Money

Govt, Private Workers Get N250K as Pension After 60 Years Working: Here Are 20 States Without a CPS

Thursday, February 10, 2022 at 11:37 AM by Dave Ibemere

After years of working, some government and private workers will be retiring with just N250,000 in their account
Every month employer and the employee contribution towards the payment of the employee's pension at retirement
To achieve this Contributory Pension (CPS) Schemes was established under the Pension Reform Act of 2004 but over 20 states are yet to implement

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The Pension Commission (PenCom) has revealed that 2,084 private and public workers have shared N519.51 million as retirement benefits from their pension account.

The amount comes to about N250,000 for the workers both in the private and public sectors.

PenCom disclosed this in its latest quarterly report published on its website and obtained by Ripples Nigeria.

Govt, private workers get N250K as pension after 60 years working: Here are 20 states without a CPS — Workers hold banners during a protest by the Nigeria Labour Congress (NLC) members in the Ikeja district in Lagos, Nigeria, on March 10. 2021. Photo credit: Olukayode Jaiyeola
Source: Getty Images

The money was given to the retirees since their Retirement Savings Account (RSA) balances were less than N550,000, which was deemed inadequate to get a suitable programmed withdrawal or retiree life annuity for their estimated life period.

Family members withdraw from family members pension account

The report also revealed that in three months family members of deceased private and government workers withdrew N13.3 billion from pension accounts.

The withdrawal was made on 2,574 workers comprising 1,923 Public (FGN &State) and 651 private-sector employees/retirees.

The report which covers pension activities from July to September also showed that 9,517 Nigerians who lost their jobs and are below 50 years withdrew N5.66bn.

The 20 states with CPS laws but not paying pension

A report by The Punch indicates that at least 20 Nigerian states have not commenced the payment of pensions to retirees after opting to join the Contributory Pension Scheme (CPS).

States with CPS laws and active pension remittance

Lagos
Osun
Kaduna
Delta
Federal Capital Territory.

According to PenCom, seven states are at the bill formation stage to enable them to migrate from the old scheme to the CPS they are: Kwara Plateau Cross River Borno Akwa Ibom Bauchi Katsina.

Five states have, however, opted for other pension schemes. They are: Jigawa Kano Yobe Gombe Zamfara.

Benue pensioners say they have not been paid for over 33 months

Meanwhile, the National Union Coalition of Aggrieved Pensioners in Benue has threatened to engage in massive protests that will shut down the state if the Samuel Ortom-led government fails to address the plight of its members.