A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The pension reform act was sign into law by president goodluck jonathan on 1 july 2014. Income chargeable 1 subject to the provisions of this act, tax shall be payable for each year of assess ment on the aggregate amounts each of which is the income of every taxable person, for. This paper seeks to examine the future of pension admini stratio n in nigeria. To find out more about the state pension reforms, you can read our information page here.
The pension reform act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria. Consequently, the pension reform act, 2004 cannot be the subject of an amendment. This newsletter summarises some of the key provisions contained in the version of the act signed by the president. The pension reform act 2014 newsletter july 2014 1. The pension reform act 2014 came into effect on 1st july 2014.
In klinemiller, congress established a new process for multiemployer pension plans to propose a temporary or permanent reduction of pension benefits if the plan is projected to run out of money. It is important to point out that the pension reform act, 2004 which the bill seeks to amend, has been repealed by the pension reform act, 2014. Finally, total contribution rates, as a percentage of wage bill, are 15. Pensions are taxfree for pensioners receiving up to kshs26,000 and have no. Sep 25, 2017 presently, there are some bills before the national assembly, aiming to amend some sections of the pension reform act 2014. Jul 12, 2017 before the 2004 federal pension reform act, most state governments and companies in nigeria operated under the defined benefits pension scheme, popularly referred to as the pay as you go scheme. And for related mainers enacted by the national assembly of the federal republic of nigeria iobjectives and application t. On 1 july 2014, president goodluck jonathan signed into law the new pension reform act 2014 which repealed the pension reform act no. Pension reform act 2014 are further clarifications. As a result of the obvious lapses in the pension act of 2004, the national assembly in 2014 amended the act. Klinemiller multiemployer pension reform act of 2014 faqs. Effectively, this means less than 5% of nigerians are covered leaving over 95% exposed to social insecurity in their old age. One of the bills which seek to exclude members of the nigeria police force, the nigeria security and civil defence corp, nigeria custom service, nigerian prison service, nigeria immigration service and the economic and financial crimes commission from the contributory.
To achieve this objective the paper divided into four parts. The multiemployer pension reform act of 2014 the mpra, as part of the consolidated and further continuing appropriations act of 2015 the act, h. President barack obama signed into law sweeping changes to the current law that governs multiemployer pension plans. On 01 july 2014, the president signed the pension reform act pra 2014 into. We had highlighted some of the salient provisions of the act in our tax news flash of 3 july 2014. Unless a commencement date is inserted before the act is gazetted, the commencement date will be 1 july 2014. Document on 1 july 2014, president goodluck ebele jonathan signed into law the new pension reform act 2014 pra 2014. Jul 10, 2014 the pension reform act was sign into law by president goodluck jonathan on 1 july 2014. The interpretation act provides that where no date of commencement is contained in an act, the commencement day shall be the day the act is passed or signed into law.
The active labour force of a nation constitutes the main production asset of the domestic. On 1 july 2014, nigerias president signed the pension reform act 2014 pra 2014 or the act into law. Paper presented at the national seminar on pension fraud in nigeria. Pension reform act 2014 national pension commission.
He signed the omnibus government budget and spending bill recently passed by congress, which included the multiemployer pension reform act of 2014 the pension reform act or the act. Despite the visible efforts by the government to caterfor the welfare of these retirees, most of. Commencement date the pension reform act 2014 act was signed into law by the president on 1 july 2014. Act, 2014 to make provision for the uniform contributory pension scheme for public and private sectors in nigeria. Pension reform act 2014 and the future of pension administration in nigeria.
Fears over amendment of pension reform act nigeria business. Pension scheme for both the public and private sectors in nigeria. Implications of the pension reform act vanguard news. Download the official copy of the national health act 2014 pdf. President obama signs the multiemployer pension reform act of. Highlights of the pension reform act pra 2014 standard bank. Key facts about the pension reform act 2014 vanguard news. Pdf compendium of all lawscategories also available email.
The new pension reform act 2014 replaces the old pension. Pension trust investment in nigeria ggu law digital commons. Pdf pension reform act 2014 and the future of pension. The president of the federal republic signed the pension reform act 2014 the act into law on 1st july 2014. State pension reform the singletier pension, which will replace the current basic state pension and additional state pension. An act to establish a contributory pension scheme for employees in the. The pension reforms act of 2004 brought into limelight the new pension scheme in nigeria which is a defined contributory. Full page photo stanbic ibtc pension managers nigeria. In compliance to the pension reform act pra 2014, the national pension commission pencom, has given employers of labour up till march 31st, to comply with the guidelines for life insurance.
Pension reform act the guardian nigeria news nigeria and. The pension reform act 2014 the act was enacted by the national assembly of the federal republic of nigeria on july 1, 2014 to repeal the pension reform act no. First, effective july 01, 2014, the act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria. The act encourages participation in the contributory pension scheme which applies to two categories of employees. The urgent issue for pension reform in africa is not only the need to introduce social protection. The objective of the act is to create a more effective pension administration system in nigeria, to. Before the 2004 federal pension reform act, most state governments and companies in nigeria operated under the defined benefits pension scheme, popularly referred. The act does not specify a commencement date, however, section 2 of the interpretation act cap i23 of lfn 2010 is to the effect that where no date of commencement is contained in an act, the commencement day shall be the day the act is passed or signed into law. Pra 2014 serves as the enabling legislation for the administration of the. According to the federal government of nigeria, the value of pension assets in nigeria is about 4. The klinemiller multiemployer pension reform act of 2014 was enacted on december 16, 2014. The new pension scheme introduced a tripartite system with three key. The pensions act 2014 has numerous provisions, the main provisions are outlined below.
The new act is an improvement of the former and offers more assurance and safety to workers and retirees. Pension reform act news latest breaking stories and top. The pension reform act 2014 act was signed into law by the president on 1 july 2014. Pension reform act 2014 the good, the bad and the ugly pwc. The pra 2014, which repeals the pension reform act no 2 of 2004, governs and regulates the administration of the contributory pension scheme the scheme in nigeria. The new pension reform act 2014 replaces the old pension reform act of 2004 and takes immediate effect. Pension reform act 2014 the good, the bad and the ugly. Historical development of pension in nigeria pension scheme was introduced into nigeria during the colonial era to provide old age income and security to. The national pension commission has directed all employers of labour covered by the pension reform act 2014 to submit copies of their insurance certificates with the schedule of benefits to the.
Nigerian compulsory contributory pension scheme, under the terms of a new law. The active labour force of a nation constitutes the main production asset of. The 2014 pension reform act reinstates the compulsory group life insurance cover previously provided for under the repealed 2004 pension reform act by requiring all employers, already aliable to make compulsory monthly pension contributions, to also maintain a group life insurance policy in favour of each of their employees for a minimum of three 3 times the annual total emolument of. A critique of pension reform act, 2004 in nigeria anyim. This was signed into law in july, 2014 by president jonathan as pension act, 2014. In december 2014, congress passed and president obama signed into law the 2015 omnibus spending bill, which included provisions of the multiemployer pension reform act of 2014 that allow trustees of certain multiemployer plans to cut retirees pensions. Effectively, the tables have turned against the multiple amendment bills being sponsored by oluwole oke, a member of the house of representatives, and a senator aliyu wamako, to alter the pension reform act 2014, to exempt a large chunk of the paramilitary organisations from the contributory pensions scheme.
Nigerias national health act 2014 was signed into law by president goodluck ebele jonathan on the 9 th of december, 2014. On 1 july, 2014, the president signed the pension reform act 2014 pra 2014 or the act into law. The challenges of employers, employees and union leaders held at asaba, delta state. This paper seeks to examine the future of pension administration in nigeria. In compliance to the pension reform act pra 2014, the national pension commission pencom, has given employers of labour up till march 31st, to. Contributory pensions scheme vs pension reform act 2014. Like the repealed act, the new pension reform act governs and regulates the administration of the contributory pension scheme for both the public and private sectors in nigeria.
The history of the nigerian pensions administration dates back to the 1950s. The version of the act signed by the president does not provide a commencement date. The act established the framework for the regulation, management and development of a national health system and also set standards for rendering health services and other related matters. Pension reform act the guardian nigeria news nigeria. Pension reform act 2014 key highlights and salient points.
1058 430 981 474 821 1452 1201 1175 1346 1158 1551 1533 1432 1338 1162 605 530 1548 84 86 908 1229 98 554 11 106 31 707 97 718