Katsina pension reform law launched to improve payments, streamline administration, and raise minimum pension for retirees
The Katsina State Government has enacted a comprehensive Katsina pension reform law designed to address long-standing gaps and delays in the payment of pensions and gratuities for state and local government workers.
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Attorney-General and Commissioner for Justice Fadila Dikko disclosed the new legislation during a press briefing on Thursday in Katsina, explaining that Governor Dikko Radda had signed the law to streamline pension administration and enhance transparency. Dikko was represented at the briefing by Solicitor-General Mohammed Coomassie.
The law, enacted under Section 173(1) of the 1999 Constitution, responds to complaints over inaccurate pension data, rising liabilities, and protracted payment delays.
A State and Local Governments Pension and Gratuity Reform Committee has been constituted to guide the implementation process.
“The law maintained that the Contributory Defined Benefits Pension Scheme is for existing pensioners and those who have five years or less to retire,” Dikko said.
“It also introduced the Contributory Pension Scheme, which requires monthly employee and employer contributions to be managed in pension accounts.”
The reform established a State and Local Governments Pension Transition Board to handle retirement and death benefits for employees exempted from the Contributory Pension Scheme.
Additionally, a Pension Bureau will ensure that contributions are remitted and invested in line with the law, while assisting employees in opening Retirement Savings Accounts and accessing services from pension fund managers.
Dr Farouq Aminu, chairman of the Pension and Gratuity Reform Committee, said workers with more than five but not more than 30 years left in service will fall under the Contributory Defined Benefits Scheme.
Employers will contribute 13 per cent of total pension deductions, with employees contributing seven per cent, bringing total contributions to 20 per cent.
Aminu added that newly employed workers with less than five years in service must open Retirement Savings Accounts for their pension deductions.
The state government has also increased the minimum pension for retirees from N5,000 to N10,000 per month to cushion the effects of rising living costs.
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Officials said the reform is expected to ensure timely payments, improve pension fund management, and provide greater financial security for retirees across Katsina State.
