The Nation Newspaper

Category: Pension

  • Pension complaints and solutions

    TAYO: What are the modalities of payment for those who joined the civil service in 2003 going by the Pension Act?

    PENCOM: Any employee who is entitled to retirement benefits under any pension scheme existing before the 25th day of June, 2004, being the commencement of the Pension Reform Act, 2004 falls under the Contributory Pension Scheme (CPS). You may liaise with your PFA who would advise you further in respect of modes of payment when you retire.

    ABDULSALAM: My name is Abdulsalam, a staff of Yaba LCDA. I have been with Stanbic IBTC Pension since its inception. But just this month, my pension fund was transferred to Leadway Pensure without my authorisation. Please what can I do because I want Stanbic as my pension manager.

    STANBIC IBTC PENSION: Please note that the policy of the National Pension Commission (PenCom) on multiple registrations is the ‘First PIN’ rule which recognises the first RSA PIN generated for a client as the valid one to be maintained. Based on this, Mr Abdulsalam’s first PIN as confirmed by PenCom is the PIN registered with Leadway Pensure. Therefore, his RSA PIN with us was invalidated and the funds transferred to his valid Pension Fund Administrator in January 2019. Kindly note that Mr Abdulsalam was informed of his valid RSA PIN with Leadway via a letter dated 10 October 2018.  We advise that he provides his Leadway PIN to his employer to ensure his RSA is credited timely. However, he can choose to transfer back to us once the transfer window is opened by PenCom. Do note that we also called him today to provide further clarification but our calls were unpicked. We would try again before  the close of business.

    SULEIMAN: I  retired on Level 14 Step 10 in June 1996 And Was Last Paid N59400 Monthly in March 2018. In August that year, I did a new verification at PTAD Abuja only to be paid N43,200 monthly. Thereafter, they say I was being overpaid after all! Is there any table for calculating pension?

    PENCOM: Please liaise with PTÂD who would be able to assist you further.  You can contact PTAD on any of these numbers: Toll Free Telephone: 0800-CALL-PTAD (0800-2255-7823); Telephone Lines (Charges Apply): +234(0) 9-462-1721; +234(0) 9-462-1722.  Email: info@ptad.gov.ng (For Inquiries); complaints@ptad.gov.ng (For Pensions Related Complaints); foi@ptad.gov.ng (For Freedom of Information Communications) Website: www.ptad.gov.ng

    JOEL: I am a former employee of a Federal Government agency. I want to know if it is possible to change my PFA from (Anonymous) to another one. I have been out of employment since 2013, I have over N2m as my contributory pension. I want to change my PFA because I am not satisfied with my current PFA. Is it possible for me to change and move my pension fund to another in my current situation? Thanks.

    PENCOM: Section 13 of the PRA 2014 allows an RSA holder to change his/her PFA not more than once in a year without giving any reason. The Commission is currently in the process of opening a transfer window to enable contributors’ moves from one PFA to another.

    ONYAKA: Sir, does First Pension Limited Still exist as Pension Fund Manager?

    PENCOM: Yes. They are known as First Guarantee Pension Limited.  Their contact details are as follows; Irorun Plaza, No. 65, Kudirat Abiola Way, Oregun, Ikeja, Lagos, http://www.firstguaranteepension.com

    DSP IZUAGIE: My name is Dsp Izuagie, I retired after 35 years from the Nigeria Police. My gratuity was paid to me in November 30, 2017 but it was less than N1.5milion.  I was told that my contribution was not made available to PenCom for trading. Please help me.

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

    ASP. SAMUEL: I have written immediately to the director of NPF Pension. They paid me N4,706, 067: 69k out of which am paid 25 per cent of N1, 176,516: 92k. plus my one year arrears of N366, 701: 18k. if one-year arrear can give me that, multiply it by four years and it will be N1, 466, 804: 72k which is more than what N1, 176, 516: 92k that I am paid for serving for 35 years. My personal savings is more than N1.5 million. What has government given me? My counterparts are paid than me. I am so disturbed. My other colleagues who witness the same fainted on the spot. Even a court clerk and messengers at state level can’t go home with one million? One of my course mate who is a traffic warden, Asp. Monday has N7 million and he was paid over N3 million.

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

    LICY: My Name is Abdullahi Mohammed and my PFA is Trustfund Pension. I retired since 2014. I did my biodata in August 2018 and after that I went to my PFA to request for 25% of my total savings but I was told that PenCom did not send money for MDA and I am seriously now in need of money because my children school fees is becoming a problem. Please I need your help. Thanks.

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

  • 10 things to know about Nigeria’s pension scheme

    What is this new pension scheme?

    This new pension scheme is contributory, fully funded, privately managed, third party custody of the funds and assets and based on individual accounts. It is called Contributory Pension Scheme (CPS) and ensures that everyone who has worked receives his/her retirement benefits as and when due.

    • Is the RSA operated like a bank account?

    The RSA is similar to a bank account except that no contributor can withdraw money from the RSA before his/her retirement. The PFA is required to invest the money and issue statements of account at least once every quarter to the contributor.

    • Is there adequate representation of all stakeholders on the board of the commission, or is it dominated by government appointees?

    There is adequate representation of relevant stakeholders on the Board of the National Pension Commission, which comprises of representatives of the Government, Nigeria Labour Congress, the Nigerian Union of Pensioners and the Nigerian Employers Consultative Association.

    • Can I move my account from one PFA to another?

    An employee or contributor has the freedom to move his account, once a year, from one PFA to another without giving any reason(s).

    • What will happen to existing pensioners in the private sector?

    Pension Boards in the private sector existing before the coming into force of the Pension Reform Act 2004 will continue to administer the pensions of the existing pensioners and the National Pension Commission will supervise such boards.

    • Who is covered by the new pension scheme?

    The new pension scheme covers all employees in the public service of the Federation, the Federal Capital Territory and the private sector of the economy.

    • How does movement from one employment to another affect pension?

    Movement from one employment to another does not affect pension under the new scheme.

    • Does the pension reform act reflect the application of the principles of transparency and accountability?

    Yes. The new pension scheme entrenches the principles of transparency and accountability as reflected in the reporting requirement of the PFAs and PFCs to both the contributor and the National Pension Commission.

    • Will the PFA charge fees for their services?

    The PFA will charge fees for the services being rendered on the RSA subject to such guidelines as may be issued by the National Pension Commission from time to time.

    • What will happen to existing pensioners in the public sector?

    In the public service, Pension Departments have been created to carry out the functions of the relevant pension boards or offices in the public service of the Federation and Federal Capital Territory with a view to making regular and prompt payment of pension to existing pensioners.

  • Pension complaints and solutions

    JOEL: I am a former employee of a Federal Government agency. I want to know if it is possible to change my PFA from (Anonymous) to another one. I have been out of employment since 2013, I have over N2m as my contributory pension. I want to change my PFA because I m not satisfied with my current PFA. Is it possible for me to change and move my pension fund to another in my current situation?

    PENCOM: Section 13 of the PRA 2014 allows an RSA holder to change his/her PFA not more than once in a year without giving any reason. The Commission is currently in the process of opening a transfer window to enable contributors’ move from one PFA to another.

    ONYAKA: Sir, does First Pension Limited still exist as a pension fund manager?

    PENCOM: Yes. They are known as First Guarantee Pension Limited.  Their contact details are as follows: Irorun Plaza, No. 65, Kudirat Abiola Way, Oregun, Ikeja, Lagos, http://www.firstguaranteepension.com

    TAYO What are the modalities for payment to those who joined the civil service in 2003 going by the Pension Act?

    PENCOM: Any employee, who is entitled to retirement benefits under any pension scheme existing before June 25, 2004, being the commencement of the Pension Reform Act, 2004 falls under the Contributory Pension Scheme (CPS). You may liaise with your PFA to advise you further in respect of modes of payment when you retire.

    My pensioner number is Annonymous. I did verification since August 2017, but PTAD has not paid me till date. Kindly assist, several pensioners have gotten their pension. I am a state pensioner with federal share. I retired on 30 April, 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.

    JOSHUA: Dear Omobola, my name is Joshua. I retired as a Seargent on grade level 05 step 4. My date of first appointment is January 20, 1986 and date of retirement is March 1, 1997. I have done verification in Abuja. Please I am koboless and pray you to tell the pension boss that she should pay my pension. I am helplessly living a tortuous life.

    PTAD: The pensioner’s complaint has been reviewed by the operations department. He will be paid as funds are allocated and released by the Federal Government.

    SUNDAY: I retired in June 2003 from the service of former governmet 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.

  • Linkage Assurance half-year profit up by 16%

    Linkage Assurance Plc has recorded a 16 per cent growth in Profit After Tax (PAT) for the half-year unaudited financial statement ended June 30, 2019.

    The figure rose from N439.77 million in the half-year period of 2018 to N572.76 million in the same period this year.

    According to the financial statement made available to the Nigerian Stock Exchange (NSE), Linkage during the period under review posted a Gross Premium Written (GPW) income of N4.130 billion as against N3.650 billion the previous year.

    With efficient risk management, the underwriter during the period returned to profitability in underwriting performance, posting a 176 per cent increase, as the figure moved from negative N367.11 million in 2018 to positive N296.06 million.

    The company’s total assets also grew by 8 percent, moving from N23.14 billion to N24.86 billion at the end of June 2019.

    The Managing Director, Daniel Braie said the Company has diversified its portfolio to achieve income efficiency with quality risk management, noting that management is actively watching its cost to ensure that it delivers value to shareholders.

    In terms of compliance to regulatory requirements, we are up and doing to ensure we remain above board and maintain our position in the industry, Braie said.

  • Pension funds to hit N10tr by Dec

    Going by the steady growth projection of pension funds assets, the funds may hit N10 trillion by December.

    The funds, which has been growing at the rate of over N100 billion  monthly, since January 2019, stood at N9.33 trillion in June.

    This was shown in the monthly pension funds’ summary report by the National Pension Commission (PenCom).

    The PenCom regulates and supervises the fund while Pension Fund Administrators (PFAs) manages and invests the fund for contributors and retirees under the Contributory Pension Scheme (CPS).

    The fund had grown to N8.74trillion in January; N8.91trillion in February; N9.03 trillion in March.; N9.12 trillion in April, N9.22 trillion in May and N9.33 trillion in June, making it to grow by N686 billion in six months.

    The more than N100 billion growth mark beats the N25 billion projection witnessed in the funds before 2017.

    Meanwhile, the report showed that a major chunk of N7.21 trillion out of the N9.33trillion recorded in June is from Retirement Savings Accounts (RSA) holders.

    A further breakdown of the June report under review showed that out of the RSAs’ fund of N7.21 trillion, retirees fund, categorised under Fund IV is N751.73billion while contributors, categorised under Fund I, Fund II and Fund III, own N6.51 trillion.

    Other contributions to the fund include N958.2 billion from existing schemes and N1.24 trillion from Closed Pension Fund Administrators (CPFAs).

    Meanwhile, the PFAs, the report indicated, invested a major chunk of the fund, totaling of N6.48 trillion into Federal Government Securities out of the N9.33 trillion in the period under review.

    Out of the N6.48trillion invested by the PFAs, N4.43 trillion was invested  in Federal Government Bonds; N1.93 trillion in Treasury Bills; N11billion in Agency Bonds (NMRC and FMBN); N86 billion in Sukuk Bonds; N12 billion in Green Bonds and N129 billion in state government Securities.

    The PFAs, however, invested N505.82 billion in corporate debt, while N1.04trillion was invested in Local Money Market Securities and N23 billion in Mutual Funds.

  • Lagos pays 311 retirees N1.13b

    LAGOS State Government  has presented Retirement Benefit Bond Certificates worth N1.13 billion to 311 public service retirees, the state’s pension commission (LASPEC) Director-General (DG), Mrs Folashade Onanuga, has said.

    She spoke at the 65th edition of Retirement Benefit Bond presentation in Lagos, assuring retirees that the state government’s interest in the well-being of its retirees is paramount.

    The current administration, she said, is a people oriented and sensitive to the yearnings of the people, and as such is willing to pay retirees’ pension benefits.

    She urged retirees to be prudent with their pension and to use it judiciously, adding that they should  beware of fraudsters.

    The DG also noted the differences between annuity and withdrawal programme, which are the two benefit options available under the Contributory Pension Scheme (CPS).

  • British firms, pension funds to report climate risks

    British public companies and pension funds may have to publish by 2022 what risks their businesses face from climate change under a new so-called green finance strategy.

    A commuter walks along Waterloo Bridge, which is being blocked by climate change activists, during the Extinction Rebellion protest in London, Britain.

    Britain last week became the first G7 country to sign into law a requirement to reach net zero emissions by 2050 and the green finance strategy, published on Tuesday, sets out plans to increase investment in sustainable projects and infrastructure.

    The government paper builds on disclosure on climate risks set out by the G20 Task Force on Climate-related Financial Disclosures.

    The government report said the financial sector needed be at the heart of changes required to meet the net zero emissions goal.

    “The re-allocation of tens of trillions of dollars of capital towards green investment offers the potential to reshape cities, energy systems and land use around the world. The nature of this investment … will determine the future of our climate,” the report said.

    “This includes setting expectations for publicly listed companies and large asset owners to disclose by 2022 how climate change risk impacts their activities.”

    It said it would work with regulators to decide whether mandatory disclosures, rather than the current voluntary system, was needed.

    The climate risks include potential “stranded assets” of fossil fuel companies which may not be able to burn all their oil, gas or coal resources if carbon emissions are limited. Insurance companies have also warned of the risk of claims relating to increased extreme weather damage from floods or hurricanes.

    Many investors have called on companies to provide better communication on how climate change could impact their businesses, amid concerns that assets are being mispriced because the full scale of the risk is not being factored in.

    The overall share of the market capitalisation of mining and oil and gas stocks in Britain’s blue-chip FTSE 100 index .FTSE is about 17 per cent.

  • Pension complaints and solutions

    MRS OKOROAFOR:

    Good day. My name is Mrs Okoroafor. My late husband Mr Okoroafor, whose PFA is Stanbic IBTC Pension, passed away on June 22, 2013. We have done everything, but have not received any payment since his death. The details are as follows: His last place of work: Nigeria Immigration Service headquarters, Abuja. I am his next of kin. Kindly help me.

    THE NATION: The Nation will intervene by sending your complaint to PenCom and Stanbic IBTC Pension. Do watch out for the newspaper next Wednesday for a response from the commission and subsequently weekly for pension news.

    DANIEL: My name is Daniel, a staff member of Lagos State Ministry of Education. l registered with ARM Pension, but recently my PFA was not stated on my pay slip. Please help me.

    THE NATION: The Nation will ‘see’ PenCom and ARM. Their response will be published in due course.

    OYEWUNMI: My name is Oyewunmi. I registered with Stanbic IBTC Pension, but my money is being paid to a different firm – ARM Pension. I have written letters to ARM to correct this, but it has not done anything. My request is that they should transfer my money with interest to Stanbic IBTC. Thanks.

    THE NATION: The Nation will send your complaint to PenCom, Stanbic and ARM. Please, read this newspaper weekly for information.

    BRIDGET: God bless The Nation for standing for the voiceless. My name is Mrs Bridget, the wife and next of kin to the late Ogene, who died on September 15, 2011. Until his death he served at the Federal Ministry of Lands, Housing & Urban Development, Mabushi, Abuja for 28 years. Till date, the group life insurance has not been paid. I was directed to the Head of Service for payment and all required documents were submitted. Whenever I called, I was told that the government had not released money for payment. Pease, help me, because  many files had been approved for payment by PFAs. Yet, my name was not among them.

    THE NATION: The Nation will  despatch your complaint to PenCom. Be patient. Ensure you read The Nation weekly for an update on your case.

    ANYIN: My name is Anyin. My date of first appointment is March 1, 1959, while date of retirement is October, 1985 on Grade level 16. My complaint is that I was not available during verification in Calabar because I was sick. Please, treat my case with passion. Thanks.

    THE NATION: Your matter will be taken up with the PTAD.  Soon, you will hear about it from this page.

    JOSEPHINE:  My name is Josephine. My complaint is that other retirees have received their monthly payment. But I have not got any. Please, help me.

    THE NATION: The Nation will send your matter to the PTAD. Please be on the look out for an update.

  • Contributors urged to embrace data recapturing

    Contributors under the Contributory Pension Scheme(CPS) have been urged to participate in the ongoing data recapturing by updating their data with their Pension Fund administrators (PFAs), Pension Fund Operators Association of Nigeria (PenOp) President, Mrs Aderonke Adedeji, has said.

    She spoke at a media parley organised by the association to give an update on the activities and performance of the industry in Lagos.

    She urged the nine million pension contributors in the scheme to embrace the ongoing exercise across the country.

    She explained that the aim of the exercise was to update the data of contributors and address the problem of multiple Personal Identification Numbers(PINs).

    Mrs Adedeji, also the Managing Director/CEO, Leadway Pensure Limited, said the exercise would allow (PFAs) reconcile the information collected with the previous one to enhance the credibility of the new scheme.

    She added that the exercise would protect pension clients against cybercrime as well as other fraudulent intents and activities.

    According to her, the National Pension Commission (PenCom) had, since last year, been upbeat about data recapturing of pension clients while streamlining registration of prospective contributors in a move to have accurate database of contributors.

    Adedeji said: “Retiremet Savings Account holders should go and update their data and not wait for PFAs to come to them before they subject themselves to the exercise. The process has started, PFAs have invested so much into the project and operators are progressively approaching their customers to recapture their data. For now, there is no deadline, since the exercise is just starting, but in future, there could be a deadline, depending on the response of pension contributors toward the exercise.

    “The verification is aimed at ensuring quality data of contributors, which is in tandem with modern ICT trends, to synchronise data base for national groups.

    ‘’The exercise requires RSA holders to provide their NIM numbers to their PFAs and answer some questions that were not provided earlier, by the account holders,” she added.

  • AIICO sensitises contributors, retirees, others

    AIICO Pension has sensitised its active and retired customers as well as the pension desk officers   in Lagos State.

    The Managing Director of the Pension Fund Administrator (PFA), Mr Longe Eguarekhide, made this known at a forum  in Lagos.

    He said there was the need to educate participants on the trends in the industry.

    He stated that the forum was also organised to get feedback from customers on how they could be better served.

    He assured that the company would continue to render excellent service to the customers, and other stakeholders.

    According to him, the company has an online registration, verification of account balance, access to quarterly statement and access to retirement planning tools, such as pension calculator and portfolio tracker.

    He added that the company invested in the pension fund under management prudently and has been able to deliver high returns on investment to its clients.

    He said: “Our team of investment experts in the capital market, money market, funds management and real estate put to bear their dexterity in portfolio management to guarantee superior returns on your funds without compromising safety of invested funds.

    “For us at AIICO Pension, customer is king in our business and that is why we have adequately made provision for dedicated relationship officers, an interactive website, call centre and customer care centre,” he noted.