State Govts Owe Pensioners N1 Trillion


State governments are owing pensioners benefits and gratuities of about N1 trillion.

A review by The Nation indicated that despite the Pension Reform Act (PRA) 2004, repealed by PRA 2014 that led to the establishment and commencement of Contributory Pension Scheme (CPS) for all workers in 2007, successive governors have failed to fully embrace the CPS.
While the 25 states are at various stages of implementation of the scheme, some are still in disarray. Six states were at the bill stage while another six have laws on the Contributory Defined Benefits Scheme (CDBS). Also, 16 states have established pension bureaux or boards, and 11 are remitting employer and employee pension contributions in line with the CPS.

States that are yet to join the scheme are Bayelsa, Kogi, Abia, Taraba, Imo, Sokoto, Ebonyi, Oyo and Bauchi.

While states like Lagos, FCT, Osun, Kaduna, Ekiti, Edo and Ondo have fully implemented the scheme.

Industry estimates indicated that total pension and gratuity arrears by states stand at about N1 trillion.
Analysts have criticised the politicisation of pension payments, decrying the frequent attempts by governors to portray pensions as favours rather than earned dues of the pensioners.

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