Kogi State Pension Commission (PENCOM) says it is concluding plans to migrate from the Defined Benefits Scheme to the Contributory Pension Scheme (CPS) with full implementation expected to begin next year.
The Director General of the Commission, Hajia Mariam Abedo disclosed this during an official engagement with the Special Adviser on Media to Kogi State Governor, Ismail Isah, in her office in Lokoja.
She explained that the Commission had already commenced the preliminary phase, including data collection and registration with Pension Fund Administrators (PFAs), in preparation for the transition.
According to her, the Contributory Pension Scheme which mandates an 8% contribution from employees and 10% from the state government, will ensure prompt and hassle-free access to retirement benefits for retirees in the state.
The DG emphasized that the reform is aimed at preventing delays and challenges experienced by pensioners in some instances under the current system.
She maintained that since assuming office in August 2020, the Commission has cleared a substantial portion of the gratuity backlog dating back to 2002 and maintained a record of prompt monthly pension payments.
“We are determined to build a pension system that is transparent, responsive, and fully digitized. With the Contributory Pension Scheme, the future of our workers is secure,” she said.
The DG further stated the success of ‘I Am Alive’ biometric verification initiative allows pensioners to confirm their status at any commercial bank nearest to every pensioner without the need to travel to the capital, describing it as “the easiest and most effective exercise ever introduced” in the history of pension fund administration in the state.
Abedo commended Governor Ahmed Usman Ododo for his continued support and passion for the welfare of pensioners.
She noted that the Governor has not only maintained the regular release of monthly funds for the payment of gratuity for retirees but has also approved the construction of a new Pension Commission office complex, to be known as the Pencom House in Lokoja, adding that the aim is to create a more conducive working environment and to strengthen institutional operations.
“His Excellency is passionate about pensioners and their wellbeing. Even before he became Governor, he played a key role in addressing challenges in the pension sector, and his support continues to drive the reforms we are implementing”, She said.