
Recently constituted Nasarawa State House of Assembly Ad hoc Committee on Pension Review.
Yet to establish Pension Bureau.
Yet to register Employees with PFAs.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
6NIGEREnacted Law on CPS in 2006.
Suspended implementation of the CPS in April 2015 but amended its Law in 2017 to extend its transition period to exempt some employees from the CPS.
Established Pension Bureau.
Registered Employees with PFAs.
Stopped remitting 7.5% employer & 7.5% employee Pension Contributions since 2015 but resumed deductions of 10.5% employer & 7.5% employee pension contributions from June 2020.
Yet to resume remittance of 10.5% employer and 7.5% employees’ pension contributions to employees’ RSAs.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
7PLATEAUDrafted a new Bill on CPS in 2020.
The State has forwarded the draft bill to the Commission for review.

Status of Implementation of CPS in States – North-East Zone

S/NStateStatus of Implementation
8ADAMAWAEnacted Law on CPS in 2013. Recently drafted Adamawa State Contributory Pension Scheme (CPS) Bill 2020, which seeks to establish a Scheme similar to Contributory Defined Benefits Scheme (CDBS) in the State.
Yet to establish Pension Bureau.
The 2013 Law does not provide for appointment of PFAs, while the 2020 Bill proposes custody of pension funds with Board of Trustees instead
of PFCs.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
9BAUCHIDrafted a Bill on Contributory Defined Benefits Scheme (CDBS) in 2015.
Recently constituted a committee to guide the process of implementation of the CPS and other reforms needed in pension administration in the State.
10BORNODrafted a Bill on CPS in 2012 and forwarded a copy to the Commission for review. The Commission communicated its observations on the Bill to the State in May 2012.
11GOMBEEnacted a Law on Contributory Pension Scheme in 2008 but amended the 2008 Law on CPS to Contributory Defined Benefits Scheme (CDBS) Law in January 2019.
Yet to establish Pension Bureau.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
12TARABAEnacted a Law on CPS in 2009.
Yet to establish Pension Bureau.
Yet to register State Employees
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
13YOBEOperating Defined Benefit Scheme (DBS). However, Committee was inaugurated on the Adoption of CPS in February 2020

Status of Implementation of CPS in States – North-West Zone

S/NStateStatus of Implementation
14JIGAWAEnacted law on CDBS in 2005 and further amended the law in 2015.
Established Pension Bureau.
Remitting 17% employer & 8% employee pension contributions under the Contributory Defined Benefits Scheme to (10) selected PFAs (Remittances are currently not up to date. The State’s last remittance was up to April 2020).
Conducted Actuarial Valuation as at December 2018.
15KADUNAAmended Law on CPS in 2016.
Established Pension Bureau
Registered Employees with PFAs.
Remitting Pension Contributions but reduced the employer’s rate of contributions from 13% to 8%, in violation of the State Pension Law and PRA 2014.
The employees’ pension contribution rate remained same (7%).
Conducted Actuarial Valuation.
Opened Retirement Benefits Bond Redemption Fund Account with CBN
Funding Accrued Rights consistently with 5% of total monthly wage bill.
Replaced Group Life Insurance with Sinking Fund to be domiciled with CBN.
The State has huge arrears of Accrued Pension Rights.
Yet to commence setting aside funds in the Sinking Fund Account opened with CBN for settlement of death benefits
16KANOEnacted a Law on CDBS in 2006 (implementing Contributory Defined Benefits Scheme).
Deducting Pension Contributions under the management of the Board of Trustees instead of PFAs.
Yet to establish Pension Bureau/Board.
Yet to transfer the pension assets to a Licensed Pension Operator.
Yet to conduct Actuarial Valuation
Has huge pension and gratuity liabilities.
17KATSINADrafted a Bill on Contributory Defined Benefits Scheme (CDBS) in 2017
18KEBBIEnacted a Law on CPS in 2009 (amended some sections of the Law in 2014).
Established a Pension Bureau.
Registered Employees with PFAs.
Remitting only employees’ portion (7.5%) of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
Employees covered under CPS being placed under DBS at retirement.
19SOKOTOEnacted Law on CPS in 2007.
Registered some employees with PFAs.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
Yet to establish Pension Bureau
20ZAMFARARepealed Law on CPS and enacted Law on CDBS in 2019.
Remitted only employee portion (7.5%) of pension contributions prior to transit to CDBS but stopped remitting with the enactment of CDBS Law.
Yet to establish Pension Bureau.
Yet to commence deductions and remittances of contributions under the CDBS
Remittances made under the CPS currently being refunded to employees.
Yet to conduct Actuarial Valuation.

Status of Implementation of CPS in States – South-East Zone

S/NStateStatus of Implementation
21ABIAEnacted Law on CPS in 2017.
Yet to establish Pension Bureau.
Yet to register State Employees with PFAs
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
22ANAMBRAEnacted Law on CPS in 2013 (amended some sections of the Law in 2014).
Registered Employees with PFAs.
Remitting 10% employer & 5% employee contributions.
Remitted employer pension contributions up to December 2017 and remitted employee pension contribution up to August 2020 for State employees.
Remitted employee and employer pension contributions up to August 2018 for Local Government employees.
Conducted Actuarial Valuation.
Opened Retirement Benefits Bond Redemption Fund Account with a PFA, for Local Government employees in line with the State Law.
Irregular funding of Accrued Pension Rights for Local Government employees.
Yet to establish Pension Bureau (implementation being driven by Office of the Head of Service & Joint Account Allocation Committee).
Yet to open Retirement Benefits Bond Redemption Fund Account for State employees.
Yet to commence funding of Accrued Pension Rights for State Employees.
No Group Life Insurance Policy.
23EBONYIEnacted Law on CPS in 2017 (amended the Law and forwarded to the Commission and the Commission communicated its observations on the Law to the State).
Yet to establish Pension Bureau.
Yet to register Employees with PFAs.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
24ENUGUEnacted Law on CPS in 2014.
Yet to establish Pension Bureau.
Yet to register State Employees
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
25IMOEnacted Law on CPS in 2008.
Yet to establish Pension Bureau.
Yet to register Employees with PFAs.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.

Status of Implementation of CPS in States – South-South Zone

S/NStateStatus of Implementation
26AKWA IBOMBill on CPS undergoing legislative process.
27BAYELSAEnacted Law on CPS in 2009.
Established 2 Pension Bureaus (State & Local Government).
Yet to register State Employees.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
28CROSS RIVERDrafted a Bill on CPS in 2012
29DELTAEnacted Law on CPS in 2008 (amended State Pension Law in 2011).
Established 2 Pension Bureaus (State & Local Government).
Registered Employees with PFAs.
Remitting 10% employer & 7.5% employee Pension Contributions (Remitted pension remittance up to April 2020 for employees of the Local Government and up to October 2020 for employees of the State.
Carried out Actuarial Valuation.
Opened Retirement Benefits Bond Redemption Fund Account with CBN
Funding Accrued Pension Rights but the State has huge arrears of Accrued Pension Rights.
No Group Life Insurance Policy
30EDOEnacted Law on CPS in 2010 (amended Pension Law in 2017).
Established Pension Bureau.
Registered State Employees with PFAs.
Remitting 10% employer & 8% employee pension contributions (up to date).
Actuarial Valuation is still ongoing as at the reporting date.
Valid Group Life Insurance Policy.
Yet to commence funding of Accrued Pension Rights.
Yet to open Retirement Benefits Bond Redemption Fund Account with CBN
31RIVERSRepealed the Pension Reform Law 2009 and re-enacted Pension Law in 2019 and extended the transition period to commence July 2019.
Established Pension Bureau.
Registered Employees with PFAs.
Stopped remitting 7.5% employer contributions in 2016.
Conducted Actuarial Valuation.
Opened a Retirement Benefits Bond Redemption Fund Account with Premium Pensions, in line with State Pension Law.
Yet to commence regular funding of the Retirement Benefits Bond Redemption Fund Account.
Yet to institute Group Life Insurance Policy.

Status of Implementation of CPS in States – South-West Zone

S/NStateStatus of Implementation
32EKITIAmended pension law in 2017.
Established Pension Bureau
Registered Employees with PFAs.
Remitting 10% employer & 8% employee Pension Contribution up to June 2020.
Carried out Actuarial Valuation
Yet to open Retirement Benefits Bond Redemption Fund Account with a PFA
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
33LAGOSEnacted a Law on CPS in 2007.
Amended some sections of the Principal Law in 2019.
Established Pension Bureau
Registered Employees with PFAs.
Regular Remittance of 10% employer & 8% employee Pension Contributions.
Conducted Actuarial Valuation.
Funding Accrued Pension Rights.
Recently opened Retirement Benefits Bond Redemption Fund Account with two PFAs for State & Local Governments.
Valid Group Life Insurance Policy.
The State has arrears of Accrued Pension Rights 
34OGUNEnacted Law on CPS in 2008 (amended the Law in 2013 to extend its transition period).
Established 2 Pension Bureaus (State & Local Government).
Registered Employees with PFAs.
Deducting 7.5% employer & 7.5% employee Pension Contributions but stopped remitting same since 2015.
Yet to commence remittance of pension contributions into the Retirement Savings Account of state and Local Government Councils employees despite deduction of employees’ portion of pension contributions.
The State has arrears of Accrued Pension Rights.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.
35ONDOEnacted Law on CPS in 2014.
Established Pension Bureau.
Registered Employees with PFAs.
Remitting 10% employer & 8% employee pension contributions up to October 2020
Valid Group Life Insurance Policy.
No Actuarial Valuation as employees covered under the CPS have no Accrued Pension Rights.
36OSUNEnacted Law on CPS in 2008.
Established 2 Pension Bureaus (State & Local Governments).
Registered Employees with PFAs.
Remitting 7.5% employer & employee Pension Contributions up to December 2020 for State employees. However, there is backlog of pension contributions From May 2019 to July 2020.
Conducted Actuarial Valuation.
Opened Retirement Benefits Bond Redemption Fund Account with the CBN
Inadequate funding of Accrued Pension Rights.
Valid Group Life Insurance Policy.
The State has backlog of unremitted pension contributions and huge arrears of Accrued Pension Rights
37OYOEnacted Law on CPS in 2010. In 2018 forwarded a Bill to amend its Law, PenCom communicated its observations to the State.
Yet to establish Pension Bureau.
Yet to register State Employees.
Yet to commence remittance of Pension Contributions.
Yet to conduct Actuarial Valuation.
Yet to open Retirement Benefits Bond Redemption Fund Account.
Yet to commence funding of Accrued Pension Rights.
No Group Life Insurance Policy.

Summary of implementation of CPS for FCT and the 36 States in Nigeria

Also Read

Some States still don’t have Committee to resolve money with PFAs not in Individual RSAs

Everything you need to know about Governors borrowing N17 Trillion from Pension Funds

Reps urge FG to prevail on States & LGs for full implementation of Contributory Pension Scheme

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

DONT MISS PenCom Q4 Quarterly Report Series
Analysis of Pension Operating Environment Q4 2020
How PenCom monitored the Pension Industry in Q4 2020
5.1 million RSAs have Incomplete Documentation
3.5 million Unfunded RSAs, effects and way forward
Appointments to Pension Operators’ Boards in Q4 2020
PenCom issued 1,877 organizations Compliance Certificates in Q42020
19 Employers paid N170 million Penalty for late Remittance of Pension Contribution
Update on NSITF & Refund of Pension Contribution to Military & SSS
Status of Implementation of CPS in States as at December 2020
Biggest PFAs by RSA Registrations December 2020
Update on the RSA Transfer System (RTS), 2,799 RSA holders Change PFAs
Pension Operators paid N90.99 billion Retirement Benefits Q4/2020

Also Check out
Performance of all PFAs in Nigeria for Full Year 2020
Performance of all PFAs in Nigeria for Full Year 2019
Performance of all PFAs in Nigeria for Full Year 2018

Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube

error: Content is protected.