All Posts in "Pension"

NSITF nets  N180bn pension contributions

By Favour Nnabugwu

 

 

The Nigeria Social Insurance Trust Fund (NSITF) said it has generated N180 billion pension contributions in the last ten years.

The Managing Director of the organisation, Dr. Michael Akabogu, made this, at a media parley, in Abuja today

He said, “We have collected both from the private sector who have contributed about 80 percent of the total revenue and from the government and all other agencies.  We have raised about N180 billion over 10 years, from inception. July 2011-May 30th 2021”.

The MD said that the performance could have been much better if all eligible employers were committed to the scheme.

On the financial scandal that hit the NSITF recently, the MF said that mechanisms would be put in place to forestall a reoccurence.

“It will never happen again,” he said, adding, “in the next few months, we have to work together to ensure that our operations are automated so as to be able to cut off some of these little issues”.

He added, “some times people make payments but it doesn’t get to the state branches of the Fund because of some nuisances that disguise themselves as NSTIF officials and agencies.

“They send various mails using the name of NSITF and the people that fall pray to that send money to them thinking that they are our agents, these are some of the things we have to make sure that we cut down on.

“You might come across these ponzi schemes that ask people to pay money into an NSITF account after which the amount will be doubled. Those are not NSITF members.”

Dr. Akabogu “before we had a 14-day period – the time that the case is reported to the time that the payment is made we decided that we have to develop an electronic  platform which is currently in progress, that would enable us monitor the movement of the files, so instead of the 14 days, we are targeting 10-11 days. At least we will be able to shed off  three days”.

The MD promised to enforce remittances in order to halt the practice where contributions are deducted from employees by their employers but never remitted to NSITF.

His words, “if deductions are made from employees’ salaries, and not remitted, it is an offence that is punishable by fines and imprisonment.

“Over the years we have been using a persuasive method to get employers to pay fines for wrongful deductions from employees’ salaries, but now our legal arm has been activated, employers who refuse to pay fines will be taken to court and followed up to ensure that they pay what is due”.

Akabogu said that a list of defaulting employees was being compiled for appropriate prosecutions”.

The Head of Enforcement of the NSITF Mr. Lateef Musa disclosed that “the scheme has registered almost 200,000 employers generally but only 170,000 were actively making their contributions.

Patoma Admin by — July 8, 2021 in Pension 0
FG approves payment of outstanding pension liabilities

By Favour Nnabugwu

 

 

The Federal Government has given presidential approval for payment of outstanding pension liabilities under the Contributory Pension Scheme (CPS).

Mr Peter Aghahowa, the Head of Corporate Communication at National Pension Commission (PenCom), stated this in a statement in Abuja on Wednesday.

He said that PenCom was pleased to inform all its stakeholders, particularly retirees of Treasury-funded Federal Ministries, Departments and Agencies (MDAs) that President Muhammadu Buhari has approved PenCom’s submission.

The submission was on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government under the CPS specifically.

According to Aghahowa, “Payment of the outstanding accrued pension rights was for verified and enrolled retirees of treasury-funded MDAs retired but yet to be paid their benefits and backlog of death benefits due to beneficiaries of deceased employees.

Aghahowa said payment of 2.5 per cent differential in the rate of employer pension contribution for Federal Government retirees and employees resulted from an increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4 of the Pension Reform Act, (PRA) 2014.

Aghahowa said the Federal Government was expected to continue with the payment of the 10 per cent rate of employer pension contribution for its employees, thus ensuring remittance of at least 18 per cent monthly (employer 10 per cent and employee 8 per cent) as provided by the PRA 2014.

He said the funds had already been made available for the settlement of the above-stated pension liabilities.

Also, he said that remittance into the various Retirement Savings Accounts (RSAs) of the affected retirees and employees were currently being processed.

Meanwhile, Aghahowa said the affected retirees and employees would be notified in due course by their respective Pension Fund Administrators (PFAs).

“The settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees and compliance with the reviewed rate of pension contributions are significant developments, that have resolved the challenges in these aspects that have lingered since 2014,” he said.

Aghahowa added that the board and management of the commission reiterated their appreciation to the president for his untiring support, commitment to the implementation of the CPS and ensuring the welfare of retirees.

Patoma Admin by — July 1, 2021 in Pension 0
25 defaulting employers pay N446.2m penalty to PenCom in Q1 2021

By Favour Nnabugwu

 

Not less than 25 dataulting employers were made to pay a penalty of N446.2million to the  National Pension Commission (PenCom) as the Commission recovered N608.6million in the first quarter of 2021

Out of total figure of N608.554,747.59 representing principal contribution N162,385,260.05 and penalty N446,169,487.54 from 25 defaulting employers.

PenCom on its website, stated that the recovery was made following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents (RAs).

The pension industry regulator noted that within the period, it also received a total of 14,741 applications from private sector organisations for the issuance of Pension Clearance Certificates (PCCs).

Out of that number, it said PCCs were issued to 9,299 organisations while 5,442 applications were being processed. The records show that a total sum of N41,971,011,350.51 was remitted into the Retirement Savings Accounts of 163,286 employees of the 9,299 organisations, it submitted.

Patoma Admin by — June 29, 2021 in Pension 0
PTAD receives £26.5m repatriated pension fund

By Favour Nnabugwu

 

 

 

The Pension Transitional Arrangement Directorate (PTAD) has received a repatriated pension fund of £26.5million from Crown Agents Investment Management Limited, United Kingdom.

The total pension fund received by PTAD is £26,505,862.97 (Twenty Six Million, Five Hundred and Five thousand, Eight hundred and Sixty-two Pounds, Ninety-Seven Pence) repatriated from the United Kingdom.

These pension funds had hitherto been under investment with Crown Agents Investment Management Limited, United Kingdom

The Executive Secretary, Dr. Chioma Ejikeme stated that the repatriation of this fund was made possible by the approval of President Mohammadu Buhari and series of meetings between PTAD Management, Office of the Accountant-General of the Federation and the Crown Agents Investment Management Limited, United Kingdom

The Executive Secretsry further noted that  the funds will be used to settle part of the accrued arrears owed to its pensioners worth over N120 billion (One hundred and Twenty Billion Naira only).

Ejikeme also added that the development is indeed a very happy and welcome development for our Senior Citizens and it represents another demonstration of the importance that the Buhari led Federal Government places on the welfare of pensioners.

Patoma Admin by — June 29, 2021 in Pension 0
Pension Industry to Tap from Islamic Capital Market – SEC

By Favour Nnabugwu

 

 

The Director General of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has said that the non-interest (Islamic) capital market (NICM) will soon witness substantial investment from the pension industry.

This, he said, will be a game-changer that would spur more issuances of NICM products by corporates and other categories of issuers. Yuguda, who spoke at a virtual seminar on

“Investor Protection and Transparency in Islamic Capital Markets”, organised by

Islamic Financial Services Board (IFSB) and SEC, also stated that the level of activities in non-interest (Islamic) capital market currently being witnessed in Nigeria attests to the overwhelming acceptance of products offered in the market by the investing public.

He said this further underscored the need to enhance the Commission’s investor protection mechanism in order to ensure transparency in the market.

Non-interest capital market, he said, has huge potential in Nigeria, adding that it has the prospect of attracting a large pool of untapped investor base with apathy to conventional instruments, to participate in the capital market as well as the existing investors who seek to diversify their portfolio.

Yuguda said the level of activity in non-interest (Islamic) capital market that is currently being witnessed in the country affirms to the overwhelming acceptance of such products by the investing public
He stated that recently, the market witnessed the entry of institutions offering Islamic capital market services/products as well as witnessed issuances of the Federal Government of Nigeria (FGN) into the Sukuk market with latest issuance of FGN SUKUK oversubscribed by over 400 per cent.

The SEC DG stated that investor protection is the principal plank of regulation and transparency, a building block that enhances the growth of the capital market adding that the knowledge gap that often exists between the market Players and investors demand for more transparency, and the risks faced by investors requires reasonable level of protection by the regulator in order to build confidence and trust in the market

According to him, capital markets all over the world thrive on trust, and is believed that the enhancement of investor protection and increased transparency will have a multiplier effect on investments and sustainable growth of the economy.

In ensuring that investors are well protected, Yuguda said a framework for complaint management was put in place to fast-track and streamline the dispute resolution process in the market.

This is to foster and secure investors’ confidence in the market, he said.
With respect to NICM, he said the provision of two levels of shariah review and certification is meant to further serve as added measure towards investor protection. This is coupled with the requirement for continuous review/certification of the shariah expert throughout the tenor of the transaction.

He said non-interest financial activities are developing exponentially across all sectors of the Nigerian financial System

Patoma Admin by — June 28, 2021 in Pension 0
Consequential adjustment: Pensioners on GL1 still receive N23,400 monthly, GL17 to get N188,600

By admin

 

DESPITE the recent approval of consequential adjustment in pensions arising from the implementation of the national minimum wage by President Muhammadu Buhari, the least paid retired pensioner from the civil service on Grade Level 01 still receives a paltry N23,426 monthly pensions.

Also, a civil servant who is lucky to retire at the highest level after service on Grade level 17 will henceforth receive N188,688 monthly pensions.

This was contained in the table of consequential adjustment in pensions arising from the implementation of the national minimum wage, recently released by the Acting chairman, National Salaries, Incomes and Wages Commission, Ekpo Nta.
The consequential adjustment in pension affected retired civil servants in all the ministries and agencies. Nta pointed out that the table showed the ‘absolute increases’, adding that the approval takes effect from April 18, 2019, the date President Buhari signed the new National Minimum Wage into law.

He said: “It should be noted that retirees of agencies that are not in any of the above-mentioned salary structures will not be entitled to these increases in their pensions. However, these agencies should, in line with Sections 173 (3) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and 3 (P) of NSIWC Act apply to the Commission to determine the appropriate increases that will be applicable to their retirees.”

According to the new pension table, a retiree on GL 01, who is currently on N14,733 monthly pension, will have an increase of 59 per cent, which invariably takes his pension to N23, 426, thus enjoying an increase of N8,692.

Pensioners on GL 08 enjoyed a 12 per cent increase from N45,107 to N50,520, an increase of N5,412; while retirees on GL 17, the highest level in civil service have a 9 per cent increase from N173, 108 to N188, 688, an addition of N15,579. Responding to the meagre increase in pension, the General Secretary, Nigeria Union of Pensioners (NUP), Elder Actor Zal, said the experience has challenged the union to further intensify its agitation for a minimum pension.

He demanded a N30,000 minimum pension, same as in national minimum wage, adding that with the present economic reality, it would be very hard for a pensioner to survive with a paltry N23,426 per month.

Patoma Admin by — June 17, 2021 in Pension 0
Pension fund invested in 3 Ijarah Sukuk by FG – Longe

By Favour Nnabugwu

 

Pension funds in Nigeria have invested about N85.07bn so far in the 3 rounds of Ijarah Sukuk issued by the Federal Government of Nigeria.

The Managing Director, AIICO Pension Managers Limited, Mr. Eguarekhide Longe made this point, while speaking on the State of Affairs on Islamic Finance in Nigeria.

In 2004-2014, introducing the new regulation leads to  pension reform act 2014, he said the investment regulation came up and in 2018 the National Pension Commission introduced a multi-fund structure as the past was single fund structure. In February 2019, the commission announce a fund six on ethical investment principles concept of Islamic finance to pension industry. According to him a lot of contributors prefer their money to be invested in ethical finance.

He highlighted 3 significant areas that the pension funds have embraced to achieve scale which include understanding pension reform; understanding the participation of pension Funds and Knowledge and Capacity Building

According to him, “It has been very useful as a lot of investors want to invest in Islamic Finance. Also, there was an introduction of implementation and framework to ensure that actual investing is done according to Islamic principles.”

Part of the regulation from the CBN is the prescription of a resident shariah advisor on each pension fund administrators or team will assure that things are done in right way. Also, there must be recognition that the fund 6 must-have Islamic shariah-compliant asset as well as conventional assets for a period up to 2025, where it will be shut out completely for the funds to absorb all contributions and make full investments.

He said pension managers believed  investing in projects that are being tied to specific assets, can be monitored, and determine that they meet their objective.

Longe acknowledged the fact that the Islamic finance sector in Nigeria continues to grow with increased interest for market participants, and a growing number of players including  two Islamic banks, four Takaful insurance companies, several microfinance banks and managed funds.

The first Sukuk issued in 2017  which was invested on physical roadshow, was successful and got 105 percent  subscription, the second sukuk got 132 percent subscription and the third Sukuk in 2020 got subscription of almost 470 percent

The webinar was organized by IFN OnAir Forum in partnership with Nigerian Exchange Group.

Patoma Admin by — June 9, 2021 in Pension 0
91,499 RSAs registered by PFAs in January – April 2021

By Favour Nnabugwu

 

A total of 91,499 Retirement Savings Account (RSA) holders were registered by the Pension Fund Administrators (PFAs), under the Contributory Pension Scheme (CPS), between January and April 2021, according to the National Pension Commission (PenCom).

Data obtained from PenCom’s website on Saturday, revealed that the PFAs registered 9,236,841 RSA holders in January, while the number surged to 9,328,340 in April.

The commission stated that pension fund assets which rebounded in March 2021, having dropped for two months, have continued on a growth trajectory to gain over N50 billion between March and April.

PenCom noted that of the N12.39 trillion assets, N8.32 trillion had been invested in federal government securities.

Giving a breakdown, PenCom said Federal Government bonds gulped N7.45 trillion investment; treasury bills, N690.43 billion; agency bond, N13.01 billion; Sukuk bonds, N79.31 billion and green bonds N79.81 billion.

According to the commission, the state governments’ securities also gulped N117.21 billion investment.

Patoma Admin by — June 3, 2021 in Pension 0
Leadway Pensure gathers customers for health, wellness webinar

By Favour Nnabugwu

 

Leadway Pensure PFA, has continually  demonstrated that the welfare of its customers is of utmost priority, with the just-concluded Health and Wellness Seminar for retirees.

The virtual session tagged “Maintaining Good Health at Retirement” was anchored by Dr. Olumuyiwa Odugbesan from Leadway Health; a medical practitioner, who educated the retirees on the benefit of having a meal plan, exercising, mental wellness, and maintaining mental balance. He also spoke about managing and preventing sicknesses associated with advanced age.

In order to drive home the points for the participants, Dr. Odugbesan showcased mild exercises and simple medical practices that the retirees could practice at home to enhance their health.

Speaking on what prompted the health and wellness seminar, the Managing Director, Leadway Pensure PFA; Mrs. Ronke Adedeji said “Customers are Leadway Pensure PFA’s most prized stakeholders and we will continue to push out initiatives that reassure them of this value.” This sentiment was emphasized by Tade Gbadebo, Head of Benefits Processing at the organization who mentioned that “the Leadway Pensure Brand goes beyond paying pensions to retirees, we are committed to making retirement and living better for them.”

It is important to recall that the organisation recently received an award for customer care excellence and this seems to be an opportunity to reiterate the achievement.

To serve their customers better, Leadway Pensure has several easy to reach touch points like the Online Enrolment Portal, Mobile App, Interactive SMS 07018000800, Pensure Online (P-Online.leadway-pensure.com) and SureCal (Pension Calculator), all of which provide convenient and transparent access to all their pension funds under management.

Patoma Admin by — May 27, 2021 in Pension 0
PTAD commences consequential payment of pension increment

Favour Nnabugwu

 

The Pension Transitional Arrangement Directorate (PTAD) has began payment of consequential adjustment to pensioners under Defined Benefit Scheme (DBS).

The Executive Secretary, PTAD, Dr. Chioma Ejikeme’s promise made when she announced President Muhammadu Buhari’s approval for the implementation of the consequential adjustment to the pension benefits occasioned by the new minimum wage increase of 2019.

Ejikeme stated, according to the statement released by the Head, Corporate Communications, PTAD, Mr. Olugbenga Ajayi, that this is in fulfilment of that the upward adjustment of Pensioner’s benefit will take effect from May 2021.

Consequently, Pensioners in the four operational departments of the Directorate namely: Civil Service Pension Department (CSPD), Parastatals Pension Department (PaPD), Police Pension Department (PPD), and Customs, Immigration and Prisons Pension Department (CIPPD), have begun to receive their accrued arrears.

While reacting to the messages of gratitude received from some pensioners, the Executive Secretary assured them of PTAD’s commitment to the welfare of the DBS Pensioners.

She cautioned them to beware of pension fraudsters who call pensioners pretending to be staff of PTAD, reminding them that no staff of the Directorate will request for gratification before processing their pension payment.

The PTAD boss further urged the pensioners to report such phone calls and other activities of the scammers to PTAD for adequate investigations and possible prosecution

Patoma Admin by — May 27, 2021 in Pension 0