All Posts in "Pension"

Total pension assets under the Contributory Pension Scheme rose by N2.1tn to N12.3tn at the 2020 from N10.2tn at the end 2019, latest statistics from the National Pension Commission showed on Thursda.

According to the latest statistics from the National Pension Commission showed N8.13tn of the funds was invested in Federal Government of Nigeria Bonds.

According to the figures, N858.46bn and N92.91bn were invested in domestic and foreign ordinary shares respectively.

It added that N1.68tn and N161.39bn were also invested in local money market securities and mutual funds respectively.

As part of efforts to boost services in the industry, PenCom opened the transfer window to enable workers in the Contributory Pension Scheme to change their pension companies.

PenCom said RSA holders may transfer their accounts from one Pension Fund Administrator to another once in a year, in line with Section 13 of the Pension Reform Act 2014.

Prior to this launch, the commission said it had successfully developed the RSA transfer application, a robust electronic platform that would enable seamless RSA transfers.

In addition, it said the commission had conducted extensive workshops for licensed pension operators and state pension bureaus in readiness for the event.

Patoma Admin by — February 5, 2021 in Others 0

By admin

THE Nigeria Union of Pensioners, NUP, has kicked against the proposed removal of its members names from the Pension Transitional Arrangement Directorate, PTAD, payroll.

National President of NUP, Dr. Abel Afolayan, in his address at the 19th Edition of Pensioners Day Celebration in Abuja, weekend, said the union was in receipt of a letter from PTAD that a large number of members would be deleted from its payroll.

According to the Senior Citizen, “Sometime ago, we received a letter from Pension Transitional Arrangement Directorate saying that a large number of names would be deleted from its payroll because they have not attended the nationwide biometric verification exercise.

“This development was very worrisome to the union. We quickly approached PTAD to give us till the end of October 2020, to look into the issue and take all necessary corrective steps.

“We shall continue to dialogue with PTAD on this very sensitive issue as it is absolutely necessary to exercise great caution and ensure PTAD is committed to making life better and not worse for our members after the COVID-19 scourge.”

The union also pleaded with the Federal Government to approve a national minimum pension as was done in the minimum wage.

It said,” Right from the inception of Nigeria Union of Pensioners (NUP) in 1978, the union has been agitating for the approval of National Minimum Pension in the same manner National Minimum wage was approved for workers. Up till now, this demand had not been granted.

“We have decided to go through the National Assembly to seek appropriate legislation for approval of the demand. Efforts are therefore ongoing to achieve this age-long dream for pensioners.”

Dr. Afolayan lamented the delay in the approval and payment of increases in pension consequent upon the recent wage increases for workers.

He said,”Recently, we had heartwarming assurance from Executive Secretary of PTAD that all outstanding arrears, be it gratuity or monthly pension arrears would be fully paid before this year 2020 runs out. This is very good news for pensioners. We are therefore looking forward to the fulfillment of this pledge.

“Equally, I must say here loud and clear that as far as the implementation of the constitutional provisions 210(3) as far as state governments are concerned, state governments still remain non-challant and insensitive.

“Many state governments feel reluctant and unwilling to comply with the provisions as if they are neither concerned nor affected.”

Patoma Admin by — December 13, 2020 in Others 0

A total of 58,800 informal sector workers have been registered as contributors under the Micro Pension Plan (MPP), since its inception in March 2019.

This information is contained in the Q3 2020 report recently released by the National Pension Commission (PenCom).

The sum of N64.7million had been contributed – N46.7m was contributed in year 2020 (Q1 – Q3), while N18.0m was contributed in 2019, i.e. from March to December 2019.

In the same vein, 19,114 new contributors were registered in 2020 and 39,686 registered in 2019.

In Q1 2020, 9,449 registered under the plan and contributed N16.8m but dropped in Q2 2020 to 2,839 contributors with the sum of N7.4m, which could be attributed to business challenges encountered during the pandemic lockdown period between March and June.

In Q3 2020, the figure, in terms of number of new enrolees and contribution, improved significantly to 6,826 and contributions of N22.5m.

The Pension Reform Act (PRA) 2014 expanded the scope of the Contributory Pension Scheme (CPS) to include persons working in informal sectors, based on PenCom’s strategic objective of deepening the market and covering at least 30% of the working population in Nigeria by the end of the year 2024.

Micro Pension Plan (MPP) presents a great business opportunity for the Pension operators as Nigeria has about 59.6 million workers in the informal sector that are not involved in any pension scheme.

Towardsachieving a desirable critical mass, it is important that the operators create reasonable visibility/awareness about the scheme. The scheme is quite new in Nigeria but it is quite promising if the operators can adequately harness the abundant opportunities that exist therein.

Patoma Admin by — December 11, 2020 in Others 0

National Pension Commission (PENCOM) has recovered the sum of N213,071,826.04 from 13 defaulting employers in the third quarter (Q3) 2020

The recovery was made possible as a result of the issuance of demand notices to the defaulting employers and aggressive follow-ups by the recovery agents appointed by PENCOM for this purpose.

According to the report, “Following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents, a sum of N213,071,826.04, (representing principal contributions of N156,533,438.35 and penalty of N56,538,387.69), was recovered from 13 defaulting employers.

The amount comprises of principal contributions of N156,533,438.35 and penalty of N56,538,387.69.

The pension industry in Q3 2020 recorded a growth of 1.18% QoQ in the scheme membership, moving from 9.10 million contributors in Q2 2020 to 9.2 million contributors in Q3 2020, largely driven by the increase of 107, 312 new contributors under the Retired Savings Account (RSA) scheme.

PenCom, on November 16, 2020, launched a Retirement Savings Account (RSA) transfer system, which is expected to introduce competitiveness/efficiency amongst the operators and flexibility for the contributors to switch between operators, to gain better values and services.

In Nigeria, employers contribute 10% of the salary and the employee contributes 8%, and a total of 18% is expected to be remitted by the employers every month to the PFAs.

Patoma Admin by — December 7, 2020 in Others 0

By Favour Nnabugwu

National Pension Commission (PENCOM) indicates that the total pension contributions grew by N184.68 billion in Q3 2020.

Of this sum, the Public sector contributed N117.70 billion, 63.73percent. The private sector contributed the sum of N66.98 billion, 36.27 percent

According to the PenCom report, the cumulative pension contributions received from both the public and private sectors from inception to the end of the third quarter of 2020 (Q3 2020) amounts to N6.38 trillion.

This represents a growth of 2.98 percent of the cumulative contributions as of the end of the second quarter 2020 (Q2 2020) at N6.19 trillion.

The cumulative pension contributions of the public sector increased by 3.76 percent from N3.13 trillion as at the end of Q2 2020 to N3.25 trillion as at the end of Q3 2020.

On the other hand, the cumulative pension contributions of the private sector on the increased by 2.19 percent from N3.06 trillion as at the end of Q2 2020 to N3.13 trillion as at the end of Q3 2020.

A collapse of the industry portfolio shows that the the funds were mainly invested in Federal Government Securities, with an allocation of about 65.29percent the total pension assets (FGN Bonds: 57.41percent, Treasury Bills: 6.75percent Sukuk Bonds: 0.93percent, while Agency Bonds and Green Bonds: less than 1percent) during Q3 2020.

Patoma Admin by — December 6, 2020 in Others 0

By Favour Nnabugwu

The Federal Government has inaugurated 16 members of National Pension Commission (PENCOM) board, to proffer innovative and feasible solutions to the challenges of the pension administration in Nigeria as Dr Oyindasola Oni is the Chairman.

The board chaired by Dr Oyindasola Oni, has Aisha Dahir-Umar, Clement Akintola, Mr Anyim Nyerere, Mr Charles Sylvester, Mr Festus Dauda, Mrs Anita Shitu, Comrade Ayuba Waba, Dr Bobboi Kaigama, Dr Abel Afolayan, Dr Timothy Olawale as members.

Others include Mr Edward Adamu, Mr Lamido Yuguda, Mr Oscar Onyema, Mr Olorundare Sunday, and Executive Commissioner (Administration) representing the North West geo-political zone (pending senate confirmation of the nominee).

Dr. Remi Oyindasola Oni was the Executive Director, Corporate Banking. Until his appointment on April 15, 2016, he was Executive Director, Corporate & Institutional Banking, Nigeria and West Africa at Standard Chartered Bank. He also had concurrent primary responsibilities for the International Corporates Client Segment business for Standard Chartered Bank in West Africa.

Prior to his appointment as Executive Director in Nigeria and West Africa, ‘Remi held a variety of senior management roles including Executive Director/Head of Origination & Client Coverage at Standard Chartered Bank in Uganda and concurrently Regional Head, Network Clients business for SCB in Africa and Head of Local Corporates in SCB Nigeria.

A seasoned banker with over 24 years’ experience in Corporate Banking, Corporate Finance, Commercial Banking and Retail Banking, Remi brings to bear on the Board of FirstBank practical skills set in the areas of deals origination and structuring, relationship management, business management and strategy.

He holds an MBA in Finance from the University of Ilorin, a Doctor of Veterinary Medicine (DVM), as well as Master of Science in Public Health and Preventive Medicine from Ahmadu Bello University, Zaria. He is an honorary member of the Chartered Institute of Bankers of Nigeria (CIBN), a member of the Equipment Leasing Association of Nigeria (ELAN) and the Nigerian Veterinary Medical Association (NVMA).

‘Remi has also attended trainings in many renowned international institutions, including the prestigious Oxford University and INSEAD, Singapore campus. He is happily married and widely travelled.

Mr Boss Mustapha, Secretary to the Government of the Federation (SGF), at the inauguration on Thursday in Abuja, explained that members of the board were also urged to ensure the implementation of sustainable pension policies.

While congratulating the board members, Mustapha noted that Nigeria, in recent times had some challenges in the area of pension administration, in spite of the constitutional and statutory provisions that guarantee pension payment

According to him, “it was these challenges that necessitated the pension reform of 2004, which introduced a mandatory Contributory Pension Scheme (CPS) for employees of both public and private sectors, with few exceptions in the public service.

He, however, regretted that the sector could not meet its mandates of which it was established for, hence the need to re-establish the board to look into the challenges of the sector

“As a government, we are always conscious of our responsibilities with regards to payment of pensions to eligible retirees in the Federal Public Service.

“We are committed to discharging these responsibilities in spite of the perennial challenges, especially as caused by the global COVID-19 pandemic manifesting in dwindling revenue accruing to the nation,” he said.

The SGF, however, highlighted the objectives of the board to include formulating and providing general policy guidelines for the discharge of the functions of the commission.

Mustapha also used the occasion to admonish the board to desist from involving directly in the day to day management of parastatal and agencies.A

Accordingto him, it is only a minister who exercises control of parastatals at policy level through the board of the parastatal.

Respondingn behalf of the board members, Dr Oyindasola Oni expressed appreciation to President Muhammadu Buhari for finding it appropriate to appoint all of them as board members of PENCOM, adding that they were indeed very grateful.

Oni therefore, pledged the board`s commitments to steer the affairs of the commission without any blemish.A

Aisha Dashir-Umar, Director-General of PENCOM, who is also member of the board, gave assurance that the board would work as a team to discharge its responsibilities to achieve the set goals of the commission

Patoma Admin by — December 4, 2020 in Others 0

By Favour Nnabugwu

Over 2, 100 Retirement Savings Account (RSA) holders have applied to move their pension accounts from their current Pension Fund Administrators (PFAs) to a new one.

This is as a result of the launch of the pension transfer window by the National Pension Commission (PenCom).

The Head, ICT, PenCom Polycarp Anyanwu, who disclosed this yesterday at the virtual 2020 Pension Fund Operators Association of Nigeria (PenOp) media retreat for pension correspondents, stated that 2,100 applications were submitted and received by the commission between November 16 and 30, 2020. 

The transfer window known as Retirement Savings Account Transfer System (RTS) was launched by PenCom on November the 16, 2020, in Abuja, in accordance with Section 13 of the Pension Reform Act, 2014, which allows contributors to move their RSA through a transfer window from one PFA to another, provided that it is not more than once in a year. 

Anyanwu noted that most of the pension contributors seeking a switch to a new PFAs were those who were not contented with the service delivery of their current pension fund handlers, a development, he said, would no doubt, enhance quality service delivery of the PFAs to their clients.

Explaining how the window operates, he said, the RTS has four quarters in a year, which are; March 31; June 30; September 31 and December 31 in which contributors can change their PFAs once in a year, adding that, the over 2,100 applications received so far would be processed for the December 31, 2020 window.

 Similarly, the Head, Corporate Communications, PenCom, Mr. Peter Aghahowa, said, the activation of the RSA transfer process would engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.

Patoma Admin by — December 4, 2020 in Others 0

President Muhammad Buhari has nominated Dr. Umaru Farouk Aminu as a commissioner-elect representing the North-West zone of the country in the National Pension Commission (PenCom).

According to the release on PenCom, the appointment of  Dr. Farouk was discussed at the Senate plenary session and subsequently forwarded to Committee on the establishment and public service matters for further legislative actions, which is to be reported back in two weeks

Senator Yahaya Abdullahi moved the motion for the confirmation of the nomination of Dr. Farouk for appointment as full-time commissioner.

Senator Abdullahi affirmed that the nomination is in tandem with the provisions of Section 19(3) of the Pension Reforms Act, 2014.
In lieu of this, the request of the president C-in-C was referred to an ad-hoc committee for further hearing and considerations, with the mandate to report back in two weeks.

Patoma Admin by — December 2, 2020 in Pension 0
PenCom set to launch RSA transfer style

The National Pension Commission (PenCom) is set to launch the Retirement Savings Account (RSA) transfer system come November 16, 2020.

The transfer sustem which will enable contributors under the Contributory Pension Scheme to transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year.

The Commission made this known in a statement Monday in Abuja

According to it, “The National Pension Commission (the Commission) wishes to inform all stakeholders and the general public, especially Retirement Savings Account (RSA) holders under the Contributory Pension Scheme, that the Commission has concluded arrangements for the take-off of RSA Transfers.
Accordingly, RSA holders may transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year, in line with Section 13 of the Pension Reform Act 2014.
The activation of the RSA transfer process will engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.”
Patoma Admin by — November 9, 2020 in Others 0