The imperative of Benue State joining the contributory Pension scheme

Development, Stories 28/10/2013 by Akaafele

The contributory pension scheme came into force in 2004 with the passage of Pension Act of 2004 by the national assembly.

The pension act entails that, all public sector workers and employees of organized private sector contribute a minimum of seven and half percent of their basic transport and housing while the employer contributes another minimum of seven and half percent.

The nation pension commission otherwise known as PENCON is the regulator

The worker is expected to open a retirement saving account (RSA) with a pension fund administrator of his choice .The pension administrator manages the funds for the beneficiaries till their retirement and in the event of their death, his contribution is paid to his next of kin.

Some State like Akwa-Ibom, Edo, Sokoto, Taraba, Ogun and many others have amended the relevant laws payment for their retired workers.

Benue State Government has pension liabilities in excess of ₦7bn. If this scheme is not adopted expeditiously, the fate of our retired civil servants is doomed. Many have been sent to their untimely graves due penury resulting from lack of payment of their retirement benefits. The Benue State House of Assembly must rise to the occasion by passing this law without further delays.

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