Kaduna increases workers pension savings to 20%

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While the Pension Reform Act 2014 stipulates that employers should pay a minimum of 18 per cent of workers total monthly emolument to their Retirement Savings Accounts, the Kaduna State Government says it has increased its contributions to 20 per cent.

The Executive Secretary, Kaduna State Pension Bureau, Dan Ndackson, said this during an event to commence the payment of retirement benefits under the Contributory Pension Scheme in Kaduna State.

“One of the key features of the present State Pension Law is an increase in the contribution rates to a total of 20 per cent, the highest contribution rate by any employer in the country,” he said.

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According to him, some setbacks in the 2007 State Pension Law necessitated its repeal and further amendment, which led to a new State Pension Law (the Kaduna State Pension Reform Law, 2016), which was enacted in March, 2016.

Ndackson said that the new law led to the merger of the Bureaux of State and Local Government Pensions, and the creation of the State Pension Bureau as a separate legal entity to regulate and supervise pension matters in the state.

He explained that the CPS law was introduced in Kaduna in 2007, but the contributions commenced in March, 2008.

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