Category: Pension

  • ‘Pension remittances improve under stiff penalties’

    Penalities imposed on defaulting employers under the Contributory Pension Scheme (CPS) have increased the rate of remittance of pension contributions into employees’ pension accounts, the Retirement Saving Accounts (RSAs).

    The Regional Manager, Trustfund Pension Limited, Mr Obiora Ozoekwem spoke at the 2019 Employers’ Forum in Lagos.

    He said the scheme faces the challenge of some employers not remiting up to date.

    Ozoekwem said most of the employers remit in arrears and this has led to backlog of remittance, thus making it difficult for them to be up to date.

    He said as a Pension Fund Administrator (PFA), they always organise fora to sensitise employers on how they can be compliant with the scheme.

    He said: “The forum is a gathering where we sit with employers under our management and bring them up to speed on some things they need to know and new happenings in the industry. We also discuss certain challenges we are having in terms of contributions and registrations among others.

    “We also discuss the challenges that we encounter in their operations as regards the pension administration. The first challenge we encountered with the employers started from the point when we have to talk to the employees to enroll under the scheme. We let them know that the responsibility to enroll laid with the employer because when a new staff joins an organisation, the employer is supposed to enquire whether the staff has been registered with a PFA or not.

    “In the case where he has not, the employer ought to allow him make a choice of PFA. But in a situation where he has registered with a PFA, the employer should not be found forcing him to leave where he is registered to join another. So, we make them to understand that the choice of a PFA lies with the employee and then the responsibility of ensuring that everybody has a pin lies with the employer.

    “At the point where the employee comes in and he doesn’t have a pin, the employer is mandated to after 6 months call for a temporary pin for the employee. The employer will then begin to remit his pension funds into the employees’ RSA account,” he added.

  • PenCom orders PFAs to open micro pension account with PFCs

    Pension Fund Administrators (PFAs) are required to open a collection account with Pension Fund Custodians (PFCs) of their choice for the receipt of contributions from micro pension participants, a report by the National Pension Commission (PenCom) has shown.

    The report, titled: “2019 PenCom First Quarter Report”, stated that the collection and management of the Micro Pension Fund will soon commence and PFAS are required to open the collection account.

    During the quarter under review, the Commission worked on the development of the Micro Pension Plan (MPP) returns rendition template for operators in line with the guidelines for the plan.

    Read Also: Lawyer hails Buhari, PTAD chief on pension reforms

    According to the Commission, the returns would be used to monitor MPP operations, ensure the provision of efficient service delivery to contributors and take action against violations of the guidelines whenever they arise.

    In the same vein, the Commission said it is in the process of issuing a fee structure to govern the management of the Micro Pension Fund by pension fund operators.

    This is in light of the commencement of registration of contributors under the MPP and the subsequent collection of contributions from Micro Pension Contributors, the commission added.

    The report read: “The Pension Reform Act (PRA) 2014 expanded coverage of the Contributory Pension Scheme (CPS) to the self-employed and persons working in organisations with less than 3 employees.

    This category of workers constitutes the larger percentage of the working population in the country. In order to achieve the pension industry’s strategic objective of covering 30 per cent of the working population in Nigeria under the CPS by the end of 2024, the MPP is being given impetus as an initiative that would ensure the coverage of this important segment of the economy.

  • Pension complaints and solutions

    ABIDEMI: My name is Abi demi, I want to inform you that my pension issues have been resolved and I have been paid by Crusader Pension. I thank The Nation newspaper and PenCom for their interventions.

    THE NATION is happy that your pension issues have been resolved. Do watch out for the newspaper publication every Wednesday for pension news.

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

    STANBIC IBTC: Further to our response below, please note that in line with the first PIN rule, as stipulated by the National Pension Commission (PenCom), the first Retirement Savings Account (RSA) Personal Identification Number (PIN) obtained by an RSA holder should be maintained. Based on the above, the first PIN generated for Mr. Abdulsalam by PenCom is with LeadWay Pension, while ours is the second PIN. Consequently, his contributions were transferred to his valid Pin with LeadWay as approved by PenCom while his second and invalid PIN was invalidated on our records. Please note that Mr. Abdulsalam can choose to transfer back to us once the Transfer Window is declared open by PenCom.

     

    MRS OKOROAFOR: I am Mrs Okoroafor and my late husband Mr Okoroafor passed on June 22, 2013. I am his next of kin. His PFA is Stanbic IBTC pension. I have done everything possible to collect his benefits in the last 5 years since his death. His last work place is the Nigeria Immigration Service headquarters Abuja. Kindly help.

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

    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 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’ move 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

     

     

  • PTAD: Sustaining Defined Benefit Scheme tempo

    To demonstrate care and commitment to pensioners’ plight under the old Defined Benefits Pension Scheme (DBS), the Pension Transitional Arrangement Directorate (PTAD) has embarked on verification in the Southwest, visiting the elderly in their homes and the infirm in hospitals, Omobola Tolu-Kusimo reports.

    For many years, pensioners have suffered neglect from those appointed by the government to attend to their  benefits. Most of them have not been paid their entitlements years after retirement.

    The Nigeria Union of Pensioners (NUP), has also not done much to ameliorate their plight. This was the picture of pensioners under the old pension system, the Pay As You Go (PAYD) or Defined Benefit Scheme (DBS).

    A gardener, Kamaru Olowojere, who retired from the Federal Ministry of Works about 11 years ago, abandoned by his family,  turned a beggar, asking for alms at Costain bus stop, Lagos. The blind man, who has been down with tuberculosis, found shelter in a primary school where he slept on the bare floor.

    Disturbed by Pa Olowojere ‘s plight, a concerned citizen and pensioner, Comrade David Adodo, picked the blind man from the bus stop and took him to a television station for the world to see how pensioners like him are faring.

    Adodo, who identified himself as Chairman, Concerned Pensioners in Nigeria, said he shed tears and could not bear leaving Olowojere in the condition he met him.

    Help, according to Adodo, later came for Olowojere through a donation by an oil firm and the old blind man secured accommodation, got medical assistance, and could feed himself and change his clothes.

    Olowojere is not alone in this utter neglect. Some civil war (1967 and 1970), veterans,who retired in 2004, have also not been paid their pension entitlements for more than 10 years after serving their fatherland meritoriously.

    The majority of those affected are soldiers,  who were seconded to the Nigeria Police Force. One of them,  60-year-old Abu Ekundayo, said he has not been paid his retirement benefits for more than eight years since retiring. He served the Nigeria Army and the Police Force for 27 years, leaving the police as  an Inspector.

    Recounting his ordeal to The Nation, he said: “I was receiving salary regularly until I retired in 2006, but I have not received my pension since I retired. I was suffering and partially blind with no money to eat or go to hospital. I was living a miserable life.

    “Sometime ago, when I visited the pension office, which was in Lagos as at that time, with some other retirees who have the same case, a fellow police officer, who works in the pension office, said he could help us facilitate the release of our benefits if we give him some money. He collected N50,000 from me and N25,000 from another retiree. While we were waiting for him to help us, we didn’t know when he left the pension office and his phone number never went through afterwards and we could not trace him again.

    “In 2011, when a friend and a fellow retiree, who had the same issue with me, went to the police pension office in Abuja, he said they (pension office) confirmed to him that they saw my name in the list of pending pensioners. Usually what happens is for Lagos Command to compile our files and send them to the pension office for payment. Under normal procedure, it should not take more than a year for them to pay. Some people, who are well connected, have received their own pension,” he added.

    Another retiree, Richard Ogundare, an Assistant Superintendent of Police (ASP), retired 10 years ago and has not been paid his retirement benefit also.

    But since the Pension Reform Act (PRA), 2004 as repealed by PRA 2014, which established Pension Transitional Arrangement Directorate (PTAD)took off, a new dawn has come for many like Olowojero, Ekundayo and Ogundare. They are now being enrolled into the pension pay system, paid all benefits and receiving monthly pension.

    Olowojere, who got paid four months ago by the PTAD had lost his documents and could not remember where his bank was due to his blindness. But the directorate said it went all out to search for his bank and other details from the Federal Government, his employer.

    Last week, PTAD Executive Secretary, Mrs Sharon Ikeazor in a bid to right the wrongs previously done to pensioners, embarked on a tour of the southwest zone of the country to carry out mobile verification for the feeble and the elderly pensioners, who retired from various parastatals of the Federal Government under the old pension scheme.

    Starting from Ibadan, Oyo State capital, to Abeokuta, Ogun State and Osogbo, Osun State, she, with some of her members of staff,  visited the pensioners and carried out the verification process which was witnessed by The Nation. Olowojere, who resides in Abeokuta, was one of those she visited.

    She also visited a pensioner, Mr Adebowale, who was receiving treatment at the University College Hospital (UCH), Ibadan and carried out mobile verification exercise on him.

    Speaking with reporters at Olowojero’s home, Mrs Ikeazor said she decided to visit the pensioners to show them love and the government’s commitment to their welfare.

    She said the PTAD is working to fulfill President Muhammadu Buhari’s mandate  that all pensioners must get their benefits and be treated with dignity and respect.

    She said her tour to the zone has kept all PTAD staff on their toes. “They have been working tirelessly to make sure all pensioners that come out for the exercise are verified, while I join those going for mobile verifications,” she said.

    Speaking on Olowojere’s case, she said the matter was brought to her attention through the television broadcast, stressing that the Directorate acted immediately by verifying his document, paid his benefit and put him on the payroll. “He has started receiving monthly pensions,” she said, urging the pensioners’ union to bring cases like Olowojere’s and others to government’s attention.

    “Many wonder how we have been able to maintain this new face of pension administration. It is just by making sure things work, by engaging and keeping a check on the staff. I have been to Abeokuta, I went to Ibadan and headed back to Abeokuta the next day. I am also going to Osogbo. I also want to visit a 103-year-old pensioner in Ijebu-Ode to verify him. I believe that the staff have seen the way I am moving with them and they are motivated.

    “I made them to understand that we have to maintain the tempo. What we are doing is not just a job to us, but a passion to take care of our parents and the older ones. I used to tell them that when they look at a file on their table, they should not look at it as nothing, but see the file as a human being and that every hour they delay, they are delaying someone from getting his benefit.

    “The Directorate is being restructured to be able to run on its own. This is why we have been securing a data base scheme through the ongoing verification. Once we are able to meet the current data base, we can easily plan and talk about whom we are paying and advise the governor properly. We have put many pensioners on the payroll and paid arrears.

    “There is a case of 24 years’ retiree who had never collected his pension. He came to us and we verified him. We paid him the 24 years’ arrears and the man was over the moon. We discovered many pensioners with such cases because of the maladministration in the past. Some didn’t even bother to go through the process of claiming their pension. But now that PTAD is working they are all coming back to claim their pensions. So, it has been very interesting,” she said.

    She spoke of another case of a pensioner in Niger State whose pension was stopped for many years. “We went to verify him and two weeks after we paid him, he died.”

    She continued: “If for instance, we verify a pensioner today and he dies the following day before we pay him, we will calculate his death benefit and any other arrears, pay it to his family and then take him off the pay roll.”

    Reacting to the ongoing exercise by the directorate, Adodo said he  was unhappy with the NUP because the union seemed not interested in the welfare of its members.

    “When I found Olowojere in the condition I met him, I called on the NUP and told them that he required N1.5 million to get medical care. At the end, they gave him N5000.

    “Olowojere’s eyes were infected while he worked as a gardener with the Federal Government. When he retired, he used to come to our meetings and complained to me that the eyes were always itching him.

    “The man has no wife, no child, no family. So, he used to come hoping that the government would pay. I used to give him money weekly for treatment. All of sudden I didn’t see him again. But one day I was walking through Costain and I saw him begging for money.

    “I called a television station and they helped to feature him. The PTAD came immediately to verify him. Unfortunately, he did not know where his bank was because he had become blind and he didn’t know how to trace his document. But PTAD traced his bank and all his document for him. They did a wonderful job,” Adodo said.

    A pensioner at the verification centre in Abeokuta, Mr. lbijola Olalekan hailed the exercise and described it as peaceful. “I retired from the Nigerian Postal Service and I am receiving my pension regularly. PTAD staff treated us well and they even gave us food. The verification process is fast. President Muhammadu Buhari’s administration is a responsible one because of the way the exercise is going, unlike what we had in the past when the other government felt less concerned about pensioners. So we thank the President and the Executive Secretary,” Mr Olalekan said.

    Also in Ibadan, another pensioner lauded the Directorate, noting that it is good to have a woman at the helms of affairs of a sensitive organ of government like PTAD.

     

     

    He however called on the Directorate to speed up their operations and quickly pay all verified pensioners their benefits.

     

  • ‘Data recapturing to protect contributors, retirees against cybercrime’

    The ongoing data recapturing of pension contributors and retirees by Pension Fund Administrators (PFAs) nationwide is meant to protect pension clients against cybercrime and other fraud, the Managing Director, IEI-Anchor Pension Managers Limited, Mr. Glory Etaduovie, has said.

    Etaduovie in a paper titled: National Data Base Harmonisation and Pension Data Recapture, made available to journalists in Lagos stated that since last year, the National Pension Commission (PenCom) has been upbeat about data recapture of PFAs existing clients and to streamline future contributors’ registration in a move to have an accurate database.

    Read Also: Ministry, ICT stakeholders to partner on curbing technology importation

    He emphasised the need for national ICT database, noting that information, like communication, is the lifeblood of a nation.

    He said that with the massive pension fund accumulation and its fast pace of growth drawing attention, individuals with bad intentions are exploring how to penetrate the fund structure, hence, the need to enhance cyber security.

    He pointed out that aside individuals with bad intent, pension fund is now a veritable source of funding and development in the country.

  • Pension complaints and solutions

    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 was not given monthly pension from 2005 till August 2010. 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, they called her back again that President Buhari has given them the go-ahead to pay. They swindled her and collected N240, 000 and she paid to their different account number with their names. Please,  endeavour to help her out as we have made so many complaints, she is 74 years old. 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 non-payment of pension              salary from August 2008.               My name is Johnson. I wish to complain that my pension has not  been paid since since August, 2008. I call on the Executive Secretary of

    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.

    SANMI: This is for someone very close and dear to me. I retired as an Assistant Director of Education (GL 15) in December 1996, after 35 years of  service . 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 federal pensioner.  I have not enjoyed 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 even up till now. Later this harmonised amount was reduced by 50 per cent for no reason. Despite series of verification and completion of complaints forms, no action has been taken. I submitted a letter of complaint to the Akure Office of the Public Complaints Office in April 2014, without any success still.

    I am now 76 and I am still being denied my entitlements. This complaint and relevant documents including my Bank statement of accounts are in my records with PTAD.

    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.

  • OAK takes pension to grassroots

    OAK Pensions Limited is working to make pension more accessible to the grassroots through the micro pension plan, the Chairman of the company, Dr. Awa Ibraheem, has said.

    He spoke while presenting the 2018 financial result of the company during its 13th annual general meeting in Lagos.

    Ibraheem said the micro pension plan has been designed by the regulatory authority, the National Pension Commission (PenCom), to ensure pension is less elitist.

    He assured that the company would continue to ensure excellent service delivery and prompt payment of retirement benefits while it leverages on technology.

    According to him, it is proper for people to start preparing for pensions early in life, so as to have a comfortable future.

    Ibraheem said the company had continued to organise forums for its contributors in the country to enlighten them on the benefits of the scheme, as well as the retirement options.

    He said that since inception, the Contributory Pensions Scheme had increased, and as people saw more benefits in it, they would embrace the scheme.

    The Managing Director, Mr Samuel Inyang, disclosed that the company’s assets under management rose by 19 per cent in 2018.

    He said the company was uniquely positioned to offer pension with complimentary integrated solutions that promote financial security for the future, build loyalty and locked-in long-term relationship.

    He said: “We would be defending our market share with superior fund performance, exceptional service delivery across all customer touch point, and remain proactive in engaging and ensuring that RSA members and institutional clients expectations are not only met but exceeded.

    “We will optimise our social media handles and other communication channels to enhance information dissemination to both our internal and external customers; and enhancement of our e-channels for improved service delivery to our customers”, he added.

  • Pension complaints and solutions

    STEVEN: I am a retired teacher from Ifako International School. I was receiving pension of N24,684.76, but since 2003 nothing has been given to me. My NPF no is ANNONYMOUS. I will be happy if you can help and ensure that the money is paid. I also worked at Barachel Model College.

    PTAD: The pensioner was called several times, but no response. He is advised to send his complaint, name and account details to complaints@ptad.gov.ng.

    ALICE: My name is Alice. Well-done and thanks for your concern on pensioners’ matters. My pensioner number is Annonymous. I have done verification since August 2017, but PTAD has not paid me till date. Kindly assist, several pensioners have been paid their pension. 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.

    JOSHUA: 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 have no money, help me  tell pension boss that she should pay my pension. I am helplessly living a hard 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 will resume if eligible.

    MRS  ONIYE:  My Name is Mrs. Oniye. I retired from Federal Government College, Idoani, Ondo State in April,1999 as Grade 2 Typist, G.L 5 Step 10. My gratuity was paid on June 7, 2007. I have not been paid any monthly pension. Please see to my problem by helping me to contact the Pension Transitional Arrangement Directorate (PTAD) on non-payment of my monthly pension since 1999.

    PTAD: The pensioner is advised to send her complaint, name and account details to complaints@ptad.gov.ng. Her telephone number as provided is not reachable.

    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 for five times and did all 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: Good evening Madam, this is from one of the Pre 1996 Railway pensioners 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 being 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.

  • ‘Board absence crippling PenCom’s activities’

    The Pioneer Director-General of the National Pension Commission (PenCom), Mr Mohammed Ahmad, has said the absence of a board for the Commission has made it difficult for it to carry out initiatives that would have enabled it achieve its objectives.

    He therefore appealed to President Muhammadu Buhari to appoint a board for the Commission.

    Ahmad made the appeal when he spoke to reporters on the sidelines of an insurance conference to  assess the pension industry in Abuja.

    He urged Buhari to appoint a board for the Commission as he did for the Securities and Exchange Commission (SEC), which also did not have a board for a long time.

    He said a regulator needed a board, adding that rule-making, supervision and compliance in the pension industry will be made easier.

    While applauding PenCom micro pension plan, he said proper constitution of PenCom board would make these policies have the desired impacts.

    He advised the Commission to make pension scheme a private sector driven initiative by persuading players to key into the new pension scheme.

    This, he pointed out, will not only lead to influx of private sector operators into the pension system, but will allow pension contributors live a good life in retirement.

    He, however, said the scheme must be professionally handled as the template of its operation vary from the conventional pension scheme.

    He said: “If stakeholders can convince artisan to key into the pension scheme, the volume of pension assets will rise, while the number of contributors will rapidly grow.

    “Majority of Nigerians are in the informal sector and that sector is critical to the success, growth and development of the pension system in the country,” he added.

  • 266 Lagos retirees get N784.6m

    Lagos State Pension Commission (LASPEC), Director-General (DG) Mrs. Folashade Onanuga said another batch of 266 retirees in the state has received their retirement bond certificates for a sum of N784.69 million accrued pension rights.

    The DG in a statement said the retirees received their bond certificate at the 64th Retirement Benefit Bond Certificate presentation ceremony, which held at the NECA House, Ikeja, Lagos.

    She reiterated Governor Babajide Sanwo-Olu’s commitment retirees’ welfare, adding that their welfare is very dear to him heart and he is committed to ensure the payment of accrued pension rights continues monthly.

    She advised the retirees not to succumb to any pressure in the choice of annuity or programmed withdrawal benefit options. She took time to explain in details the two options adding that individual circumstance should be considered before making a choice.

    She urged all the beneficiaries to be extremely cautious and careful when deciding what to do after retirement. “Do not go into business that you are not knowledgeable about,” she said.