The Executive Secretary of the Bauchi State Pension Commission, Ibrahim Inuwa has expressed delight that Bauchi state is among the 18 states in the federation that has passed the Pension Reform Act, 2014 in the state.
He said that the commission was established by Governor Bala Abdulkadir Mohammed based on the law that allows states and federal government parastatals to do in line with the Pension Reform Act, (PRA) 2014.
The Executive Secretary while speaking with LEADERSHIP in Bauchi, recalled that the law was first established in 2004, which was amended in 2014 because of some setting changes in the global market, now with about 28 states that have enacted the law.
Alh. Ibrahim Inuwa said however that 18 of the 28 states that enacted the law are at various levels of implementation, but 18 out of the 28 have passed the law and started implementation, saying “We thank God that Bauchi state is among the 18 states that have adopted the law and have created commissions”.
While expressing the believe that the establishment of the commission in Bauchi is a legacy of Governor Bala Abdulkadir Mohammed’s administration, the Executive Secretary said that it is poised to clear lingering issue of pension liabilities at the MDAs and Local Government Councils.
“So, in reality the contributory pensions scheme that was established by states is going to take care of all the issues that have been going around regarding the issue of accrued liabilities. As I am talking to you, we have some issues with regard to the defined benefits”, Inuwa stated.
“There are two systems here, the contributory pensions scheme and the defined benefits scheme. At the same time, there is another scheme that is still part of the hybrid scheme like that of the Jigawa model. But the one we are going to use in Bauchi is the one adopted by the federal government, that is contributory pensions scheme”
He gave the major difference between the two as contributory pensions scheme is fully funded while the Defined Pensions Scheme one is not fully funded, with the federal government bond and the equities, as well as the treasury bills.
Inuwa revealed that the ecosystem scheme has the involvement of five stakeholders, namely the National Pension Commission, the Pensions Fund Custodian, the Pensions Fund Administrators, with the employee and employer contributing for the PFA to manage the funds.
“One of the advantages of having retirement saving account is that one can be able to use the statement of account to obtain visa. This new scheme is that even if you are dismissed or decided to leave the service, you are entitled to your retirement saving account balance”.
