Although Cameroon is a member of the Conférence Inter africaine de la Prévoyance Sociale (Cipres) and has ratified its texts, the country’s social insurance fund (CNPS) does not respect international norms in the calculation of retirees’ pension, an official of the insurance fund has complained on condition of anonymity.
Instead, it “relies on Article 11 of Law No. 69-LF-18 of November 10, 1969, which states that a worker who has accumulated 180 months (or 15 years) of insurance, meaning effective contributions, is entitled to 30% of their average monthly salary (the average base on which they contribute).”
Each additional 12-month period entitles them to an extra 1%.
This means that a worker who has accumulated 30 years of insurance, and thus contributions, is entitled to 30% plus 15%, or 45% of their average monthly salary.
According to the official, CNPS ought to apply the inter-African organization’s, Resolution 23 of February 2005, particularly Article 125 related to the calculation of pensions, which stipulates that a worker who has accumulated 180 months (15 years) of insurance is entitled to 40% of their average monthly salary. Each additional 12-month period entitles them to an extra 2%.
Thus, according to Cipres provisions, a worker who has accumulated 30 years of insurance is entitled to 40% plus 30%, or 70% of their average monthly salary.
The difference between what the Cnps pays in terms of pension and the Cipres provisions in this case is 70% – 45%, or a 25% difference. This shortfall is monthly, and workers who have accumulated a longer contribution period will be even more cheated.
If we take the old social contribution ceiling of 300,000 Fcfa as a base, the Cnps pays the pensioner with 30 years of insurance 45% of 300,000 Fcfa, or 135,000 Fcfa, whereas Cipres requires paying 70% of 300,000 Fcfa, or 210,000 Fcfa.
This means that each month, this pensioner loses 210,000 Fcfa – 135,000 Fcfa = 75,000 Fcfa.
For those eligible for the new ceiling of 750,000 Fcfa instituted by Decree 2016/072 of February 15, 2016, the worker with the same insurance duration as above receives from the Cnps: 45% of 750,000 Fcfa, or 337,500 Fcfa, whereas Cipres gives 70% of 750,000 Fcfa, or 525,000 Fcfa.
This means that each month, this pensioner loses 525,000 Fcfa – 337,500 Fcfa = 187,500 Fcfa.
For all pensioners, this constitutes a huge loss each month, and an unjust enrichment for the Cnps. This is a scam.
Following the aforementioned Decree 2016/072, the DG proceeded with a ‘revaluation’ of pensions by 20% through Decree 2020/376 of July 08, 2020. A smokescreen.
This measure does not concern workers whose pensions were finalized after the said decree. The affected workers, whose average monthly salaries are between the minimum wage and the old ceiling of 300,000 Fcfa, are doubly penalized when they retire: not only do they contribute 4.2% of their average monthly salary (where their predecessors contributed 2.8%), but they also do not benefit from the aforementioned 20% ‘revaluation.'”
