See How Much States Have Borrowed From Your Pension Funds
So, Nigerian States have decided to borrow from your pension fund.
Put in another way, Pension Fund operators have invested 151.95 billion naira of the increasing pension funds under the Contributory Pension Scheme in State Governments’ securities as of the end of the second quarter of 2018.
Figures obtained from the National Pension Commission revealed that this amounted to 1.8% of the total pension funds, which stood at 8.23 trillion naira in the period under review.
The commission had also barred the pension operators from investing the increasing funds in state government’s securities that had yet to comply with the Contributory Pension Scheme.
According to the commission, 27 states have enacted laws on the CPS, while eight states are at the bill stage. One state, however, has yet to commence the process of enacting the law on the CPS.
The commission noted that 12 out of the 36 states had commenced remittance of contributions into the RSAs of their employees, while eight states had commenced the funding of their Retirement Benefit Bond Redemption Fund Accounts.
PenCom also revealed that the operators had invested a substantial part of the pension funds in the Federal Government’s bonds and treasury bills.
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