By Omobola Tolu-Kusimo

The Federal Parastatals & Private Sector Pensioners’ of Nigeria (FEPPPAN) has lauded President Muhammadu Buhari for the regular payment of their pensions since he took over power in 2015.

Its President Comrade Temple Ubani, in a statement, said this was a departure from past when pensioners were paid irregularly.

He praised the president for his care for pensioners.

He however appealed to the president to help hasten the release and implement the circular on pension increase for retirees.

He said: “The above notwithstanding, FEPPPAN acknowledges with gratitude, the promptness and consistency in the monthly payments of pensions under your administration since the inception of your regime in year 2015. This development is a clear departure from the inglorious practice preceding your presidency.

“However, the non-implementation of pension increases, two years after implementing a minimum wage for workers in active service, is causing disquiet among pensioners in the Federation.

“We are appealing to you, first as a fellow pensioner and secondly, as the Father of the Nation, to please ensure that justice is served by seeing to it that the Circular on Pension Increments is released without further delay,” he added.

By Omobola Tolu-Kusimo

As Enugu State Government mulls the idea of life pension for its former governors and their deputies, the workers’ pension is in disarray, The Nation has learnt.

Although the bill sponsored by the State House of Assembly has been stepped down following outcry, according to a report by the National Pension Commission (PenCom), the state which has enacted laws on the Contributory Pension Scheme (CPS) is yet to do the needful.

For example, the state under the Governor Ifeanyi Ugwuanyi is yet to set up a Pension Bureau/Board to coordinate the CPS as stipulated by the Pension Reform Act 2014.

The state is also not remitting the 10 per cent employers’and employees’ pension contributions, nor has it conducted actuarial valuation, put in place the Retirement Benefits Bond Redemption Fund Account (RBBRFA). Worse still, it is not providing funds for accrued rights.

Also, there has been no pension payment under the CPS and no group life insurance as required by the law.

On the implication of governors,who failed to comply with the pension law,  a  pension advocate, Ivor Takor, said they had shown no regard for labour laws.

He stated that they violated the constitution, which they swore to uphold.

Section 188(2)(b) provides that a governor or deputy governor may be removed from office if the holder of such office is guilty of gross misconduct.

Takor said: “Subsection 11 provides: “In this section, gross misconduct means a grave violation or a breach of the provisions of this Constitution or a misconduct of such nature as amount in the opinion in the House of Assembly to gross misconduct.

“Failure to come up with a law on pension for state’ workers and withholding of their pension is a grave violation or breach of the provisions of the constitution, which makes it an impeachable offence.”

He added that the actions of these  governors of the ‘red states’ were wrong.

“Moral refers to what societies sanction as right and acceptable. While some moral principles transcend time and culture, such as fairness, generally speaking, morality is not fixed. Morality describes the particular values of a specific group at a point in time. The particular group in question is the Nigeria Governors Forum and the nation at large.

“The importance of meetings of the Nigeria Governors Forum has been put to question and ridiculed, as a result of the actions of the governors who fail to comply with the Act. One would have expected that for good governance, governors should imbibe and practise the time-tested principle of peer review. Peer review is the evaluation of work by one or more people with similar competence as the producers of the work (peer). It functions as a form of self-regulation by qualified members of a profession within the relevant field. Peer reviews are used to maintain quality standards, improve performance and provide credibility.”

Speaking on the case of Kwara and Akwa Ibom states, he said: “In Kwara State, Bukola Saraki ruled for two terms of eight years – 29th May 2003 to 29th May 2011. He installed Abdulfatah Ahmed, who ruled for two terms of eight years – 29th May 2011 to 29th May 2019. In the current dispensation, Abdulrazaq Abdulrahman came to power through what is assumed to be a popular consent, and sworn in on 29th May 2019. The jury, we can say, is still out. However, we wait with eagerness to see if he will be any different from his predecessors. But whatever the case is, he remains a potential beneficiary of the dubious pension law, enacted for the benefit of governors and deputy governors (Payment of Pension) Law No. 12 of Kwara State 2010 by Governor Saraki towards the end of his tenure.

“In Akwa Ibom State, Victor Attah held sway for eight years from 29th May 1999 to 29th May 2007. Godswill Akpabio succeeded him and spent eight years from 29th May 2007 – 29th May 2015. Udom Gabriel Emmanuel, the incumbent, is in his second tenure having been installed by Akpabio on 29th May 2015. But before his exit in 2015, Akpabio guided the state assembly to enact the dubious pension law that benefits only those who had served as governors and deputy governors.

“The absence of a pension law as enshrined in the constitution is a big dent on the governors.

“It is a gross act of bad governance and lack of good intentions for the welfare of their workers, which opens them up to destitution in their old age. It is highly immoral on the part of these governors and against the spirit of the constitution against the backdrop of the many of them enacting pension laws for themselves and their deputies. The cases of Kwara and Akwa Ibom states are eloquent examples of this leadership delinquency,” he added.

By Omobola Tolu-Kusimo

Data recapture of contributors under the Contributory Pension Scheme (CPS)  has been a major challenge of the National Pension Commission (PENCOM), The Nation has learnt.

The commission has, therefore, okayed the Pension Operators Association of Nigeria’s (PenOp) proposal for an Industry Shared Services Initiative (SSI) for conducting the recapture.

PenCom Director-General, Mrs. Aisha Dahir-Umar said: “The Commission has approved the Pension Operators Association of Nigeria’s (PenOp) proposal for an Industry Shared Services Initiative (SSI), for conducting DRE.

“The SSI entails engagement of two agents by PenOp to conduct the DRE on behalf of all Pension Fund Administrators (PFAs).

“The DR exercise involves recapturing the personal data including biometrics of all existing 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, had affected the speedy conduct of the DR exercise (DRE) by PFAs.”|

She further stated that the agents would be deployed to some employers, to recapture RSA holders  who were yet to take part in the exercise.

“In addition, the agents are also required to enroll RSA holders for the National Identity Number (NIN), where such is unavailable, prior to the recapture. Thereafter, the details of the RSA holder recaptured shall be transmitted to the relevant PFAs.

“This initiative became imperative in order to ease the challenges being encountered by contributors in participating in the Data Recapturing Exercise. The exercise is also a pre-requisite for contributor for initiating RSA transfer.

“The RSA Transfer System (RTS), was launched by the National Pension Commission on 16 November 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 all RSA holders who opened their RSA before 1st July 2019 and have not been re-captured”.

The PenCom chief, however, requested the co-operation of  organisations for the smooth conduct of the exercise.

By Omobola Tolu-Kusimo

The Director-General (DG), Lagos State Pension Commission (LASPEC), Mr. Babalola Obilana has said the government has paid 336 pensioners N1.49 billion as benefits.

He restated the  government’s commitment to the speedy resolution of pension issues, pledging to ensure the prompt payment of pensioners’ entitlements.

Obilana, who spoke at the 83rd Bond Presentation to the pensioners in Lagos, said LASPEC is dedicated to the retirees’welfare having worked hard for the progress of the state.

He said LASPEC was established to take care of the needs of retirees, a role the commission has been performing  and will continue to devote itself to.

Expressing gratitude to the retirees for cooperating with the agency and adhering to the rules, the DG explained that this has resulted in a greater percentage reduction in delay of the payment of their entitlements.

“We could have sent these bond certificates to everyone at home, but we deemed it proper for everyone to be here so that we can reiterate that LASPEC is open to all for questions. It gives us great joy that there has been a big reduction in reports of retirees being swindled of their entitlements.

“This is because the retirees are better enlightened as a result of our constant advocacy as well as open door policy at LASPEC,” he added.

By Omobola Tolu-Kusimo

The Contributory Pension Scheme (CPS) has continued to relieve pressure on workers who lose their job, by paying them 25 per cent out of their pension.

According to the National Pension Commission (PenCom), 11,796 workers who lost their jobs were paid N5.33 billion from their Retirement Savings Account (RSA) by Pension Fund Administrators (PFAs) between October and December, last year.

The Director-General, PenCom, Mrs. Aisha Dahir-Umar, said the disengaged workers were those who were under 50 and were unable to secure jobs within four months in the fourth quarter of last year.

She said the commission also approved the payment of N4.31 billion to 8,221 disengaged workers who were unable to secure another job in the first quarter of the same year.

Also, the PenCom boss further said following the issuance of demand notices to defaulting employers whose pension liabilities had been established by the Recovery Agents (RAs),  N553 million, representing principal contribution of N382.4 million and penalties of N170.5million were recovered from 19 defaulting employers in October to December 2020.

She stated that the total pension contributions remitted to RSAs in the fourth quarter of 2020 stood at N167.74 billion.

She added that out of this total, the public sector accounted for N86.93 billion or 51.81 per cent, while the private sector contributed N80.81 billion or 48.18 per cent.

She maintained that the cumulative pension contributions received from  the public and private sectors from inception to the end of the fourth quarter of last year, therefore, amounted to N6.70 trillion, up from the N6.54 trillion as at the end of the third quarter of the period under review, representing a growth of 2.45 per cent.

She said PFAs registered a total of 68,827 RSAs during the quarter under review, bringing the cumulative RSA registrations from inception to 31 December 2020 to 9,215,788.

Read Also: PenCom warns PFAs on death benefit payments

The pension industry, she noted, recorded a net marginal growth of 0.72 per cent (66,704) in schemes membership during the quarter under review, rising from 9.20 million contributors as at the end of the preceding quarter to 9.27 million as at Q4 2020.

The growth in the industry membership was driven by the RSA Scheme, which had an increase of 68,749 registered contributors.

It noted, however, thatmembership of the Closed Pension Fund Administrator (CPFA) Schemes declined by 2,045 to 14,926 while the Approved Existing Schemes (AESs) membership remained unchanged at 40,951 as at Q4 of last year.

She stressed that the implementation of the CPS had impacted the economy, stressing that the major visible areas of this impact were the economic and social spheres.

Speaking further on the development in the pension industry, Mrs Dahir-Umar said micro pension was gaining traction.

She said: “During the quarter under review, 20 PFAs registered 3,663 contributors under the Micro Pension Plan and a total sum of N25,024,528.08 was remitted to the RSAs of the contributor within the same period.

“In terms of withdrawals from the contingent portion of the contributions, six PFAs processed and approved requests amounting to N880,521.29 from 11 MPP participants during the review period,” she added.

By Omobola Tolu-Kusimo

The Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN) has appealed to President Muhammadu Buhari to fast-track the implementation of pension increase and arrears under the new Minimum Wage.

They said the president’s intervention would prevent them from embarking on protests to press their demand.

The pensioners in a letter tagged: “Undue Delay in Implementing Minimum Wage/Salary as It Relates to Pension Increase of Pensioners Under the Defined Benefit Scheme” called on the president to save their soul.

FEPPPAN President-General, Chief Temple Ubani said: “We pensioners under the DBS and members of FEPPPAN acknowledge, with thanks, your administration’s care and love for pensioners nationwide through regular payment of our monthly pensions since 2015 when you took over the reins of power. This development is a departure from the inglorious order preceding your Presidency when pensioners were paid between 5th and 8th of the following month.

“However, we have looked forward to the implementation of the Minimum Wage/Salary as it relates to pension increase of pensioners under the Defined Benefit Scheme, with bated breadth, to no avail. Needless to remind you that you graciously signed the Minimum Wage/Salary into law on  April 16, 2019 and this was implemented at the federal level in December 2019.

“A majority of pensioners of federal parastatals have persistently clamoured for a showdown through public protests/demonstrations but the leadership of our Association has so far been able to stem the tide of a nationwide protest lest, detractors whose stock in trade is always to run down your government, will latch on this to unjustifiably criticise your government notwithstanding the fact that pensioners nationwide never had it so good before the advent of your administration.”

Ubani stated that they learnt that the National Salaries, Incomes & Wages Commission (NSIWC) had  submitted its Report/Recommendations to the Presidency for approval and implementation of the recommendations on the Minimum Wage/Salary as it relates to federal pensioners.

He pleaded with the president to intervene and cause the appropriate organ or agency to do the needful on the matter, noting that they have unflinching faith in his continued love and compassion for the welfare of pensioners nationwide.

By Omobola Tolu-Kusimo

Pension Pension Fund Operators Association of Nigeria (PenOp) has assured that inflation will not affect the returns of contributions of workers who are under the Contributory Pension Scheme (CPS).

Its President,  Mr. Wale Odutola, was reacting to the alleged position by the House of Representatives on Pension Committee on mismanagement of funds as reported in some media platforms.

Odutola, who said the reports were misleading, stated that the association had been proffering solutions to some of the challenges facing the smooth implementation in conformity with the Pension Reform Act (PRA) 2014.

He said: “Our attention has been drawn to the recent media reports with respect to the House of Representatives Committee’s invitation to some Pension Funds Administrators (PFAs). We wish to state that the report is misleading as it failed to convey the meeting’s true essence, which was for a routine interaction session with members in furtherance of their oversight functions.

“The House Committee on Pensions had invited some pension fund operators for an interactive meeting to discuss the non-remittance of pensions by employers, the delay or non-payment of pension entitlements by pension fund operators, and compliance with the provisions of the Pension Reform Act 2014. The Committee also asked for some information to aid in their investigative hearing, which the pension operators duly provided.

“We wish to state that we welcome interactions and inquiries by the members and, as always, provide our full cooperation, especially regarding proffering solutions to some of the challenges facing the smooth implementation in conformity with the Pension Reform Act 2014. We will continue to engage the members and collaborate with them in the area of strict compliance with the CPS. We value the House members and their contributions towards improving the welfare of the Nigerian workers who contribute to their Retirement Savings Account (RSA) monthly and we, the operators, are fully committed to ensuring that these individuals receive inflation-adjusted returns during their retirement.”

Also, Fidelity Pension Managers Limited has denied that it is being probed by the House of Representatives and that the Managing Director/Chief Executive Officer was summoned to the probe panel.

Company Secretary and Group Head, Legal and Corporate Communications, Fidelity Pension Managers, Noel Orji, stated that the report was false, adding that  his boss was merely invited for a routine hearing by the House Committee on Pensions as part of their oversight function.

The Managing Director/Chief Executive Officer, Mrs. Amaka Andy-Azike, said when the company officials appeared at the House, the Committee asked for some documents,, which were submitted.

Also at the meeting were the Company Secretary and the Group Head, Operations presented. However, they were informed that the Managing Director was also needed, a reason the meeting was rescheduled.

“We wish to reassure the public that Fidelity Pension Managers Limited is a law-abiding organisation, built on integrity and transparency. We will always manage our customers’pension assets safely and profitably to ensure they have a happy retirement,” she said.

She added that the company has over 300,000 clients and manages over N130 billion in pension assets.

She stressed that the company has been in operation since 2007 and has rewarded its customers with investment returns.

By Omobola Tolu-Kusimo

A total of 2,799 Retirement Savings Account (RSA) holders under the Contributory Pension Scheme (CPS) have changed their Pension Fund Administrators (PFAs), The Nation has learnt.

The transfers, which are worth N18.9 billion and represents the first batch, took place at the end of the quarter, which ended last December.

The transfers, which occurred among 22 PFAs, following the launch of the transfer window on November 16, 2020.

The RSA holders, who are contributors under the CPS, changed their PFAs after the launch of the RSA Transfer System by the National Pension Commission (PenCom).

Section 13 of the Pension Reform Act 2014 allows RSA holders to transfer their accounts from one PFA to another once yearly.

The transfers are done quarterly  and an RSA holder is only allowed to transfer his or her RSA once yearly.

According to PenCom, the transfer window will ensure that contributors and retirees are satisfied with the services provided by their various PFAs.

Its Director-General, Mrs. Aisha Dahir-Umar said the commission okayed the transfer window after efforts to develop the Enhanced Contributor Registration System (ECRS) in June 2019.

She said: “It is noteworthy that the commission was unable to embark on the full implementation of the RSA transfer policy due to challenges hitherto experienced in its contributor registration system. These challenges were largely hinged on technology, given that in the early days of the pension reform, contributor registration did not include a biometrics component. However, the commission renewed its commitment towards taking the pension industry to greater heights by undertaking the in-house development of some computer Applications that are required to enable the opening of the RSA transfer window.

“Indeed, the activation of the RSA transfer provision is a major milestone attained by the commission in the implementation of the CPS, considering that it has been on the drawing board since the advent of the pension reform.The Commission, therefore, developed and deployed the Enhanced Contributor Registration System (ECRS) in June 2019.

‘’The ECRS has enabled the unique identification of contributors registered on the Commission’s database, which is a critical requirement for smooth RSA transfers. This was followed by the development of the RSA Transfer Application.”

She continued: “The RTS, as the application is tagged, is a unique and robust electronic platform that will enable seamless Retirement Savings Account transfers. The RTS platform is to be utilised for the submission, processing and monitoring of Retirement Savings Account transfer requests. Another important feature of the RTS is that it enables the initiation of an RSA transfer request by an RSA holder in simple steps, while having the capability to conduct other processes in a timely and efficient manner.

“While the transfer of RSAs from one PFA to another by RSA holders is all about enhancing individual choices, it should be emphasised that some due diligence is required. To facilitate RSA holders’ ability to make informed choices, the Commission has expanded its minimum disclosure requirements, by providing more statistics on pension industry performance. Already, a special section has been created on the Commission’s website, containing relevant information on the RSA transfer, to guide RSA holders.

“In addition, the Commission has also developed the minimum information disclosure requirements to enhance the high level of transparency required for the effective operation of the RSA Transfer System, to be adopted by all Pension Fund Administrators. Furthermore, the Commission has also commenced a public enlightenment campaign, in order to ensure that  stakeholders are fully conversant with the operations of this novel initiative.”

The PenCom boss maintained that the activation of the RSA transfer is expected to result in improved service delivery across the industry, as PFAs engage in healthy competition, by providing improved service offerings for the benefit of RSA holders.

She said due to the envisaged competitiveness, the commission has strengthened the Code of Ethics and Business Practices for licensed pension operators, to ensure the sustenance of the high ethical standards the industry has established over the years.

She urged RSA holders to continue to support the industry in maintaining these standards by basing their decision to transfer their RSA on objective considerations.