The National Pension Commission, PENCOM, has called on States and local government areas in the South-East region to expedite action towards full implementation of the Contributory Pension Scheme, CPS.
The Director General of PENCOM, Mrs. Chinelo Anohu-Amazu, who gave the charge on Thursday in Enugu at a sensitization workshop held for the people of South-East, expressed concern over the low implementation rate of the scheme in the zone.
She stated that the CPS, one of the major integral provisions of the Pension Reform Act, 2014, was aimed at reforming the pension scheme and thereby better the life of workers after retirement.
She noted that, “the Pension Reform Act 2014 re-enacted the fundamental provisions of the repealed PRA 2004, which include inter alia, the establishment of the Contributory Pension Scheme, uniform standards for pension administration as well as the National Pension Commission as the sole regulator and supervisor of pension matters in Nigeria.
“However, there are new developments introduced by the PRA 2014 such as the upward review of the minimum rate of pension contribution and the sanctions and penalties against infractions of the provisions of the Act.
“Furthermore, the PRA 2014 has introduced a provision that allows contributors seeking to own their primary homes, to apply part of their Retirement Savings Account balances as equity contribution for residential mortgage, subject to the Guidelines issued by the Commission.
“The process of issuing these Guidelines is already at advanced stages and it is our expectation that as soon as implemented, this would facilitate access to home ownership by pension contributors while bridging the housing deficit in Nigeria”.
The PENCOM DG, however, observed that “prior to the enactment of the PRA 2014, several states in the Federation, had adopted the CPS and were at various stages of implementation.
“However, the scorecard for the South-East Zone has not been encouraging since no state has attained full implementation status. The PRA 2014 has enhanced States and Local Government participation in the CPS by expressly prescribing the coverage of employees of States and Local Governments, in addition to the Federal Public service and private sector.
“I would therefore like to passionately appeal to all the States and Local Governments in the South-East Zone that are yet to adopt or implement the CPS to quickly embark on doing so in order to avail their employees of the numerous benefits of the Scheme while avoiding huge future pension liabilities. Recent developments with regards to inadequate finances affecting most states of the federation is a pointer to the urgent need for states to adopt the CPS”.
According to Anohu-Amazu, “he PRA 2014 Act has also made provisions for voluntary participation in the CPS, thereby paving the way for the coverage of the Informal Sector through the Micro Pensions initiative.
“Already, the Commission has commenced a series of activities intended to kick start this initiative which focuses on the underserved segments of the Nigerian workers. PenCom is partnering with organized labour and well established trade groups in that regard. It is noteworthy that the PRA 2014 has also addressed other issues aimed at ensuring the sustainability of the CPS. These include establishment of the Pension Protection Fund and Minimum Pension Guarantee”.
In his speech while declaring the event open, Governor Ifeanyi Ugwuanyi of Enugu State noted that pension occupied a strategic place as a vital component of social security and nation building, emphasizing that,”it is essential that we plan for the future of our workers in retirement to ensure the sustainable development of the Nigerian economy”.
Governor Ugwuanyi assured that in Enugu State, “the welfare of workers, both serving and retired, remains a cardinal priority of government”.
While disclosing that Enugu had fully implemented the CPS, he appealed to States that were yet to key into the scheme to do so “in order to avail their employees of numerous benefits inherent in it”.
The sensitization is the third in the series of such conferences scheduled to be held by PENCOM in all the six geopolitical zones, and would focus on the overall developments ushered in by the PRA 2014.
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