By Modupe Gbadeyanka
Trading in the bonds of nine states of the federation has been restricted by the management of National Pension Commission (PenCom).
According to information, Pension Fund Administrators (PFAs) have been directed not to invest in the bonds of the affected states.
The reason for the restriction is because the states have yet to amend their state pension laws and join the Contributory Pension Scheme (CPS).
The CPS was established under the Pension Reform Act to replace the DBS.
This was because the DBS had huge liabilities, which were not being funded, leading to situations where retirees endured long waits to get their entitlements, while many of them died without being paid.
Unfortunately, the same scenario, which was prevalent in states operating the DBS, is now happening in the states operating the CPS due to poor funding of the scheme.
The affected states are Yobe, Akwa Ibom, Cross River, Bauchi, Borno, Benue, Katsina, Kwara and Plateau.
Punch reports that this restriction might be extended to 15 other states that had joined the CPS, but were not showing full commitment to funding the Retirement Savings Accounts (RSAs) of their workers.
Latest figures from the commission showed that as of March 2019, the number of states that had enacted laws on the CPS stood at 27.
Yobe State is still operating the old Defined Benefits Scheme and has taken no action towards adopting the CPS.
Six states, Katsina, Bauchi, Borno, Benue, Kwara and Pateau have drafted bills, while in Akwa Ibom and Cross River, the bills are still in the houses of assembly.
The commission stated that the states that had commenced remittance of pensions to workers’ Retirement Savings Accounts and were funding their accrued rights were Lagos, Ogun, Kaduna, Niger, Delta, Osun and Rivers.
more recommended stories
Dangote Cement to Pay Shareholders N16 Dividend
By Dipo Olowookere Shareholders of Dangote.
Senate Probes Remittances of Taxes on Dividends, Bank Deposits
By Modupe Gbadeyanka The Senate Committees.
BoI Backs Entrepreneurship, Local Investments in Kebbi
By Adedapo Adesanya The Bank of.
Year-to-Date Return of Nigerian Stocks Shrinks to 0.03%
By Dipo Olowookere For the third.
Naira Depreciates Against Dollar at BDC Market
By Adedapo Adesanya The Naira depreciated.
Oil Falls Despite OPEC+ Reassurance on Market Balance
By Adedapo Adesanya Oil prices continued.
NASD OTC Exchange Trades Flat Amid Low Trading Activity
By Adedapo Adesanya The major performance.
Africa Prudential Raises Dividend Payout by 40% to 70 Kobo
By Dipo Olowookere On Tuesday, February.