By Beatrice Gondyi, Bauchi
The Bauchi State Contributory Pension Commission (BS-CPC) has unveiled key details about its newly implemented Contributory Pension Scheme (CPS), clarifying which categories of workers will benefit and which will be exempted.
The move is part of the state governmentโs broader pension reform agenda aimed at ensuring long-term financial sustainability and transparency in retirement benefits for public servants.
In an exclusive interview with
SPEAR NEWS, the Executive Secretary of the BS-CPC, Inuwa Ibrahim, explained that the scheme is structured to protect workersโ retirement savings while shifting from the old, often problematic Defined Benefit Scheme (DBS) to a more sustainable Contributory Pension Scheme (CPS).
Who Qualifies for the New Pension Scheme?
Under the new system, all civil servants in Bauchi Stateโs public serviceโincluding those in ministries, departments, agencies (MDAs), and local government employeesโare automatically enrolled. However, exemptions apply to workers nearing retirement.
โIn the law, especially that of Bauchi State and a few other states, those that have less than three years or less than that as core civil servants are exempted from this contributory pension. But for tertiary institutions, because of that additional five years to their service, those that have less than eight years are exempted,โ Ibrahim stated.
This means: Core civil servants with less than three years left in service are excluded. Tertiary institution staff with less than eight years to retirement (due to their extended service period) are also exempt. Newly employed civil servants are mandatorily covered from the date of employment.
How the Scheme Works
The CPS operates under a Retirement Savings Account (RSA) system, where both the employee and the state government contribute a fixed percentage of the workerโs monthly salary. These funds are managed by licensed Pension Fund Administrators (PFAs), ensuring professional investment and growth over time.
โEach contributor has a Retirement Savings Account (RSA) managed by a licensed Pension Fund Administrator (PFA), and their contributions are invested to grow over time,” Ibrahim explained.
The scheme ensures that workersโ pensions are portableโmeaning they can access their savings even if they switch jobsโand transparent, with regular updates on contributions and accrued benefits.
What Happens to Existing Retirees?
A major concern for many has been the fate of retirees under the old Defined Benefit Scheme (DBS). The Executive Secretary clarified that the new CPS does not affect them, as it only applies to active workers contributing monthly.
โThe scheme does not affect retirees under the old defined benefit scheme (DBS), but only applies to those still in active service and contributing monthly from their salaries, alongside matching contributions by the state government,โ he said.
To manage the transition smoothly, the state has established a Pension Transitional Arrangement Directorate (PTAD), modeled after the federal governmentโs system.
โWe created a directorate for themโBauchi PTADโjust like the one in the federal governmentโs Pension Transitional Arrangement Directorate, to see how the transition will be smooth,” he added.
Inclusion of Diaspora Workers
In a progressive move, the BS-CPC confirmed that Nigerians in the diaspora, particularly Bauchi indigenes, can also participate in the scheme. They will be assigned a unique identification number**, similar to the Bank Verification Number (BVN), to facilitate seamless contributions and withdrawals.
Legal Backing and Economic Benefits
The CPS is fully backed by the
Bauchi State Pension Law, which mandates contributions from both employees and the government. This legal framework ensures compliance and protects workersโ funds from mismanagement.
โOur goal is to create a pension system where every worker retires with dignity and financial independence. The CPS is more transparent, portable, and reliable compared to the old model,โ Ibrahim emphasized.
The shift to a contributory system is expected to: Reduce the financial burden on the state by sharing pension costs between workers and the government.
Eliminate pension arrears, a persistent issue under the old DBS. Boost workersโ confidence in their retirement security through professionally managed funds.
Next Steps: Full Enrollment and Compliance
The BS-CPC has announced that active employees will soon be fully enrolled into the new system, with remittances and account updates processed in collaboration with accredited PFAs.
โVery soon, active employees will be fully enrolled into the new pension system, with regular remittances and account updates ongoing in collaboration with accredited Pension Fund Administrators,โ Ibrahim stated.
Bauchi Stateโs transition to the CPS marks a significant shift from the financially strained DBS to a more sustainable, worker friendly model. By exempting near retirees, ensuring diaspora participation, and establishing a transitional directorate, the government aims to create a seamless and inclusive pension system.
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