23 States Default With CPS– NPC

By Ikenga Chronicles May 9, 2018

23 States Default With CPS– NPC

The National Pension Commission(NPC) has revealed that about twenty-three states have been identified as defaulters with the Contributory Pension Scheme(CPS)established by the Pension Reform Act of 2004.

The CPS is an arrangement where both the employee and employer contribute towards the payment of the employee’s pension at retirement.

This is to ensure that all employees in the public and private sectors in Nigeria, including self-employed persons, receive their retirement benefits as and when due.

It allows the minimum contribution of 18 percent of the employee’s monthly emoluments making it 10 percent by the employer and eight percent, contributed by the employee.

NPC in a document, disclosed that while 13 out of the 23 states had enacted laws to guide the implementation of the scheme, they had yet to commence remittances.

The states are Adamawa , Bayelsa , Ebonyi, Enugu , Gombe , Imo , Kano , Kogi , Nasarawa , Oyo , Sokoto , Taraba and Abia.

Further analysis showed that eight out of the 23 states had commenced the framework for the implementation with bills pending at their respective Houses of Assembly.

They are Bauchi, Benue , Borno , Cross River , Katsina, Kwara , Plateau and Akwa Ibom.

Analysis of the document reveal that Yobe State had yet to implement the contributory pension scheme in any form.

In the document, the commission said that 11 out of the 36 states of the federation had commenced full remittance of pension contributions of their workers.