RSG To Raise Pension Contribution To 10%

The Rivers State Government (RSG) may raise employers’ contribution under the Contributory Pension Scheme from 7.5 percent to 10 percent if the 2004 Pension Act, as amended by the National Assembly, is domesticated in the state.
This was disclosed recently when principal officers of the National Pension Commission (PENCOM) paid a courtesy visit to the Head of Service, Barr. Samuel LongJohn in his office in Port Harcourt.
The 2014 Pension Amendment Act passed by the National Assembly raised the employee/employer contributory ratio from 7.5/7.5 percent to 8 percent for the employee and a minimum of 10 percent for the employer.
The Head of Service has therefore directed the Rivers State Pension Board to take note of the development and make necessary input for its domestication and subsequent implementation in the State.
He said his office was doing everything possible to put the State Pensions Board in its proper perspective to enable them carry out their functions creditably, noting that by 1st July, 2015, the Defined Pension Scheme would end to pave way for the full take off of the Contributory Pension Scheme in the State.
Barr. LongJohn also hinted that despite the present financial crunch experienced in the country, the State Government has approved the increase of monthly allocation for the payment of pension and gratuity from I billion Naira to 1.4 billion Naira, and expressed appreciation to PENCOM for its visit to State.
Earlier the AGM, Public Sector Pensions of the National Pension Commission, Mr. Abbo Mamman said they were on a routine visit to States that have implemented as well as those that were in the process of implementing the Contributory Pension Scheme to share their experiences so as to move the process forward.
“Our visit is based on value addition, the Scheme is only 10 years old and we are on a learning process; we try to consult widely, we take suggestions and try to marshal all ideas with a view to getting best practice on what will move us forward:, Mamman stated.
He commended the head of Service for his continued support to the State Pension Board and urged him not to relent, assuring him of the readiness of PENCOM to assist the State in whatever way possible.