The Nation Newspaper

Category: Pension

  • Nigeria’s pension penetration level low, says PenOp

    Nigeria’s pension penetration level low, says PenOp

    By Omobola Tolu-Kusimo

    Nigeria should deepened its penetration  beyond 11 per cent, the President, Pension Fund Operators Association of Nigeria (PenOP), Mr Wale Odutola, has said.

    Odutola spoke at the just-concluded National Assembly retreat in Lagos. He stated that there was the need to note the areas where the industry lags behind other countries, one of which is level of pension penetration.

    He said this became necessary because South Africa’s pension penetration is 19 per cent, Kenya 20 per cent and United Kingdom 77 per cent.

    Odutola said the need to deepen pension penetration level, especially the informal sector, was necessary despite the pension assets growth of over N12.3 trillion and other milestones achieved.

    Another area of improvement, he said, is the level of pension assets to Gross Demostic Product (GDP).

    He said Nigeria’s level of pensions assets to GDP is only a little over seven per cent while in developed markets, it’s above 100 per cent.

    He noted that while the level of our pension assets is relatively large in absolute terms, when you look at it in relation to GDP, it is actually low.

    He said this meant that there was the need to increase penetration of the pensions scheme.

    He also said while they could applaud the industry as it had grown in areas over the years, there were still areas that required improvement, noting that this was not lost on them.

    He said they would continue to work with the regulator and other stakeholders, including the National Assembly, on several areas in the short and long terms.

    According to him, these include market development, service delivery, national impact, upskilling of pension professionals and maintaining a sound and ethical environment within the industry.

    He said: “On market development, we are engaging with market operators, the exchanges, the regulators, and international organisations to develop new and alternative products that pension funds can profitably invest in. It is in ours and our contributors’ interest to continually find new products and markets that meet our objectives. On service delivery, we realise that the industry needs to reduce its cost to acquire and serve its current and future contributors. We need to increase the level of technology adoption and collaboration within the industry on shared services and the likes.

    “In addition, we are working towards ensuring that the pension industry has a greater positive effect on national development by increasing our funding for infrastructure and transformational companies, sectors and projects in a sustainable manner that does not jeopardise our fiduciary responsibility to the pension contributors who are the ultimate beneficiaries of the funds. We also need to continue the process of improving professionalism within the industry by focusing on learning and development and adoption of international best practices in our operations

    “Then, we must work to protect the integrity of the industry, by ensuring a level playing field for all operators and a process to address grievances and other issues through a self-regulatory framework. I personally want to thank the National Assembly for their support in providing the necessary legislative framework for the industry to thrive. While we acknowledge the strides we have achieved, we look forward to your constant support and collaboration in our quest to provide a befitting retirement framework for Nigerians. I would also like to say that the continuous improvement of the industry rests on the shoulders of all of us at this retreat today. We all have our individual and collective roles to play. So, I call on us all to further actualise the dream of every Nigerian to retire knowing that their accumulated pensions would help to provide a fairly decent lifestyle for them throughout their retirement years.”

    The PenOp chief said the growth of any industry is premised on communication among the key stakeholders.

    Over the years, he said PenCom and the operators had built a strong and robust stakeholder engagement framework which has significantly assisted in the growth and development of the industry.

    “We have also developed a strong relationship with the National Assembly whom we recognise as key partners in the industry. In the last 17 years, Nigeria’s pension industry has certainly come a long way from when the pension reform act was initially passed in 2004.The industry has moved from a largely unfunded pension system to one that is fully funded, professionally managed, and mainly private sector driven. We can all agree that the Contributory Pension Scheme practised in Nigeria, has adopted international best practices, is technologically driven and has grown steadily over the period.

    “There is also a marked progress with respect to the level of professionalism within the industry. The pension industry has raised the bar for professionals locally. The investment, risk and compliance professionals within the industry can favourably compare to their counterparts anywhere in the world. Indeed, the industry has bred a new class of pension professionals across board over the years,” he added

  • Pension complaints and solutions

    Pension complaints and solutions

    OKECHUKWU: I retired from  the Joint Admissions Matriculation Board (JAMB) since October, last year.  But my pension has not been paid.

    Recall that after I retired, I attended the verification in March 2021. Yet, I have not being paid.

    My landlord has given me quit notice. I cannot feed my children any longer. I am sick and can’t get money for medical treatment. Please I need your intervention.

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

    DR DUMNAMENE: Dear Omobola, I am from Rivers State.

    Kindly assist me to wipe my tears away by telling them to implement my monthly pension that was stopped sometimes last year due to double PIN.

    I was referred to ARM Pension from Fidelity Pension for recapturing, which I did. I don’t know why the issue is still lingering. Your assistance is needed. Thank you.

    PENCOM: You are hereby requested to forward your Retirement Savings Account (RSA) details; that is, PIN of the two PFAs for the Commission to investigate further.

    You are also requested to provide a valid contact number through which you can be reached. Thank you.

    MRS ANEKE: Dear Omobola: I want you to help me get my late husband’s benefits. I am suffering with five children and no accommodation.

    The Aviation authorities quit us from the official quarters since August 3, 2019, after my husband’s death in July 2018.

    I do not have a job. I am appealing to you to help me. You are my last hope.

    PenCom requested for my husband’s PIN number in my complaint that you published earlier and I have been sending it to them, but nothing has been done. I want to hear from them.

    PENCOM: Please be informed that a Presidential Approval was recently given for the payment of outstanding pension liabilities under the Contributory Pension Scheme (CPS) and as such your late husband’s benefits are being processed. Once the payment is effected, you will be contacted by the Pension Fund Administrator (PFA). Thank you.

    MBAH: Good day. I sent my request for payment of 25 per cent out of my pension to Fidelity Pension since last December. But I am yet to get it. Please assist me.

    PENCOM: Investigations revealed that your request is yet to be submitted by the PFA to the Commission for approval. You are hereby requested to visit your PFA, that is, Fidelity Pensions, to ascertain the status of your request.

    MERCY: This is a reminder to you on my late husband’s unpaid benefits. His PFA is First Guaranty Pension Limited.

    Please, I am really suffering with my children. The aviation authorities sent me out of the official quarters since April 3, last year after my husband death on October 5, 2019.

    I am appealing to you in God’s name to help me. You are my last hope. May God continue to bless you for your kindness.

    PENCOM: You are required to provide your late husband’s RSA PIN to enable the commission look into your complaint.

    ANTIGHA: I retired from Nigeria Television Authority but no verification from PenCom due to COVID-19 pandemic. My PFA has refused to attend to him. Kindly help.

    PENCOM: The National Pension Commission (PenCom) recently developed an online enrolment application for retirees and it is in the process of being deployed for activation.  For update on actual activation date, you are requested to frequently visit your PFA and pension desk officer.

    AJETOMOBI: I lost my sister on February 16, 2016. Her pension manager is Legacy Pension and we have been going there to claim her benefits since she was not pensionable, having worked with Secondary Education Board Abuja for only five years. We have submitted the necessary documents for over a year. But anytime we went there, they kept telling us that they were doing one verification or the other. It has been frustrating. Please we need your help. Kindly assist us.

    PENCOM: You are required to provide your late sister’s RSA PIN to enable the commission investigate your matter.

    ABUBAKAR: I was with a private international organisation where I served for five years and contributed to Premium Pension. I later worked at a  government institution for 12 years with Leadway Pension as my PFA. How can I get back my contributions with Premium Pension back?

    PENCOM: From the forgoing, it can be gleaned that the complainant has two retirement savings accounts. He is advised to write to the National Pension Commission so that the issue of multiple registration can be resolved. He should also attach relevant documents such as the registration slip from the two pension fund administrators.

    ADODO: The approval for payment of my retirement benefits has not come for more than two months. My PFA kept telling me that PenCom was yet to give approval. Kindly find out the reason for the delay.

    PENCOM:  The complainant is hereby advised to provide his RSA PIN as well as indicate if it is programmed withdrawal or annuity that is being sort

    ANONYMOUS: I want to remain anonymous. My PFA is Premium Pension Limited. My issue is thus: On September 16, 2020, I received a text message that says: ‘Please be informed that people have received approval from PenCom regarding your pension benefit payment’. Contact 09-4615700 for further information. The next day, another text message came as follows: ‘Dear member, kindly disregard the SMS received on approval from PenCom. This was sent in error. We apologise for any inconvenience caused as a result of this.

    Please, sir, who is fooling who.

    PENCOM: Kindly ignore messages on pension payments claiming they are from the Commission, PenCom does not contact individuals; only Pension Fund Administrators are allowed to contact retirees to notify them on such related issues. However, kindly furnish the Commission with your PIN for further investigations to be conducted.

  • Pension complaints and solutions

    Pension complaints and solutions

    IFADA: Thanks for this platform that allows concerned citizens to express their worries.

    What is responsible for people not getting their lump sum one year after retirement? This was not the  intent of the Pension Reform Act 2004. Somebody retired in June 2020 and uptil now, the lump sum has not been paid, and also the monthly stipend. What is going on?

    NNANNA: l am a contributor with Crusader Sterling Pension. I am 48, former banker but now in private practice.

    Please, how can I access funds from my contribution? I accessed 25 per cent of my contribution six years ago when l lost my job. Kindly put me through. Thanks.

    OKECHUKWU: I am a retiree with the Joint Admissions Matriculation Board (JAMB). Since last October, my pension has not been paid. Even after I attended the verification conducted in March 2021, my penison was still not paid.

    My landlord has given me quit notice. Also, I cannot feed my children.

    Besides, I am sick and doesn’t  have money for medical treatment. Please I need your intervention.

    GEGERE: I retired from the Delta State Civil Service in 2016.  Since then,  Crusader Sterling Pensions has not added any increment to my pension payments. I am worried hence this complaint. Kindly follow up with my complaint.

    IVARA: I retired from the Nigeria Police in 2015. Payment was made to pensioners in other federal establishment under the Consequential Adjustment to pensions benefits arising from the implementation of new minimum wage on April 30, 2021 and the arrears took effect from April, 2019 and payment commence from May, 2021. I want to know if the position police retirees/pensioners are not considered? Are we not pensioners?

    MRS ANEKE:  I want you to help me get my late husband’s pension. I am suffering with five children and no house to stay.

    Aviation authority sent us out of the official quarters on August 3, 2019, after my husband ‘s death in July 2018. Worse still, I do not have a job.

    I am appealing to you to help me. You are my last hope. PenCom requested for my husband’s PIN number in my complaint that you published earlier and I have been sending it but nothing has been done. I want to hear from them.

    DR DUMNAMENE: I am from Rivers State.Kindly assist me to wipe my tears by implementing my monthly pension that was stopped  last year due to double PIN. I was referred to ARM Pension from Fidelity Pension for recapturing, which I did. I don’t know why it is still lingering. Your assistance is needed. Thank you.

    MBAH: I sent my 25 per cent request to Fidelity Pension since last December. But I am yet to get it. Please assist me.

    THE NATION: The newspaper will intervene. Therefore Nnanna, Ifada, Okechukwu, Gegere, Ivara, Mrs. Aneke, Dr. Dumnamene and Mbah should look out for the newspaper next week for responses from PTAD.

    DOKUN: My name is Dokun, next- of-kin to the late Farinmade whose PFA is Premium Pension. He worked at Nigerian Postal Service (NIPOST) from September 18, 1992 to June11, 2010, before his death. He was on Salary Grade: GL 08/8.

    I wrote to the PFA and they said ‘work-in-progress on payment’. But up till now, I am yet to get any payment from them.

    Note that the last letter dated May 31, 2006 to the deceased from PenCom, following my letter. It disclosed that NIPOST N36,485:60 was paid into his pension account from July 2004 to February 2006.

    All documentations had been done in Abuja office of PenCom office since the death of Farinmade, but nothing has been heard since.

    Kindly help me get my late brother’s entitlements.

    PenCom: A search on the Commission’s database indicates that this is a non-existing entry. This means that no official report has been made on the deceased to the Commission.

    However, you are advised to return to the PFA and re-submit relevant documents for onward submission to the Commission.

    EYO: My name is Eyo. I was on Grade Level 12 at the Nigeria Immigration Service when I retired on November 25, 2019.

    My PFA is Premium Pension Limited. Please, madam, nothing is written about Premium Pension Limited, my pension administrator, in the paper.

    Since I retired, my benefits are yet to be ready.

    PenCom: Information from our database indicate that your Accrued Rights and Pension Contributions have been paid into your Retirement Savings Account. You may liaise with your PFA to check the status.

    ANONYMOUS: Thanks for what you have been doing for pensioners. May God Almighty continue to be with you.

    Kindly help on this issue. If a pensioner collects his lump sum, say after five years and he/she has some financial challenges, can he or she collect from the balance of the lump sum and reduce his or her monthly pension?

    PenCom: Lumpsum withdrawals are collected only once. The Pension Reform Act (PRA,2014) does not provide for the use of the RSA balance to cater to financial challenges, rather the RSA balance is utilised for monthly pension through the expected life span of a retiree.

  • National Assembly seeks input for pension law’s review

    National Assembly seeks input for pension law’s review

    The National Assembly is seeking input for the review of the pension system, the Chairman, Senate Committee on Establishment and Public Service, Senator Ibrahim Shekarau, has said.

    He stated that this became necessary, following complaints that retired workers lack adequate financial security.

    Shekarau, who spoke during the Pension Fund Operators Association of Nigeria (PenOp) third retreat for Joint Committee for Establishment & Public Service of the Senate and the House of Representatives Committee on Pensions, said the legislature was ready to review the pensions system.

    The retreat, which held in Lagos, had as its theme: “17 Years of pension reform: Challenges, gains & opportunities”.

    The Senate Committee Chairman emphasised the need to improve management and governance of pension funds by involving workers and employers.

    He noted that there was the need to review pension increase in line with the increase in national minimum wage.

    He said the performance of pension fund managers would be crucial to the system’s success.

    Chairman, House Committee on Pensions, Hon. Alhassan Rurum said the country requires a system that provides early access to pension benefits for employees on retirement.

    He noted that as the lawmakers   represent Nigerians, their responsibility is to identify the loopholes in the legislation and fix them.

    A member of the House of Representatives, Committee on Pension, Hon. Olaifa Jimoh Aremu said a large per cent of the working population was not covered by pension schemes capable of providing adequate retirement income.

    Aremu, House of Representatives member representing Egbado North/Imeko-Afon Federal Constituency, Ogun State, noted that a rewarding old-age pensions scheme give workers the stability to perform well and contribute to growth.

    According to him, Nigeria ‘s pension scheme has an ageing population to serve.

    He noted that the country is yet to have best managed schemes that are financially viable with good compliance and performance indicators.

    He is seeking the amendment of Section 13 of the pension Reform Act 2014 to ensure prompt payment of retirement benefit without undue delay.

    Former Director-General, National Pension Commission (PenCom), Mr Muhammad Ahmad expressed satisfaction with the state of pension fund assets of the Contributory Pension Scheme (CPS) that has been growing by 25.3 percent, year-on-year (y/y), to N12.29 trillion in 2020 from N9.81 trillion in 2019.

    He said the number of Retirement Savings Account (RSA) holders rose by 17.5 percent to 9.22 million in 2020 from 7.85 in 2019.

    To protect the value of such assets, Ahmad advised pension fund managers to invest in foreign money market securities.

    He said: “With Naira exchanging at N500 to a dollar, investing in economies where their currencies are stable will protect the assets base from the volatile domestic market.

    “Analysis of the pension asset reports so far released this year, (2021), by PenCom showed that the total pension assets allocated to foreign money market securities stood at N18.69 billion as of December 31, 2020 but allocation has been trimmed down to N41 million as of April 30, 2021, representing a decrease of 99.78 per cent.

    “Given the exchange rate of the Naira in relation to the major currencies of the world, what is lost in interest rate could be made up for through exchange rate differences.”

    Ahmad stressed the need for pension fund managers not breach regulations, to send a  message to the customers that the industry was upholding high ethical standards.

    He called for strategies for financial inclusion of the informal sector.

    “The overall index value for the system could be further increased by opening CPS to the informal sector. The most crucial challenge was extending even minimal old-age retirement benefits to workers in the informal sector.”

    Ahmad urged the parliamentarians to organise stakeholder’s engagement at their constituencies level to enlighten their people on the benefits of CPS.

    Director-General (DG), National Pension Commission PenCom, Mrs. Aisha Dahir-Umar said the commission was making efforts to improve the pension system.

    The DG, who spoke through the Commissioner, Inspectorate, Mr Clement Akintola, said only five states in the federation have complied in the implementation of CPS.

    She appealed to state governments to support the growth of the CPS, noting that the Federal Government has ordered the payment of outstanding pension liabilities of Federal Ministries, Departments and Agencies (MDAs) workers.

    She said that the development was significant giving that it has been a challenge since 2014.

    The President, PenOp, Wale Odutola, said the performance of the pension system had put Nigeria at the top.

    This, according to Odutola, who is the Chief Executive Officer, ARM Pension Managers Limited, comes amid concerns that the pandemic will hit future pensions, with reduced contributions, lower investment returns and higher government debts.

    “Nigeria has a performing pension system and an established system with good governance and wide coverage of employed residents. But we need to continue to find ways to grow the space. We have to develop new products that people can invest in. We should move into private oriented products.

    The Chief Executive, PenOp, Oguche Agudah, said the event was part of the strategy to deepen the relationship between the pension industry and the lawmakers in addition to creating a forum to discuss and proffer solutions to emerging challenges.

  • PTAD: Resolving pensioners’matters

    PTAD: Resolving pensioners’matters

    OGUNDIJO: Good Day. I read in The Nation of Wednesday June 23, 2021 about pensioners’ problems. My concern is on the minimum wage increase. I registered with NSITF. I would like to know if the minimum wage increase was extended to qualified pensioners. Thanking you in advance for your kind reply.

    DSP UZOMA:  My last station was the Police College, Oji River, Enugu State. We were told that our monthly pension would be increased from May 2021 as approved by the President. We were asked to go for documentation at the state Police Headquarters close to retirees. And we did. But when we received our May 2021 pay, there was neither change nor incremental adjustment. Why is this so? Thank you.

    OMOGBOYE: My husband, Sgt. Omogboye, died on February 26, 2004. He served at 2 Squadron Police Mobile Force, Keffi Street, Obalende, Lagos before he passed on. His Next-of-kin (NoK) are our children Sakirat Omogboye, Ismaila Omogboye and Mohamed Omogboye and I.

    Only my late husband’s gratuity of N239,000 had been paid to the family since 2004, and N314,000 for pension. We were told that the pension would be paid monthly to the children when they were 18 years. Yet, since, then, nothing had been paid.

    I was also told that we would be given N500,000 for insurance while the children would be entitled to scholarship because my husband died on  duty.

    However, I thank you so much for your help. I googled the newspaper to see my complaints and saw PTAD’s response to me in the May edition. PTAD asked if the other next-of-kin and I were verified and if so, we should send the verified slip to their email and if not, we should come to Abuja for verification.

    We sent the verified slip to them. This is for me and my daughter because we have been verified. But two of my sons are yet to be verified.

    Please, we still need your help because they have been slashing my late husband’s pay since he died in 2004.

    Even someone allegedly collected his salary for one year after his death before a signal was sent to stop the payment.

    Please come to our aid, because we are suffering. Thank you.

    AKPANIKA: I worked with the then P&T.  The date of my first appointment is September 22, 1962 and that of retirement June 1, 1986.

    My name has been removed from the payroll since May 2018. I was verified and captured on May 31, 2019.

    I am an elderly and frail- looking woman with bad sight and has difficulty moving around.

    I will appreciate if PTAD will take prompt action to respond to my application.

    FADIPE: I will like to inform you that the my minimum wage for 24 months paid to me is not correct.

    SHEHU: What is the problem with our consequential adjustment arrears payment for Federal Poly, Bida. Others have been paid since last month, but ours is yet to be paid. Kindly assist us.

    IJABOR: My complaint is on short-payment of gratuity. I served for 31 years and retired on February 9, 2006 as Superintendent of Prisons on Grade level 11 Step 7.

    I was paid gratuity of N1,665,569,08, using 268 per cent, instead of 420 per cent for 31 years. Please see the Federal Ministry of Establishment and Management Services Circular of September 13,1991.

    UZOR: I call on PTAD to pay my outstanding gratuity. I retired as Permanent Secretary from Imo State. But the federal share of my gratuity has not been paid despite the November 2015 zonal verification in Owerri by PTAD.

    JABARU: I am sending this message on behalf of my father Jabaru from Osogbo, Osun State.

    He retired from the Ministry of Works and Transport, Osogbo on August 16, 2006, but is yet to receive his federal share gratuity and pension arrears while others in the same category as him have received theirs.

    Prior to the directives he was given by the staff members on the PTAD helpline, he attached the required documents, which include his bank statements from 2006 to date, his verification, among others, to the official email address of PTAD via the email.

    I will be grateful if this can be looked into and the action be expedited so he can get his pension arrears and gratuity on time because he has been on this issue for quite a long time and he is quite aged.

    Kindly assist us.

    OGUNGBESAN: I retired from the Ministry of Agriculture, Omu Aran, Kwara State. My complaint is: short payment of monthly pension/salary since September 1, 1998.

    UDE: I retired from NIPOST. Please I have not seen my pension areas while my colleagues have seen theirs.

    Kindly use your good offices to look into my matter because I don’t have anybody to speak for me.

    GOKOP: I retired from Plateau State civil Service, with federal share. I was verified by PTAD. My colleagues are on pension pay roll, but uptill now, I am yet to be on the pay roll. PTAD, help me.

    MUSTAFA:  I retired from the Lagos State Post-primary Teaching Service Commission on April 30, 2004, after 35 years.

    The date of my first appointment at Epe Division Grammar School, Lagos State is June 1,1969. My complaints are that I have not been paid the federal share of my gratuity from 1969 to 1976. My pension from May 1, 2004 to February 2008 has not been paid. Instead, I was paid from March 1, 2008 to date. Thanks for your assistance. May God bless your efforts.

    THE NATION: The newspaper will intervene. Therefore, Ogundijo, DSP Uzoma, Omogboye, Akpanika, Fadipe, Shehu, Ijabor, Uzor, Jabaru, Ogungbesan, Gokop and Mustafa should look out for the newspaper next week for responses from PTAD.

  • PTAD: Resolving pensioners’ matters

    PTAD: Resolving pensioners’ matters

    ANNONYMOUS: I want to remain anonymous. Is it possible for you to get the table on the new minimum wages of pensioners for us?

    PTAD: Kindly inform the pensioner to direct his complaint to the National Salaries and Wages Commission who issued the circular on the increase of pension.

    RAPHAEL: I am Raphael. I retired from Jos Steel Rolling Company in 1993, on grade level 12/1. Since then, PTAD has been under paying me. I lodged several complaints during verifications, but no solution till now.

    Thank God for having you at the point of my solution which is visible and assured. My cumulated arrears are over 20 years. You are my saviour in this matter. Kindly help me.

    PTAD: Advise pensioner to scan and send his pensioner verification acknowledgement slip to complaints@ptad.gov.ng. Pensioner to also provide his contact phone number to enable us contact him.

    OBI: I am Obi. I resigned from the  Federal Housing Authority in 2005, after 14 years of service. In February this year, I submitted photocopies of my documents as a prerequisite for the verification at PTAD headquarters Abuja, but I am yet to be invited. I really don’t know what to do next, as I am yet to be put on pension payroll.

    PTAD: Pensioner to provide his contact phone number to enable us contact him and schedule him for verification. He can also contact PTAD on 09-4621700 to request for a verification

    CHIDI: My name is Chidi. My mother, Mrs. Augustina, has not been paid any pension for over 15 years. Although it is a long story, which is partly not the fault of PTAD. But PTAD has taken over payment of  pensioners, including my mother as well as her group in Nigerian Railway Corporation (NRC), Enugu District.

    I would like to know when the pensioners (Mrs. Augustina inclusive) in NRC, Enugu District that were part of the mass retrenchment in 2005 by former president Obasanjo administration, start receiving their monthly pension like others?

    Many of her colleagues are dead and some incapacitated due to hunger, hardship, trauma, sickness. That Mrs Augustina still alive is only by the grace of God. More so, this is against the backdrop of the legal dynamics between her group and NRC, Enugu District, with excruciating feebleness and available financial support won the case.

    Please Mrs. Augustina (my mother) wants to know what is delaying them from receiving their pension till date.

    PTAD: If the pensioner has been verified by PTAD, advise her to scan and send her pensioner verification acknowledgement slip to complaints@ptad.gov.ng.

    Pensioner to also provide her contact phone number to enable us contact her and advise her further regarding her pension.

    ADESETAN: My name is Adesetan, I am a state pensioner with federal share. I retired on May 2, 2008. I have been receiving my monthly pension, but my federal share of N46,408.46 has not been paid.

    Kindly assist with the prompt payment.

    MOSES: My name is Ogundele. I will like to inform you that the minimum wage for 24 months is not correct. I was paid N64,304,44. So, increase per month is N6,192,19. Some of my colleagues that are on the same grade as me were also short paid.

    Kindly help see that I am correctly paid.

    PTAD: Advise pensioner to scan and send his verification slip and complaint to complaints@ptad.gov.ng.

    DANLAMI: Thanks to your newspaper for your responses to the plight of pensioners. It is very sad that since NITEL verification of January 2018, former NITEL staff and I are yet to benefit from the pension payments. Death can come at any time. Therefore, please continue to help us. God bless you abundantly.

    Kindly help me.

    PTAD: Pensioner’s complaint sent to the Operation Department for their review and further action. Please advise pensioner to provide his contact phone number

    ISHOLA: My name is Ishola. I am a Federal Government’s pensioner  (federal). I received my pension till last December when I was paid N50,000. Later I received a message that I have been over paid and that they would deduct the over payment. This was billed to end by April 2021, with some balance to claim, but nothing was paid into my account. Help me look into my matter.

    PTAD: Inform pensioner that his over-payment recovery has been completed. He was put back on the payroll in May 2021. He is advised to confirm the payment from his bank

    IZAH: My name is Izah. The minimum wage increase sent for 24 months is incorrect. I was paid N64,306,44, whereas the increase per month is N6,192,19. I have been short paid. Kindly help to see that the short- payment is amended and paid back to me. Thanks.

    PTAD: Advise the pensioner to scan and send his pensioner’s verification acknowledgement slip to complaints@ptad.gov.ng to enable the department review what was paid to him. He should provide his contact phone number.

    DINNEYA: I am a pensioner with the Joint Admisions Matriculation Examination Board (JAMB) since last October. My pension has not been paid even when I had attended the verification conducted in March 2021.

    My landlord has given me quit notice. I cannot feed my children any longer. I am sick and I don’t have money for medical treatment. Please I need your intervention and help.

    PTAD: The department is  working to resolve his complaint. However, he can scan his verification slip to our e-mail complaints@ptad.gov.ng to enable us follow-up on it.

  • LASPEC urges prospective retirees on early documentation

    LASPEC urges prospective retirees on early documentation

    The Lagos State Pension Commission (LASPEC) has urged workers to do their documentation six months to their retirement.

    It stated this during the 20th Pre-Retirement documentation Seminar.

    The virtual event was attended by the Permanent Secretary, Civil Service Pension Office, Mr Oluwole Onasanya, who enlightened prospective retirees on the gains of early and proper documentation, health care, financial prudence and independence after retirement.

    Onasanya, who represented the  Commissioner for Establishments, Training, and Pensions, Mrs. Ajibola Ponnle, congratulated the prospective retirees on their preparation towards disengagement from active service.

    She commended LASPEC for their consistency towards ensuring that retirees were attended to.

    She said: “LASPEC has done tremendously when it comes to preparation and presentation on retirees’ bond certificates. In the last two years, they have maintained consistency and prudence and they have continuously ensured that Lagos State remains the only state where pension administration matters are working effectively.”

    Mrs. Ponle stressed that the Babajide Sanwo-Olu administration is centered around ensuring that retirees were paid promptly, adding that it is ensuring that pending payments were offset to facilitate the pay-as-you-go mode of payment for them.

    She stressed that the governor was committed to the welfare of the workers and pensioners across the state.

    LASPEC’s Director–General, Mr. Babalola Obilana stated that the purpose of the seminar was to guide staff members  of the civil service to enable them exit smoothly.

    “Having spent a significant amount of productive years working for the state government, it is imperative that transition to retirement must be stress free.

    “Today’s programme was put together to educate you on the necessary documentation required for you to access your accrued rights and pension after you retire. The programme will provide valuable information on how to plan your personal finances in retirement, knowledge of investment and estate planning, and health tips to promote healthy living,” he said.

    LASPEC’s Executive Director, Finance and Investment Mr. Olumuyiwa Oshin, advised the prospective retirees to practise what they had learnt so that their exit would be easy.

  • Seven years after, Federal Govt implements pension law

    Seven years after, Federal Govt implements pension law

    The Federal Government has ended its seven years’ default of the Pension Reform Act (PRA) 2004. Omobola Tolu-Kusimo writes on how feat the National Pension Commission (PenCom) achieved this feat.

    The Federal Government is leading by example on compliance with the pension. How? President Muhammadu Buhari has approved the payment of outstanding pension liabilities under the Contributory Pension Scheme (CPS).

    The major objective of the pension reforms carried out in 2004 is to ensure that every  worker in either the public service (of the federation, the public service of the Federal Capital Territory (FCT), states and local governments) or the private sector receives his retirement benefits timeously.

    Enforcement by the National Pension Commission (PenCom) started with pensions being paid promptly until 2014 when it suffered setbacks on pensions of Federal Government’s retirees and their next-of-kin. They were no longer paid on time, with about two years’ backlog in payments.

    There were defaults on Section 4 (1) of the PRA 2014, which increased pension contribution from 15 per cent to 18 per cent.

    Many employers in the private sector were also defaulting as they were not remitting 18 per cent and in some cases not remitting at all, thereby delaying pension payment of their employees.

    But the good news from President Buhari last week was that it is ready to fully implement the provisions of PRA 2014, to turnaround the fortunes of employees, retirees and pension operators.

    The regulator is also relieved as employees and retirees have held the commission responsible for the setback suffered in the industry.

    Suffice to state that part of what the commission is yet to achieve is Section 89(2) which grants employee’s permission to use a percentage of the balance in their Retirement Savings Account (RSA) for residential mortgage; Section 173(3) of the constitution , which states that pensions shall be reviewed every five years or together with any federal civil service salary reviews.

    PenCom Director-General, Mrs. Aisha Dahir-Umar said: “President Muhammadu Buhari has approved PenCom’s submission on the payment of some critical aspects of the outstanding pension liabilities of the Federal Government under the CPS.

    “Specifically, the President has approved payment of outstanding accrued pension rights for verified and enrolled retirees of treasury-funded MDAs that retired, but are yet to be paid their retirement benefits, as well as the backlog 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 Federal Government’s 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. Payments for retirees and employees would take effect from July 2014.

    “It is worthy to note that, subsequently, the Federal Government is expected to continue with the payment of the 10 per cent rate of employer pension contribution for its employees, thus ensuring a remittance of at least 18 per cent monthly (employer 10 per cent and employee eight per cent) as provided by the PRA 2014. Funds have already been made available for the settlement of the above stated pension liabilities. Accordingly, remittance into the various Retirement Savings Accounts (RSAs) of the affected retirees and employees is currently being processed. The affected retirees and employees would be notified in due course by their Pension Fund Administrators (PFAs).

    She continued: “The settlement of the outstanding accrued pension rights of verified and enrolled Federal Government’s retirees and compliance with the reviewed rate of pension contributions are significant developments, that have resolved the challenges in these aspects that have lingered since 2014.

    “Finally, the Board and Management of the Commission reiterates their appreciation to Mr. President for his untiring support and commitment to the implementation of the Contributory Pension Scheme and ensuring the welfare of retirees.”

    The Director, Centre for Pension Rights Advocacy (CPRA), Ivor Takor, said it is clear that the Federal Government is ready to fully implement provisions of the Pension Reform Act.

    The expert stated that 16 years after the Act came into force of the CPS, landmark achievements had been recorded.

    He said: “After implementing the scheme for 10 years, the PRA 2004, which introduced the scheme, was reviewed to take on board desirable changes aimed at taking the scheme to the next level.The outcome of the review was the enactment of the Pension Reform Act (PRA) 2014. The Act brought on board some changes into the supervision and administration of the scheme, including increases in the rates of contributions of the employer and employee. Another introduction was the permission of the use of a percentage of the balance in an employee’s Retirement Savings Account (RSA) for residential mortgage.”

    Takor added: “The CPS, which is mandatory for employees in the public service and employees of private sector organisations with more than three employees, left the majority of employees in the unorganised private sector and the self-employed with no financial protection in their old age.To expand the coverage of the CPS, to these segments of the citizenry, PenCom, introduced the Micro Pension Plan within the framework of the CPS.The Plan allows citizens who fall within the bracket earlier mentioned, to make financial contributions towards the provision of pension at retirement or incapacitation on health grounds.

    “In line with Section 13 of PRA 2014, PenCom, on Monday, November 16, 2020 launched the Transfer Window, which allowed RSA holders to transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year. The growing size of pension assets is impacting positively on the financial landscape of the nation, with a growing role as institutional investors, being played by PFAs and life insurance companies, indicative of the positive impact the CPS is having on the economic growth of the nation. PenCom, Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) as well as life insurance companies combined; employ thousands of graduates and experts in diverse fields, thereby contributing to solving the hydra-headed monster of unemployment that the nation is facing. From a non-existing industry in 2004, the CPS has evolved the pension industry, which is fast becoming a power base in the financial sector of the economy.

    “Unfortunately, while the CPS is impacting positively on the nation, the hens that are laying the golden egg, retirees of federal public service, are leaving in abject poverty and penury as a result of the non-payment of their retirement benefits. It is, therefore, heart-warming, and worthy of mentioning, that the Federal Government has revealed that it is ready to fully implement the provisions of PRA 2014.”

    He commended the President for the approvals and urged him and his officials to sustain the policy direction.

    “We are drawing the attention of the President and his officials to Section 173(3) of the constitution, which states that pensions shall be reviewed every five years or together with any federal civil service salary reviews, whichever is earlier. We point this out knowing that the review is a constitutional matter and this government respects and upholds the provisions of the constitution.

    “We, at the Centre for Pension Rights Advocacy, join workers and pensioners to appreciate the Board and Management of PenCom for leaving up to its responsibility of effective supervision and regulation of the industry. We are aware of the progress being made by PenCom to ensure compliance in the private sector. We are not unaware of the huge challenge PenCom has to go through to effect compliance in the public sector, being an agency of the Federal Government.

  • Pension complaints and solutions

    Pension complaints and solutions

    DR DUMNAMENE: Dear Omobola, kindly assist me to wipe away my tears by asking for the implementation of my monthly pension that was stopped last year due to double PIN. I was referred to ARM Pension for recapturing, which I did with Fidelity Pension. I don’t know why it is lingering till now. I need your assistance. Thank you. – Dr Dumnamene form Rivers State.

    ANEKE: PenCom through The Nation asked me to send my pension details. My PIN number is Anonymous. PenCom should, please, look into my matter.

    SHAIBU: Good day, Omobola, my name is Shaibu. I work at a university. My complaint is that some of us have retired since January, 2021. When are we going to do our verification?

    THEOPHILUS: My name is Theophilus Adelokun Olasehinde. Is it a crime to serve our fatherland faithfully for 35 years? We are subjected to street begging, pushing us into poverty. We did not introduce ourself to contributory pension scheme but government did. Now the thing has turned into contributory poverty suffering. Please, address our issue before we all die because we served our fatherland.

    MUNDI: PenCom mulls pension increase, 33 per cent arrears for CPS pensioners and others. This is what was widely read from a lot of media sources on some overdue settlements on narrated arrears to be paid by the PenCom to her pensioners, which till date looks more of a mirage to those of us the beneficiaries. The much-orchestrated 33 per cent arrears payment on the Page 35 of The Nation of Wednesday, December 6, 2017, has not been put into reality. The transit balance arrears of those migrated into implementations of June 2004, Pension Reform Act has not been paid. Please, can we have clarity on these critical issues. Thanks, in anticipation.

    EYONG: This is a reminder to The Nation. I am Eyong. I served with Nigeria Police Force from August 1974 to August 2009. I am with Stanbic IBTC Pension. I want you to help me draw the attention of PTAD to Section 15 (a) of PRA of 2004 as amended. It said as from June 30, 2004 being the commencement of the Contributory Pension Scheme, the “Accrued Pension” right to retirement benefits of those who have more than three years to serve be kept in a bond till full retirement. The lawmakers saw that the accrued pension was meant to be transferred in PRA 2004 before the amendment in 2014, and included the word accrued being past tense so that one should not confuse it to include monthly pension. Under the Defined Pension Scheme, there is no accrued monthly pension before you retire but if you reach 15 years and above in service, you are entitled to gratuity only. Almost seven years after the act was amended and those who retired from 2017 till date have completed the 10 years pension given to them. Therefore, PTAD is supposed to have resumed their monthly pension.

    Also, Section 119 of the PRA 2004 as amended states thus” where any other enactment of any law is inconsistent with the Act, the Act shall prevail. Also, Section 48 (1) PRA 2004 as amended mandates PENCOM to make only regulations that ensures compliance with the Act. I am appealing to PTAD to resume our monthly pension for the years we served under the Defined Pension Scheme, which Section 45 of PRA 2004 imposes on PTAD as a duty.

    THE NATION: The newspaper will intervene. Therefore, Dr DUMNAMENE, ANEKE, SHAIBU, THEOPHILUS, MUNDI, EYONG, ANNONYMOUS and OBAKORE should look out for the newspaper next week for responses.

  • Ogun, Oyo workers’ fate hangs in the balance

    Ogun, Oyo workers’ fate hangs in the balance

    Workers and retirees remain endangered owing to the non-compliance by state governments with pension law. Omobola Tolu-Kusimo reports.

     

    Two years after the Ogun State Governor, Dr. Dapo Abiodun, came to office, the future of the state workers remains hopeless as the government has no pension plan for them.

    The state, which has been deducting 7.5 per cent employer and 7.5 per cent employee pension contributions under the Contributory Pension Scheme (CPS), during the tenure of the former Governor Ibikunle Amosun, stopped remitting same since 2015.

    This was the status of implementation of the Contributory Pension Scheme (CPS) in states for all zones as at March, this year.

    The state has failed to remit pension contributions into the Retirement Savings Accounts (RSAs) of the state and local government councils’ employees.

    Similarly, the state has arrears of accrued pension rights; yet to open retirement benefit bond redemption fund account; yet to commence funding of the accrued pension rights; and yet to institute a group life insurance policy.

    The only thing it has done was the enactment of a law on the CPS in 2008, and amended in 2013 to extend its transition period to 2025.

    The state government established two Pension Bureaux – state and local government; registered employees with Pension Fund Administrators (PFAs) and began deductions from workers’ salary without remitting same to the PFAs.

    The implication is that workers and retirees of the states will most likely not have pension benefits to fall back on after retirement.

    Oyo State’s case can be termed as the worst in the Southwest Zone.

    The state under the administration of Christopher Alao-Akala enacted a law on the CPS in 2010.

    During the administration of the late Governor Abiola Ajimobi, the state pension liability soared.

    According to PenCom, the state in 2018 forwarded a Bill to amend the Principal Law and the commission had since communicated its observations on the review of the draft amendments to the state.

    The commission said the state under under the current governor, Seyi Makinde was yet to commence remittance of pension contributions; yet to conduct an actuarial valuation; yet to open a Retirement Benefits Bond Redemption Fund Account; yet to establish a Pension Bureau; yet to commence funding of the accrued pension rights; yet to register its employees with PFAs and yet to institute a Group Life Insurance Policy.

    In the case of Osun State, the backlog of unremitted pension contributions and arrears of accrued pension rights is humongous.

    The report further showed that the state is not funding accrued pension rights adequately.

    However, the state has recorded some achievements as it enacted a law on the CPS in 2008, established two Pension Bureaux – state & local governments; and registered its employees with two PFAs.

    The state remitted 7.5 per cent  employer and 7.5 per cent employee pension contributions up to last December for the state employees, despite backlog of pension contributions from May 2019 to last July.

    Also, the state has conducted an actuarial valuation, has valid Group Life Insurance Policy and has opened Retirement Benefits Bond Redemption Fund Account with the Central Bank of Nigeria (CBN).

    Ekiti State has also enacted a law on the CPS, carried out an actuarial valuation, amended the pension law in 2017; opened a Retirement Benefits Bond Redemption Fund Account with the CBN; established a Pension Bureau; registered its Employees with PFAs; remitted 10 per cent employer and eight per cent employee pension contributions up to last September.

    But the state is yet to institute a Group Life Insurance Policy and commence funding of the accrued pension rights.

    Meanwhile, Lagos State has continued to blaze the trail among Southwest states and others in the Federation.

    It has implemented the law on pension contribution increase by contributing its 10 per cent portion of the total increase.

    The only area of concern for the state is that it has arrears of accrued pension rights.

    The state was the first to enact a law on CPS in 2007; conducted an actuarial valuation, amended some sections of the Principal Law in 2019; funding the employees’ accrued pension rights but has arrears.

    It has established Pension Bureau; recently opened Retirement Benefits Bond Redemption Fund Account with two PFAs for the state and local governments; registered employees with PFAs; remitting 10 per cent employer and eight per cent employee contributions; and has valid Group Life Insurance Policy for its employees.

    Ondo State is next to Lagos in terms of PenCom stated in the report that the state enacted a Law on the CPS in 2014, established a Pension Bureau; registered its employees with PFAs; remitting 10 per cent employer and eight employee pension contributions up to January 2021; has valid Group Life Insurance Policy.

    But no actuarial valuation has been carried out as employees covered under the CPS in the state have no accrued pension rights.