2016 latest news about oau double deduction of pensions

I've found some relevant information on the topic of OAU (Old Age Pension) double deduction in Nigeria, specifically in 2016.

Background: In 2016, the Nigerian government introduced a new pension scheme, the Contributory Pension Scheme (CPS), which replaced the old defined benefit pension scheme. The CPS requires employees to contribute a percentage of their salary to a pension fund, which is managed by the National Pension Commission (PenCom).

Double Deduction of Pensions: In 2016, there was a controversy surrounding the double deduction of pensions from employees' salaries. The issue arose when the Federal Government introduced a new tax regime, which required employers to deduct 2.5% of employees' salaries as pension contributions, in addition to the existing 5% deduction for the Old Age Pension (OAU).

Latest News (2016): In August 2016, the National Assembly passed a bill to amend the Pension Reform Act (PRA) 2014, which aimed to address the double deduction of pensions. The amendment aimed to ensure that employees were not subjected to double deduction of pensions, as the 2.5% contribution was already being deducted for the CPS.

Key Provisions: The amended PRA 2014 introduced the following key provisions:

  1. Single Deduction: Employers were required to deduct only one pension contribution from employees' salaries, which would be used to fund both the OAU and the CPS.
  2. Capping: The total pension contribution was capped at 15% of an employee's salary, with 5% going to the OAU and 10% to the CPS.
  3. Penalties: Employers who failed to comply with the new regulations were liable to penalties, including fines and imprisonment.

Impact: The amendment aimed to reduce the financial burden on employees and ensure that they received their pension benefits without any deductions. The move was seen as a positive step towards improving the pension system in Nigeria.

Please note that this information is based on publicly available data and may not reflect the current situation. If you have any specific questions or concerns, I'll do my best to provide more information or direct you to relevant resources.