States refuse to remit pensions for workers – PenCom

Nike Popoola

Most states governments are not remitting pension contributions into their workers’ Retirement Savings Accounts with their respective Pension Fund Administrators.

The National Pension Commission disclosed this in its 2019 third-quarter report, which was recently released.

It also observed that some states were deducting the monthly salaries of their workers but were not remitting into the employees’ RSA, which would lead to the workers retiring without pensions.

According to the report, Abia State, Adamawa, Bauchi, Bayelsa, Benue, Borno, and Akwa Ibon were not remitting pension contributions and not funding accrued rights.

Others in this category were Cross River, Enugu, Gombe, Imo, Katsina, Kogi, Kwara, Oyo, Plateau, Nasarawa, Sokoto, Taraba, Yobe and Ebonyi states.

Anambra remitted the employer and employee pension contributions for local government employees up to June 2018.

Some of its state employees had their employer portion of pension contribution remitted up to December 2017 and employee portion up to June 2019.

It was also funding accrued pension rights for only local government employees.

Delta had regular and complete remittance of pension contributions for state employees.

However, the employer contributions for local government employees were outstanding between May 2016 and September 2018, while October 2018 to January 2019 were remitted.

The employee portions of the pension contributions were remitted up to date for the local government employees.

It also funded accrued pension rights of both LG and state but with huge arrears of accrued pension liabilities.

Edo had regular and up to date remittance of pension contributions but no funding accrued rights.

Ekiti remitted pension contributions for state and local government employees up to July 2019 but did not fund accrued rights.

The Federal Capital Territory had regular and up-to-date remittance of pension contributions for employees of the FCTA and area councils/LEAs, funded accrued pension rights and had regular funding of accrued rights for FCTA and FCT area council.

Jigawa had regular and up-to-date remittances of pension contributions to selected PFAs however, and it was implementing CDBS.

Kaduna had regular and up-to-date remittance of pension contributions, and was funding accrued pension rights consistently with five per cent of total monthly wage bill.

Kano was deducting pension contributions but under the management of the Board of Trustees, and yet to transfer the pension assets to a licensed pension operator.

Kebbi was remitting only employees’ portion of pension contributions but not funding accrued rights.

Lagos had regular and up-to-date remittance of pension contributions and was funding the accrued rights of employees.

However, the funds for this purpose were still domiciled in a commercial bank.

Niger suspended implementation of the CPS in April 2015 but amended its law in 2017 to extend transition period/exempt some employees and recommence the CPS.

Remittances of pension contributions were stopped, yet to resume remittances for employees, and not funding accrued rights.

Ogun stopped remitting pension contributions with huge arrears of unremitted pension contributions and was not funding accrued rights.

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