The National Pension Commission (PenCom) on Thursday commended the Lagos State Government for its strides in the implementation of the Contributory Pension Scheme (CPS).

Omolola Oloworaran, Acting Director-General of PenCom gave the commendation while delivering an address at the Third Quarter 2024 Consultative Forum For States and the FCT organized by PenCom in Lagos.

The two-day forum, which began on Wednesday, brought together Heads of Pension Bureaux, Boards, and Commissions who were directly steering the implementation of the CPS and other pension arrangements at various levels.

Also at the forum were Heads of Service and other senior government officials of states that had commenced efforts towards implementation of the CPS and other pension arrangements for their employees.

Oloworaran said the achievements of the state included the consistent remittance of pension contributions, funding of accrued rights, the institution of a Group Life Insurance Policy, and the prompt payment of retirement benefits.

According to her, these efforts have made Lagos a model for other states and propelled its hosting of the forum.

The Managing Director noted that based on records, 25 states, including the FCT, had enacted pension laws on the CPS, while six were at the Bill stage.

She said six other states had also adopted the Contributory Defined Benefits Scheme (CDBS), a hybrid of the CPS.

Oloworaran hinted that only eight states across the country were fully implementing the CPS, out of the 25 states that had enacted pension laws.

She said one of the significant benefits of adopting the CPS to state governments was access to accumulated pension funds for infrastructural development through the issuance of state bonds.

According to her, five states, namely, Lagos, Niger, Osun, Ekiti, and Delta, had successfully issued state bonds that were subscribed by pension funds.

Oloworaran noted that the commission, under her watch was committed to ensuring that all retirees from both the public and private sectors, received their retirement benefits as and when due.

The PenCom boss said: “In this regard, the commission shall focus on 26 states with CPS or CDBS laws, but are yet to commence implementation.

“Our focus will be to constructively engage these states in a sustained manner and work towards expanding the coverage of CPS at the subnational level.

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“We will also intensify our efforts with relevant state government agencies to resolve the backlog in accrued rights payments to CPS retirees.

” In addition, we are working to ensure that pensioners under the CPS and other pension arrangements benefit from pension increments provided for in the Constitution of the Federal Republic of Nigeria, 1999 as amended.”

According to her, since its inception in 2014, the forum has facilitated the exchange of ideas and expertise amongst participants to support respective states in establishing frameworks for seamless CPS implementation.

The forum, she said, also served as a platform to address pension challenges of respective states and provide updates on their unique pension reform journeys.

In his remark, Mr. Bode Agoro, Lagos State Head of Service, said the state government recognized the importance of pension reforms.

Agoro, represented by Mrs. Sunkanmi Oyegbola, Permanent Secretary, Head of Service, said that through Lagos State Pension Commission (LASPEC), the state had ensured financial security and well-being of its retirees.

“In Lagos State, we also recognize the need for protection of workers’ rights and as such, channel our commitment to promoting transparency, accountability, and efficiency in pension administration and management.

“The welfare of our workforce and the retirees has always been our priority, and we have continually aligned our policies with the aims of the CPS under the Pension Reform Act.

“We are committed to ensuring that all pension contributions are regularly remitted, and retirees receive their entitlements promptly and without delays,” he said.

The Lagos Head of Service lauded PenCom for its tireless efforts in putting strategies in place for effective regulation and supervision of the Nigerian pension industry.

Agoro, however, noted that a lot still needed to be done in sensitizing some Pension Fund Administrators (PFAs) on the need to always fast-track processing of retirement benefits.

He said this was necessary to ensure timely payment of retirees across the country, in line with PenCom’s mission.