OrderPaperToday – The House of Representatives has resolved to urge the federal government to immediately get States and Local Government Councils to ensure full implementation of the Contributory Pension Scheme in line with the guidelines set out by the National Pension Commission (PenCom).

The resolution was sequel to a motion jointly sponsored by Julius Ihonvbere, Benjamin Kalu, Saidu Mustafa and Abubakar Kusada during  plenary session on Wednesday.

Presenting the motion, Ihonvbere pointed that the scheme commenced under the Pension Reform Act, 2004 and was repealed and enacted in 2014 to institute uniform rules and regulations that ease administration and payment of retirement benefits for both the public and private sectors in Nigeria.

He said that the repeal of the Pension Reform Act, 2004 was necessitated by the need to ensure that States and Local Government Councils participate fully in the Scheme, as well as to address the limitations and failure of the 2004 Pension Reform, Act, following irregularities in the system that saw pensioners being owed indefinitely while the number of retirees continued to grow.

He also added that that section 2(1) of the Pension Reform Act, 2014 requires all employees in the Public Service of the Federation (States and Local Governments), Federal Capital Territory or the Private Sector are to participate in the Contributory Pension Scheme.

According to him, the National Pension Commission had set out guidelines for the implementation of Contributory Pension Schemes by States Governments, yet compliance with the Pension Reform Act, 2014 has remained low.

He said “Section 4(1) (a) and (b) of the Pension Reform Act, 2014 stipulates that employers are expected to contribute 10% of their employee’s monthly emolument whereas employees are to contribute 8% of their monthly emolument, all together saved to the employee’s Pension Fund Administrator (PFA)/ Pension Retirement Savings Account”.

He also noted that uncertainties associated with unemployment, illness, disability, death and/or old age, which could be very challenging even for the most advanced economies, given the continuous need to assure workers of their economic and social security after retirement.

He said “although 26 States and the FCT have enacted Pension Laws, only about 8 States have fully implemented 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, may be defeated”.

The motion was unanimously passed when the presiding officer, Mr. Idris Wase put the question and the House mandated its Committee on Pensions to investigate the extent of implementation of the scheme across the 36 States of the Federation and report back to the House within 4 weeks for further legislative inputs.

LEAVE A REPLY

Please enter your comment!
Please enter your name here