In line with his campaign pledge to address the challenge faced by pensioners under the Contributory Pension Scheme (CPS), Rivers State Governor, Chief Nyesom Wike has sent an executive bill to the Rivers State House of Assembly to reform the scheme.
The bill is part of efforts to review of the state Contributory Pension Scheme of 2012 as a way of addressing the plight of pensioners and civil servants in the state.
The Tide learnt that the new bill is designed to reform the old law towards to allow civil servants and pensioners have easy access to their retirement benefits.
Speaker of the House, Rt. Hon. Ikuinyi-Owaji Ibani, who read the letter of the governor on the floor of the Assembly, yesterday, said that the new bill was fashioned to review the previous law.
Tagged, Rivers State Pension Reform Bill 2019 (HA 23), Ibani said that the bill was aimed at putting to an end the sufferings of pensioners in the state.
He explained that the Contributory Pension Scheme introduced by the previous administration led to the exclusion of some pensioners from the state pension scheme due to the deficiencies in the enabling law.
The speaker said that the bill, when passed, would address the concerns of all retired employees of the Rivers State Government.
Also speaking, Majority Leader, Hon. Martin Amaewhule, who presented the bill on the floor of the House, opined that when passed into law, it would provide a smooth pension system that would address the needs of all civil servants and eliminate challenges in the old contributory pension scheme.
Amaewhule said that the Rivers State Pension Reform Bill from the governor seeks to repeal the Rivers State Contributory Pension Scheme Law of 2012.
The bill seeks to repeal the Rivers State Contributory Pension Scheme for Employees in the Public Service Law (No.7 of 2009) and the Rivers State Contributory Pension Scheme for Employees Law (Amendment No.1 of 2012).
He announced that when passed, the bill would substantially eliminate the impediments associated with the implementation of the pension scheme in the state.
The House leader further stated that the bill would eradicate the inherent challenges with the existing legal and policy frameworks for effective pension administration in the state and put smiles on the faces of pensioners.
According to the new bill, contribution of both state and local government councils in the state shall be charged on consolidated revenue fund.
According to the provisions of the new bill, “contributions payable by any other employer under this law shall be a charge on statutory allocation and subvention.
“An employee shall not make any withdrawal from his retirement savings account. Every employee in Rivers State Public Service shall retire at the age of 60 years.”
The new bill also provides that “a holder of retirement savings account shall, upon retirement, utilize the balance standing to the credit of his retirement savings account through programmed monthly or quarterly withdrawals calculated on the basis of an expected lifespan.”
It further recommended that “there shall be annuity for life purchase from an life insurance company.”
Finally, “the rate of contribution by the employee shall be 7.5 percent and 7.5 percent by employer. And the employer can agree to bear the full burden of the monthly emoluments of the employee,” the bill statement.
Shortly after it was read, the bill passed its first reading, as the House adjourned till tomorrow for more deliberations on the matter.
The second reading of the bill will take place tomorrow at 10am to allow for debate by lawmakers before a public hearing in line with the Standing Orders of the House.