The Nation Newspaper

Category: Pension

  • Low yield on securities, rising inflation, threat to pension assets’ growth, says LCCI

    Low yield on securities, rising inflation, threat to pension assets’ growth, says LCCI

    By Omobola  Tolu-Kusimo

     

    Low yield on fixed-income securities such as Treasury Bills at around one to two per cent plus rising inflation currently at 13.71 per cent are threats to the real growth of pension funds assets in the near to medium term, the Director-General, Lagos Chambers of Commerce and Industry (LCCI), Dr. Muda Yusuf, has said.

    Dr. Yusuf, who spoke with journalists in Lagos, advocated for the de-risking of the real sector, to attract more investment opportunities, stating that given their low risk nature, a large chunk of pension funds assets are invested in Federal Government Securities, majorly Federal Government Bonds.

    He said this is so because the National Pension Commission (PenCom) guidelines mandates Pension Fund Administrators (PFAs) to invest pension funds in low-risk securities, adding that fund managers have little exposure to volatile investment vehicles and that six percent of pension funds assets are locked in equities.

    He said: “Fund managers’ exposure to investment vehicles in the real sector is extremely low due to the high level of risk involved. Only two per cent of pension assets is invested in real estate, and less than one per cent in infrastructure fund.

    “This is so also because fund managers often complain that projects in the real economy are non-bankable”.

    He noted that the trend in Nigerian pension fund assets have been on the upward trajectory in the last three years with assets under Management rising by 42.9 per cent from N7.94 trillion as at March 2018 to N11.35 trillion as at August 2020.

    Pension funds assets have appreciated by 8.8 per cent to N11.35 trillion by end-August 2020 from N10.43 trillion by end-January 2020 amid very low return rates on government securities, he said.

  • PenCom surveillance shows PFAs failure on corporate governance, others

    PenCom surveillance shows PFAs failure on corporate governance, others

    By Omobola  Tolu-Kusimo

     

    In line with the National Pension Commission (PenCom)’s regulatory mandate in Section 92(1) of the Pension Reform Act (PRA) 2014, empowering it to examine licensed pension fund operators, the Commission has conducted on-site and special examinations as well as off-site examinations on all operators.

    While reviewing the Corporate Governance Reports on the operators, the commission observed that some pension operators ranging from Pension Fund Administrators (PFAs) to Pension Fund Custodian (PFCs) and Closed Pension Fund Administrators (CPFAs) defaulted in some issues not consistent with the Code of Corporate Governance and global best practices.

    According to the Commission, the issues include variance in the responsibilities of the Board; non-reporting on the areas of strengths and weaknesses for the board members, Board Sub-Committees and Individual Directors in the assessment criteria; Board Committees meetings held same day whereas some directors had overlapping membership of the board committees; and non-disclosure of membership and quorum for board committees in some board charters.

    Others include non-disclosure of Directors’ Remunerations; ManagingDirectors/CEOs being members of all Board Committees and inclusion of Executive Directors as members of Board Audit Committees; and non-establishment of Whistle Blowing Policies and Director’s Remuneration Policies.

    The commission however, said operators concerned have been directed to address the issues and comply with the circulars on corporate governance.

    The commission said there was also an On-Site/Special Examinations of Licenced Operators.

    During the year under review, the commission conducted Routine On-Site Examination of 32 licensed operators, comprising of 22 PFAs, six CPFAs and four PFCs, using the Risk Based Supervision (RBS) model.

    The outcome of the examinations, according to PenCom, indicated that the industry remained sound and resilient.

    Besides, the commission carried out Special/Target Examination on two pension fund operators, to address some governance issues which had, in turn, formed the basis for advising all operators.

    On Returns Rendition via the Risk Management and Analysis System (RMAS), the commission explained is a returns rendition application for the submission of periodic reports to the commission by operators.

    During the year under review, 32 licensed pension operators comprising of 22 PFAs, four  PFCs and six CPFAs rendered returns for the Funds under their management/custody as well as their Company operations to the Commission.

    The commission further disclosed that it received and reviewed monthly compliance reports submitted by the operators.

    The key issues observed from the review of the compliance reports include, increase in the value of uncredited pension contributions; delay in the payment of retirement/death benefits due to incomplete documentation and communication issues; non-procurement of Group Life Insurance Policy for employee’s contrary to the provisions of Section 4(5) of the PRA 2014 and non-remittance of Pay-As-You-Earn (PAYE) taxes in violation of the provisions of Section 81 of the Personal

     

    Income Tax Act (PITA).

    The Commission said it has advised the concerned operators, to ensure effective resolution of the issues.

    In addition, the commission said it conducted the inspection of state pension bureaux to ascertain the level of implementation of the Contributory Pension Scheme (CPS) as well as the administration of the Defined Benefits Schemes (DBS) in the States and the FCT.

    During the period under review, the commission conducted routine inspection of the pension arrangements in the FCT, Ondo, Ekiti, Rivers, Kaduna and Ogun states, as well as a maiden inspection in Edo State.

    The inspection reports were forwarded to the respective Pension Bureaux and the Commission had continued to proactively monitor the implementation of the recommendations contained in the reports.

  • Pension complaints and solutions

    Pension complaints and solutions

    ETUK: My name is Etuk, the pensioner that you helped to receive her pension arrears that was skipped last year. I am still grateful to you. My second request was payment of my federal share of gratuity pending since May 2005 when I retired. Please help me to get this as you did last year. Etuk, Ministry of Health, Akwa Ibom State.

    PTAD: Pensioner to provide her contact phone number and account number to enable us track her complaint and update you on the status.

    MAIRIGA: I am a retired pensioner with federal share of gratuity. My complaint is non-payment of arrears of gratuity for federal share since retirement in May 2009. Kindly help me.

    PTAD: Pensioner’s complaint has been resolved. He has been placed on the   monthly pension payroll. His arrears was paid to him in May, 2018.

    AKUTSE: My name is Akutse from Plateau State. I retired in August 1, 2010 with state pension. My complaint is nonpayment of gratuity and irregular payment of monthly pension.

    PTAD: Pensioner’s complaint has been resolved. He has been placed on the   monthly pension payroll. His arrears was paid to him in June 2018

    AMPITAN: Please kindly use your good office to ensure my benefits are paid. I was verified with the PTAD on September 18, 2017 at Rowe Park Yaba, Lagos State and up till now I have not received my gratuity, monthly pension, and pension areas while those whom we did verification together have been receiving theirs. I discovered that I am not on the list. Please kindly save my soul as I am passing through a lot of life challenges as I cannot afford the basic needs of my life. Name.

    PTAD: Pensioner’s complaint has been resolved. He has been placed on the   monthly pension payroll. He is advised to go to bank to confirm his payment. His arrears will be paid as soon as funds are made available. We tried reaching him on his mobile phone number on 16/11/2020 but it was not avaiable as at the time we called.

    IYONKYO: I write on behalf of Mrs Iyonkyo and Ms Iyonkyo, Joint next of kins & admins of estate. They have been involved in the death benefits claim of the Late Mr Iyonkyo since 2006 when the late custom officer died. In 2008, the Nigeria Customs Service referred the case to PTAD where the beneficiaries attended a series of screening in Abuja. Nothing further was heard from PTAD despite several visits and enquiries until late last year when they received a letter dated June 10, 2019 directing the next of kins to liaise with the NCS, the deceased’s PFA and PENCOM to process their claim. The next of kins are confused and humbly request your help in getting to know how to go about the death benefits.

    PTAD: NOKs to provide verification slip, account number and contact phone number to enable us track his complaint and take further necessary action.

    BERNARD: My name is Bernard, a state pensioner with federal share. I retired from service in September 2009 on grade level 15, step 9. I have done my verification and have done that which is expected of me, yet nothing has happened. I have not been paid gratuity or pension. Kindly help me get my little entitlement. Thank you.

    PTAD: The verification number the pensioner provided is not correct. He should provide the account number he was verified with to enable us track his complaint and take further action.

    AMEH: My name is Ameh, a next of kin to late Mrs Ameh who worked in Federal Poly Idah and died on February 16, 2015. I was the husband with six children, first two are in Fed University Oye-Ekiti. All necessary papers were submitted in August 2015. But no payment till now. We are in serious financial mess. Please help us.

    PTAD: Pensioner’s complaint does not fall under PTAD. NOK is advised to liaise with the deceased PFA (Sigma Pensions) for payment of benefits. Pensioner’s phone number was not available as at the time we called him.

    ASUQUO: I am Asuquo from Akwa Ibom. Please what are the rules and regulations of payment for Federal Government retirees? Secondly, I retired in April this year when will my accrued right be paid.

    PENCOM: The rules and regulation for payment of Fed Govt retirement benefits under the CPS starts by participating in the Commission’s Pre-retirement verification and enrolment exercise. The prospective retiree/retiree needs to contact the Pension Desk Officer (PDO) of his/her MDA to get the necessary documents for enrolment. He/she is also required to come along with the PDO to the enrolment centre for his/her attestation. After the enrolment exercise, the retirement benefits are determined and paid into the RSA of the retiree based on the information provided by the retiree during enrolment. But please NOTE that retirement benefits are paid subject to release of funds by Federal Government for payment of accrued rights.

  • Transfer Window: Stanbic IBTC moves to get new customers

    Transfer Window: Stanbic IBTC moves to get new customers

     

     

    One hour after the new transfer window that will enable workers and retirees move their pension account from one PFA to another was declared open, Stanbic IBTC Pension Managers has begun moves to acquire new customers.

    The pension manager during a media parley with theme, “The Pension Transfer Window – Heralding a New Era” urged the Retirement Savings Account (RSA) holders to secure their future from and maximise the unique transfer window opportunities.

    The Chief Executive Officer, Mr Eric Fajemisin, stated that they have further enhanced their capacity to welcome additions to their family who will come over now that the transfer window is open.

    He added that as a leader in the pension industry, they have long awaited the transfer window because they understand its importance in driving choice and ensuring that customers can demand optimal service delivery and long-term, efficient management of their pension contributions.

    ‘’We disclosed that they are excited about welcoming new customers through the transfer window, and remain committed to walking the long road with customers to a healthy retirement’’.

    He said: “We have, therefore, been cautious that as we continue to delight our existing customers with optimal service delivery, we must further enhance our capacity to welcome additions to our family who will come over now that the transfer window is open. You can say that this capacity enhancement process sums up our key activities in the last few years. Stanbic IBTC Pension has a strong track record of professional service delivery and we take very seriously our responsibility to ensure transparency in all our operations, offer easy, efficient and convenient solutions to our over 1.8 million customers and ensure the safety and long-term value of our contributors’ funds.

    “This year has brought with it many surprises and developments, one of which is the proliferation of digital channels and the need for customers to access financial solutions easily and conveniently. Fortunately, we were ready. We relaunched our mobile app and revamped our website to make it even easier for clients to access information conveniently from whatever location they find themselves. You will agree that such self-service solutions are critical today.

    “However, we realised that some of our clients would still need to visit us physically, for various needs and as such, we optimised our branch offices nationwide to ensure highest hygienic standards are maintained so that our customers feel safe and protected when they visit. We prioritise the ease of retirement pay-outs and therefore optimised our service delivery such that contributors can easily apply for their benefits from anywhere in the world with minimal fuss. Our website provides extensive information on the support available for our clients, and we have taken things a notch higher to revamp our pension calculator and create a budgeting tool to enable contributors better manage their personal finances and plan effectively for long-term financial success”.

    Fajemisin who said the success of their clients is critical to them, noted that barring the challenges in the past eight months, they created several virtual engagement sessions and financial academies for young professionals, near retirement individuals, retirees and even the children of our clients via our Financial Fitness, Pre-retirement seminars and New School Money events.

    “Our goal is to ensure our clients retire well. To add even more value in these difficult times, we launched a loyalty program – Umatter, which allows clients to enjoy discounts at our partner-merchant locations just because they are customers of Stanbic IBTC Pension Managers. After all, every naira saved today can positively impact the future when invested in the right way”, he added.

  • Pioneer DG, NLC, others laud PenCom on transfer window

    Pioneer DG, NLC, others laud PenCom on transfer window

    By Omobola  Tolu-Kusimo

     

    The opening of transfer window to workers and retirees by the National Pension Commission (PenCom) will ensure an efficient and sustainable pension system in Nigeria, the pioneer Director-General of the National Pension Commission (PenCom), Mr Mohammed Ahmad, has said.

    Ahmad in a goodwill message during the luncheon of the Retirement Savings Account Transfer System (RTS) two days ago by the National Pension Commission (PenCom), said the Pension Reform Act (PRA) 2004 has since provided that Retirement Saving Account (RSA) holders have an opportunity to transfer their RSA from one PFA to another once in a year but it didn’t happen until now.

    The essence of the transfer window essentially, he said, is to ensure an effective and sustainable pension system in Nigeria.

    He noted that some of the building blocks in addition to having a transfer window is that the scheme that is directly being managed by the private sector.

    He commended PenCom for sustaining the basic principles of the pension reform.

    He urged workers and retirees who will be willing to change their PFAS to ensure that their decision to move is based on an objective review of the information available on a PFA.

    He said: “As you are aware, the PRA since 2004 has provided that RSA holders have an opportunity to transfer their RSA from one PFA to another once in a year. For Retirement account holders, I would like to ask them to ensure that their decision to move from one PFA to another is based on an objective review of the information available to them. I know that PenCom and licence operators have continuously provided information to RSA holders. With this reform and this event, I hope that there will be more information available as it allows RSA holders to take a decision. Of course, the details of the transfer window I believe will be explained by the commission. It’s not the decision that is light and it’s not a decision that should be taken lightly. I believe that it is a decision that should be based on if there is need for anyone to change his or her PFA.

    “For the operators, this is also another unique opportunity to improve on their services and what they can offer. Competing for market share comes with its own challenges. When you are competing, there is the tendency that certain standard professionalism may be undermined. I hope that given the fact that PFAs do have an association that is a Self-Regulatory Organisation (SRO) is a privilege that comes with its own responsibilities. I appeal that professionalism, ethical standards should be the watch word.

    “We will continue to appeal to our operators to ensure that we have a very transparent and clearly defined roles. Although PenCom is there to impose sanctions on unethical practices, but the best regulation is a self-regulation and I hope that operator’s world self-regulates themselves to improve on the performance of the industry. This is a journey that has started. This is not an event, this is a process and a process must be built on clearly defined rules and regulations, systems, as well as ethics. We are also reinforcing our culture as an industry and to evolve a culture is not something you can do overnight. I hope those of us who have opportunity to manage the various institutions in the industry will continue on that culture so that we have a more sustainable, enduring pension industry.”

    He continued: “I want to congratulate the commission, PFA as well as the entire participants in the industry for this occasion and for the commitment to ensure that having taken this long, we are ready to allow this to happen and we are ready that as an industry, we are transparent all the time. I hope that there won’t be challenges but like we said when we started this industry, we never knew we were going to come this long but we are determined, focused and we should continue with that spirit.

    “Let us always remember that we are dealing with people’s life savings which means a lot. These are savings of individuals who might have retired and need to have access. Whatever we can do our steps and actions no matter how small will impact on the future of this industry.

    “But I’m pleased to know that this will also provide a very strong competitive environment. In competition you don’t compete on price, but you compete to bake the cake. When you bake the cake, then you share the pie. This is what we should do. In other words, we should not just compete for the sake of market share but because we want the industry to expand and grow. As you are aware, we are still far away in terms of the numbers of those we are to cover, and we believe this is also another opportunity that will encourage Nigerians to join the Contributory Pension Scheme (CPS)”, he added.

    NLC President  Mr Ayuba Wabba also praised the Commission for its innovation especially for developing an app which allows a seamless transfer of pension from one PFA to another.

    He added that this will no doubt engender competitiveness and it will bring about also effectiveness in pension administration and invariably will lead to service delivery.

    “I believe this is the one concept of modern-day service delivery concept like we have in the banking sector where people choose which bank, they would put their money. Part of the consideration that workers will do is about returns on their investment.

    “So, I think this a welcome development and I want to commend PenCom for coming up with this idea. I urge workers to participate in this opportunity and look at how best they can maximise the benefit that comes with this innovation”, he said.

    President, Pension Fund Operators Association of Nigeria (PenOp), Mr Wale Odutola also describe the transfer window as a landmark achievement.

    “Today clearly is a landmark day in the history of the pension industry. It is a day that has been set for all contributors within the industry to exercise their right to choose who they trust to manage their contributions from among the 22 pension operators in the country.

    “For us as operators, this will definitely inspire us to improve our services. For our regulator, they can be rest assured that the industry is moving towards greater self-regulation by virtue of the potential for increased competition within the industry. The commission has worked tirelessly over the years to bring us to this day and we are happy.”

    Odutola appealed to his fellow operators to see this period as very crucial to ensure that there is high level professionalism and ethics as we go into this next phase of the industry. We need to continue to keep the integrity of the industry and our profession as we go about prospecting for clients. The industry has come a long way from 2004 and we need to as operators and stakeholders, ensure that we strive to protect the legacy as we forge ahead under this new phase.

    Meanwhile, the Director-General, PenCom, Aisha Dahir-Umar said: “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. 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 has 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. 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. 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. The commission has also conducted training workshops for Pension fund operators while an industry simulation exercise was carried out, in order to ensure that the RTS functions efficiently, as designed”, she added.

     

  • AIICO posts 27% growth in gross premium in Q3

    AIICO posts 27% growth in gross premium in Q3

    By Omobola  Tolu-Kusimo

     

    AIICO Insurance Plc   has recorded a 27 per cent year-on-year growth in gross premiums written in 2020, from N37 billion in the Third Quarter (Q3) 2019 to N47.2 billion in Q3 2020.

    Profit-after-taxes increased 17 per cent year-on-year to N5.2 billion for the interim period ended September 30, 2020 from N4.5 billion in the corresponding period in 2019 while profit before taxes reduced seven per cent year-on-year, from N5.0 billion in Q3 2019 to N4.7 billion in Q3 2020.

    The company’s total assets increased by 55 per cent year-to-date to N245.8 billion from N159.5 billion in December 2019 driven by an increase in financial assets, including cash and cash equivalents.

    Financial assets increased because of the decline in investment yields and judicious investment of funds received for policies sold. Total liabilities increased 63 per cent to N212.6 billion from N130.6 billion in December 2019 driven mainly by increases in insurance contract liabilities from the decline in yields and reserving for new businesses and fixed income liabilities (3rd party funds under management) in their asset management business.

    Total equity also grew 15 per cent year-to-date to N33.2 billion from N28.9 billion in December 2019.

    The Managing Director and Chief Executive Officer, Babatunde Fajemirokun said their financial position remains strong, inspiring confidence in their ability to assume the risks their customers wish to transfer.

    According to him, the company deployed capital judiciously, generating risk adjusted returns for shareholders, and ensuring that they can continue to keep promises.

    He said: “Global and local macroeconomic headwinds continue to test the resilience of our business, and operating models as well as our business continuity plans and the strength of our relationships with our customers and partners. Our 3rd quarter results demonstrate that our business remains steady, despite the changing client preferences and risk exposures that have accompanied the COVID-19 pandemic. We have recorded strong top-line growth year-on-year as well as improved contribution from subsidiaries in our Group, especially our asset management business”, he added.

  • ‘N2.3tr pension fund available for real sector investment’

    ‘N2.3tr pension fund available for real sector investment’

    By Omobola  Tolu-Kusimo

     

    There is N2.3 trillion pension fund for investment in the real sector, the Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, has said.

    This, she said, is available via asset classes such as infrastructure funds, infrastructure bond and corporate infrastructure bond.

    The PenCom boss, who was represented by Deputy Zonal Head, National Pension Commission (PenCom), Sola Adeseun, spoke at  the Annual Conference of Insurance and Pension Journalists at the Four Points in Lagos.

    She stated that the N2.3 trillion represents 20 per cent of portfolio limit out of the total pension fund, which stands at N11.3 trillion as at August 31, 2020.

    Speaking on the theme: Promoting Bankable Investments Portfolio for Insurance and Pension Sectors, she noted that the commission along with pension operators are desirous of ploughing some of these funds into the real sector.

    She noted that investment of the funds in the real sector will create more job which means more people will be employed and come under the Contributory Pension Scheme (CPS) and will further grow the asset under management.

    She said: “The pension industry has pooled funds of over N11 trillion in the last 14 to 15 years. This is impressive and an enviable feat but what will be more appreciated is how we can deploy such funds into the real sector.

    “The commission itself is desirous of ploughing some of these funds into the real sector because we believe it will be a win-win situation for everybody. It will create more jobs. This means that more people will come under the scheme as contributors and will further grow the asset under management. We have been working with partners, agencies of government, private sector participants and even multilateral organisations to deepen the investment horizon in the country.

    “PenCom as the regulator in the pension space in Nigeria has a guiding regulatory philosophy. Our primary objective in our oversight function is that the safety of funds is very key while fair returns on the investment is also something we look at. So, it’s from this perspective that we came up with regulations that guide the investment of pension funds in the investment space. These regulations are always looked at in conjunction with stakeholders.

    She, however, disclosed that the commission is working with stakeholders at how they can work with the investment regulation to suit the peculiarities of our time.

    “Right now, I can tell you that there are a lot of untapped potentials in the funds that we have in the pension industry because we don’t have this tangible instrument that can really ensure that the philosophy of safety and fair returns is maintained. That’s why you see that most of the investments being done by the licensed pension operators are skewed towards those fixed income instruments that are relatively safe and guarantee some good return investment.

    “But of course, we know this uncertain time where investment rate is going down but historically; we know that those are safe havens for pension assets. We hope to involve more instruments. I can say that we have reliable investment classes that tilts towards the real sector in the investment regulations of the commission but they have not been accessed because investors have not been able to meet the criteria that the pension funds require in terms of safety.

    “Infrastructure funds and bonds are asset classes under which investment of the pension fund can be applied but interested parties so far have not been able to meet the criteria that the pension funds require in terms of safety. We have up to 20 percent of the total asset under management that can be accessed via investment in this critical real sector but we don’t have instrument that will be able to make us access such”, she added.

  • Recapitalisation: Consolidated Hallmark attains 50% of new capital

    By Omobola  Tolu-Kusimo

     

    With a capital base of over N5.065billion capital at its disposal, Consolidated Hallmark Insurance (CHI) Plc has surpassed 50 per cent of the N10 billion capital expected of a general business insurer in the ongoing recapitalisation exercise in the insurance industry. The National Insurance Commission (NAICOM) mandated insurance companies with composite licence to upgrade their capital base from N5 billion to N18 billion; Life insurance firms were required to increase their minimum capital requirement from N2 billion to N8 billion, amounting to 400 per cent increase in their capitalisation.

    Similarly, General insurance companies are to raise their capital base to N10 billion from N3 billion, even as Reinsurance Firms will now need N20 billion capital base to operate Reinsurance business in the country. They are expected to have fully increased their capital to the new threshold by September, 2021, while operators are expected to have realised 50 per cent of their capital by December, 2020. It is in the light of this that CHI says it has met and surpassed the threshold expected of general insurance company by December 2020. Speaking during a webinar tagged: ‘Time-Out With Our Partner’ organised by the company, the Group Managing Director/CEO, Mr. Eddie Efekoha applauded the brokers who have been doing businesses with the company over the years, promising that, the insurer will not disappoint them as well as the clients they represent.

    He equally lauded shareholders, customers and other stakeholders of the company who have stood by it during tough and better times, stating that, the company has consistently rewarded shareholders with returns on their investments, promising that, this would even be improved upon post recapitalisation exercise. Although, he did not subscribe to using paid-up capital as the definition of capital under the current recapitlisation exercise  by NAICOM. He stressed that, the company will continue to be a major player in insurance service space post recapitlisation exercise. He said: “We will recapitalise in a manner that doesn’t affect CHI or its stakeholders. We will do it in record time. Already, we have met the N5 billion capital by December 2020. The process for the next phase has started, ” he pointed out. He added that the underwriting firm will not go into merger because it needs funds, but can go into merger discussion if it will increase its market size, a development, he said, will favour its stakeholders.

    The president, Nigerian Council of Registered Insurance Brokers(NCRIB), Mrs. Bola Onigbogi, commended the insurer for being innovative in its products and service delivery, pointing out that the company has never for once, reneged on its promises. While urging the company to always strive to be better, he charged the underwriter to continue to meet its claims obligations just as it has always been doing.

     

     

  • Pension complaints and solutions

    Pension complaints and solutions

    ETUK: My name is Etuk, the pensioner that you helped to receive her pension arrears that was skipped last year. I am still grateful to you till date. My second request was payment of my federal share of gratuity pending since May 2005 when I retired. Please help me to get this as you did last year. Etuk, Ministry of Health, Akwa Ibom State.

    IYONKYO: I write on behalf of Mrs Iyonkyo and Ms Iyonkyo, Joint next of kins & admins of estate. They have been involved in the death benefits claim of the Late Mr Iyonkyo since 2006 when the late custom officer died. In 2008, the Nigeria Customs Service referred the case to PTAD where the beneficiaries attended a series of screening in Abuja. Nothing further was heard from PTAD despite several visits and enquiries until late last year when they received a letter dated  June 10, 2019 directing the next of kins to liaise with the NCS, the deceased’s PFA and PENCOM to process their claim. The next of kins are confused and humbly request your help in getting to know how to go about the death benefits.

    AMEH: My name is Ameh, a next of kin to late Mrs Ameh who worked in Federal Poly Idah and died on February 16, 2015. I was the husband with six children,  the first two are in the Fed University Oye-Ekiti. All necessary papers were submitted in August 2015 but no single payment till now. We are in serious financial mess. Please help us.

    MAIRIGA: I am a retired pensioner with federal share of gratuity. My complaint is none payment of arrears of gratuity for federal share since retirement in May 2009. Kindly help me

    AKUTSE: My name is Akutse from Plateau State. I retired in August 1, 2010 with state pension. My complaint is nonpayment of gratuity and irregular payment of monthly pension.

    AMPITAN: Please kindly use your good office to ensure my benefits are paid. I was verified with the PTAD on September 18, 2017 at Rowe Park Yaba, Lagos State and up till now I have not received my gratuity, monthly pension, and pension areas while those whom we did verification together have been receiving theirs. I discovered that I am not on the list. Please kindly save my soul as I am passing through a lot of life challenges as I cannot afford the basic needs of my life.

    EDET:  My name is Eyo, I retired on November 25, 2019 from Nigeria 1mmigration Service on GL 12. Please when will my money be paid.

    RABIU: My name is Rabiu and I am the next of kin to my late mother. I have filed all the necessary documents since June 2018 and nothing is forth coming. Please we need the money to help the family. I hope you hear my cry and assist us. Thank you and God bless.

    OJO: I am Mrs. Ojo from National Identity Management Commission. I have done verification since August 2016 but I have not been paid  till date. I am helpless living a hard life. Please, kindly assist me so that I can take care of my health.

    BERNARD: My name is Bernard, a state pensioner with federal share. I retired from service in September 2009 on grade level 15, step 9. I have done my verification and have done that which is expected of me, yet nothing is forth coming. I have not been paid gratuity or pension. Kindly help me get my little entitlement. Thank you.

    BALANGA: Regarding my pension which I complained of  since March 6, 2020, over two months now, I am yet to be paid. My PFA is indeed a terrible PFA. What should I do now? After I complained to them about my application being unnecessarily delayed, I got a text from them in April 20, 2020 saying that my application has been sent to PenCom for approval. Since then nothing good came from them. I regret choosing this PFA.

    THE NATION: Etuk, Iyonkyo, Ameh, Mairiga, Akutse, Ampitan, Edet, Rabiu, Ojo, Bernard, Balanga. The Nation will intervene by sending your complaints to PenCom and PTAD. Do watch out for the newspaper publication next Wednesday for a response from the commission and subsequently every week for pension news.

  • PenCom to launch RSA transfer system November 16

    PenCom to launch RSA transfer system November 16

    By Moses Emorinken, Abuja

    The National Pension Commission (PenCom) is set to launch the Retirement Savings Account (RSA) transfer system, which will enable contributors under the Contributory Pension Scheme to transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year.

    The Commission made this known in a statement Monday in Abuja.

    According to it, “The National Pension Commission (the Commission) wishes to inform all stakeholders and the general public, especially Retirement Savings Account (RSA) holders under the Contributory Pension Scheme, that the Commission has concluded arrangements for the take-off of RSA Transfers. Accordingly, RSA holders may transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year, in line with Section 13 of the Pension Reform Act 2014.

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    “The launch date for the RSA Transfer System is scheduled for Monday 16 November, 2020. This will signify the official opening of the RSA Transfer Window. Prior to this launch, the Commission had successfully developed the RSA Transfer Application, a robust electronic platform that would enable seamless RSA transfers. In addition, the Commission had conducted extensive workshops for licensed Pension Operators and State Pension Bureaus in readiness for this epoch-making event.

    “The activation of the RSA transfer process will engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.”