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Six states in the Northeast region of the country are yet to fully implement their contribution for the pension of its workers under the Contributory Pension Scheme (CPS).

The State are Bauchi, Borno, Yobe, Gombe, Adamawa and Taraba.

According to the record from the National Pension Commission (PenCom) obtained by patomabusinessonline on Monday, the states were at various stages of implementing the CPS as of December 2020.

The status of implementation of the CPS in the Northeast region record indicated that Adamawa enacted a law on CPS in 2013 and then drafted the CPS Bill 2020 to establish a scheme similar to Contributory Defined Benefits Scheme (CDBS) but is yet to commence pension remittance, among others.

Bauchi state drafted a CDBS bill in 2015 and recently constituted a committee on implementing the CPS, among others. Borno State drafted a bill on CPS in 2012 and forwarded a copy to PenCom for review.
In Gombe, a law on CPS was enacted in 2008 and amended to become the CDBS Law in January 2019, but has not started any remittance or other processes.

Taraba has had a CPS law since 2009 but no Pension Bureau, no registered employees and no remittances. Yobe has been operating the Defined Benefit Scheme (DBS) but raised a committee on the adoption of CPS in February 2020.

Director General of PenCom, Aisha Dahir-Umar, in a recent interview said state’s compliance with the CPS will benefit the states and their workers.

“The Commission has been intensifying efforts at ensuring that State Governments comply with the CPS by providing technical assistance through its six Zonal Offices, one in each of the geo-political zones of Nigeria,” she said.

The Contributory Pension Scheme for public and private sectors was established under the Pension Reform Act 2004, which was repealed and replaced with the Pension Reform Act 2014, in 2014.
Section 4 of the Act, provides for a mandatory minimum contribution of ten and eight per cent of employee’s monthly emolument by the employer and employee respectively.

Each employee is to open a Retirement Savings Account (RSA) into which the contributions are to be paid, with a Pension Fund Administrator (PFA) licensed by the National Pension Commission, established under section 17 of the Act, to regulate and supervise pension schemes in the country.

The PFA is to manage and invest the fund in the RSA, from where a contributor will draw benefits on retirement, in line with the provisions of the Act.

Patoma Admin by — March 16, 2021 in Others 0

By Favour Nnabugwu

No fewer than 23 applications were declined by  National Pension Commission due to inability of the organisations to meet the requirements for issuance of certificates.

This is their inability of the 23 companies to get clearance for getting appropriate pension and insurance covers for their employees in the fourth quarter of 2020.

PenCom its report titled ‘Issuance of pension clearance certificates’

Part of the report read, “The commission received a total of 1,900 applications from private sector organisations for the issuance of pension clearance certificates.

“Out of this number, PCCs were issued to 1,877 organisations while 23 applications were declined due to inability of the organisations to meet the requirements for issuance of certificates

“The records show that a total sum of N9.88bn was remitted into the Retirement Savings Accounts of 41,923 employees of the 1,877 organisations.”

PenCom in its compliance guidelines for life insurance policy for employees and submission of insurance certificate issued to employers stated that companies that had no insurance covers for their workers would no longer be allowed to do any government business.

PenCom’s directive on issuance of certificate of compliance with the provisions of the Pension Reform Act 2014 to the general public, suppliers, contractors or consultants bidding or soliciting for contract or business from any Federal Government ministries, departments and agencies, stated that employers must fully comply with the provisions of the law.

It said, “In that regard, the commission issues annual pension clearance certificate to eligible organisations.

“The MDAs are reminded to ensure that only pension clearance certificates issued by the commission are accepted as evidence of compliance with the Pension Reform Act 2014.”

In the directive, PenCom stated that in accordance with the provisions of Section 4(5) of the 2014 and Section 5.5 of the guidelines for life insurance policy for employees, employers of labour covered by the PRA 2014 were required to submit copies of the insurance certificates with the schedule of benefits to the commission.

Patoma Admin by — March 14, 2021 in Others 0

By Favour Nnabugwu

The National Pension Commission (PenCom) has given approval for the refund of the sum of N2,789,553.79 to 50 personnel of Military and other Security Agencies’ personnel who were exempted from the Contributory Pension Scheme.

Following the exemption of the military and other Secret Security Agencies’ Personnel from the contributory Pension Scheme (CPS) in 2011, PenCom in 2012, commenced the refund of the employee portion of pension contributions to the personnel who were in service between July 2005 and December, 2011.

However, it has been observed that the some personnel are yet to receive their refunds.

The commission working in conjunction with the military Pension Board is desirous of bringing the refund exercise to close by 30 June, 2019.

Accordingly, all military Personnel who were in service between January, 2005 and December, 2011, but are yet to receive a refund of their employee portion of the pension Contributions, are required to contact the military pension Board or any Military Formations close to them to complete the “Request for Refund of pension Contribution Form”

The Commission received a total of 1,900 applications from private sector organisations for the issuance of Pension Clearance Certificates (PCCs).

Out of this number, PCCs were issued to 1,877 organisations while 23 applications were declined due to inability of the organisations to meet the requirements for issuance of certificates.

The records show that a total sum of N9,878,025,459.10 was remitted into the Retirement Savings Accounts of 41,923 employees of the 1,877 organisations.

The Comission also said 11,374 retirees went for programmed withdrawal as means of drawing their monthly pensions, while 1,596 embraced Retiree Life Annuity which is managed by life insurance operators.

PenCom in its fourth quarter report, noted that it granted approval for 11,374 requests, comprising 5,681 public (FGN & States) and 5,693 private sector retirees to draw pension through the Programmed Withdrawal mode during the quarter under review, adding that these retirees received a total lump sum of N32,631,748,404.55 while their total monthly pension amounted to N455,487,074.25.

The Pension sector regulators said it also granted approval to 1,596 retirees under the Retiree Life Annuity during the quarter under review, stressing that a total lump sum of N6,284,179,444.33 was approved for payment to the retirees, while the sum of N10,115,855,000.10 was approved for payment to 14 Retiree Life Providers as premium in return for total monthly/quarterly annuities of N111,677,547.01.

PenCom maintained that during the quartered, it granted approval for Enbloc payment of retirement benefits to 3,499 retirees whose RSA balances were N550,000.00 or below and considered insufficient to procure Programmed Withdrawal or Retiree Life Annuity of a reasonable amount for an expected life span. In this regard, a total sum of N848,920,264.47 was paid to the 3,499 retirees comprising 200 public (FGN & State) and 3,299 private sector retirees, it said.

Patoma Admin by — March 12, 2021 in Others 0

By admin

Only five state in the country have complied with the law on group life despite frantic efforts put by the National Pension Commission and Nigerian Council of Registered Insurance Brokers (NCRIB) to make the States adopt group life policy for their workers,

The four stated are Federal Capital Territory, Lagos; Osun; Edo and Ondo .

PenCom had directed employees to report any employer that fails to procure the minimum required Life Insurance Policy in their favour not less than three times their annual total emolument.

But most of the States seem not bothered by the welfare of their workers, as most of them are yet to comply.

PenCom in a notice entitled: ‘Re Compliance withguidelines for life insurance policy for employees and submission of insurance certificate for 2020’ stated that it is the right of all employees in the Public Service of the Federation, Federal Capital Territory and States that have implemented the Contributory Pension Scheme as well as private sector, under Section 4(5) of the PRA 2014 to have Life Insurance Policy taken on their behalf by their employers for an insured amount of not less than three (3) times their annual total emolument.

PenCom further advised employees to bring to its notice, where the employer fails to: “submit the evidence of compliance with Life Insurance Policy and place the certificate in a conspicuous place within the organisation.

PenCom noted that in accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014 and Section 5.5 of the Guidelines for Life Insurance Policy for Employees, Employers of labour covered by the PRA 2014 are required to submit copies of the Insurance Certificates with the schedule of benefits to the National Pension Commission (PenCom).

Also speaking on the development, the past President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Shola Tinubu, urged employers to take up the responsibility of insuring their workers, as this may also motivate employees to be dedicated to work.

Available data showed that about 2.5 million civil servants in the country are missing out of the benefits of Group Life Insurance cover, following the inability of 33 states to sign on to the policy, against the mandate of Pension Reforms Act (PRA) 2014.

Group life cover is a joint regulation of the National Insurance Commission (NAICOM) and PenCom, on Section 9 (3) of PRA 2014, requiring every employer, to which the Act applies, to maintain Life Insurance Policy in favour of the employee for a minimum of three times the annual total emolument of the employee. The policy provides cover to the insured against death.

Worried about the lack of group life cover for workers in these states, the Nigerian Council of Registered Insurance Brokers (NCRIB) had written state governments on the need to adequately protected their workers with insurance.

Patoma Admin by — March 9, 2021 in Others 0

The Pension Transitional Arrangement Directorate (PTAD) says it paid gratuity and pension arrears to 414 Association of Retired War Affected Police Officers (ARWAPO) amounting to over N954 million

The Executive Secretary of PTAD, Dr Chioma Ejikeme, made this known at a stakeholders’ forum with ARWAPO in Enugu State on Thursday.

Ejikeme said that death benefits were paid to 145 Next of Kin (NoK) of the deceased pensioners amounting to over N149 million
She explained that the retired war affected police officers were set of members of the Nigerian police force that took sides with the state of Biafra during the Nigeria Civil War and were dismissed in 1971.

Ejikeme said that they were later pardoned and granted amnesty by former President Olusegun Obasanjo on May 29, 2000.

She said that in a bid to bring pension administration to the doorstep of the pensioners, PTAD periodically engages stakeholders to update them of the directorates past and ongoing activities.

Ejikeme said that also allowed the organisation the opportunity to interact with the pensioners one on one with a view to serve them better.

She said that the directorate was currently reviewing and computing all pending ARWAPO pensioners complaints in order to payroll them monthly for pension, payments of arrears and payment of NoK.

She also stated that the provision of documents by ARWAPO members required for qualification for benefits computation and payment had been a challenge.

“Meetings such as the one we are having today provide the opportunity for cross-pollination of ideas, provision of clarity regarding grey areas and information dissemination.”

The executive secretary noted that the meeting provided another opportunity for continuous discussion with ARWAPO members on the way forward, getting mandatory requirements for the remaining pensioners to ensure their benefits were paid.

“This is a very potent indication of the importance, seriousness and commitment the present administration attaches to the wellbeing of our senior citizens,” she added.

Ejikeme said that in spite of the COVID-19 challenges the directorate had been making progress in addressing pensioners issues and restoring hope, dignity and a decent living to a Defined Benefit Scheme Pension

Patoma Admin by — March 6, 2021 in Others 0
20 PFAs register 3,663 for N25m in Q4 2020

No fewer that 20 Pension Fund Administrators (PFAs) registered 3,663 contributors under the Micro Pension Plan and a total sum of N25,024,528.08.

Data from the National Pension Commission (PenCom), during the fourth quarter of 2020 revealed that 20 Pension Fund Administrators (PFAs) registered 3,663 contributors under the Micro Pension Plan and a total sum of N25,024,528.08 was remitted to the Retirement Saving Accounts (RSAs) of the contributor within the same period.

The Commission stated that in terms of withdrawals from the contingent portion of the contributions, six PFAs processed and approved requests amounting to N880,521.29 from 11 MPP participants during the review period.

The Director-General of PenCom, Mrs. Aisha Dahir-Umar, said the implementation of the Contributory Pension Scheme (CPS) has greatly impacted the economy.

Dahir-Umar stated that the major visible areas of this impact are the economic and social spheres and that the pension assets, is slowly but surely changing Nigeria’s financial landscape and by extension, the course and pace of our socio-economic development.

 

Patoma Admin by — March 6, 2021 in Others 0
22 PFAs recorded transfer window of N18.89bn in Q4 2020

By admin

All of the 22 Pension Fund Administartors, PFAs, operating in the country were involved in the Retirement Savings Account (RSA) Transfer System launched on 16 November 2020, with a total sum of N18.89 billion moved by 2,799 RSA holders

The figure from National Pension Commission (PenCom) read that  during the fourth RSA Transfer Quarter of 2020 (i.e. the maiden RSA Transfer Quarter), the total value of the RSA balances transferred stood at N18,898,848,438.79. All the 22 PFAs were involved in the transfer, as transferring and/or receiving PFAs,”

The Comission revealed that the pension industry recorded a net marginal growth of 0.72 per cent (66,704) in schemes membership during the fourth quarter of 2020, rising from 9.20 million contributors as at the end of the preceding quarter to 9.27 million as at Q4 2020.

The growth in the industry membership, according to PenCom, was driven by the RSA Scheme, which had an increase of 68,749 registered contributors, adding that however, membership of the Closed Pension Fund Administrator (CPFA) Schemes declined by 2,045 to 14,926 while the Approved Existing Schemes (AESs) membership remained unchanged at 40,951 as at Q4 2020.

Patoma Admin by — March 5, 2021 in Others 0

The country’s pension asset under management, as of December 2020, stands at N12.3trillion which represents a modest growth of 20 percent year-on-year and 0.003 percent month-on-month (no significant change), according to the monthly report by National Pension Commission (Pencom).

According to the report, total RSA funds increased by 20% year-on-year while the funds under both existing schemes and Closed Pension Fund Administrator (CPFA) as well, grew by 21% year-on-year.

As of December 2019, investments in FGN Securities accounted for 72 percent of the total pensions assets fund, out of which 73 percent was invested in Bonds and 26 percent in Treasury Bills.

As of December 2020, investments in FGN Securities accounted for 66 prrcent of the total pensions assets fund, out of which 84 percent was invested in Bonds and a paltry 8 percent in Treasury Bills, which is not unrelated to the subsisting very low yield of TB in the money market.

The investments in FG Bonds represent 56% of the total pension assets fund under management. The renewed and increased investments in FG Bonds can be attributed to the attractiveness of the yields of FG bonds over the Treasury Bills.

RSA Fund II and III accounted for 89% of the total RSA funds and 69% of the total pension assets under management as of December 2020, while others – Funds I, IV and V accounted for 31%

All the RSA funds, including existing scheme and CPFA recorded year-on-year growth as follows: Existing scheme (13%), CPFA(28%), Fund I (49%), Fund II(19%), Fund III(21%), Fund IV(18%).

As of December 2020, only N80.54million was invested under the newest RSA fund (Fund V) – specifically created for micro pensions.

Patoma Admin by — February 26, 2021 in Others 0

By Favour Nnabugwu

Pension Traditional Arrangement Directorate, PTAD has informed the Pensioners/NoKs that the mop up verification exercise will now commence from 17th February to 23rd February 2021 at the Directorate’s Headquarters Abuja

The scheduled earlier slated for 18th January, 2021 has been rescheduled to the new dates.

This exercise is for Pensioners who have already submitted their documents for consideration and have been invited to be verified.

The continuous In-House verification at the Head Office and the Directorate’s Lagos Regional Office will resume immediately after the mop-up exercise.

Pensioners who are yet to submit their documents for consideration are encouraged to do so now. They can submit their documents at PTAD Headquarters in Abuja, PTAD State Offices or scan the documents and send via email to: verifications@ptad.gov.ng. or by regular mail to:

The Executive SecretaryPension Transitional Arrangement Directorate22, Katsina Ala Crescent, Off Yedseram Street, Maitama, Abuja.

Bearing in mind that we are still dealing with the Covid-19 pandemic and the need for adequate safety measures, the mop up/ In-House verification exercise is strictly based on APPOINTMENT ONLY.

Following submission of documents, Pensioners will be invited on a GIVEN DATE and TIMEFor further inquiries call 09-4621700 (Rates Apply) or 0800-2255-7823 (Toll Free). For more information on PTAD and its activities, please log on to www.ptad.gov.ng. PTAD will NEVER request for cash to process your pension. Please call 08144607574 or email actu@ptad.gov.ng to report suspicious phone calls or messages.

Patoma Admin by — February 17, 2021 in Others 0

A total of 76,498 employees’ Retirement Savings Accounts (RSA) from by the 5,432 organisations have been remitted to the National Pension Commission (PenCom) in a total sum of N244,979,121,189.77bas at January 2020.

For the compliance level, PenCom had issued certificates to 1911 firms as at January this year, to enable the organisations transact business with the federal government.

PenCom revealed that the 1911 firms were from different sectors of the economy, and they had faithfully contributed and remitted their employees’ pension contributions into their Retirement Savings Accounts (RSA)in 2020.

Giving breakdown of the of the 1911 firms so far cleared, the regulator, Sterling Bank Plc., made the largest contributions, remitting N1.22 billion for its 2417 employees.

PenCom noted that Fidelity Bank Plc., remitted N827 million for 2904 employees and Reynolds Construction Company Limited, remitting N739 million for 3764 employees.

It also showed that AIICO Insurance contributed and remitted N193.93 million for its 296 employees in 2020, while NSIA Insurance, remitted N60.97 million for 128 employees and FBInsurance, remitted N128.36 million for 171 employees.

Linkage Assurance Plc, remitted N60.14 million for 174 employees; Custodian and Allied Insurance Limited, N59.91 million for 121 employees; Custodian Life Assurance Limited, N24.73 million for 49 employees and Unitrust Insurance Company Limited, N52.88 million for 115 employees.

Mutual Benefits Life Assurance Limited, remitted N51.32 million for 145 employees; Mutual Benefits Assurance Plc., N91.58 million for 198 employees; Regency Alliance Insurance Plc., N36.16 million for 119 employees and Jaiz Takaful Insurance Plc., M12.66 million for 36 employees.

Insurance brokers were also cleared and issued certificates. Plum Insurance Brokers Limited, was cleared having remitted N1.07 million for seven of its employees. Risk Analyst Insurance Brokers Limited, remitted N4.39 million for 29 employees and YOA Insurance Brokers Limited remitted N21.81 million for 52 employees.

PenCom noted that Afrigblobal Insurance Brokers Limited remitted N6.14 million for 18 employees; Jolly & Partners Insurance Brokers Limited remitted N1.47 million for five employees and Manny Insurance Brokers Limited remitted N1.03 million for seven of its workers.

PenCom noted that as at the end of third quarter 2020, 5,700 private organisations applied for issuance of Pension clearance
Certificates(PCCs). Out of this number,5,432 organisations were issued certificates while the remaining 268 applications were declined for not meeting the stipulated requirements.

Patoma Admin by — February 10, 2021 in Others 0