Category: Pension

TO curb fraud and resolve payments under the Defined Benefit Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) has organised a sensitisation forum for stakeholders in the industry.

At the forum were representatives of the Government Integrated Financial Management Systems (GIFMIS) Office, Office of the Accountant-General of the Federation (OAGF), the Economic and Financial Crime Commission (EFCC), Independent Corrupt Practices and Other Related offenses Commission (ICPC), Public Complaint Commission (PCC), SERVICOM and Nigeria Union of Pensioners (NUP).

Executive Secretary(ES), PTAD, Dr. Chioma Ejikeme, said the Directorate’s objective was to re-strategise and tackle their challenges.

She said the industry had been faced by complaints of extortion to quicken computation and payment. She stated that the forum was aimed at changing the narrative under the DBS and keep stakeholders abreast of  the Directorate’s activities.

Ejikeme said there was a need for collaboration among stakeholders. “It is important for agencies like the EFCC and ICPC to understand what we do, because of the perception of pension admiration out there as many people think PTAD keeps pensioners’ funds, which is not true.

“As such, we want to make sure that our processes and the way we conduct our payments are very well known to these agencies, not just them, but also the general public,” she added.

The ES, however, acknowledged that there were few challenges in payment processes.

“Certainly, there are challenges in payment arising from the Government Integrated Financial Management Systems (GIFMIS), but the magnitude is really not significant. Consequently, we are here to look at some of the minor challenges while we sit with the stakeholders and look at how to address them and also get input from the financial managers of the government,’’ she stated.

NUP President, Chief Godwin Abumisi, lauded the PTAD, stating that they had never had it so good.

“Indeed, the Union and her members will be grateful to the Federal Government and the National Assembly for the establishment of PTAD via the Pension Reform Act of 2014 as amended. The establishment and operations of PTAD is far better than where we are coming from,’’ he said.

Abumisi also lauded the administration of President Muhammadu Buhari for the political will and support given to PTAD to enable the Directorate succeed, adding that no president had ever treated pensioners with compassion as Buhari.

Representative of the EFCC, Mr Mohammed Abdullah, assured PTAD of the Commission’s willingness to collaborate in the fight against fraudsters, adding that no amount was too small for the Commission to investigate, especially when it concerns senior citizens.

Mr Jeramiah Asanto of the GIFMIS office explained the processes and hitches involved in pension payment to DBS pensioners.

He assured PTAD and the participants that the OAGF was working hard to ensure a more seamless transaction on the GIFMIS.

The Lagos State Pension Commission (LASPEC) has paid over N43 billion as Accrued Pension Rights to 11,644 retirees in the Mainstream, Local Government, State Universal Basic Board (SUBEB), Teaching Service Commission (TESCOM) and other parastatals of the government from May 2019 till date, the Commissioner for Establishments, Training and Pensions, Mrs. Ajibola Ponnle has said.

She made this known at the 96th Retirement Bond Certificate Presentation to retirees of the Lagos State Public Service at Neca House Auditorium, Cbd, Alausa, Ikeja over the weekend.

She said the state had honoured its obligations as stated in the amended Lagos State Contributory Pension Scheme Law, by the presentation of Bond Certificates with a total amount of N1.113 billion to 295 retirees.

She assured the pensioners that the government had not forgotten them, noting that their welfare are top-priority and that the government was relentless in its pursuit to improve your retirement life.

She said the state government, through the Lagos State Residents Registration Agency (LASRRA) and in collaboration with sister agencies recently launched an upgraded Lagos State Resident Identity Card (LAG ID Card) with benefits such as subsidised health care and transport services for its retired public servants.

She urged pensioners to register with LASRRA to enjoy these benefits

The Director-General, LASPEC, Mr. Babalola Obilana, maintained that the contributions of the state has contributed significantly to the success of the Contributory Pension Scheme (CPS).

“Lagos is a trail blazer in the industry with 10 per cent employer and eight per cent employee contributions remitted monthly into individual employees’ Retirement Savings Accounts (RSAs) after salaries are received,” he said.

He stressed that the governor had approved the automation of business processes in LASPEC to ensure first- class service delivery to retirees to ensure the government’s goal of  quick payment of pension entitlements upon retirement.

Of the N8.77 trillion of the total pension assets invested in Federal Government Securities for contributors last year, N118.31 billion was invested in the Sukuk Bond issued by the Federal Government to finance road projects nationwide, the Chairman, National Pension Commission (PenCom), Dr. Oluremi Oyindasola Oni, has said.

He said N59.32 billion was invested in FGN Green Bond, while N14.30 billion was invested in Agency Bonds issued by the Nigeria Mortgage Refinance Company last year.

The chairman made this known while presenting the Commission’s 2021 Annual Report to the public, which according to him, highlights significant developments in the industry during the year.

He stated that the report provides industry stakeholders and the public with details of strategic activities that focused on ensuring the prompt payment of retirement benefits, as well as efforts aimed at promoting a vibrant and sustainable pension industry that positively impacts the economy.

He noted that although the Commission’s efforts at diversifying investments of pension funds and hedging against inflation has gradually began to yield results, it is, however, worthy to add that efforts were ongoing to ensure that the annualised average rates of return of pension funds across RSA and Legacy Funds are above headline inflation rates.

He said during the year under review, the Commission pursued increased diversification of pension fund portfolios by ramping up efforts aimed at ensuring sustained investment of the fund in structured infrastructure projects that meet the stringent requirements as enshrined in the regulation for the investment of pension fund assets.

Oni further stated that despite the overwhelming uncertainties in global economic climate in the aftermath of the COVID-19 pandemic and the challenging macroeconomic environment, the industry recorded an increase of N1.11 trillion in pension assets in one-year.

He said the industry recorded N13.42 trillion in pension assets under Management as at last December 31 from N12.31 trillion in the preceding year.

He added that the industry also witnessed growth in membership under the Contributory Pension Scheme (CPS) as it rose to 9.59 million in 2021 from about 9.28 million recorded the previous year.

He remarked that the laudable performance, in key growth parameters, points to the fact that the industry will continue to deliver value and benefit to our stakeholders and the nation’s economy in years to come.

The Director-General of PenCom, Mrs Aisha Dahir-Umar, said the 2021 report of the Commission encapsulates the significant milestones achieved in pursuit of its mandate of regulating and supervising the Nigerian pension industry.

She said: “I am particularly pleased to note that the Commission has continued to consolidate on the gains of the past and focused on ensuring long-term value creation for stakeholders. We have remained steadily committed to delivering regulatory and supervisory excellence in the industry, through the implementation of its corporate strategic objectives in spite of the many challenges encountered by the industry.

“I am, however, confident that the Commission will consistently pursue innovative and exciting opportunities to respond to the challenges of supervising and regulating the industry.”

ONOH: My name is Onoh. I am from Cross River State. I retired from the Ministry of Public Utility on May 6, 2004.

This is a reminder on my call for help on the non-payment of gratuity and monthly pension. I beg you to solve this problem  and pay the 75 months pension allowance, which has lingered for years, despite my complaints at several pension verification.

My gratuity is N244,336.32 and monthly pension N6,244.14. I was placed on pension payroll in September 2010, leaving 75 months behind. This amounts to N468,310.513. Total money owed, including gratuity, is N712,646.82.

Thanks in anticipation of your kind support.

FLORA: Please help. I am a retiree from University of Port Harcourt Teaching Hospital (UPTH). My allowance was stopped since October 2020 due to my absence during the verification. I have done the exercise. After that, no payment.

PROF.OMOSINI: ‘I Am Alive’ confirmation. Many thanks for your cautionary SMS of June 27. I intend to carry out the exercise this week. We greatly appreciate your care for us pensioners – Prof.Omosini.

OFOEGBU: My name Ofoegbu. I enlisted into the Nigeria Police Force in 1988 voluntarily as a CPL. I retired in 2002 and was paid gratuity in 2003. But for over 20 years, I have not been paid pension. Please help investigate why IGP and Linus at PTAD refused to pay my monthly pensions.

BEST: My name is Best, SOP retired. I quit service in 2006. My complaint is on the short-payment of gratuity and pension.Table “B”268 per cent was used to compute my money instead of 420 per cent for 31 years’ service.

OMOASIGHE: My name is Omoasighe. I have not received my gratuity and pension. Please help me.  Thank you.

WILLIAMS: This is to inform the officer concerned that I have not been receiving my monthly pension allowance since October 2021. I was paid last on September 29, 2021. I will be very grateful if this issue is corrected and the arrears paid up to date.

ESIE: My name is Esie. Two years’consequential arrears of pension were paid in four instalments. First instalment of nine months was paid to me. Second instalment of another nine months was also paid. The third instalment of three months was not paid. The fourth instalment of three months was paid in June 2022.

I, therefore, ask that the omitted three months arrears be paid.

UMARU: My name is Umaru. I wish to inform you that my June 2022 pension has not been paid to me. Kindly help.

NDAMA: My name is Ndama. I have not received my June pension while others have got theirs.

SURAJU: Dear Omobola, I saw your response to my request in The Nation of  Wednesday, July 6, 2022 where you wrote that PTAD stated they were recomputing my matter. Why?

Well, thanks for your efforts and please help me keep it in view.

DUROJAYE: I am Durojaye. My complaint is on the short-payment of N4,261.17 since 2014 for my federal pension share. Kindly help.

ABDULLAHI: I am Abdullahi from Jos, the Plateau State capital. My father was a staff member with Ministry of Defence, Civilian units for 16 years before he died in 1995.

I have attended various screening and verifications and the last one was in Jos in 2017. I have submitted the required documents for the payment of gratuity and pension benefits as a Next-of-Kin (NOK), but nothing has happened since.

In 2020 I was called by PTAD to submit some documents, including bank account details, which I did.

From your publication of my case, PTAD was asking for the verification number, which I scanned and sent imediately. I hope Omobola will assist me.

THE NATION: The newspaper will intervene. Therefore, Umaru, Ndama, Suraju, Durojaye, Abdullahi Onoh, Flora, Prof Omosini, Ofoegbu, Best, Omoasighe, and Williams, should look out for the newspaper next week for responses from PTAD.

Pension is one of the world’s best savings cultures, the reason civilised countries putting it in their social welfare and development plans.

Nigeria could same and make our pension system one of the best in the world, a pension expert, Mr. Glory Etaduovie, has said.

He said the values of the pension Acts and implementation by the National Pension Commission (PenCom) must be applauded and protected.

Etaduovie, who is a former Managing Director, IEI-Anchor Pension Limited, said frivolous agitations by a few people simply spell poor understanding of the real matters.

He said: “More issues are consequences of the environment than pension failure of the Contributory Pension Scheme (CPS). It could not have been better, anytime. There is no fund as successful as it. Agitators might be envying the strength and character wielded by the players in securing it.

“For the government, the pension has more easily provided it long-term cheaper funds for development. The private sector has been very successful in drawing into the fund at retirement, barring few authentications matters often caused important, but ignored legal gaps caused by either laziness or ignorance.

“The challenge lies with public servants and related bureaucracy in running affairs of the government. These are disappearing. The government is clearing its backlog. The Private-Public Partnership (PPP) is working, as it is keeping all alert and in check. The infrastructure growth already enjoyed by all are not imaginable.’’

He further stated that savings culture, wealth and pension savings are difficult in weak economy.

Inflation drains the purchasing power, according to him, adding that this weakens the capacity to save. Yet, the future is bleak without a good savings culture.

“No meaningful capital projects will take place on an individual, group or national levels. Like a country without cash reserves, depleting funds will continue to have its rating drop. You would have situations where recurrent expenditures leave no space for capital expenditures. All infrastructure would gradually collapse – personal or national. Savings culture is strongly related to wealth creation. Wealth creation comes with good planning. It cannot be a whimsical attitude to life or casualness. It is neither good for individuals nor the government to hold a casual and or uninformed position on this important subject.

“It cannot be guided by mere sentiments of ill-informed and incoherent positions of the everyday person, with poor knowledge of financial dynamics and implications. When a blind person leads another blind person, they will fall into a pit or walk into a moving trailer on the expressway. Pension and pension plans are great stabilisers for the workers and steady development tool for the future.

“Protecting the fund becomes an imperative and decimation of it will be a disservice to everyone. It is tantamount to felony. It is not a plan we cede out to the employer, the government or anyone alone and go to sleep. Though, by our culture, we have not been so casual.

“Just that our approach appears to become anachronistic. Our traditional pension plans have included expecting family inheritances, having male children to fend for the family at old age, having many children, building homes for rent, for the ladies, it seems to be getting married, etc. While these have roles to play in retirement plans in some ways, they no longer fit into modern society business environment.

‘’It is no longer economic to have many children because of cost of education. The ladies work now and either choose or by circumstances remain single and need the benefits of old age welfare plans; jobs are also no longer guaranteed for the children so pension is crucial,” he added.

Saving for retirement has become important as people are living and leading more active lives in retirement.

The Contributory Pension Scheme (CPS) has made it possible for people to plan for retirement.

Indeed, one of the main purposes of the pension reform is to introduce a system that is sustainable and can achieve the ultimate goal of providing a stable, predictable and adequate source of retirement income for every employee.

To aid the growth of the Scheme, the National Pension Commission (PenCom) introduced the Voluntary Contributions (VC) scheme for workers desirous of increasing their income at retirement.

The VC provides employees an opportunity to make more contributions beyond those mandated by law, which is 10 per cent employer and eight per cent employee. Some of the benefits of VCs are Enhanced Accumulation of Pension Savings; Flexibility in making Contributions; Tax Incentive; and Inclusive in Nature

Enhanced Accumulation of Pension Savings

A person making Voluntary Contributions has the opportunity to  build up pension savings during their working life to meet their retirement goals in terms of income at retirement. It is possible for an employee to determine the level of contributions needed to get an income target at retirement.

RSA holders that have a target income at retirement can approach their PFAs for advice on the amount they need to make. They can also use the pension calculator which is available on most PFAs websites.

Flexibility in making  contributions

There is no fixed amount for VCs; a contributor has the right to decide the amount he or she wishes to contribute and the frequency of the contributions, either monthly, quarterly, bi-yearly or yearly. One can also start and stop at his or her convenience as well as increase the amount or reduce it as the case maybe.

Tax Incentive

VCs could lower the tax liability of the worker because it is deducted from one’s salary before PAYE tax, which differs from other regular savings which are on after-tax basis. Furthermore, if you withdraw from your VC after five years, no tax will be applied on the amount withdrawn.

Inclusive in Nature

The VC is available for workers, including retirees under the defunct Defined Benefit Scheme (DBS) and CPS who rejoin service on contract. In addition, workers in the private sector who belong to Closed Schemes or Approved Existing Schemes are also allowed to make VCs.

How to make VCs

Eligible persons are to notify their employer of their intentions to make VCs and the amount to be deducted. However, the amount cannot be more than one-third of the employee’s salary in line with the Labour Act, 1990. The employer is responsible for remitting the VCs into the RSA of the employee.

An employer who fails to remit the VCs after deductions shall also be liable to pay a penalty as provided for in Section 11 (7) of the PRA 2014. It is important to note that tax will be deducted on the accrued interest or principal and interest as the case maybe at the point of withdrawal where contributions are less than five years.

Conclusion

All VCs are managed by the PFAs and held in custody by the Pension Fund Custodians (PFC). The VCs are invested and managed in compliance with the regulation of pension funds and assets issued by PenCom.

Also, in line with the Money Laundering Act (MLA) 2011 and Nigerian Drug Law Enforcement Agency (NDLEA) requirement, the PFC is obligated to report any VC lodgment of N5 million and above.

Those who are interested in making VCs are to visit their PFAs or their websites to obtain the requirements.

IGBINOVIA: I am a staff member of a Federal tertiary institution. My RSA contributions for January to August 2020 have not been credited to my account. I am told the fund is yet to come from PenCom. My PFA is Stanbic-IBTC Pension. Kindly help.

PENCOM: Mr. Igbinovia should please send his PFA and RSA details.

IGBINOVIA: Thanks for publishing my request on Wednesday, July 27, 2022. I have sent the particulars (Anonymous) requested  by PenCom.

AJALA: Greetings to the staff of National Pension Commission and The Nation. My complaint is that one Oti, a staff member of Skye Bank, retired in December 2009 and was paid 2.5 per cent as published on June 1 of the newspaper. While I, Ajala, an officer of NCS, who also retired June 2009, was informed that I was not eligible.

My PFA is Sigma Pensions, please help get my 2.5 per cent payment. Thanks.

ANONYMOUS: Greeting to staff of PenCom. I will like to know the address of Sigma Pension in Abuja. Thanks.

ANONYMOUS: Good day, if you are not a civil servant, but has his  company, how can he contribute to pension scheme? Please help me.

YAHAYA: Dear Omobola, you are doing very well to humanity. My complaint is about the death benefit of my brother who died on May 2016 in active service in the HOCSF Office.

His pension manager, SIGMA Pension Limited, was presented with  the documents. But, up till today, no payment to his next-of-kin.

We visited the PenCom office in Kano State, but they kept saying he was in Batch 109 since last year.

Kindly find out what the problem is and why PenCom refused to approve his payment to his next-of-kin for six years.

The deceased’s family is suffering. We are looking forward to hearing from you – Yakasai, Kano State.

OLUWOLE: I have been to my PFA Sigma Pension as directed by PenCom for the enrolment. After the documentation, I could not be captured and my documents were not validated. I was informed that I would be contacted as soon as the problem with the portal was resolved.

This is the experience of some of my colleagues.

Kindly help find out from PenCom what the problem is.

CECELIA: Dear Omobola, God bless you for being there for us all. My name is Cecelia, next-of-kin to Festus, a as a policeman, who died in active service in 2015.

We have not been paid his benefits. We went to his pension office having obtained the documents from the police headquarters, did the capturing after we submitted his death certificate. But, for over five years, we have been running up and down, yet nothing is forthcoming.

He left behind a wife and two children.

Kindly step in and help us out.

AYINDE: I am Ayinde, from the University of Ilorin. I wish to request for remittance of my pension contribution from April 2016 to January 2020. However, I have earlier sent a letter of complaint with the relevant documents to the commission, and was acknowledged on April 22,  2022. Thank you.

THE NATION: The newspaper will intervene. Therefore, Igbinovia, Ajala, Yahaya, Cecelia, Ayinde and Oluwole should look out for the newspaper next week for responses from PenCom.

ABUBAKAR: Hello, my name is Abubakar, I am a next of kin. The president approval of outstanding pension said something about 2014 retirees. But my father died in 2013. Will his death benefit also be paid and what is consolation? How long does it take on the average? Thank you

PENCOM: Please note that for your father’s death benefits to be paid, you must submit some documents to his Pension Fund Administrator (PFA) for processing.

If you have done this, please forward to the commission the following: his RSA PIN, full name, name of PFA as well as other vital information to enable the commission investigate further. Thank you.

OZURUONYE: Good Day, my name is Ozuruonye. Please where is Stanbic IBTC Pensions in Owerri, Imo State. Thank you.

PENCOM: The address of Stanbic IBTC Pension in Owerri, Imo State is Shirley Mall, 32, Ekwema Crescent, Ikemegbu Layout, Beside Kilimanjaro Fast Food, Owerri, Imo State.

IBRAHIM: Good day, my name is Hussaini Sani Ibrahim. I was a staff member of Revenue Mobilisation Allocation & Fiscal Commission.

I retired on February 1, 2021. I was  verified on November 18 and was issued with the Retirement Benefit Enrolement Slip. My questions are: When will I receive my lumpsum and monthly pension? Will I be paid monthly pension arrears from February 2021 to date? And how long does it take before you transfer my accrued pension rights to my RSA account with my PFA?

PENCOM: Please forward your RSA PIN, full name as well as the name of your Pension Fund Administrator (PFA) to enable the commission investigate further. Thank you.

ADEBUKOLA: I am Mrs. Babalola. My late husband, Gholahan, passed away in 2018 and PenCom has refused to pay his pension. I was told his accrued right has been released but nothing has been paid yet.

He worked with the National Commission for Refugees and Internally Misplaced Person in Abuja. His PFA is First Guarantee Pension Limited. Kindly help.

PENCOM: Please be informed that your late husband’s benefits have been paid. Kindly liaise with his Pension Fund Administrator (PFA) for more information. Thank you.

The Pension Transitional Arrangement Directorate (PTAD) has adjusted the pensions of 14,825 retirees to reflect their monthly take home.

This followed the implementation of the expanded computation and revalidation of pensioner’s documents by the Directorate in 2020 for the Civil Service Pension Department.

The Executive Secretary, Dr. Chioma Ejikeme, made this known in a statement. She said a total of 14,836 pensioners were being overpaid based on the figures inherited by PTAD.

She said: “I, along with the management team of PTAD, held a meeting with the executive members of the Nigeria Union of Pensioners (NUP) and the Federal Civil Service Pensioners Branch (FCSPB) to inform the unions of the Directorate’s plan to properly place pensioners in the Civil Service Pension Department (CSPD), who were being overpaid on their monthly pension.

“At the end of the meeting, both parties agreed that the affected pensioners would be contacted and informed of the Directorate’s plan to properly place them on the right monthly pension from  July 2022, while the modalities to recover the over-payment would be worked out in due course. The letters to the affected pensioners have since been dispatched.’’

Continuous self-development for knowledge, certificates and adding value to your employer are necessary to building a good pension for yourself.

A former managing Director, IEI-Anchor Pension, Mr. Glory Etaduovie, stated these at the Self-development and Career Growth seminar.

He said: “Lackadaisical attitudes to self-development, not being visible and adding value to the employer’s business, is self-defeating.

“ You are the only direct loser. Do not wait to be trained. If you cannot invest in yourself, who then should?

“Knowledge is power. You will stand out, your salary will grow, your pension will grow faster with fat salaries.

“Its compound interest growth will be amazing in more leaps and bounds. Other growth benefits all add up as well. The longer and weightier contributions you make over time, the better.

“But staying idle and waiting for retirement money is a worse crime.’’

Etaduovie said learning investment for alternative income early might come as a simple hobby developed into good business.

As our career stabilised, he said, we should think of related alternative or compliementary legitimate income.

He noted that this helps with increased disposable income, and increased savings capacity.

He added: “As you retire, you need something already familiar and ready to keep your mind working and healthy. Retirement plans are wholistic for good health.

“Obviously, this must not distract you from the main job if your income is not heavy enough to deserve all your attention. Staying idle and waiting for retirement money is a worse crime.’’