Category: Pension

Mutual Benefits Assurance Plc has  recorded a seven per cent  growth in its Gross Premium Written (GPW) for the full year ended December 31, 2020.

Its Chairman, Dr. Akin Ogunbiyi, who spoke at the company’s 25th Annual General Meeting (AGM) in Lagos, stated that despite  the COVID-19 pandemic, the group’s GPW rose from N18.70 billion in 2019 to N19.98 billion in 2020.

He said the performance was driven by a 12 per cent growth in GPW in their non-life insurance business, from N10.17 billion in 2019 to N11.35 billion in 2020.

Ogunbiyi noted that the group also recorded a five per cent increase in net premium income from N15.29 billion in 2019 to N16.08 billion in 2020.

However, an adverse claims experience resulted in a 32 per cent decline in underwriting profit, from N5.40 billion in 2019 to N3.68 billion last year.

He noted that the drop in underwriting profit was offset by impressive investments and improved cost controls, leading to a 34 per cent rise in profit before tax.

This, in addition to the capital injection of N4.80billion led to the 22% increase in the total assets from N67.78billion in 2019 to N82.87 billion in 2020 and the 70 per cent rise in total equity from N14.53 billion in 2019 to N24.69 billion in 2020.

Going forward in 2021, he said: “While the new year does not necessarily provide significant relief from the effects of the pandemic, it presents another opportunity to consolidate on the tremendous feats made towards becoming the one-stop shop for provision of financial services solutions in all our countries of operations.

“Even as the business environment remains challenging due to economic uncertainty, our diversified business model, strong capital position and highly qualified and committed employees, provide the solid base for profitable and resilient growth”, he maintained.

Lagos State Government has paid accrued pension rights of N32.09 billion to 8,170 retirees in the Mainstream, Local Government, State Universal Basic Board (SUBEB), Teaching Service Commission (TESCOM) and other parastatals from May 2019 till date, the Commissioner for Establishments, Training and Pensions, Mrs. Ajibola Ponnle, has said.

She spoke at the 87th Retirement Bond Certificate Presentation to retirees of the Public Service in Ikeja, Lagos.

She said the government paid N1.011 billion pension into the Retirement Savings Accounts (RSAs) of 247 retirees.

Presenting the certificates to the 247 retirees, the Commissioner said: “Despite the huge liabilities, the  administration has ensured the prompt payment of pension entitlements to retirees under the Pay As You Go Pension Scheme monthly, while LASPEC ensures payment of accrued pension rights to retirees under the Contributory Pension Scheme to enable them access their Retirement Savings Accounts (RSAs) without delay.

“Today, under the administration of Mr. Babajide Sanwo-Olu, the government has, once again,  honoured its obligations as stated in the amended Lagos State Contributory Pension Scheme Law, by the presentation of the certificates to the 87th batch retirees from the state Public Servie.” He advised retirees to embrace the challenges of the new phase of life.’’

LASPEC’s Director-General, Mr. Babalola Obilana commended thepension firms for ensuring that retirees had access to their benefits.

The Pension Transitional Arrangement Directorate (PTAD) has cleared African Alliance Insurance PLC of its indebtedness to legacy funds after the life insurer settled its outstanding debts to the directorate.

According to a statement by the company’s Brand, Media and Communications Manager, Bankole Banjo, the directorate has presented the insurer with a certificate of non-indebtedness at a brief presentation in Abuja.

The statement read: “At the presentation, the Executive Secretary, PTAD, Dr Chioma Ejikeme, while handing over the certificate to a team of senior management staff from African Alliance, commended the leadership of the company for its commitment to settling the debts against all odds.

“While thanking the company, stated that without fear of contradiction, the Directorate will not hesitate to approach African Alliance Insurance PLC for further clarification on the funds and assets whenever the need arises. She further called on other insurance underwriters holding on to legacy funds and assets to release the funds as a matter of urgency for the Directorate to meet obligations to pensioners.

“In her response, the MD expressed joy that they were able to settle the debt. Following my assumption as the MD/CEO a year ago, the firm has continued to experience an upward trajectory in its growth, branch network, staff emancipation and consistent payment of claims.

“Recently, the firm demonstrated its drive to expanding its market with the opening of a new branch in Abeokuta, the first of two planned for 2021, as well as hosting the body of brokers in Lagos with the Abuja leg soon to happen.’’

The National Pension Commission’s (PenCom) new app, which will automate the yearly pre-retirement verification and enrolment, is being test run from today, August 2 to 20.

The test-run is done with real-time data on selected Ministries, Departments and Agencies (MDAs) in the six geo political zones and the Federal Capital Territory (FCT).

The app has the capabilities to register, verify and enroll prospective retirees of Treasury-funded Federal Government’s MDAs.

Accordingly, the application would be hosted on PenCom website www.pencom.gov.ng.

For PenCom, this is a big deal. Why? The commission believes that without its prompt response to the adverse effect of COVID-19 pandemic, retirees would not be able to access their benefits upon retirement.

The yearly exercise is followed by the processes that will lead to payment of their retirement benefits.

But the pandemic caused a disruption last year, following the ban on social and formal gatherings. The commission could not organise the event, hence there was no verification for the retirees last year.

PenCom Director-General, Mrs Aisha Dahir-Umar at a briefing in Lagos, stated that the emergence of the pandemic necessitated a review of business processes across various organisations.

She said: “Indeed, it has engendered socio-economic disruptions of the entire global order, with multifarious challenges in conducting hitherto routine activities. It was therefore, imperative for the commission to deepen technological innovation as it seeks to navigate through the challenges imposed by the pandemic.

“PenCom has developed an online application which will automate the Annual Pre-Retirement Verification and Enrolment Exercise. The application has the capabilities to register, verify and enroll prospective retirees of Treasury-funded Federal Government MDAs.

“As a prelude to the formal deployment of the online Enrolment Application, the Commission would commence a Pilot Run of the exercise from 2nd to 20th August 2021 with selected MDAs in the six geopolitical zones and the Federal Capital Territory (FCT) to test-run the application with real-time data. The application would GO-LIVE after the conclusion of the pilot run on a date to be announced by PenCom in due course.”

Speaking on the pre-requisite for enrolment, she said affected retirees and prospective retirees were required to undergo the data recapturing with their respective Pension Fund Administrators (PFAs) as this is a pre-requisite for the online enrolment.

“This entails updating their personal details and providing their National Identification Number (NIN). However, retirees/prospective retirees who have already undergone the data recapture with their PFAs are not required to repeat the exercise,” she added.

OKECHUKWU: My name is Okechukwu.  retired from the Joint Admissions Matriculation Board (JAMB).

Since last October, my pension has not been paid. Even after I had attended the verification in March 2021, my pension was still not paid.

I have many problems: My landlord has given me quit notice. I cannot feed my children any longer. Also, I am sick and has no money for treatment.

Please I need your intervention.

PENCOM: Please forward your Retirement Savings Account (RSA) details; that is, PIN and Pension Fund Administrator (PFA) to enable the Commission to investigate further. Thank you.

IVARA: l retired from the Nigeria Police on July 2015. l complained to PenCom that police pensioners were not paid the consequential adjustment, arising from implementation of the new minimum wage on April 30, 2021 approved by Mr. President.

Payment/arrears was paid to other’ federal parastatals.The first and second arrears have been paid. What is the fate of those of us who retired from 2015? Are we not pensioners?

PenCom should do something in this regard to alleviate the sufferings of police pensioners under contributory pension scheme.

The stigmatisation is too much. We are pensioners, we should equally benefit from the implementation of the Federal Government’s approval of minimum wage to pensioners. The issue of contributory pension should not arise. Let it be transparent. The approval of minimum wage to pensioners was not meant for a particular section alone. It should be paid to retirees/federal pensioners.

Some of us suffered for this nation. Above, all PenCom should give directive to pension administrators to implement the payment. We need the money.Thanks.

HASSAN: My RSA shows that there was no remittance in 2015, 2016, 2017 and parts of 2014 and 2018. Please help find out why. I am expecting your response because I am retiring this year.

ANNONYMOUS: Good day. I am a government worker and ARM Pension is my PFA.

I am 44 years but I need to get some money from my account to solve my pressing issues due to economic hardship. Please, how do I go about it?

ANNONYMOUS: Dear PenCom, you recently announced that the Federal Government has allocated funds for the payment of federal retirees’ increase on their benefits with efffect from last month. But up till now, I have not heard from my PFA.

MRS. COMFORT: I write on behalf of Mrs. Comfort. She retired from Federal Ministry of Transport, Abuja in 2011 on compassionate ground due to her prolonged illness. She never collected salary since July 1999 till 2011 when she retired from service as a senior typist on SGL 0. Kindly help.

OLADOSU: My name is Awoyemi. I retired from Obafemi Awolowo, University (OAU), Ile-Ife, Osun State. I did the last verification in 2019, but my pension has not been paid since November 2019.

ANNONYMOUS: I am writing on behalf of a group of about 100 retired staff of Niger Insurance Plc since August 2007. We have no pension fund nor increase. There has been no payment for two years. No staff representation in its management. Our account was not separated, resulting in mismanagement.

SANI: Before the contributory pensions took effect in 2004, there were public servants who had served for  years. As a result, they had only few years to make contributions. And since the gratuity and monthly pension are function of how much one has contributed, these categories of civil servants have retired and have little as monthly pension.

I heard that the Federal Government has approved that such civil servants be paid some pension  for  the years they served before the take off of the contributory pension scheme in 2004. If this is true, where and how can such retired civil servants collect their pension?

UREGI: Thank you for keeping pensioners informed on the activities of the Commission. I will like to make an observation on the use of the phrase “through the expected life span of a retiree” in relation to payment of monthly pension from the RSA balance. The impression that the phrase gives is that the monthly payments will stop at the end of the “expected life span”. Even if the retiree is still alive.

I am aware, though, of an advertorial in which the Commission stated that the monthly payments would continue till a retiree died and then the balance of the RSA would be paid to the next of kin. This impression should stop.

MBAH: Hello. I sent my 25 per cent request to Fidelity Pension since December 2020. But I am yet to get it. Kindly help.

1. DUMNAMENE: Dear Omobola, kindly assist me to wipe my tears away by helping to see that the implementation of my monthly pension that was stopped sometimes last year due to double PIN. I was referred from Fidelity to ARM pension for recapturing, which I did.

THE NATION: The newspaper will intervene. Therefore, Ivara, Hassan, Mrs. Comfort, Sani, Uregi, Mbah, Oladosu, Dr. Dumnamene and Annonymous should look out for the newspaper next week for responses.

THE Pension Fund Operators Association Of Nigeria (Penop) has sought a review of the lumpsum paid to retirees as part of pension benefits.

This was part of the communique of its Third Annual Retreat with the National Assembly Joint Committees for Establishment and Public Service of the Senate and House of Representatives Committee on Pensions.

The meeting agreed that the industry faced some challenges, which include low coverage and compliance, inadequacy of benefits and poor awareness about the benefits of the pension scheme.

They agreed that the industry has continued to record impressive growth across key performance indicators since the pension reforms of 2004.

The communique read: “The pension industry in addition to being beneficial to contributors has played pivotal role in driving economic growth and development in Nigeria. While the scheme has recorded several giant strides in its 17 years of operations, there are still so many issues that need to be addressed in order for the pension industry to create more value for all stakeholders.

“The pension assets have grown at an impressive rate since inception. The pension assets stood at N12.4trillion while the number of contributors stood at N9.4million as at April 30, 2021. The meeting acknowledged the pivotal role the National Assembly, labour unions and pension fund operators have played in the survival of the contributory pension scheme through supportive legislations, buy-in and adherence to best practices.’’

It continued: ‘’The meeting applauded President Muhammadu Buhari for approving the release of accrued rights and backlog of the differential based on the 10 per cent employer contributions, according to the Pra 2014.

“The meeting resolved that huge public enlightenment is required to drive compliance among state governments to expose them to the benefits of embracing the contributory pension scheme and also educate them on how to leverage pension assets to facilitate infrastructural development.’’

The meeting resolved that the National Assembly should set up a task force to engage state governments and come up with innovative ways to help drive compliance by state governments.

While a satisfaction survey should be inaugurated by PenOp but handled by a third party to gauge the level of satisfaction with the scheme.

“Furthermore, the meeting resolved that pension operators should also take the issue of documentation seriously in order to ensure that pensioners are not made to go through unnecessary stress in order to access their benefit. Also, it was agreed that considering the role legislation plays in driving national development, the national assembly and penop should continue to collaborate in order to create legislations that will facilitate acceleration of pension assets growth and improved access to contributors”, the meeting held.