The Nation Newspaper

Category: Pension

  • CPS: Helping young people realise, define their future on time

    The thinking of youths about planning for retirement and saving towards this important age has changed. Omobola Tolu-Kusimo writes that the introduction of Contributory Pension Scheme (CPS) has redirected the focus of young employees.

     

    Most people plan for retirement late, leaving issues about their old age care until the last few years of their working life, findings have shown.

    To this end, experts have said the coming of the Contributory Pension Scheme (CPS), following the Pension Reform Act 2004, which was amended in 2014, is good for young employees who are conscious with planning for their retirement through the compulsory contributions.

    They advise that planning for retirement should start early. Under the CPS, workers can participate on their retirement.

    From the choice of Pension Fund Administrator (PFAs), to more voluntary contributions and well-planned withdrawal modes, workers can plan and ensure a safe and secure retirement.

    Other issues such as owning a home, taking life insurance policies, writing a will, and setting aside for their health care in retirement are issues that young workers should be concerned with.

    Workers planning for their retirement should also monitor the performance and activities of their PFAs, and other financial advisors. They must be aware that the choice of a PFA is a serious decision that should be made after serious consideration.

    Many workers have chosen PFAs based on some reasons, and many others have  followed the “band-wagon”, without  enquiry.

    An enquiry into the PFA’s experience and track record in investment management, financial resources, quality of ownership and management as well as quality and transparency of customer service and reporting should be made before a choice is made.

    Pension Fund Operators Association of Nigeria (PenOp) President, Mrs Aderonke Adedeji, explained that the law guiding the CPS allows workers to switch PFAs at least once in a year without any reason, meaning that people who may have made sub-optimal decisions on the choice of PFA can easily and change to another PFA.

    She stated that the opening of the pension transfer window by the National Pension Commission (PenCom) is being expected soon as the operators and regulators conclude data cleaning.

    She said another issue in planning retirement while working revolves around changing jobs and redundancy.

    She said:“For the upwardly mobile worker, changing employers under the CPS poses no challenges at all. The RSA is portable, and all that will change is that your old employer would stop contributing, and your new employer will be informed of your account details, and will continue contributing on your behalf.

    “Taking an early retirement is also something that a lot of young workers consider today. People in very high energy professions like banking suffer burn outs and fatigue after years of working, and wish to retire at about 45 years or so to settle for a less demanding personal or family business.

    Read Also: Railways Pension Scheme deficit called into question

     

    Decisions like this are becoming increasingly popular. People should plan adequately towards an early retirement, and where they want to run a private family business, should thoroughly research it, so that it doesn’t become another high-stress activity like their previous employment was.”

    ARM MD, Wale Odutola
    ARM MD, Wale Odutola

    Managing Director, ARM Pension Managers, Wale Odutola added that the Act also makes provisions for the following two scenarios: “An RSA holder who disengages or is disengaged from employment before  50 and is unable to secure another employment within four months of such disengagement is entitled to 25 per cent of the RSA balance in order to cushion the burden of not being in employment.

    Such an individual, after obtaining another job, can continue with the RSA. If there is no further employment, the individual will have to wait until he/she is 50 before being allowed to access the remaining RSA balance.

    “On the other hand, an RSA holder who has willingly retired before 50 will not be allowed to access the RSA balance until they attain 50, except such an individual is employed in the private sector, where the policies of that particular company allows for a retirement age of earlier than 50.

    In this case, the RSA holder will be considered a normal retiree and will also be allowed to access the RSA balance based on any option he/she chooses.”

    Odutola said another issue is the retirement planning while one works, is death-in-service, as well as death during retirement. He noted that the Act also provides that where a contributor dies during employment, the balance in his RSA will be transferred to his known beneficiary as named in a will, his/her spouse or children, his named next-of-kin, or the administrator of his/her estate as determined by the probate registry.

    “The same provision also applies to retirees who have started receiving retirement benefits through a programmed withdrawal, and die.

    This provision of the Act makes it uniquely different from the administration of retirement benefits under the old public service scheme, where pension payments cease and are not made to a retiree’s beneficiaries at their death.

    “The Act also provides that employers provide a compulsory life insurance cover for each employee for up to a minimum of three times the employee’s total emoluments.

    The proceeds of the life insurance will also be paid to the employee’s beneficiaries, at death,” he added.

  • Pension complaints and solutions

    JOHN:  My name is John. I retireed from the Federal Polytecnic, Idah in 2018. My PFA is Sigma. I did my biodata in July 17, 2017 and my last salary was paid in September 2018.

    If PenCom’s objective is the prompt payment of retirement benefits, how come mine has not been paid? And what are the causes of this long delay?

     

    PENCOM: He needs to forward his enrolment slip to enable the Commission access his records.

     

    FOLOWOSELE: My name is Folowosele. I retired as a civil servant. Please what document do I submit to enable PENCOM process my pension?

     

    PENCOM: He needs to contact the Pension Desk Officer (PDO) of his MDA to get the necessary documents for enrolment. He is also required to come along with the PDO to the enrolment centre for his/her attestation.

     

     TOR: I retired from the Nigeria Immigration Services. I was in service when the National Pension Commission (PenCom) in 2004 was introduced. By 2006, I registered with First Alliance Pension Limited, which has metamorphosed into ARM Pension Managers with a PIN 100####.

    But certificate issuance was delayed. This created anxiety prompting me to register with another pension manager, Stanbic IBTC Pension with PIN PEN100####. I retired in May 2016.  In December 29 of the same year, I applied for harmonisation of my pension managers to the PenCom into one pension manager to facilitate payment of my pension. PenCom replied me in a letter dated February 1, 2017. In the reply, PenCom recognised the first PIN registered with ARM as a valid PIN and that Stanbic IBTC PIN is considered invalid. That ARM Pension Managers PFA Limited would retain the first valid pin on its data base while Stanbic IBTC Pension Managers would de-activate the second invalid Pin from its data base.

    PENCOM advised that I should maintain Retirement Saving Account PIN with ARM pension for all pension transactions.

    PENCOM promised to reconcile the contributions in the valid PIN to ensure that the contributions were brought up to date, while the valid PIN would be refunded to the Federal Government through its accounts with the Central Bank of Nigeria. Kindly assist me solve this problem.

     

    Read Also: Pension complaints and solutions

     

    PENCOM: His retirement benefits were paid into the second PIN with Stanbic IBTC.  He is advised to write the Commission for treatment.

     

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

    PENCOM: The rules and regulation for the payment of Federal Government’s retirement benefits under the CPS starts by participating in the Commission’s Pre-retirement verification and enrolment. 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 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 FG for payment of accrued rights.

     

    BENJAMIN: I am Benjamin. I retired in 2006 under the old NEPA/PHCN and by transition from NELMCO to PTAD. My monthly pension of January and March 2015 were omitted. I went to PTAD five times and did all what I was told to do but to my surprise, each time I went there, they would tell me ‘no fund’ Please intervene for me.

     

    PTAD: The pensioner is required to submit his bank statement from July 2014 to date to PTAD Office Abuja, including his complaint to enable us investigate and resolve his complaint.

     

    ISA: Madam, this is from one of the Pre-1996 Railway pensioner in Nasarawa State. My name is Isa. Our 18 months arrears (part of 52 months) since the time of former President Goodluck Jonathan is yet to be cleared. Also, railway pensioners are the least paid nationwide. Kindly use your good office to help and solve our problems. We “Thank You” for been there for US.

    PTAD: It is an assumed liability by some group of pensioners in the NRC. The group is yet to forward any supporting documents.

    ALICE: My name is Alice. Well-done and thanks to The Nation for its concern for pensioners.

    My pension number is annonymous. I did verification since August 2017 but PTAD has not paid me till date.

    I am a state pensioner with federal share. I retired on April 30, 2008 without payment till date.

    Thank you.

     

    PTAD: The pensioner’s complaint has been investigated. She will receive payment as funds are allocated and released by the Federal Government.

     

    SUNDAY: I retired in June 2003 from the service of a former government agency changed to National Clearing and Forwarding Agency. I received my pension from March 2008 to April 2018. But they stopped my pension after April and I don’t know why. Please help me.

     

    PTAD: If Mr Eshiet has been verified, we advise that he sends a clearly scanned copy of his verification slip to complaints@ptad.gov.ng. If he has not been verified, he can visit our Abuja or Lagos office with his employment documents, BVN and original stamped bank statement from April 2018 till date to be verified and monthly pension payment resumed if eligible.

  • Why you don’t get your claims paid

    By Bola Adegbaju

    Last week I explained “what you need to know about your insurance contracts”. I went further to talk about how this is very important in getting your genuine claims settled. I used the word, “genuine” because some claims are fraudulent. Experience has revealed to us that here in Nigeria and even some other countries, losses are staged or acted.

    Hence, if a fraud is suspected in any claim, it may take a longer time to investigate before settlement or it may eventually be repudiated (declined).

    Practically, a lot of factors can make an insurance company not to settle a claim.

    These factors include:

    • Insolvency of the insurance company: If an insurance company is not liquid enough, this may cause delay in or non-payment of claims, especially huge ones.

    To avoid this, the industry is currently undergoing another recapitalization exercise which will be concluded in December 31, 2020.

    • Lapse policy: Any mistake of not renewing policies immediately they fall due can cost the policy holder a lot because whatever happens within that short period will be borne by the policy holder.

    There was an unfortunate incident with a client some years ago. The motor insurance policy fell due for renewal. He had the intention of renewing but he never took a final decision. Just some few days after the policy expired, the vehicle was stolen. I am sure you can guess the end of the story……….. No premium, no cover, no claim!

    • The peril is not covered: A peril is an event that causes a loss. For instance, in most fire policies, the insured perils that cause the fire could be fire, flood, storm, or explosion. So, we can say we have insured /uninsured perils and if a peril that caused a loss is uninsured, and then the claims will not be settled. Examples of perils that not insured is pre-existing ailments in life policies.
    • Suspicion of fraud: As I mentioned earlier, claims are staged or inflated and hence referred to as a fraudulent one if this is discovered. When fraud is suspected, insurer will not take the liability of settling the claim.
    • Double insurance: Sometimes, a policyholder may have two different policies (or same policy) on a particular property, with different underwriters. This is against the principle of insurance and it is therefore not acceptable in our practice, whether it is done intentionally or ignorantly.
    • Change in the subject matter of insurance: It is not an offence for you to change the property you insure but it is an offence if you do not inform the insurance company.

    For instance, you must inform your insurer where the following information applies to the risk insured:

    • Change of the vehicle colour or use.
    • Purpose of building changes from residential to business or vice versa.
    • Change of occupation.
    • Change in personal data etc.
    • Breach of warranty or terms and conditions: Each party of a contract has an obligation to fulfill. The same applies to insurance contract. As much as you expect the insurer to settle your claims, you must make it a point of duty to do your part as stated in the policy document. That is why we always advise that you should get someone to explain the wordings in case you don’t understand.
    • Excess amount: Excess is the share of the loss born by the policy holder. It is usually stated also in the policy document under “Excess Clause”. All non-life policies have excess. It is not applicable to life assurance.

    So, if the amount of loss is not up to the excess amount, the insurer will not pay the claims because that is the amount the policy holder bears. For instance, if the excess amount is N100,000 and there is a loss of N60,000, insurance company does not pay. But if the loss is N220,000, the insurance company will pay N120,000 which is N200,000 less excess amount (N200,000-N100,000).

    • Late notification: A claim will not be attended to if the notification is beyond the specified days stated under the “Notification Clause”. So check your policy document to confirm this. However, the most common one is 30days.
    • Policy limits: If the policy has limits then you cannot claim above the limit. Say, there is a limit of loss up to the tune of N10,000,000 per annum. Once the loss has reached N10,000,000 in a year, the insurer doesn’t indemnify (pay) you again.
    • Incorrect Information: There have been cases in which the information about the subject matter of insurance at the point of claim doesn’t correspond with the one given at inception. This is also another reason why you may lose you benefits with your insurer.
    • No adequate reinsurance arrangement: Reinsurance is the insurance of insurance companies. A reinsurance company insures the insurance companies’ risks. So it is expected that every insurer has a reinsurer. Some insurance consumers already know about reinsurance and they request for the reinsurance treaty whenever they want to place a business with an insurer. You may choose to request same from your underwriter.

  • AXA Mansard advises Nigerians on financial planning

    By Omobola Tolu-Kusimo

     

    AXA Mansard has advised Nigerians to make wise financial decisions in the year.

    Its Chief Operating Officer, Alex Edafe, in a statement, said it is important to start taking decisive steps to make some achievements in the year.

    Edafe stated that yearly, people  aspire for financial independence by starting out with new year’s resolutions.

    According to him, many are still unable to realise these goals due to various reasons, including low financial literacy, low determination, unclear goals and late implementation of financial plans, although it is better late than never.

    He said: “Financial goals differ for everyone and could be short-term of between 0 and one year, such as investing towards the next rent, school fees, travels, wedding, automobile among others.

    “Also, medium-term of between one and five years’ goals will not be limited to investing to buying a properties, including land, house and shop, advance or continuing education, starting a business or equity ownership in businesses, future school fees whereas long-term (after five years) goals include philanthropy, retirement savings, and financial independence.

    Read Also: Stimulation fund: Financial expert tasks FG on proper planning

     

    “Key strategies that can be applied for financial success in the new year to include paying attention to one’s health, building an emergency fund while improving financial literacy, taking insurance on risks you are unwilling to take, getting an extra source of income, automating one’s savings and investments, getting out of debt, creating and living within budget, proper recordkeeping of savings and investments.’’

    He stressed that financial independence can only be achieved by focus and intentionality.

    “As we go into the year, a great way to achieve financial independence is to invest in the AXA Mansard Money Market Mutual Fund, which provides unit holders with capital preservation and competitive return.

    The fund is liquid, hence a unit holder can liquidate within 24 hours, affordable when you consider the minimum investment amount of N1,000, accessible through various online and offline channels and professionally managed by AXA Mansard,” he said.

     

  • Railways Pension Scheme deficit called into question

    By Omobola Tolu-Kusimo

     

    Few calculations showing an £11billion deficit for the Railways Pension Scheme (RPS) in the United Kingdom have been dismissed by the National Union of Rail, Maritime and Transport Workers, which has promised industrial action if new measures to plug the gap are imposed without negotiation.

    An independent pensions consultant, John Ralfe, analysed the individual accounts of each company sponsoring one of the 112 sections of RPS – with the exclusion of those that have a crown guarantee – concluding that the scheme has pension liabilities defined under International Accounting Standard 19 of around £35billion, compared with £24billion of assets, resulting in an £11billion deficit.

    RPS is one of the UK’s largest pension schemes, with £27billion of assets at December 2018, and 344,000 members, including almost 96,000 employees.

    From these, around 102,000 individuals are in sections backed by a crown guarantee, set up when the pension fund was created in 1994, and which secures the payment of future liabilities in case of wind-up.

    The valuation is on the books and it is in surplus, but TPR is insisting that it is seen through a different lens, which puts it back into deficit

    “Because the deficit is understated, RPS deficit contributions are also understated. To pay off the £11bn deficit over 10 years, which is longer than the UK average, annual deficit contributions of more than £1billion are needed, compared with the current amount of just £60million,” Mr Ralfe said, in an opinion article in the Financial Times.

    Read Also: Mixed reactions trail continued Iran-U.S. tensions

     

    Ralfe’s figures are higher than the last estimate from the Pensions Regulator – a deficit of £7.5billion in June 2018 – which were publicised when former chair of the Work and Pensions select committee, Frank Field, questioned the watchdog’s work to reduce such a shortfall.

    The £11billion shortfall is based on an accounting deficit, which uses an AA corporate bond discount rate.

    However, the contributions required from the companies are dictated by the technical provisions deficit calculated at a triennial valuation, which involves the returns expected on the assets that the scheme actually invests in – not just corporate bonds – and so can be higher or lower than the accounting deficit.

    According to the latest actuarial valuation in December 2016, which involved 70 sections of the scheme, the RPS has £10.7billion in liabilities and £10.9billion in assets.

    Ralfe said: “RPS uses the ‘actuary’s magic pencil’ to shrink pension liabilities, a discount rate based on the ‘expected return on assets’ not a AA corporate bond rate.

    “Much of RPS’s deficit is self-inflicted. It has taken a huge equity bet for many years and lost. With 80 per cent of its portfolio in equities, it is way out of line with other pension schemes.”

    A spokesperson for the RPS Trustees said: “The RPS is well run and managed by the trustee and its executive. The trustee is committed to trying to resolve TPR’s concerns and is supporting a train operating company section-wide solution process that is acceptable to all sides as soon as possible.”

    Mr Ralfe explained that RPS has a unique cost-sharing arrangement, with all regular and deficit cash contributions split 60:40 between employers and employees, so employees are on the hook for part of the deficit.

    According to RPS’s 2018 annual report, members contributed £10million towards deficit contributions, while employers paid £47million.

     

    • Culled from Pensions expert

  • Pension enhancement scheme kicks off next month

    By Omobola Tolu-Kusimo

     

    The National Pension Commission (PenCom) has informed Pension Fund Administrators (PFAs) that the pension enhancement for retirees on Programme Withdrawal (PW) will start next month and end in April, The Nation has learnt.

    The exercise will affect only retirees on PW, who retired between July 2007 and December 2017.

    It will have significant growth in their Retirement Savings Account (RSA).

    Findings by The Nation showed that the retirees’RSA balance, excluding voluntary contributions and pre-act contributions as at last October, will be used to determine the pension payable.

    Similarly, payment of pension arrears will commence after the kick- off of the exercise.

    Read Also: Court dismisses N236m gratuity, pension suit filed by ex-Taraba Dep. Governor

    To this end, PFAs advised affected retirees to sign a pension enhancement consent form.

    PenCom Acting Director-General, Mrs. Aisha Dahir-Umar said the Commission plans to raise the pensions of retirees who opt for PW and are being paid by PFAs.

    She, however, stated that some retirees would not be entitled to the increase due to low balances in their RSAs.

    She said: “Indeed, the commission has just concluded an exercise to increase the monthly pension of  retirees on programmed withdrawal due to the income earned on investing their pension assets.

    “The outcome of this exercise showed that 30 per cent of the retirees would not benefit from the increase due to insignificant income earned on the small balances in their respective RSAs”.

  • Pension complaints and solutions

     

    Pension complaints

     

    LETU: Dear Omobola, My name is Eletu from Ilorin. This is my third letter to you without any reply or publication in The Nation. Even though I don’t miss the paper on Wednesdays. Please, help me.

    This is my complaint. I was born June 10, 1950. I joined Nigeria Custom Service on September 25, 1975. I retired October 25, 2017. I am on level 09/step 10. I was verified on December 6, 2017 at PTAD headquarters, Maitama, Abuja. Up till today, I have never received a kobo either pension, gratuity or any retirement benefit – 33 per cent arrears and other backlog of retirement arrears since then. I have travelled to PTAD headquarters more than 100 times. All I hear was, ‘wait a little’. But my question: Is wait till when? Is it until I die before they pay me? I have written several letters to President, Vice President and even to the Executive Secretary of PTAD.

    I have sold all the properties I acquired during my working years to treat my aged sick mother. Even my family is begging for what to eat. After I served my country, Nigeria for many years, is this how the government will repay me? How long will I suffer before I collect my pension and gratuity?

    I am on a sick bed. Save my family and I from suffering.

    Please appeal to PTAD to pay me. God will help you to help me.

    PTAD: Pensioner has been called and was asked to provide his UBA Bank Statement (Original, stamped and signed) from 2007 to date and to attach his verification slip.

    ABDULHAKEEM: My name is Abdulhakeem. I am the Next of Kin (NoK) to my late mother’s, (Halimat’s) benefits. I filed all necessary documents since June 2018, but nothing is forthcoming. I need the money to help the family. Please assist me. Thank you.

    PTAD: The NoK is unknown, neither do we know his contact number, MDA or account number.

    JEFF in care of MBA: Dear Omobola, I am writing on behalf of Mba, 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 forthcoming. I have not been paid gratuity or pension. Kindly help me to get this my little entitlement.

    Read Also: Pension complaints and solutions

     

    PTAD: The pensioner was called several times but he did not pick them. He should provide us with his correct pension number or his account number to enable us resolve his complaint.

    ADIGUN: My name is Adigun and my PFA is First Guarantee.  The issue I want to discuss affects all contributory pensioners who were Osun State Government employees before they retired in 2016. None of them has received either gratuity or pension. The real problem we have is not known as we were being fed with lies by the various 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.

    TOR: My complaint is on the non-payment of outstanding pension and gratuity.

    I retired from the Nigeria Immigration Service. I was in service when the National Pension Commission (PenCom) was introduced in 2004. By 2006, I registered with First Alliance Pension Limited, now ARM Pension Managers with a PIN 100####.

    Certificate of issuance was  delayed. This created anxiety prompting me to register with another pension manager, Stanbic IBTC Pension. I retired in May 2016. By December 29 of the same year, I applied for harmonisation of my pension managers to PenCom to facilitate the payment of my pension.

    PenCom replied me with a letter dated February 1, 2017. It  recognised the first PIN as a valid PIN, saying that of Stanbic IBTC was invalid.That ARM Pension Managers PFA would retain the first valid PIN on its data base while Stanbic IBTC Pension Managers would de-activate the second one.

    PENCOM advised that I should maintain Retirement Saving Account (RSA) PIN with ARM Pension for  pension transactions.

    It promised to reconcile both contributions, while that in the valid PIN (if any) would be refunded to the Federal Government through its accounts with the Central Bank of Nigeria.

    Kindly assist me solve this problem.

    PENCOM: Tor’s retirement benefits were paid into the second PIN with Stanbic IBTC.  He is advised to write  the Commission for proper treatment.

  • Labour pledges £58bn to compensate women hit by pension age rise

     

     

    Labour has pledged to compensate nearly 4 million women who lost out on thousands of pounds when the state pension age was increased.

    John McDonnell, the shadow chancellor, said the payments – estimated to total £58bn over five years – would settle a “historical debt of honour”.

    Individual payouts to women born in the Fifties could be as high as £31,300, with an average of £15,380.

    It follows a lengthy campaign by the so-called “Waspi women” who said they were given insufficient time to prepare for the changes brought in by the former coalition government.

    Campaigners and polling experts told The Independent that those bearing the brunt of the overhaul could have a substantial impact on the outcome of the 12 December election.

    Boris Johnson was challenged about the issue by a woman in the studio audience for Friday night’s BBC Question Time election special, but said he could not promise to “magic up that money”.

    Read Also: Labour and Employment in the First Year of the Next Level

     

    However, on Saturday night Mr McDonnell announced that Labour had “prepared a scheme to compensate these women for a historical wrong”.

    “It’s one that they were not able to prepare for and for which they’ve had to suffer serious financial consequences for as a result,” he said.

    High Court state pension loss highlights female funding crisis

    “Some of them have been hit by a combination of poverty and stress, having lost out on what they had contributed towards.

    “These changes were imposed upon them by a Tory-led government. So we have a historical debt of honour to them and when we go into government we are going to fulfil that debt.”

     

    • Culled from Independent

     

  • Expert sees capacity reduction at Lloyd

     

     

    Willis Re, the reinsurance arm of global insurance brokerage Willis Towers Watson, has commented on the January 2020 renewals for the Lloyd’s and London reinsurance markets, highlighting a meaningful reduction in capacity, according to reinsurance news.

    Analysts at Willis Re said that this reduction in overall capacity had come as reinsurers scaled back casualty portfolios in the midst of prior year deterioration.

    There was also some shift in appetite from excess of loss to pro rata as reinsurers sought to catch original rate improvement, they added.

    Commenting on the reduction in casualty capacity, James Kent, Global CEO at Willis Re, said that it had been “compounded by Lloyd’s continued remedial action leading to a few syndicates not trading forward.”

    “Furthermore, capacity for managing general agents (MGAs) and other similar structures requiring delegated underwriting authority, including funds at Lloyd’s capital, has been squeezed with client and risk selection paramount,” Kent explained.

    Willis Re also believes that Lloyd’s remedial actions over recent years and the resulting reduction in capacity in some areas of the market are driving higher re/insurance pricing in some niche cases.

    Read Also: Expert urges reinforced security at airports

     

    With some Lloyd’s syndicates going into run off and others taking firmer positions on rate increases, authorised capacity in the Lloyd’s and London markets decreased.

    However, analysts noted that this decrease was replaced by new capital and a strong supply from existing markets.

    Capacity for transactional liability (such as warranty and indemnity, tax, etc.) has similarly retracted considerably for 2020 given concerns of aggregation and price erosion.

    Looking specifically at casualty business, Willis Re believes that pro-rate commission business renewal pricing was down -two percent to flat, while loss from excess of loss business was flat to up five percent, and loss affected excess of loss casualty renewals at Lloyd’s were up five percent to 20 percent.

     

     

  • PenCom may raise bonds to offset accrued rights backlog

    Our Reporter

     

    The National Pension Commission through the Federal Government is trying to raise pension bonds through the Debt Management Office.

    The bonds is to be used to offset the pension arrears of federal retirees, as a result of accumulated accrued rights.

    A source in PenCom said: “The commission had been in talks with the DMO on how to raise the pension bonds to clear the pension arrears. While the discussion was still ongoing, the Federal Government said some of the funds should be released over a period of time.

    “But as the funds have not been released, we are still trying to see the possibility of raising the pension bonds to clear the backlog.”

    The Acting Director-General, PenCom, Mrs. Aisha Dahir-Umar, had stated that, it had been engaging the relevant authorities to ensure funding of the outstanding accrued right liabilities.

    Read Also: ‘PenCom’s priority is to pay retirees, not investment ‘

     

    She disclosed that a submission was made to the Federal Government to consider issuance of bond through the DMO to fund the arrears as alternative to budgetary allocations.

    PenCom stated that, “Section 39 (2) of the Pension Reform Act 2014 mandates the Federal Government to pay into the Retirement Benefits Bond Redemption Fund Account an amount not less than five per cent of the total monthly wage bill payable to employees in the public service of the federation towards the redemption of the accrued pension right of FGN retirees.

    “However, in the last five years, budgetary funding/releases had not been regular and adequate for the payment of outstanding accrued pension rights over this period as a result of decline in government revenue.

    In August 2019, the Federal Government had expressed its readiness to end delay in pension payment to the workers who transited to the Contributory Pension Scheme before retirement”.