Category: Pension

National Pension Commission (PenCom) is set to review the Pension Reform Act 2014.

At its retreat in Abuja, it identified salient issues to be reviewed in the act.

Present were stakeholders from the National Assembly, Pension Fund Operators (PenOp), labour unions, employers’ union, Civil Society Organisations (CSOs) and others.

In a statement, the commission said the National Assembly would organise a public hearing to enable stakeholders their make input.

The Pension Reform Act 2014 was enacted following a review of the one in 2004.

Director-General of PenCom Aisha Dahir-Umar told participants that the 2014 Act codified one of the most important socio-economic initiatives of the Federal Government, leading to an industry that had assets in excess of N13 trillion.

She noted that the review followed some implementation challenges encountered with certain sections.

“This is in addition to persistent calls from stakeholders for the amendment of some sections… which resulted in several legislative initiatives through sponsorship of bills for amendment of the PRA 2014 by the National Assembly.

“Consequently, the commission…decided to coordinate and harmonise the various efforts to achieve a more comprehensive and constructive exercise for the review of the PRA 2014”, she added.

Chairman of Senate Committee on Establishment and Public Service Ibrahim Shekarau said the 2004 Act was reviewed in 2014 having been implemented for 10 years.

Shekarau said the National Assembly and PenCom were being proactive by initiating the second review less than 10 years since the first review in response to the dynamism of the industry.

He said all laws are never perfect and in the case of PRA, between 2014 and now, several developments have necessitated a review of the legislation. Furthermore, he stated that since his assumption of duty in the Senate, saddled with responsibility for pension matters, he has received several submissions from stakeholders requesting for a review of some sections of the PRA 2014.

He noted that not all the agitations for the review of the PRA 2014 are backed by sound arguments, but they show a need for a review of the pension legislation.

Also speaking at the retreat, the Chairman House Committee on Pension, Hon.  Kabiru Alhassan Rurum, stated that attempts were made to review some provisions of the PRA 2014 by the 8th National Assembly, but the process was not concluded owing to some issues.

He therefore expressed the commitment of the Committee in ensuring a diligent review of the PRA 2014 as the retreat provided a valuable input into the process.

The President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, cautioned against policies that will undermine the CPS, including agitations to exempt some employees from the scheme as it may defeat the primary purpose of the CPS.

The President of the Trade Union Congress (TUC), Comrade Quadri Olaleye, represented by an executive member of the TUC, Hafsat Shuaibu, cited the disruptions in the workplace as a result of COVID-19 pandemic, which makes it imperative to review the pension legislation.

On his part, the representative of the Nigeria Employers’ Consultative Association (NECA), Mr. Thompson Akpabio, commended PenCom for the consultative retreat and expressed optimism that the outcome would improve the CPS.

He said the review was apt, as since 2014, there have been several cases on pension matters decided in various courts and that the implications of these decisions should be considered during the review of the PRA 2014.

There have been calls on the National Pension Commission to increase the rate of pension benefit payments to pensioners. Chairman/Chief Executive Officer of Achor Acturial Services Dr. Pius Apere says the implementation of the Guaranteed Minimum Pension (GMP) will better the lot of pensioners and renew their confidence in the Contributory Pension Scheme (CPS). Omobola Tolu-Kusimo reports.

The challenges of meeting pensioners’expectations in the Contributory Pension Scheme (CPS) cannot be fully met without the implementation of the Guaranteed Minimum Pension (GMP).

This is the view of many, including an actuarial scientist and chartered insurer, Dr. Pius Apere.

Besides, the pensioners, particularly public service employees, who migrated into the CPS at inception in 2004, would be happier if the GMP is implemented, he added.

Apere, who is the Chairman/CEO Achor Actuarial Services Limited,  calls on the National Pension Commission (PenCom) to implement the GMP to remove apathy to the CPS.

According to Apere, there are two other categories in the CPS.

He explained that pensioners in the first category are those in the public service of the Federation, Federal Capital Territory (FCT), states and local governments or the private sector who are expected to receive retirement benefits from only CPS.

He noted that at retirement, these employees might withdraw an amount called lump sum, not exceeding 25 per cent of the total amount credited into their Retirement Savings Accounts (RSAs) being managed by a Pension Fund Administrator (PFA) and the balance paid as a regular pension either through annuity from a life insurance companyor as Programmed Withdrawal (PW) from the PFA.

He described the second group of employees as those who are exempted from the CPS as specified in Section 5 of PRA 2014. “This include members of the Armed Forces, the intelligence and secret services of the federation. They will receive benefits only from the PAYG defined benefit scheme in accordance with a specified formula provided in the Second Schedule to the Act or under the provisions of enabling laws,’’ he said.

Apere added: “The third category consists of public service employees (RSA holders with deferred pensioner status) in the CPS. On retirement, they are entitled to receive the accrued (past service) pension rights (determined by an actuarial valuation at the commencement date of the CPS) from the PAYG defined benefit scheme and RSA balances from the CPS.”

Why some pensioners are aggrieved

The public service employees, particularly those in the third category of membership of the CPS, feel aggrieved compared to their counterparts who are exempted from the CPS. The retirees in this category  believe that their expectations have not been met.

They still erroneously believe that 25 per cent of the RSA (maximum lump sum allowed) and/or the pension payable from CPS will be close to 300 per cent and 70 per cent of their final salary as prescribed for gratuity and pension in PAYG defined benefit scheme, having completed 35 years of service.

Also, the delay or inability of the Federal Government and/or state governments to remit the accrued pension rights to retirees’ RSA timely had increased the plight of pensioners because the regulator insisted that the retirement benefits cannot be paid from RSA without the accrued pension rights being added to it, among other issues.

Challenges of meeting pensioners’ expectations in CPS

According to Apere, the framers of the law, PRA 2014, realised the importance of GMP as stated in Section 84(1) of the Act to reduce the risk of volatility of standard of living of pensioners in retirement.

“GMP is akin to an income support from the government, which can be considered as a variant of social security policy that ensures redistribution of resources, a safety net for a pensioner. Thus, the expectations of pensioners under the CPS cannot be fully met, particularly for the third category of membership, without the implementation of the GMP. This is true because they have higher expectations close to that of the exempted pensioners (e.g. in Armed Forces of the Federation) receiving benefits from the PAYG defined benefit scheme.

“In practice, the GMP is usually a form of underpin applicable in a defined contribution scheme, which has a main benefit that is defined contribution, with a promise that the benefit will be at least a defined benefit amount, usually a percentage of final salary at retirement date.

‘’GMP is usually to protect the members against some of the risks of low investment returns and may also be applied on a temporary basis after a conversion of a scheme from a defined benefit form to a defined contribution form, which is particularly suitable for employees in CPS with deferred pensioner status.

“The implementation of the GMP has been delayed since the commencement of the CPS in 2004. This may be probably due to computation complexities, as the assessment of the cost of guarantees using stochastic modelling techniques should be under the control of an actuary. Furthermore, there could be lack of sufficient funds to finance the GMP despite the Pension Protection Fund (PPF) being established as stated in Section 82 of PRA 2014. Instead, the regulator implemented an Enhanced Pension for only the Programmed Withdrawal (PW) pensioners effective December 2017. This could be seen as cushioning the effect of the non-implementation of the GMP to an extent for only these PW pensioners.

Way Forward

Apere said the industry requires an enlightenment campaign to manage the expectations of employees and retirees in the CPS.

HASSAN: Hello, my name is Kabiru Hassan. I work with Nigeria Railway Corporation. I need your assistance concerning my pension fund. My RSA has not been credited for seven years, from 2012 to 2018. Although I got a message on September 29, 2021 showing payment of N46,592.15 to my RSA account for 2017 which I don’t understand. My PEN number is anonymous. I will be very glad if my request is considered.

 PENCOM: You are required to inform your employer, Nigeria Railway Corporation (NRC) to forward your nominal roll from 2021 to 2018 or to the date NRC joined IPPIS for processing of your outstanding pension contributions. Please note that issues related to pension contributions from the date NRC joined IPPIS are not within the purview of the Commission, they should be channelled to IPPIS in the OAGF.

 IVARA:  I am Mr. Ivara, I retired from the Nigeria police on 2015 under the Contributory Pension Scheme. Recently, payment was made to pensioners in other federal establishment under consequential adjustment arising from the implementation of new minimum wage on April 30, 2021. The arrears took effect from April, 2019 and payment commence from May,2021. I will like to know the position of police retirees and pensioners. Are we not pensioners in Nigeria?

 PENCOM: Since you retired in 2015, you are not eligible to any pension benefits arising from any new minimum wage implementation after your retirement, as your complaint was bothering on minimum wage increase in 2019 which took effect in 2021. Thank you.

 ANNONYMOUS: l retired from Nigeria police in 2015. l made a complaints for non-payment of consequential adjustment to pension benefits arising the implementation of new minimum wage on 30th April, 2021 paid to others Federal retirees/pensioners. Furthermore, we applied to our PFA for payment of additional lumpsum, but they have not been paid. Please we need explainations. Thank you, Senior Citizen.

 PENCOM: Please note that the eligibility for the arrears of 2.5 per cent employer portion of pension contribution took effect from July 2014. It was paid based on regulations and framework on how additional retirement benefit income are treated. Please visit you PFA. Thank you.

 DUMNAMENE:  Dear Omobola, kindly assist me to wipe my tears away by implementing my monthly pension that was stopped sometimes last year due to double pin. I was referred to ARM Pension for recapturing, which I did from Fidelity Pension. I don’t know why it is lingering till now. Kindly help. Dr Dumnamene from Rivers State.

 PENCOM: You are please advised to forward the two PINs to the Commission for further investigation.

ANONYMOUS: Good day, I will like to know how long it take to get PENCOM approval for payment of accrued rights for someone who died in active service.

 PENCOM: Please note that payment of accrued rights of deceased employees of treasury-funded MDAs are subject to release of funds by the Federal Government.

ADEOSUN: My name is Adeosun, a pensioner since 2019. I have not been paid my pension benefit. Kindly help.

 PENCOM: You are please advised to forward your PIN to the Commission for further investigation.

 OCHENI: My name is Ocheni. I retired from the Federal Polytechnic Idah. I worked from 1996 to 2019 for 23 years. I need answer to three complaints: The first is that should my total retirement benefits be N3,310,881.89 as was paid to me? Secondly, if the first question is yes, should my lump be #827,720.47 as was paid to me? Thirdly, should my monthly pension be #22, 627.90?

 PENCOM: Please note that your retirement benefit was determined based on the information you provided to the Commission during the Enrolment Exercise. Furthermore, your lumpsum and monthly pension were determined based on your final RSA balance, Annual Total Emolument (ATE), age and gender using a programmed withdrawal (PW) template.

AKEREDOLU: Good day, greetings to The Nation newspaper. God bless you more for the good works you are doing for pensioners. Please, I want to know the reason why the PENCOM or PFAs are not paying the arrears of money of retirees that retired in 2014, 2O15, 2O16, etc up till now. My PFA, Legacy FCMB Pension does not send me any information or alert till date. I want to know what they are doing with my money. PENCOM:  should warn or sanction my PFA for not communicating with me.

 PENCOM: Please visit your Pension Fund Administrator (PFA) as the payment has been effected from the commission. thank you.

ADEMOYEWA: Good Day, the Federal Government in July 2021 increased it share from 7.5 percent to 10 percent under the Contributory Pension Scheme (CPS) and directed a retrospective payment of arrears from 2014 to its workers. In other words, the 2.5 percent increment should be paid to its retired workers under the CPS from 2014 to date. PENCOM is yet to implement this directive for those of us that retired in 2018. Kindly help us out. Dr Ademoyewa.

 PENCOM: Please visit your Pension Fund Administrator (PFA) as the payment has been effected from the commission. Thank you.

DADA: President Buhari approved payments of outstanding accrued pension rights for FGN retirees, death benefits and 2.5% increase of monthly pension contributions for FGN employees. Pencom, please when are you paying us the 2.5%?

 PENCOM: Please forward your full name as well as your RSA pin details to enable the commission investigate further. Thank you.

Sixty-one-year-old Lagos State retiree, Mrs. Fadekemi Obalanlege, retired as a secondary school principal. She was blind as at retirement due to Glaucoma, even as she had other health challenges.

Despite her health condition, Mrs. Obalanlege was visibly happy at the Lagos State Pension Commission at the 90th Batch Retirement Bond Certificate Presentation Ceremony where she received her bond certificate for onward payment of her pension benefit.

According to her, she has served the state meritoriously for 30 years.

I have worked at many schools like Okota Senior Grammar School, Unity Senior High School Oshodi, Isolo-Junior Grammar School and Okota Junior High School where I retired as a principal in September 2020.

“I am very happy and grateful to the God that I am still alive to receive my pension though I cannot see again. One of my colleagues that we work together died before she could retire. If she was alive and were to be blind, she would have received her pension benefits and be happy with her children and grandchildren.

My journey to blindness started in March 2020 with Glaucoma. I also have diabetes. I want government to help me so I can receive proper treatment.

Another retiree, Mr. Muftau Adebayo also expressed excitement.

He said he was happy to be retiring from Lagos State as against other states of the federation that owe their retirees.

The Director-General, Lagos State Pension Commission, Mr. Babalola Obilana said the State is constantly reviewing its business processes to ensure the financial freedom of public service retirees.

He stated that the Commission facilitated the review of the Lagos State Pension Reform Law last year to eradicate bottlenecks in the processing of retirement documents and hasten access to pension benefits.

He noted that this is in line with their commitment to the provision of first-class services to our retirees who have given their best to the development of the State.

He enjoined the retirees to take very good care of themselves, noting that health is wealth.

Governor Babajide Sanwoolu had earlier reiterated commitment to the welfare of pensioners in the state.

He said retiring officers in the State Public Service now look forward to retirement with more confidence and joy.

He further assured you that the State Government through LASPEC will continue to ensure that Public Service retirees not only get what is due to them statutorily, but also continue to receive, through other agencies and programmes, additional support and assistance that will add value to their lives in retirement.

He said: “I will continue to run an open Government of inclusion that will ensure no one is left behind. No matter your gender, sex, tribe or special needs as long as you reside in Lagos, we will make Lagos work for you.

“Lagos State has continued to be the leading light, not only in the administration of pension benefits but generally in good credible Governance. We must all therefore be determined to contribute to the change that is much expected to bail our country out of her present situation and make life worth living for everyone”, he added.

 

 

Pension regulator, National Pension Commission (PenCom) and Pension Fund Operators Association of Nigeria (PenOp) are set to deepen micro pension penetration amongst workers in the informal sector this year.

This is coming following low subscription on micro pension two years after its luncheon, prompting the regulator to mandate Pension Fund Administrators (PFAs) to develop and forward an annual media campaign plan to drive subscription before 31 January of every year.

Data earlier obtained from the PenCom revealed that as at August 2021, informal sector subscribers to the micro pension plan was 70,000 out of over 90.91 million workers in the nation’s informal sector, leaving 90.21 million workers uncovered under the commission’s Micro Pension Plan (MPP).

To cover the gap, the PFAs are expected to set up appropriate structures to effectively carry out enlightenment and public awareness for registered and prospective Micro Pension Contributors (MPC); protect registered and prospective MPC from false and misleading information; form the basis for monitoring and evaluating the enlightenment and public awareness efforts of the Commission and PFAs on the MPP and achieve the Pension Industry’s strategic vision on expanded coverage of the CPS.

PenCom said Sections 5.3.1(c) and 5.4.1(i) of the Guidelines for Micro Pension Plan 2018 stipulate that the Commission shall “Create awareness by carrying out public enlightenment and education on the establishment, operations and management of MPP” and PFAs shall “conduct regular public awareness, enlightenment and education on Micro Pension Plan”, respectively.

Section 6.3.1 of the Guidelines for the Operations of Pension Fund Administrators stipulates that a PFA must obtain prior written approval of the Commission before advertising, promoting or providing information on its products and services or about its operations. The entire material for distribution, advertising, promotion or informing the public must be submitted to the Commission for this purpose, it posited.

PenCom stated that the framework aims to achieve the following: Set minimum standards for enlightenment and public awareness on MPP and ensure adherence to best practices in Public Relations.

It noted that the following rules shall apply to the Commission and PFAs. PFAs shall establish a desk and appoint an officer to oversee all enlightenment and public awareness activities on the MPP in line with Section 7.1.1(i) of the Guidelines for the Micro Pension Plan, issued by the Commission.

 

Despite the negative impact of COVID-19 across all sectors of the economy, pension contributions remained steady and even grew in funds and assets to over N13 trillion this year, writes Omobola Tolu-Kusimo.

The pension sector was hit, like every other economic facets by the COVID-19 pandemic in year 2020. But the regulatory authority, National Pension Commission (PenCom) and pension operators rose to the challenge to keep pension operations in safe haven.

They rose to ensure that the accumulated pension fund assets of contributors’ and retirees, who are Retirement Savings Account (RSA) holders under the CPS were not impacted negatively.

In January this year, the value of pension assets dipped slightly by 0.06 per cent relative to its financial position as of December 31, 2020 which stood at N12.306 trillion. The drop was attributed to a fall in the bond prices in the trading portfolios of pension funds.

Presently, total pension fund assets is put at over N13 trillion, while total RSA registrations is said to be about 10 million.

Giving reasons for the decline in January, PenCom said the unrealized gains on equities, as well as the gains realized from profit-taking activities of Pension Fund Administrators in bonds and equities moderated the losses.

PenCom’s Director-General, Mrs. Aisha Dahir-Umar, said the increase in yields however persisted in January 2021 leading to further depreciation in bond prices, while a moderated growth was observed in the equity market.

She told The Nation in a chat that the losses recorded were unrealized losses from the valuation of pension assets (Bond Portfolio) which are marked – to market in line with International Financial Reporting Standards. She said this should not cause a scare for RSA holders since RSA funds grew by 0.70 per cent or (N65.11 billion) in January 2021.

She said: “RSA holders, therefore, have no reason to be worried about the reported decline of pension assets. The portion affected is the Defined Benefit Funds that declined by 5.19 per cent in January 2021. She pointed out that Pension funds are long-term funds and there will always be volatility in the short-to-medium term, but the long-term objective, she added is to earn fair returns on pension fund assets.

Mrs. Dahir-Umar said, barring any exogenous shocks, the financial markets will begin stable recovery in the Second or Third Quarter of 2021 as economic activities begin to rally towards their pre-lock down levels.

On steps taken by PenCom to forestall further drops in the funds, she said the Commission and industry stakeholders have adopted various strategies to diversify the Investment Portfolio of pension assets and deepen investment channels, particularly in Infrastructure and Housing.

“The Commission is focused on its engagements with stakeholders which include Government Agencies, Private Sector participants, Multilateral Development Finance Organisations in developing Capital Market products, including infrastructure assets, housing assets, and hedging tools that meet requirements for pension fund investment.”

 

Accrued Rights

 

Early this year, the commission secured a release of N11.818 billion from the Presidency for payment of accrued rights for employees of Treasury Funded Ministries, Departments and Agencies (MDAs) who worked up to June 2004, when the Pension Reform Act was introduced.

This notwithstanding, retirees are currently been owed over one-year in  pension benefits

 

Online Verification

 

Following disruptions caused by Covid-19 pandemic to the 2020 annual Pre-Retirement Verification/Enrollment exercise of Federal Government retirees, the commission commenced online verification in the first quarter of 2021 as against physical exercise.

The commission could not conduct the regular physical verification exercise for intending retirees of employees of Treasury Funded MDAs who retired in 2020 and 2021.

Outstanding Pension Liabilities

 

In the course of the year, the President approved PenCom’s submission on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government to its employees under the Scheme.

Muhammadu Buhari approved payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that retired but were yet to be paid their retirement benefits, as well as the back log of death benefits claims due to beneficiaries of deceased employees of treasury funded MDAs.

Payment of 2.5 per cent differential in the rate of employer pension contribution for FGN retirees and employees which resulted from the increase in the minimum pension contribution for employers from 7.5 per cent to 10 per cent in line with Section 4(1) of the PRA 2014 were also approved.

PenCom has since transferred monies for retirees and existing employees from July 2014 to their various PFAS.

According to the PenCom chief, the settlement of the outstanding accrued pension rights of verified and enrolled FGN retirees and compliance with the reviewed rate of pension contributions, were significant developments, that have resolved the challenges in these aspects that have lingered since 2014.

 

Recapitalisation

 

A major activity within the sector this year was the recapitalization mandate issued by PenCom to the existing 22 Pension Fund Administrators (PFAs) to raise their share capital from N1 billion to N5 billion.

The PFAs were given a 12-month transition period to meet up with the new capital, starting from April 2021 to April 2022. Mrs Dahir-Umar said the upward review of the minimum regulatory capital became expedient as the value of pension assets under management and custody had grown exponentially by 244 per cent; from N3 trillion in 2012 when the previous recapitalization was done to N12.29 trillion as at December 31, 2020.

“In addition, the total number of contributors have increased to 9.33 million as at December 31, 2020. The sustained growth in assets implies greater fiduciary responsibilities and requires more operational capacity by the PFAs. Consequently, increased capital injection into the PFAs became necessary so as  to maintain  service standards and growth potentials of the pension industry.

“The increase in the shareholders fund will enable the PFAs to employ and retain skilled staff and ensure the adequacy of resources to fund operational requirements like ICT infrastructure, branch office expansion and other activities. Also, the new minimum capital requirement would enable the PFAs absorb potential operational and investment risks as well as improve their business processes.

Presently, 11 PFAs have merged  and recapitalised, while four PFAs may go into merger and acquisition ahead of the April 2022 deadline.

PenCom confirmed it has granted a “no objection” approval to Guaranty Trust Holding Company to acquire 100 per cent shareholding of Investment One Pension Managers Limited.

The commission had earlier granted a “no objection” approval to FCMB Pensions Limited for the next phase of acquisition of 60 per cent shareholding of AIICO Pension Managers Limited.

On the other hand, AXA Mansard Pensions Limited has been acquired by Verod Capital Management Limited and subsequently changed its name to Tangerine Pensions Limited.

The Chief Executive Officer, PenOp, Oguche Agudah, said a well-capitalised industry will enable the sector to affect its various shareholders and the Nigerian economy in a positive way.

 

Micro Pension

 

PenCom said it is working to alleviate old-age poverty in the informal sector through Micro Pension Plan (MPP).

There seems to be a misunderstanding about the application of mortality tables in retirement planning and pensions, Pension Fund Operators Association of Nigeria (PenOp) has said.

PenOp, the umbrella body of pension fund operators, made this known while reacting to the judgment of the National Industrial Court against Sigma Pensions Limited in the case brought against Sigma by a retiree, Rakiya Bakari Girei.

Rakiya had sued to be allowed to access 50 per cent lump sum of her Retirement Savings Account (RSA) balance instead of 25 per cent by Sigma.

The court had earlier granted another retiree, Maroof Giwa, access to 50 per cent lump sum on retirement.

The latest court ruling in the case of Rakiya Bakari Girei V Sigma Pensions Limited, National Pension Commission (PenCom) and Attorney-General of the Federation, however, came in the wake of Giwa’s in which PenCom and another PFA had secured a stay of execution of the judgement, and are appealing the decision of the court.

The court last week ordered Sigma Pension Limited to allow Girei withdraw 50 per cent of her RSA within 30 days.

PenOp has, however, said it would  appeal the judgment. In a statement released to reporters, it said mortality tables were used globally in pension planning, noting that it was not peculiar to Nigeria.

PenOp said: “Regarding the judgment of the National industrial court, we are studying same and will revert in due course.

“What we can say now, however, is there seems to be a misunderstanding with regards to the application of mortality tables in retirement planning and pensions in general. Mortality tables are used globally in relation to pension planning. This is not peculiar to Nigeria. With that said, this said judgment will be appealed.

“More so, the National Pension Commission (PenCom) aligned with the position to appeal the judgment as there is a similar case also on appeal,” the statement read.

 Sigma Pensions react

Sigma Pensions on its part said it was committed to meeting its customer’s expectation and would be guided by the law governing pension administrations.

Sigma Pensions said: “Following series of reports in national newspapers and online platforms, we restate that as a responsible organisation, respectful of regulatory authority and rule of law, we will await the outcome of these proceedings and act accordingly in due course.

“Based on the recent judgment by the court on the interpretation of the application of the lump sum payment to retirees, Sigma Pensions maintains a position of strict adherence to the law and laid-down principles governing the industry,” it noted.

“Nigeria’s Pension Industry is governed by the provisions of the Pension Reform Act (PRA) 2014, a repeal of the old PRA 2004. The 2014 Act, which is silent on a percentage which a retiree may receive as lumpsum, establishes the regulator of the industry, PenCom, and grants same a mandate to, among many others, “issue guidelines, rules and regulations for the investment and administration of pension funds. Pursuant to this mandate, PenCom on a regular basis issues directives and guidelines to govern the activities of Pension Fund Operators (PFOs) and PFOs are to strictly adhere to these guidelines.”

Sigma continued: “In line with this mandate, PenCom has provided PFAs with a Programmed Withdrawal Template (PWT), a benefits computation tool. This template is used by PFAs to calculate and arrive at the amount which a retiree may receive as lumpsum and as Programmed Withdrawal over the course of their life, except for annuity purchase. The PWT considers several specific parameters in determining the retirement payment package.

“We wish to reiterate that we value all our customers, and we are always committed to working for them within the ambits of the laws governing the industry in which we operate”, the company said.

Retiree Girei

In the case between Rakiya Bakari Girei V Sigma Pensions Limited, PenCom and Attorney-General of the Federation, the National Industrial Court ordered Sigma to allow Girei access to withdraw 50 per cent of her RSA, within 30 days.

The judge, Justice Benedict Kanyip, delivering the judgment, also declared that failure and refusal of the defendants to yield to the legitimate request of the claimant to withdraw 50 per cent of her RSA was a violation and negation of the provisions of the 1999 Constitution.

Justice Kanyip further declared the action of the defendants against the claimant on gender ground as discriminatory and a gross infringement of the 1999 Constitution.

The court, therefore, ordered the defendants to jointly and severally pay the claimant the sum of N10 million being the 50 per cent of her RSA from the N20.2 million of her total saving within 30 days.

From facts, the claimant, Girei, had submitted that following her retirement from the Federal Civil Service in 2019, having attained 60 years mandatory retirement age, she requested the payment of 50 per cent lumpsum from her RSA.

She further stated that the defendants refused to honour her request but rather proposed 31.3 per cent of her RSA based on her gender.

The claimant’s counsel, Olusola Egbeyinka, argued that the defendants should not rely on gender to deprive the claimant of her legitimate pension benefits.

Egbeyinka also said such statutory provisions in the Pension Reform Act cannot get the favour of the court and urged the court to grant the reliefs sought in the interest of justice.

In defence, the first defendant, Sigma Pension Limited, maintained that the parameter of gender in the Guideline on Programmed Withdrawal Template cannot be said to be discriminatory as envisaged in the Constitution.

Sigma Pension Limited also argued that its actions in the circumstances leading to the suit were in legal compliance with the extant laws and guidelines of the PenCom and urged the court to dismiss the case in its entirety.

In similar argument, PenCom also submitted that by virtue of the Constitution and the Pension Reform Act, the life expectancy for a woman is longer than that of her male counterpart.

The defendant, therefore, opined that more funds would have to be set aside for programmed fund withdrawals for the claimant to ensure a continuous source of income throughout the remainder of her life.

The court after the evaluation of submissions of the parties held that the 25 per cent withdrawal threshold allowed by the PRA related only to those who voluntarily retire, disengage, or are disengaged from employment.

The court in addition reiterated that the question of the Sigma Pension fixing the claimant’s lump sum withdrawal at 25 per cent of her RSA had no basis whatsoever under the Pension Reform Act.

FARID: Hello, my name is Farid, the President Muhammadu Buhari’s approval of outstanding pension took effect in 2014, but my father became late in 2013. Will his death benefit be paid? And what is consolation and how long does it take. Thank you.

PENCOM: Please, be advised that your late dad is not eligible for the outstanding pension arrears as this took effect from July, 2014.

ABDULLAHI: Good day, my name is Abdullahi. the son of late Inspector Etubi. You earlier informed me that everything had been settled. We were asked to provide our father’s name and RSA pin to enable the commission to investigate further which we have provided. We were told in The Nation publication that we were among the next batch to be paid. But we are yet to be paid. Kindly help.

PENCOM: Investigation revealed that there is no submission of such details in our database. Kindly visit your pfa to ensure that your documents were submitted to the commission.

ANNONYMOUS: I retired in June 2016, from the Federal Polytechnic, Bida. I was paid my benefits in July 2017, through my PFA, Premium Pension. I then transferred to Leadway for Annuity. The Federal Government recently said it has released money to pay 2.5% it is owing out of its 10%. When and how will this money be paid. I am being owed 24 months.

PENCOM: Please, be advised that if the amount payable is less than N100,000 it will be paid directly into your bank account. However, for payments above N100,000 you are advised to purchase a second annuity from a Retiree Life Annuity (RLA) provider.

GIMBA: Good day, my complaint is about the non-release of my pension since October 2020 till date. My name is Gimba from Federal Polytechnic, Bida.

PENCOM: You are advised to kindly forward your details such as your Retirement Savings Account (RSA) Pin, Pension Fund Administrator (PFA), full name as well as other valid information to enable us investigate further. Please be advised that retirees of Federal Government Tertiary-Funded Ministries, Departments And Agencies are required to undergo a verification and enrolment process prior to retirement. if you are yet to undergo this process, kindly visit http://www.pencom.gov.ng to initiate the process and then proceed to your PFA for physical verification and enrolment. In addition, please be informed that the commission has paid the benefits of retirees from January to December 2020.

IVARA: I am Mr. Ivara, I retired from the Nigeria Police in 2015 under PenCom. Recently, payment was made to pensioners in other federal establishment under consequential adjustment to pension benefits arising from the implementation of new minimum wage on April 30, 2021.  The arrears took effect from April 2019 and payment commenced from May, 2021. If I may ask, what is the position of we police retires/pensioners, are we not pensioners in Nigeria?

SENIOR CITIZEN: l retired from Nigeria Police in 2015. Subsequently, l made a complaint for non-payment of consequential adjustment to pension benefits arising from the implementation of the new minimum wage on April 30, 2021 paid to others federal retirees/pensioners; payment of arrears was made to them, including arrears of 2.5%, 7.5% and 10%. We have all the benefits. Furthermore, nothing has been done on payment of additional lump sum, which some of us applied for. We applied to Premium Pension. The year is coming to an end. PenCom/Premium Pension should explain soonest. Thank you, Senior Citizen.

DUMNAMENE: Dear Omobola, kindly assist me to wipe my tears by implementing my monthly pension that was stopped sometimes last year due to double pin. I was referred to ARM Pension for recapturing, which I did from Fidelity Pension. I don’t know why it is lingering till now. Your assistance is needed. Thank you, Dr. Dumnamene from Rivers State.

ANONYMOUS: Good day, how long does it take to get PenCom approval for payment of accrued rights for someone who died in active service.

ADEOSUN: Hello, I am Mr. ADEOSUN, I retired in 2019. I heard nothing about my pension payment. I will need your assistance for latest information on us.

OCHENI: My name is Ocheni. I retired from the Federal Polytechnic, Idah. I worked from 1996 – 2019. I worked for 23 years. I need answer to three complains. The first is based on my years of service, should my total retirement benefits be N3,310,881.89 as was paid to me? Secondly, if the first question is yes, should my lump sum should be N827,720.47 as was paid to me?

OGUNLEYE: Sir, my name is Ogunleye, I retired from NIPOST. The 2.5% approved by President Buhari sometimes this year has not been paid up till now. My question is what is delaying the payment to the affected retirees since the approval by the Federal Government? I understand that PenCom had directed all the PFAs to spread it to our monthly pension.

GAZAMA: Good day, my name is Gazama. I retired since 1/1/2018 and I am still waiting for my pension benefit. I was called to sign some documents but, up till date, I have not been paid. Please, help look into my problem.

THE NATION: The newspaper will intervene. Therefore, IVARA, SENIOR CITIZEN, DUMNAMENE, ADEOSUN, OCHENI, OGUNLEYE and GAZAMA should look out for the newspaper next week for responses from PENCOM.

 

Ten Pension Fund Administrators (PFAs) have recapitalised as they meet and exceed the minimum capital base of N5 billion requirement of the National Pension Commission (PenCom).

This is coming three months to the deadline of April 12, 2022 stipulated by the regulator, PenCom to PFAs to increase their minimum share capital base from the existing N1 billion to N5 billion.

The Head, Surveillance, PenCom, Ehimeme Ohioma, spoke on the sidelines of the 2021 media parley organised by the Pension Fund Operators Association of Nigeria (PenOp) with the theme: Micro Pension – Challenges and Opportunities.

Ohioma said that the objective of the recapitalisation was to improve the financial stability and operational efficiency in the industry.

He explained that the directive was right, as the last recapitalisation in the industry was done in 2011.

“This is the second recapitalisation done in the industry since the inception of the current Contributory Pension Scheme (CPS). It is obvious that the industry has grown, assets and contribution have increased.

“There is need for this. They need to retain the real skilled workers. We need to attract talent. There is need for digitalisation. This will cost money too and ensure efficiency, especially with the COVID-19.

“There has been ongoing consolidation within the industry, so we do not expect any challenges in the industry, as regards the recapitalisation. On or before February 2022, we expect a picture of what the industry is going to look like before the April deadline,” he said.