The Nation Newspaper

Category: Pension

  • Free transport, medicals for Lagos retirees

    Since the inception of Contributory Pension Scheme (CPS), Lagos State has continued to be in the forefront of ensuring efficient and effective pension scheme administration. Omobola Tolu-Kusimo and Favour Obiemeka write on the preparedness of the state to provide free transportation and others for its pensioners.

     

    To demonstrate its commitment towards the welfare of pensioners, the Lagos State government is gearing up to launch free transportation and healthcare services to thousands of its retirees by first quarter of 2020.

    The Nation learnt that the proposal for the retirees to enjoy the free services has reached an advanced stage. The state has also continued to pay its retirees their pensions regularly.

    The Commissioner, Ministry of Establishment, Training and Pensions, Mrs Ajibola Ponnle, while speaking at the 70th Retirement Benefits Bond Certificates, said the bond certificate is a passport to financial independence in retirement.

    Ponnle, who stated the state believes that pension is a life wire, said pension rights of 321 retirees will be credited into their Retirement Savings Account (RSA).

    She stated that employees of Lagos State are the state’s greatest assets, which is why they are not only committed to ensuring that they enjoy good conditions of service but to also ensure that their entitlements are paid when they exit from service.

    She noted that while salaries of active workers statewide are paid monthly, contributions into the Retirement Savings Account (RSA) of employees are also religiously remitted.

    The state Governor, Sanwo Olu, was appointed Commissioner for Establishments, Training and Pensions in year 2007 and so he understands clearly what pension means to a retiree, she added.

    She said upon assumption of office, directives have been given to ensure that pension obligations are systematically cleared.

    Read Also: Lagos retirees urge House to intervene in pensions payment

    She said: “We are very resolute to forging ahead with the Contributory Pension Scheme. The scheme is sustainable as it meets the challenges of the past pension scheme administration, which being non-contributory, relied totally on budgetary allocations of government.

    Director-General, Lagos State Pension Commission, Mrs Folashade Onanuga, added that the Retirement Benefit Bond Certificate shows accrued pension rights due to retiree for years spent in the service under the discontinued Pay As You Go pension scheme.

    She informed the retirees that their Retirement Savings Accounts with Pension Fund Administrator have religiously received into them monthly contributions from April 2007 when they transited to the (CPS) dispensation up to their months of exit.

    “However, retirees’ entitlements under the Pay as You Go Pension Scheme must be fused into RSA account with CPS contributions before computation of their lump sum and monthly pension can be calculated.

    The fusion has been achieved and retirees will be able transit into a future of financial Independence. Lagos has been consistent with its leadership role in the implementation of Contributory Pension Scheme in line with the provisions of Lagos State Pension Reform Law of 19th March, 2007, now amended.

    “The proposal for retirees to enjoy free transportation and healthcare has reached an advanced stage and hopefully will be launched in the first quarter of year 2020.

    I must also appreciate the unflinching support of the State approved PFAs and the insurance companies’ efforts at ensuring that all our retirees have unrestrained access to their pension benefits.

     

  • Pension complaints and solutions

    Our Reporter

     

    ANA:  Complaint for payment of outstanding pension and gratuity of N 1,723,275.33.

    Kindly assist me solve this problem. I am Mr. Tor, a retired officer with the Nigeria Immigration Services. I was in service at the time of introduction of PenCom in 2004. By 2006, I registered with first Alliance Pension and Benefits Limited in the first instance which has now metamorphosed into ARM Pension Managers.

    But certificate issuance was unusually delayed and no explanation was advanced. This delay created anxiety prompting me to register with another pension manager, Stanbic IBTC Pension Managers with a different PIN.

    I retired in May, 2016. By December 29, 2016, 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 valid. That Stanbic IBTC PIN is considered invalid. That ARM Pension 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 for all pension transactions. PenCom also promised to reconcile the contributions in the valid PIN to ensure that total contributions there in are brought up to date accordingly, while that in the invalid PIN (if any) would be refunded to the Federal Government through its accounts with the Central Bank of Nigeria.

    To my surprise, PenCom did not abide by its promise. Consequently, by May 2017, PenCom paid the Accrued right-R-FGN of N 6,181,000.00 only into the invalid retirement saving account (RSA) of Stanbic IBTC which had a less than N4,237,348.77, while the valid PIN which had N5,459,869.67  only as at that time was abandoned.

    This was the beginning of short payment of my pension. By October, 2018 when I discovered that   N5,459,869.67 was still hanging in my valid RSA PIN, I wrote to PenCom through my lawyer demanding a balance of N1,189,019.17  PenCom did not reply my first letter. On January 15,2019, I wrote to PenCom again, but as at now, PenCom did not reply any of the letters.

    On  April 15, 2019, I wrote to ARM demanding for the payment of the money domiciled in my RSA. I made it known to them that the money in my RSA with them is part of my salary deductions remitted by the Nigeria Immigration Service in accordance with the Pension law of 2014.

    Read Also: Pension complaints and solutions

     

    To my surprise again, ARM replied on April 18, 2019, that they were directed by PenCom to evacuate the cash with them which now stands at N5,860,624.10 to Contributory Pension Account (CPA). Consequently, my request cannot be met since my account balance with them now stands at zero.

    Please, help sort out this problem of shortfall from my pension payment. Also, I want to know what has become of my salary deduction remitted into my valid RSA with ARM by Nigeria Immigration Service now evacuated into Contributory Pension Accounts.

    THE NATION:  Your complaint to will be forwarded to PTAD. Do watch out for the newspaper publication next Wednesday for a response from PenCom. Keep a date with us every week for pension news.

    ABDULHAKEEM: I am Abdulhakeem and the Next of Kin (NoK) to my late mother’s (Halimat S Rabbit) benefits. I have filed all necessary documents since June 2018 and nothing is forth coming and the money is supposed to help the family. Please help me. Thank you and God bless.

    THE NATION:  Your complaint will be forwarded to PTAD for attention. Do watch out for the newspaper publication next Wednesday for a response from PenCom. Keep a date with us every week for pension news.

    OYELADE: I am Mrs. Racheal from National Identity Management Commission. I have done verification since August 2016, but PTAD has not paid till date. My Pension Account Number is Anonymous and with Sigma pension. I am helpless living a hard life. Please, kindly assist me so that I can take care of my health.

    THE NATION: Your complaint to will be forwarded to PTAD. Do watch out for the newspaper publication next Wednesday for a response from PenCom. Keep a date with us every week for pension news.

  • Pension complaints and solutions

    ANMI: I retired as an Assistant Director of Education (GL 15) in December 1996, after serving   government for 35 years. My gratuities were paid in 1998 when the value of the money had fallen more than 100 per cent. I started drawing my pensions in year 2000. I am a purely federal pensioner, with no state share at all.

    Till date, I have not been allowed to enjoy any of the pension increases approved since year 2000. In April 2009, my pensions were harmonised to enable me enjoy the 142 per cent increment approved in year 2000.

    The voucher was prepared. This included the arrears accruing from year 2000. That month, I was paid only the harmonised monthly amount. The arrears were not paid and have still not been paid till now. Later this harmonised amount was reduced by 50 per cent for no reason.

    Despite series of verifications and completion of complaints forms, no action has been taken on my case. However, the pension authorities keep on telling the public that they have been paying pension arrears and returning savings from discovery of ghost pensioners to government’s coffers.

    I submitted a letter of complaint to the Akure office of the Public Complaints Office in April 2014, but I am not sure the letter left the office although they charged me for courier fees. I retired from the Federal Civil Service at the age of 56. I am now 76 years old and I am still being denied my entitlements by fellow compatriots since year 2000.

    Read Also: Pension complaints and solutions

     

    This complaint and relevant documents including my bank statement of accounts are in my records with PTAD as were with those who handed over to them.

    Why is it that nobody is doing or saying anything about my case? This new government that is committed to change and correcting previous ills should come to the rescue of pensioners.

    I thank The Nation for its interest in the welfare of the elderly. May God bless and keep the newspaper. Pensioners name: E. F. O.

    PTAD: We require additional information to enable us investigate and resolve the pensioner’s complaint. Mr Owoeye should please send the pensioner’s name and telephone number to complaints@ptad.gov.ng to enable us speak to him

    ADETUTU: Hello Omobola, please my mother retired in the year 2005, as a principal catering assistant ll Grade level 10 step 2. Her name is Adetutu. The problem is that she has not been given monthly pension from 2005. Since then some people have been calling her from Head of Civil Service Commission that she should give them money before they will pay, but she ignored them‑ not until February 2018, when they called her that President Buhari had given them go ahead to pay and they swindled  her of N240, 000.  She paid the sum to to their different account numbers with their names. Please, we seek your intervention   as we have lodged  many complaints before now. She is 74. When is she going to enjoy the fruit of her labour?. Thank you

    PTAD: We will never request for cash to process pension. Pensioners are advised to be wary of fraudsters as pension payment is free. We require the pensioner’s telephone number to enable us get additional information.

    JOHNSON: My complaints is nonpayment of pension salary as from August 2008. My name is Johnson. I wish to complain that my pension salary since August, 2008 is yet to be paid till date. I call on the Executive Secretary of PTAD to kindly check their records and make the said amount payable to alleviate my financial burden. Thanks and be blessed.

    PTAD: The pensioner is currently receiving monthly pension payment and is owed pension arrears.  PTAD ensures pension arrears are cleared as funds are allocated and released by the Federal Government.

  • Inflation threatening N9.58tr pension fund

    There are fears that inflation is eating deep into Nigeria’s N9.58 trillion pension fund assets, eroding over 100 per cent of the value. Omobola Tolu-Kusimo reports that there is need to review the investments of the funds.

    Fears that Nigeria’s N9.5 trillion pension fund assets may be eroded by inflation in the nearest future is gathering momentum. The Nation learnt that the fund’s value has been eroded by 100 per cent between 2012 and 2019.

    This is being envisaged by experts considering the depreciation of the Naira in recent times.

    This has, however, brought to the front burner the need for the regulatory authority, the National Pension Commission (PenCom), to allow more investment of pension funds outside Nigeria.

    Pioneer Director-General of PenCom, Muhammad Ahmad while speaking on ‘’The Pension Industry – The Way Forward” during a retreat for National Assembly members on pension in Uyo, Akwa Ibom State, drew the attention of stakeholders to the dangers ahead.

    He stated that there is the need to ensure that contributors and retirees do not suffer unduly for the depreciation of the Naira over the years.

    Giving an instance, he said that in 2012, one dollar exchanged for an average of N170.

    Today, one-dollar exchanges for an average of N360. What this means is that pension contributors, have had the value of their contribution eroded by over 100 per cent in that period for no fault of theirs or the fund managers, he noted.

    In this regard, he said the investment of a portion of pension funds in permissible foreign assets is an issue that needs to be at the front burner.

    He pointed out that a cursory look at the Pension Reform Act (PRA) 2014, Section 87 (1) shows that there is allowance for the investment of pension funds outside Nigeria, but this area has remained fairly non-operational with negative long-term implications for contributors as enunciated above.

    He further observed that Section 87 (2) of the Act states that the Commission may, subject to subsisting Central Bank of Nigeria (CBN) foreign exchange rules, recommend to the President for approval, portfolio limits for investments of pension funds or assets outside the territory of the Federal republic of Nigeria”.

    He stressed that it is imperative that PenCom and the operators engage the CBN to develop a workable framework to access foreign exchange for pension fund investment for the benefit of RSA holders in the immediate future.

    He said: “Going forward, however, I will strongly suggest that the need for Presidential assent be removed and replaced with the power of the Board of the Commission to issue investment regulation for foreign investments as is done in a number of North and South American countries. This can be achieved by collaboration between the operators, PenCom and the legislators. However, this is not urgent as the process has not been tested.

    “There is the need to encourage development of enabling framework for pension funds to facilitate national development. In this case, Public Private Partnership (PPP) rules need to be strengthened at both the national and state levels while Africa infrastructure collaboration initiative projects like roads, rails, telecommunication, power, among others should be promoted.

    “There is also need to promote credit enhancement market in the short term – currently InfraCredit is virtually the only private institution providing such guarantees (incentives) in Nigeria. However, enabling environment such as policies on project preparation to enable quality project issuance need to be established so as to walk ourselves out of provision of guarantees in the future.”

    Read Also: Legislators, pension operators demand PenCom Board

     

    He posited, investment of the fund is a critical factor that will enhance the growth of the pension industry.

    “We need to constantly review the scope of investments that the Pension Fund Administrators (PFAs) can deploy the pension contributions in. We are aware that the investment climate is very dynamic and investment opportunities open up every day.

    “We, thus, need to ensure that the fund managers have the flexibility they require in order to make investment decisions for the benefit of the RSA holders. I must add though, that we must find the balance between the need for speed and returns and safety. In this regard, safety first should be our guide”, he noted.

    The Head, Branding & Communications, Pension Fund Operators Association of Nigeria (PenOp), Wale Odutola, said the monies from the pension fund have been deployed into critical areas of the economy but perhaps, not as diversified as expected to fully support the growth.

    Odutola who is also the Managing Director, ARM Pension Managers, said what is most crucial to them now, is how the fund will have more impact in the next 15 years.

    “We have had 15 decent years within the pension space but the next 15 years are probably even more important because the challenge then becomes how do we grow from about N10 trillion to N20 trillion.

    “And by growing, I am not talking about investment performance but how we will add more people to the pension industry such that the we all can begin to benefit from it and have some sort of security when we retire. This remains the biggest challenge for us as a sector”, he added.

     

     

  • Lagos pays 426 retirees N1.51b accrued rights

    The Lagos State government has again paid accrued pension rights of N1.51 billion into the Retirement Savings Accounts (RSAs) of 426 retirees of the state public service.

    The Director-General, Lagos  State Pension Commission, Mrs. Folashade Onanuga, made this known in a statement in Lagos.

    According to her, the payments were made to the retirees at the 69th Retirement Benefit Bond Certificate Presentation ceremony in the state.

    She stated that the state governor, Babajide Sanwo-olu, had the interest of retirees at heart hence, he has been very consistent in granting approvals to clear off outstanding accrued pension rights.

    She thanked the retirees for contributing their quota and making a meaningful impact during their service years to the state.

    Read Also: Labour pledges payouts to pension age rise women

     

    The DG said the state government and the commission remained committed to ensuring that as people retire, they will transit to paid pensioners not later than two months after retirement.

    The government is committed to clearing the backlog and hence payment of a huge amount of N1.514 billion for the month of November.  In October, an amount of N1.15 billion was paid and in December, a projected amount of #1.5billion will also be paid.

    She advised retirees that health is wealth in retirement and they should be moderate in everything, to enable them live a longer and healthier life.

     

  • Governors’ lack of political will bane of CPS

    By Omobola Tolu-Kusimo

    Lack of political will by state governors in the country has  remained the bane of the success of the  Contributory Penion Scheme (CPS).

    The state governors are yet to embrace the scheme 15 years after it was established through the Pension Reform Act (PRA) 2004, as repealed by PRA 2014.

    According to the National Pension Commission (Pencom), out of the 36 states, 25 have enacted the CPS while nine states and the Federal Capital Territory (FCT)  have commenced implementation, remitting both employer and employee pension contribution.

    The Nation, however, gathered that the 25 states that have enacted the law have not implemented the scheme. Only Lagos, Edo, Kaduna and the FCT have fully implemented the laws of the scheme.

    Head, States Operation Department, PENCOM, Mr. Babatunde Philips, while speaking at the 2019 Journalist Workshop titled” Expanding coverage of the pension industry” held in Benin, said the need for states to adopt the  CPS cannot be overemphasised.

    He said this is because it presents opportunities for state governments to access available pension fund to deepen infrastructural development in the states.

    He observed that the delay in the adoption of the scheme by some  states was due to poor understanding by state officials and labour unions.

    Philips said: “The CPS stands as a legacy against old age poverty, as well as enhances the integrity of state governments’ payroll. The right of states to enact their own pension laws had been a clog in the wheel of progress, as some states delay in the enactment of their laws. The lack of political will by some state executive governors had also hindered the implementation as the decision more or less depends on the state governors.

    “Steps towards ensuring full implementation of the CPS in states include enactment of the state pension law, establishment of state pension bureau, commencement of actuarial valuation to determine accrued rights of employees, opening of RSA for all eligible employees amongst others,” he said.

    Speaking on  the benefits of the CPS, Philips said it will reduce pension burden and stem further growth of pension liabilities.

    Read Also: Pension fund contributors hit 8.85m with N9.58tr assets

    Continuing, Philips said: “The contribution structure allows for shared responsibility between the employer and the employee, incremental accumulation of pension funds and assets, sustainability of pension arrangement. Periodic and spaced out payment of contributions also ensures fiscal discipline and financial sustainability, and provision for instalmental payment of past pension rights of employees.”

    He also said it enhances integrity of State Governments’ payrolls, while biometric requirement for opening RSAs ensures data credibility, even as elimination of ghost workers reduces governments’ personnel costs.

    “It also frees states from unnecessary hassles of pension administration. It is a legacy against old age poverty and economic empowerment of the vulnerable segment of the society,” Philips said, adding that it is an opportunity for  states to access available RSA funds for infrastructure.

    Also, it is an efficient avenue for financing state governments’ long term borrowing needs like state bonds, corporate bonds. It also enhnaces access to RSA balances for affordable housing scheme

    In other words, state employees with RSAs can also use part of their RSA balances as equity payment to secure mortgage financing for their private homes.

    On the challenges, Philips said the right of states to enact their own pension laws had been a clog in the wheel of progress as some states delay in enactment of their Laws and/or enact laws that are at variance with PRA 2014 and CPS principles

    His words: “The lack of political will by some state governors has been a hindrance to the implementation of the CPS by states as the decision more or less depends on the states’ chief executives. Inadequate funding of the CPS in some states that had implemented the scheme  negatively impacted the smooth implementation of the Scheme.

    “There is also knowledge gap. Resistance to the implementation of the scheme by state officials and labour unions due to poor understanding of the scheme has delayed the adoption of the scheme by some states.

    “Partial implementation, deduction and remittances of only employee portion, deduction and non/incomplete remittances etc by some states had led to wide dissatisfaction and resistance of the CPS.” he noted.

  • Pension complaints and solutions

    AYAKI: I retired from the Ministry of Defence under  the Nigerian Air Force (NAF) in October 2018. I served as a teacher under NAF. Please when will my gratuity be ready? I am under SIGMA Pension. Thank you.

    SIGMA: Please provide the Retirement Savings Account (RSA) Personal Identification Number  (PIN) and registered telephone number of the client.

    ASKIRA: I am a retiree with Sigma Pensions. I submitted my annuity request since July 2, 2019. It was approved by PENCOM on August 16, 2019 and I also went to PENCOM to confirm. But as at September 11, SIGMA has refused to transfer my pension asset to my annuity provider, Custodian Life Assurance. Please kindly use your good office to call them to order. For three  months now I haven’t been paid.

    SIGMA: The retiree applied for the transfer of his fund to his preferred insurance company.This transfer was effected on September 9, 2019. The retiree should liaise with his preferred insurance company.

    Read Also: Pension complaints and solutions

     

    JOHN: My name is John Kadiri. I learnt PENCOM exists for the Nigerian pension industry to ensure that retirement benefits are paid as and when due. I retired from Federal Polytecnic Idah in 2018. My PFA is Sigma and I did my biodata on July 17, 2017. My last salary was September 2018. My question is that since that time till date, does it  mean that my pension is not due for payment? What is the cause of this long delay?

    SIGMA: The retirement Bond was remitted on November 22, 2019. However, his account is yet to be reconciled by PenCom. Kindly advise the retiree to contact us for Data Recapture Update.

    IBRAHIM: My name is Ibrahim and I work with Nigeria Immigration Service, A DSI by rank. My RSA initially was domiciled with the acquired Amana Pension Limited. That was at the time of my documentation at Gwagwalada Para-military Board in 2009. After having registered with the Amana before it folded up, my pin was not given to me and I was left in the unknown for quite a number of years until IPPIS made me to understand that Sigma Pension acquired Amana Pension. I contacted Sigma and complained. They advised me for a new RSA registration. After doing the registration and giving them the new PIN number, they later called me and informed me of an old PIN that Amana never gave me. Sigma later advised me to use the old PIN of which I agreed. My complaint now is that, as IPPIS started paying my salary, my pension deduction from Sigma is updating me based on the deduction from the commencement of IPPIS without the previous balance from my RSA hitherto domiciled with Amana. Please I need your help.

    PENCOM: The relevant department would require the PIN of the complainant in order to assist  him further.

    ABDULLAHI: My name is Abdullahi. My PFA is Trustfund. I have retired since 2014 and I did my biodata in August 2018. After that, I went to my PFA Trustfund to request for 25% of my total savings but I was told that PenCom did not send money for MDA and I am now seriously in need of money because my children‘s school fees is becoming a problem. Please, I need your quick response. Thanks. I want to know from Pension Solution when my friend who started working for the Federal Government at 21, was retired at 39, paid gratuity, will be paid pension monthly? She was retired 12 years ago; she is now 51 without pension. When will she start receiving pension monthly? Thanks for your attention.

    PENCOM: The relevant Department would require the PIN of the Complainant in order to assist them further

     

     

  • Pension asset grows to N9.58trn

    Moses Emorinken, Abuja

     

    The National Pension Commission (PenCom) has revealed that its pension asset has risen to N9.58trn as at September 2019.

    This was made known on Thursday by the Acting Director-General of PenCom, Mrs. Aisha Dahir-Umar, during a workshop organized by the Commission for journalists in Benin city, Edo state.

    According to her, “As at September 2019, the number of registered contributors under the CPS has grown to 8.85 million while pension fund assets have grown to N9.58 trillion. This growth indeed justifies our emphasis on the safety of pension funds as the bedrock of sustaining the CPS and assure all stakeholders that the pension reform remains steadily on course.

    “These modest milestones notwithstanding, the Commission and Pension Operators are committed to actualizing the growth potentials of the pension industry”.

    In line with the theme of the workshop, ‘Expanding Coverage of the Pension Industry’, Mrs. Umar, explained that the Commission’s strategic focus which aims to expand access to pension via the Contributory Pension Scheme (CPS), is also aimed at expanding coverage of pension through transformational initiatives especially the Micro Pension Plan (MPP).

    The MPP, which was launched in March, 2019 by His Excellency, President Muhammadu Buhari, is targeted at the informal sector and self-employed who are not mandatorily covered under the CPS.

    The PenCom boss also added that: “Enhanced Contributor Registration System (ECRS), which is an in-house developed ICT application which was deployed in June 2019 to enhance the integrity of the contributors’ database, has been integrated with the National Identity Management Commission (NIMC) database to help authenticate the uniqueness of individuals seeking to register under the CPS.

    “The ECRS provides a platform for the registration of Micro Pension Plan participants and is a major step towards the introduction of the transfer window, which will enable contributors change to the PFAs of their choice, in line with Section 13 of the Pension Reform Act (PRA) 2014”.

    Read Also: NDDC Budget: Senate bars Interim Management

    The Executive Director (Technical) of ARM Pension, Mr. Abisola Onigbogi, explained that the informal sector has a huge potential to contribute significantly to the pension sector because apart from having a concentration of 70 per cent of total workforce in Nigeria, it also makes up about 17 million business and contributes 59.7 per cent to the Gross Domestic Product of the country.

    He also stated that efforts are going to ensure partnership with service providers to provide access to basic services such as health care, insurance services among others, with the aim of bringing more persons in the informal sector into the pension scheme as a greater percentage of Nigerians which represent the informal sector are still out of the pension coverage.

    “We need to deepen financial inclusion which stands at 65 per cent through mobile phone subscription. There are currently 172 million mobile subscribers, therefore, we need to make it easier for contributors to contribute to their pension account from the comfort of their mobile phones.

    “Providing means of identification by enrollees has been a major challenge for us, therefore, we are working with the regulators to ensure that the requirements are relaxed a little too encourage more people into the scheme”.

  • FBNInsurance settles N5.4b claims in nine months

    FBNInsurance Limited, one of the leading life insurance companies in Nigeria, has paid N5.4 billion claims settlements to its clients at the end of the third quarter of 2019, the Managing Director, Mr. Val Ojumah, has said.

    Ojumah, in a statement, stated that the company also paid N4.8 billion claims in 2018, despite the unpredictable economic situation in the country occasioned by the preparation for the general election at that time.

    He said the focus of the company was to maintain the indisputable leadership position in the life insurance sub-sector by paying claims promptly and at the same time protect the interest of its various corporate and individual clients.

    Read Also: FBNInsurance drives sales with Ember Championship

     

    According to him: “Ours is a business of trust and as part of our efforts geared towards maintaining irrefutable leadership in the life insurance sub-sector, we have built a solid foundation where our clients can insure their trust by promptly paying their claims. We have also deepened our footprints across Nigeria in our quest to serving our customers and shareholders even better than we have done in previous years.

    “Customer satisfaction is the fulcrum of insurance business and this inevitably builds customer loyalty and we will not fail to ensure this. We believe once FBNInsurance is able to pay customers’ claims as they arise, numerous customers and the general public will have faith to take up more life policies because they are convinced that should a claim/loss arise, FBNInsurance will be able to meet its financial obligations to them”.

    FBNInsurance is an FBNHoldings company associated with the Sanlam Group SA and was incorporated in 2010 to transact life insurance business in Nigeria and currently operates from over 40 outlets and two branches nationwide.

     

     

  • World’s best pension system pushed to the brink

    Record low interest rates are forcing the world’s best pension system to take drastic action aimed at staving off cuts to payouts that were once unthinkable.

    An extended period of negative or record low interest rates has put huge pressure on pension funds in the Netherlands, forcing them to alert retirees that their incomes could be cut. The Dutch government is working urgently to resolve the immediate problem, but the emergency is fueling concern in a country where an increase in the number of retiring workers means pension changes are inevitable.

    Dutch workers have typically been able to retire on a pension equivalent to roughly 80 per cent of their average pay. But stress on pensions from low interest rates has led to talk of reduced payouts to retirees, or increased premiums for those still in work, shocking a nation that has come to rely on a system known for its strict accounting and reliability. Nearly everyone has access to pensions from both the government and through their employer, and the Netherlands was ranked first in investment adviser Mercer’s 2019 annual review of global pensions.

    For global pension funds, low interest rates couldn’t have come at a worse time. Returns on their investments are poised to drop just as a seismic demographic shift takes hold. People are living longer, and populations are aging, which means there are fewer younger workers to pay into the system, keeping it afloat.

    A report last week estimated that the world’s top economies will face a shortfall of $15.8 trillion in 2050 — up from $1.1 trillion in 2017 — in providing financial security for their citizens in retirement. And that’s using optimistic assumptions on economic growth, wages and returns on pension investments.

    “It’s an extraordinary situation,” said Shaktie Rambaran Mishre, Chair of The Dutch Pension Federation, which represents about 200 pension funds. The Dutch government was forced to propose an intervention, which Mishre said “creates peace for now.”

    But for the Netherlands, these are uncharted waters. Mishre said such actions haven’t been necessary “as long as I’ve read the news.”

    Read Also: Nigeria hosts World Pension Summit

    On the brink

    These developments have roots not in The Hague, the Netherlands’ seat of government, but in the cities that host the world’s most powerful central banks: Washington, Frankfurt and Tokyo.

    Central bankers have conducted an unprecedented experiment since the 2008 financial crisis. To juice a sluggish global economic recovery, they’ve pushed interest rates to their lowest points in history; in Europe and Japan, rates have been in negative territory since 2014 and 2016, respectively. Meanwhile, central banks have gobbled up bonds via massive asset purchase programmes with the aim of lowering long-term borrowing costs.

    Years later, the worrisome side effects of such policies face growing scrutiny. One consequence of negative rates has been the impact on banks, which have to pay to park their money with central banks instead of collecting interest. Savers have also been penalised.

    Now the impact on pension funds is coming into focus. These entities count on bonds for stable returns to fund payouts to pensioners. Yields on bonds from countries such as Germany are negative, forcing them to chase returns elsewhere. In the Netherlands, stringent accounting rules for calculating future costs – generally seen as a positive – mean that funds face higher liabilities when interest rates are low. If they can’t meet their obligations, they’re forced to cut benefits.

    “In all likelihood, we will have to reduce pensions next year, and it does not look good for the coming years either,” Corien Wortmann-Kool, the chair of ABP, one of the Netherlands’ largest funds, warned last month.

     

    • Culled from CNN Business