Category: Pension

By Omobola Tolu-Kusimo

To avert depletion of the micro pension fund, the National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) with the fund below N5 million to stop paying fee charges.

PenCom Head, Surveillance Department, Ehimeme Ohioma made this known in a circular to PFAs.

He stated that the agency took the step because of the challenges encountered in implementing the micro pension plan by pension fund operators.

According to him, no fee shall be charged until the funds under their management reached N5 million.

He said the PFAs should not charge fees once the daily value of accounting unit of the fund fell below N1, noting that this was to ensure the principal contributions were not eroded.

He said: “The commission shall not participate in micro pension fund fee regime until funds under management of a PFA attains the threshold of N4 billion. The review of the fee structure of the micro pension fund is in the light of challenges encountered in implementing the micro pension plan by licensed pension fund operators.

“The commission has undertaken extensive consultations on the appropriate fee structure for the micro pension fund, which was expected to incentivise licensed operators to market the micro pension plan and grow micro pension assets, to achieve the objectives of the micro pension plan as outlined by the guideline.

‘’The circular takes immediate effect and supersedes its earlier circular issued on December 19, 2019 on fee structure for micro pension fund,” he added.

Meanwhile, the commission is today sensitising pension desk officers of the treasury-funded ministries, departments and agencies on its new enrolment application.

The commission has also automated its retirement verification due to COVID-19 pandemic.

The Head Corporate Communication, PenCom, Mr Peter Aghahowa, said the workshop, which holds in Lagos, would be held also across the six geo-political zones of the country.

He said: “The COVID-19 pandemic has made it difficult for us to carry out retirement verification that we conduct six months before retirement of Federal Government employees in the MDAs. The commission has adopted an automated process instead of the physical exercise in the conduct of the annual verification/enrolment exercise due to the COVID-19 pandemic. This is why we are sensitising pension desk officers on how to use the application.

“We believe that the automated process would ensure seamless conduct of the annual verification enrolment exercise. This new process has two options for the prospective retirees, namely self-assisted or the Pension Fund Administrator (PFA) assisted option. The self-assisted option entails a prospective retiree scanning original copies of all relevant documents required for the exercise and uploading these documents to the enrolment web portal located on the commission’s website, www.pencom.gov.ng. After carrying out this process, the retiree is required to visit his her PFA for the verification and validation of the submitted documents

“If a prospective retiree chooses the PFA-assisted option, he/she is required to initiate and conclude the Verification Enrolment process by visiting his/her PFA to verify and validate relevant original documents to enable the PFA upload these documents to the commission’s enrolment portal on behalf of the prospective retiree.”

By Omobola Tolu-Kusimo

To improve the lives of Keke  riders and their passengers in Abuja, Universal Insurance Plc has launched its Keke Pass campaign in the Federal Capital Territory (FCT) and neighbouring towns.

The product aims at providing cover to Keke riders, their passengers and third-party cover road users with compensation.

The product, launched yesterday  at the Nyanya Keke Park, Abuja, enables Keke riders to get up to N150,000 in compensation. It is being deployed in partnership with the various Keke unions.

The Managing Director/Chief Executive Officer (CEO) of the company, Mr. Benedict Ujoatuonu, said the product became necessary because the conventional insurance products do not take into account the peculiarities of ordinary Nigerians.

“Keke Pass is the Keke Passenger Assurance Safety Scheme and it is intended to provide some personal accident cover for the Keke riders and their passengers in terms of injury, death and third-party liability while riding their Keke. Beyond the unique benefits, this product provides for the Keke riders, it makes it affordable because it is cheaper. It is also very flexible. This is because we are dealing with people in the lower cadre. The product is technologically driven, end-to-end and sold via electronic platform. With your mobile device, you can have access to it.

“I want to encourage every Keke rider in this country to buy this insurance. This is something they are yearning for and now they have the solution provided by Universal Insurance. It is not available from any other insurance company in the country. It is unique to us.”

Ujoatuonu assured of prompt claims payment.

He noted that the product became imperative because “The masses believe that the insurance is for the elite and that they don’t need insurance”.

“More so is the fact that the conventional insurance policies that we have were not designed to take care of the specific needs of the ordinary Nigerian. After about one-year research to understand the business and operations of the Keke riders, we came out with two products – the Keke Pass and Okada Pass,” he added.

The Keke unions partnering us include the Amalgamated Commercial Motorcycle Riders Association of Nigeria (ACOMORAN); the Tricycle Owners Association of Nigeria (TOAN); the National Commercial Tricycle and Motorcycle Owners and Riders Association (NACTOMORAS). The product will be sold via the leadership of the various unions,” he added.

The Chairman, ACOMORAN, Nyanya Area, Bello Abdullahi Kautal Hore, said they would embrace the product and take advantage of it.

He said the product could mitigate the risks we face on the road.

He urged Universal Insurance not to default on claims payment where the need arose.

By Omobola Tolu-Kusimo

 

Lagos State has paid over N30 billion to retirees in two years, the Director-General, Lagos Pension Commission (LASPEC), Mr. Babalola Obilana, has said.

The payment, according to him, was made in the two years of the Babajide Sanwo-Olu’s administration.

Obilana made this known during the Retirement Bond Certificates’ Presentation to the 85th Batch of Contributory Pension Scheme Retirees  in Ikeja, Lagos.

He said it had shown accrued pension rights due to them for their years spent in the service of the state under the discontinued Defined Benefit Scheme (DBS).

He stated that the state has consistently prioritised the payment of pension contributions and this month, about N1.1billion has been credited into the Retirement Savings Accounts (RSAs) of 329 retirees.

He said: “The commitment of the governor to the efficient and effective administration of the Contributory Pension Scheme in our state is evident in these monthly payments.

“I would like to thank the governor and this present administration for their unflinching support and resources for retirees. The Pension Fund Administrators and insurance companies have also been relentless towards the success of the Scheme. I enjoin all the retirees to take very good care of themselves.”

Pension Fund Administrators (PFAs) have invested N8.32 trillion in Federal Government’s Securities, out of the N12.39 trillion pension fund assets recorded as at April 2021, The Nation has learnt.

According to the National Pension Commission (PenCom) Monthly Summary Report released on April 26, 2021, Federal Government Bonds gulped N7.45 trillion investment.

The commission stated that N690.43 billion was invested in Treasury Bills; N13.01 billion, Agency Bond; N79.31 billion in Sukuk Bonds; while N79.81 billion was invested in Green Bonds.

PenCom said state government’s securities gulped N117.21 billion investment; N830.62 billion was invested in domestic ordinary shares and corporate bonds got N768.38 billion.

The PFAs invested further N1.64 trillion in bank placements, while N96.53 billion was invested in commercial papers, amounting to N1.74 trillion gulped by local money market securities.

Meanwhile, PenCom Director- General, Mrs. Aisha Dahir-Umar said the commission and industry stakeholders had adopted various strategies to diversify the investment portfolio of pension assets and deepen investment channels with focus on pension fund investments in infrastructure and housing.

The commission is, therefore, focused on its engagements with stakeholders (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, she noted.

 

 

Mrs Adetutu: Dear Omobola, I am writing on behalf of my mum, Mrs Adetutu, on the issue of her arrears which we complained about.

We read in The Nation  of December 16,  last year, that she should send  copies of her pensioner’s verification acknowledgement slip.

Please note that we sent it through the DHL to PTAD on March 16, last year. They replied that she should send her statement of account from 2006 to 2019.

We sent these through DHL also on March 16, last year. It was  received by one Luka.

On March 23, last year, we received a mail from PTAD imploring us to be patient, adding that it might take some time to be concluded.

PTAD: Please advise pensioner to scan her verification slip to complaints@ptad.gov.ng.

Abuchi: My name is Abuchi. I worked with the Federal Ministry of Housing and Urban Development. I was disengaged from service on July 13, 2006. Our gratuity was paid on June 19, 2007. I started receiving my pension from August of the following year.

My complaint is that I have not been paid my outstanding pension arrears from the day of retirement – July 31, 2006 to July 31, 2008, after several complaint letters and bank statements.

Since 2008, up to the last verification in December 2017 and  now, nothing has come out of it.

PTAD: Advise the pensioner to provide his original stamped and signed bank statements from retirement till date

Sadibo: Hello Omobola, thank you for your efforts to help us.

My name is Sadibo. I want to know if there is any positive response from PTAD.

My date of first appointment is September 18, 1974; Date of last promotion January 1, 1995; Date of Retirement, June 10, 2003; Grade level 14 step 11.

My complaints are on the non-payment of my gratuity, non-regularisation of monthly pension over the years, non-payment of arrears of pension, non-payment of January pension because they overpaid me in November.

PTAD: Please advise the pensioner to state the period of arrears in question and bank statement for six months before his complaint till date.

Ampitan: Mr name is Ampitan. I retired on January 31, 2005. I am not on pension payroll, even though I have been verified by PTAD. I did my verification in September 18, 2017 at Rowepark, Lagos. Please save me.

My gratuity, pension arrears and monthly pension are yet to be paid, while others have been receiving theirs. I started work on December 18, 1972 and retired on January 31, 2005. My claim is CSPD (Fed. Share). I have submitted my documents several times, yet nothing has been done by PTAD on my case.

Out of my mother’s nine children, I am the only son. I lost my sisters. I am facing a life-threatening challenge of my life. All my efforts are not yielding result.  Kindly help me. Thank you and God bless.

PTAD: The pensioner should scan and send a copy of his pensioner verification acknowledgement slip to complaints@ptad.gov.ng to enable us review and update him on the status of his complaint.

Akinfenwa: My name is Akinfenwa. I am a pensioner with the Federal Ministry of Aviation. I have been getting my pension through UBA since 1985. I am grateful. But no additional payment since 1985. I went for pensioner’s verification with reference OYO/PF/Annonymous. I submitted the documents to PTAD for the non-harmonisation/short payment but with no effect. Please help me to ask PTAD what is going on.

PTAD: The matter is being addressed by the appropriate department.

Ajuwon: My name is Ajuwon. I am a pensioner with the Nigerian Broadcasting Corporation (NBC). I got transferred to BCNN Kaduna and Kaduna Polytechnic where I retired in September 1976.

My name has never been on the Federal payroll. One Ms Hariet assisted with my verification at the Pensioners House at Onireke, Ibadan around July or September 2019. l was promised enrolment and payment, but I am yet to receive any alert. Thank you.

PTAD: The pensioner should forward his verification slip to complaints@ptad.gov.ng for consideration.

Alabi:  Dear Omobola, my name is Alabi. I have written several times and I will not stop writing until my prayers are answered. I participated in the 2017 verification by the PTAD in Lagos State for pensioners. I wish to say that I have started receiving my monthly pension (i.e from March 2018 to date).

Also, in June 2018, I received an amount of N578736.39 as pension arrears. I wish to say that since I retired in August 2004 as a Permanent Secretary, my monthly pension should start from August 2004.

In this regard, the payment of my monthly pension should start from August 2004. Also, my pension arrears should commence from August 2004.

Let me quickly add that I have not received my gratuity from the Federal Government.

Kindly assist me to compute my gratuity and recompute my pension arrears.

I am over 70. My labour should not be in vain.

PTAD: The pensioner should forward his bank statements from the time he retired from the service to complaints@ptad.gov.ng

 

 

On October 20, last year, the Senate confirmed the nomination of Mrs. Aisha Dahir-Umar as the Director-General, National Pension Commission (PenCom). In this interview with Omobola Tolu-Kusimo, Mrs Dahir-Umar explains why the commission increased shareholders’ fund, and what is slowing the Data Capture Exercise (DRE), among others. 

 

Why the increase in PFA’s shareholders fund?

The upward review of the minimum regulatory capital from N1 billion to N5 billion for Pension Fund Administrators (PFAs) 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 recapitalisation was done, to N12.29 trillion as at December 31, 2020.

In addition, the total number of contributors had 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 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 Information Communication Technology (ICT) infrastructure, branch office expansion and other activities. In addition, the new minimum capital requirement would enable the PFAs absorb potential operational and investment risks as well as improve their business processes.

What is the update on the increase in the PFA’s shareholders’ fund?

The new minimum regulatory capital for PFA was approved by the Board of the commission in April 2021 and PFAs have been given a 12-month transition period to meet up with the new capital of N5 billion. The Commission is aware that the pension operators are evaluating the various options open to them to attain the new capital requirement.The commission is monitoring the process closely and whichever option a PFA chooses, will be subjected to the commission’s approval processes.

How would recapitalisation affect the PFCs?

The operations of the Pension Fund Custodians (PFCs) are not affected by the recapitalisation of the PFAs.The PFCs are wholly owned by big licensed financial institutions, and are adequately capitalised.

Give a review of the opening of the Retirement Savings Account (RSA) transfer window.

The launching of the RSA Transfer window (RTS) on November 16, 2020 heralded the full implementation of one of the cardinal features of the Contributory Pension Scheme (CPS), the portability of RSAs. By this development, RSA holders have been empowered to move their RSAs from their PFAs to others of their choice, whenever they desire to do so. The RTS is a fully automated, efficient and transparent process that has pre-defined timelines. It ensures hassle-free movement of RSAs across PFAs. The transfer of RSAs involves movement of pension assets between PFAs and the entire process attracts the full weight of the commission’s regulatory surveillance. The fact that the process has been completely free has also given RSA holders an added advantage.The opening of the transfer window, as it is popularly referred to, has been embraced by a large number of RSA holders in their quest for better service delivery and returns on investment from PFAs. The commission has ensured that the requirements for initiating RSA transfers are minimal, and has made these requirements as well as the necessary information to guide RSA holders through the process available on its website (www. pencom.gov.ng)

The response by RSA holders to the opening of the RSA Transfer Window by contributors has been encouraging. In the maiden transfer quarter, which ended on December 31, 2020, a total number of 2,799 RSA holders transferred their RSAs to various PFAs. This number more than quadrupled in the next Transfer Quarter, which ended on March 31, 2021, as a total number of 12,681 RSAtransfers took place. A consistently upward trend is anticipated, as RSA holders continue to realise the ease with which they can initiate the transfer of their RSAs. Overall, the opening of the transfer window is revolutionary. Going forward, high standards of service delivery will remain a focal point in the industry.

The commission recently approved pension operators to embark on data recapture. What impact will this have on the industry?

The commission has approved the Pension Operators Association of Nigeria’s (PenOp) proposal for an Industry Shared Services Initiative (SSI), for conducting the data recapture exercise (DRE). The initiative became imperative to ease the challenges being encountered by contributors in participating in the DRE. It is also a pre-requisite for contributor for initiating RSA transfer. The RSA Transfer System (RTS) was launched by the National Pension Commission on November 16, 2020. Following the deployment of the RTS, RSA holders commenced initiating RSA transfer requests through their chosen PFAs. A pre-requisite for initiating RSA transfer is to ensure that Data recapture (DR) is carried out by the RSA holder. This is applicable to RSA holders who opened their RSA before July 1, 2019 and have not been re-captured.

The SSI entails the engagement of two agents by PenOp to conduct the DRE for PFAs. The DR involves recapturing the personal data, including biometrics of registered RSA holders who must provide the National Identity Number (NIN), in line with the Federal Government Identification Policy.

However, the non-issuance of the NIN to some RSA holders, among other challenges, has affected the speedy conduct of the DRE by PFAs. The agents would be deployed to assigned employers nationwide, to recapture RSA holders that are yet to be recaptured.

In addition, the agents are also required to enrol RSA holders for NIN, where such is unavailable, prior to the recapture.

Thereafter, the details of the RSA holder recaptured shall be transmitted to the relevant PFAs. We request the co-operation of organisations to facilitate the smooth conduct of the exercise by the agents and will issue further details to the public in due course.

ANNONYMOUS: Good day, Omobola. Please I need enlightenment to enable me take a decision between Programme Withdrawal and Annuity. How many years will my PFA pay me my pension? At what time to expiration of your paying me can I transit to annuity to continue to enjoy pension for life? Is there a time lag to when I can do the transition?

PenCom: As regards the number of years pension will be paid to the complainant, it will be for 20 years.

Adigun: My name is Adigun and my PFA is First Guarantee.The issue I want to discuss affects  contributory pensioners who were Osun State Government employees that retired in 2016 to date. None of these sets have received either gratuity or pension since they retired. The real problem we are having is not known as we were being fed with lies by various concerned PFAs. Kindly deal into this and advise us on the way out of this predicament.

PenCom: The relevant department would require the PIN of the complainant to assist them further.

Inyang: I submitted an “Appeal for Correction Of Monthly Pension Payment” to PenCom on April 5, 2019. I have not heard from them since then, despite that it was my third submission on the matter. I am a 69-year-old retiree that needs urgent increase on my  pay, which was based on shortened period of my public service. PenCom was given the documents to justify increasing my monthly pay. My PIN number is anonymous.

PenCom: Information from our database reveals that your complaint has been treated and your monthly pension has been enhanced. Please liaise with your pension fund administrator for further details.

Emmanuel: Good Day, ma. My name is Emmanuel, the son of late Supol James. We have an issue with the pension of our late dad who passed away on March 13, 2015. We have paid the money they asked us to and we have also submitted the necessary documents. But we have not received any message on his pension. Please help us.

PenCom: Please we need further details such as his PIN Number and Pension Fund Administrator (PFA) to enable us investigate the issue. We called the above number provided but was wrong number.

Abubakar: My name is Abubakar. I was worked with a private international organisation where I served for five years and contributed to Premium Pension. I later joined a government institution with Leadway Pension as my PFA for 12 years. How can I get back my contribution with Premium Pension?

Oluwafunke: My name is Sheriff. I am the next-of-kin to Mrs Oluwafunke. She worked at Ministry of Health, Lagos State Local Government Service Commission. My sister Yetunde is also her next-of-kin. She died on June 20, 2012. Her PFA is Trust Fund.

We were told to bring a statement of account which we didn’t have. Her level four to five promotion letter is  also missing from her file and we can’t find. Kindly help us on how to get her pension benefit. What do we do?

The Nation:  Dear Abubakar and Oluwafunke, the newspaper will intervene by sending your complaint to PenCom. Do watch out for the newspaper publication next Wednesday for a response from the commission and subsequently every week for pension news.

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 letter written by NIPOST disclosed that  N36,485,60 was paid into his pension account for the period of July 2004 to February 2006. All documentations had been done in Abuja office of PenCom office since the death of the deceased, and 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 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.

Anonymous: I want to remain anonymous. My PFA is Premium Pension Limited. My complaint is:  as follows. On September 16, 2020, I received a text message which 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 September 17, 2020 another text 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, help me to understand who is fooling who, because the benefits are overdue to be paid.”

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.