The Nation Newspaper

Category: Pension

  • Wapic raises share capital to N15b ahead NAICOM’s deadline

    The Board of Directors of Wapic Insurance Plc has secured the approval of its shareholders to increase the authorised share capital of the company from N8.5 billion to N15 billion, by the creation of 13 billion additional ordinary shares of 50 kobo each.

    The National Insurance Commission (NAICOM) had on May 20 given insurance companies a 13-month ultimatum to recapitalise or lose their licences. The ultimatum raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and composite insurance from N5 billion to N18 billion. Re-insurance companies were directed to raise capital base from N10 billion to N20 billion.

    Wapic operates a General Insurance Business as well as a Life Business, and so will require to meet minimum paid up share capital of N10 billion for general and N8 billion for life ahead of the deadline.

    The resolution approval, according to its chairman, Aigboje Aig-Imoukhuede, is in the best interest of shareholders, as it will enable the company to accommodate any share capital increase. He spoke at the firm’s annual general meeting (AGM) in Lagos.

    He said the board is committed to ensuring that Wapic meets the capital requirement. He lauded NAICOM on the capital base increase, stressing that insurance business requires funding to attract the right talent, build skills and grow the business.

    He assured shareholders that the company will emerge stronger by the end of the recapitalisation exercise.

    During the financial year ended  December 31, 2018, the firm posted a gross written premium of (GWP) of N13.9 billion, a 42 per cent increase from N9.81 billion in 2017.

    Aig-Imoukhuede said  the performance was buoyed by the attainment of leadership status in some major accounts and enhanced underwriting capabilities.

    He said: “The group achieved an underwriting profit of N2.2 billion, a 40 per cent growth from N1.54 billion achieved in 2017. Accordingly, the group experienced an 88 per cent decline in profit before tax (PBT) to close at N187 million, negatively impacted by the drop in investment and other income, and the growth in underwriting and operating expenses for the period.

    “Profit after tax during the review year is N351.2 million.

    “The company paid claims amounting to N4.96 billion, a 30 per cent increase from N3.82 billion paid out in 2017, underscoring the importance it attaches to its customers towards meeting their claims obligation.”

    The Managing Director, Yinka Adekoya, added that going into the future, the company plans to up its drive for business excellence through sustainable practices, motivated by its commitment to customer satisfaction.

    “While we are hopeful about our future, we are very conscious of the realities of geopolitical and economic volatility, regulatory challenges, foreign currency pressure and customer needs and consumption pattern.

    “Wapic will continue to improve and emerge stronger than ever. Our current financial performance together with our firm commitment to improving our service delivery underlines our affirmation that our efforts to date at building an institution of repute have been successful,” she added.

  • CIIN marks 60th anniversary

    The Chartered Insurance Institute of Nigeria (CIIN is set to commemorate its 60th  anniversary with a list  of activities to acknowledge its contribution to the development of manpower in the country.

    The anniversary celebration is billed to run between August 2 and 8.

    In a statement, it said the anniversary which has Diamond Legacies, Driving Growth, as theme is to acknowledge the institute’s commitment to its duty as the rallying point for insurance professionals in the country.

    “To celebrate the milestone, the institute has lined up activities which will kick off with a Jumat and Church service. Other highlights of the anniversary celebration would include, a charity event and a public lecture.

    “The week-long activities will come to a climax with a gala night and the launch of the institute’s compendium chronicling the landmarks of CIIN in the last 60 years. The institute enjoined stakeholders to take part in the celebrations.

    “The Chartered Insurance Institute of Nigeria was established in 1959 and charged with the responsibility of determining the standards of knowledge and skills to be attained by persons seeking to become Insurance professionals in Nigeria.

    ‘’The institute became Chartered vide Decree (Now Act) No 22 of the Federal Republic of Nigeria and has served as a significant platform for the growth of the insurance industry in Nigeria over the years,” the statement read.

     

  • PTAD reschedules parastatals pensioners verification

    The Pension Transitional Arrangement Directorate (PTAD) has rescheduled the verification of pensioners and Next of Kin (NoK) of all federally funded parastatals, agencies and institutes in the Southeest, Southwest, Northeast, Northwest and Northcentral regions as well as the Federal Capital territory (FCT) under the Defined Benefit Scheme (DBS) .

    The Directorate said the rescheduling of the exercise is to enable it review the outcome of the verification exercise in Lagos and the Southsouth Region and restrategise towards ensuring greater efficiency and improved pensioner satisfaction.

    According to the statement, the exercise will recommence from the second week of July.

    PTAD noted that the new dates and venues for the exercise will be announced on June 28.

    While apologising for any inconvenience the postponement might cause pensioners, the directorate said the postponement will not affect monthly pension payments.

  • Activists push SA pension funds on climate change

    Shareholder activists Just Share and environmental law organisation ClientEarth have written to more than 50 funds in South Africa about their duty to savers.

    According to Bloomberg, the local industry oversees about R4.2trn in retirement investments, according to the two groups.

    Legal opinion commissioned by the campaigners shows that failing to meet the requirement on climate change “would likely amount to a breach of duty by the board of a pension fund,” they said in a joint statement.

    Oil companies and Norway’s sovereign wealth fund are responding to climate change through steps ranging from planting forests to divesting from fossil fuels. South Africa is dependent on coal for almost all of its power generation and unemployment of about 27 per cent complicates the debate around reducing this reliance, should it lead to closing mines and job losses.

    The ultimate effects of climate change and the cost of transitioning to a low-carbon economy should form part of money managers’ investment strategies, Tracey Davies, executive director for Just Share, said by phone. “The primary reason is the fiduciary responsibility for the funds to invest in the long term.’’

    South Africa’s 2030 energy plan sees coal-generated power dropping to less than 50 pension of the total, as investment increases in renewables such as wind and solar.

    But, South African companies have been highlighting some of the potential costs. Anglo American Platinum, the world’s biggest producer of the metal, said April 9 that a planned carbon tax in the country will add cost pressures for marginal and loss-making operations.

    Reaction from funds that responded to the campaigners’ questions ranged from interest in discussing the issue to asking whether they were being accused of doing something wrong, Davies said. The initial purpose of the letters was to raise awareness. “You’ve got to understand how exposed your portfolio is to climate policy.”

     

  • Bosch’s cross-border plan thwarted by regulatory hurdles

    German engineering firm Bosch has transferred its Austrian pension plan to the €10.4bn VBV Pensionskasse after regulations stopped its initial aim of consolidating funds in Germany.

    At the end of 2018, Bosch decided to consolidate its existing pension plans and to implement a new defined contribution pension plan, covering approximately 2,000 employees of various subsidiaries in Austria.

    The company initially intended to fund pension obligations through a company-owned Pensionsfonds vehicle domiciled in Germany.

    However, after several months of planning, including feasibility studies on how the German Pensionsfonds could operate cross-border, Bosch decided to put the project aside.

    “We wanted to create a harmonised pension provision for all affected subsidiaries in Austria, funded by the Bosch Pensionsfonds,” a spokesperson told IPE.

     

  • Lagos prepared for recapitalisation, says DG

    The Director-General, Lagos State Pension Commission (LASPEC), Mrs. Folashade Onanuga, has said the state is not worried over recaptalisation by insurance companies.

    According to her, the agreement between the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) to move about N500 billion annuity funds from the custody of insurance companies to Pension Fund Custodians (PFCs) has protected the funds against any insurance companies that may be unable to meet the new capital requirement by NAICOM.

    She spoke on the sideline of the 16th Retirement Benefit Documentation Seminar for employees in Lagos.

    Speaking on the recapitalisation in the insurance industry, she said the state was not worried whether or not an insurance company offering annuity and holding funds will meet the new capital requirement of N18 billion, from N3 billion as composite insurance companies.

    According to her,  a meeting was held with chief executive officers of companies providing annuity cover for the state’s retirees.

    She listed FBN Insurance, ARM Life, AIICO Insurance, LASACO Assurance, Leadway Assurance, Custodian Insurance and African Alliance Insurance Plc as firms the state met with.

    She said: “NAICOM recently said General Insurance Business and Composite insurance companies must recapitalise to over N18 billion. The recapitalisation of these companies will not affect annuity pension fund asset. For us at LASPEC, we have always been very careful in our administration of the state retirees fund. This is why we ensured that most of the insurance companies we have are composite.

    “We had a meeting with all CEOs of the companies involved few days ago where we talked to one another and understood the situation. We wanted to know what effort that they are making to ensure that they are fully recapitalised. Fortunately for us, majority of the companies have the muscle to pull through. Yes, we have some that have some challenges but we are not too worried because the funds are not with them.

    “The circular by PenCom and NAICOM which directed that annuity funds be domiciled with the custodians is a very good thing for us. So the funds are not with the insurance companies,” she said.

    PenCom had stated that it became necessary to compel the companies to transfer annuity funds in the kitty of insurance companies to PFCs due to the unethical and sometimes illegal dealings of insurers with the annuity funds of their customers.

    It claimed that some insurance operators were allowing retirees to use their annuity funds as collateral for loans, which it said negated the pension law.

    As such, it explained that keeping all pension funds in the custody of the PFCs as specified by law would prevent unethical practices.

     

  • LASPEC pays N45b accrued rights

    The Lagos State Government has expended over N45 billion as accrued rights on over 11,000 retirees from the public service in the last 46 months, Director-General, Lagos State Commission (LASPEC), Mrs. Folashade Onanuga, has said.

    She made this known during the 16th Retirement Benefit Documentation Seminar for employees who are due to retire from the Lagos State Public Service between July and December, 2019, held at the Adeyemi-Bero Auditorium, the Secretariat, Alausa, Ikeja, Lagos.

    Mrs. Onanuga said the commission has been able to achieve this feat because the state government has been paying  accrued rights monthly since August 2015 to date, saying the state has not shirked for once in her responsibilities and commitment to regular funding of the employees’ Retirement Savings Accounts.

    She said: “Lagos State is the only state that is up to date in the monthly remittance of contributions, the only state that maintains monthly payment of accrued pension rights, the only state that has not reneged in the funding of the Retirement Benefit Redemption fund, the only state that is committed to the welfare of its workforce both active and retired.

    “Though, there are challenges of inadequate funding of pension obligations, but you will agree with me that as long as regular funds are provided, the issue of backlog will be cleared.”She added that the state  has invested heavily in ICT infrastructure to ensure pensions operations are uninterrupted.

    Onanuga said other innovations were also introduced to pave way for efficiency and effectiveness.

    “The increase in the number of Pension Fund Administrators and Annuity Service Providers from 6 to 15 and five  to  six respectively, was also to serve the pensioners  better.” She said the support for the activities of LASPEC has enabled the commission to be very efficient in its operations and this has translated into qualitative service delivery to you, our customers.

    “I want to say unequivocally that this pace will be maintained by the new administration of Governor Babajide Sanwo-Olu because Lagos State is known for consistency, commitment, effectiveness, efficiency and good governance and the governor is an astute establishment person having served as Commissioner in the Ministry of Establishment, Training and Pensions.”

    She implored the prospective retirees to make sure their documents are submitted in good time, so that they are processed.

    She said the seminar was organised to prepare the workers for their exit from active service after putting in many years to the development of the state.

    “Your transiting into another phase of life which is the evening time comes with its challenges as regards health, economy, social among others, and as a result, the importance of your being financially independent cannot be underestimated. Hence, our resolve to prepare your minds that retirement is inevitable and should be looked forward to.

    “I know you will be happy to ‘put down your pen’ if you are well informed of arrangement made by your employer for end of service benefits. Do not be afraid of what life out of paid employment holds. Be optimistic, prudent and contented. The payment of the accrued pension rights is critical to the early processing of your terminal benefits by your Pension Fund Administrator, and the main reason why this seminar holds bi-annually. Knowing what to do six months before retirement will go a long way to prepare you.

    “Start collating your documents six months before your exit. Ensure your pension records are complete i.e. your PIN details and contributions. Study and understand the benefit options available so that you can ‘take an informed decision. More importantly, there is need to maintain a safety nest whilst your pension entitlement is being processed”, she told the prospective retirees.

  • Pension complaints and solutions

    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 registration 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 October 10, 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 not picked. We would try again before close of business.

    OLAYORI:  Good day. My name is Olayori. I am a retiree of National Assembly Commission.  I worked as a Legislative Aide to a former Senator. We left National Assembly in 2011 and I have been collecting pension to the tune of N7,872.87 monthly. However, since November last year, the payment stopped. My PFA is IEI-ANCHOR Pension. I will appreciate if you can assist to find out why the payment was stopped. Thank you for your anticipated cooperation.

    IEI-ANCHOR Pension: We shall look into his case and revert.

    PENCOM: The relevant department would require the pin of the complainant in order to assist them further

    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 that retired in 2016 to date. None of these sets have received either gratuity or pension since they retired. The real problem we are having is not known as we were being fed with lies by various concerned PFAs from time to time. Kindly look into this and advise us on the way out of this predicament.

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

    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 Amana before it folded up, my pin was not given to me and I was left in the dark 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 on new RSA registration and after doing the registration and given the new pin number, they later called me and informed me of an old pin that Amana never gave to 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 them further.

    ABDULLAHI: My name is Abdullahi, my PFA is Trustfund. I retired since 2014 and I did my biodata in August  2018, and 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 school fees is becoming a problem. Please I need your quick response.

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

  • CBN pensioners urge Emefiele to honour agreement

    Central Bank of Nigeria (CBN) pensioners have urged CBN governor Godwin Emefiele to implement  a March 9, 2017 agreement on review of their pension and medical allowance.

    They congratulated him on his re-appointment, saying it was well deserved.

    CBN Pensioners’ Welfare Association (CPWA) chairman Bayo Ademola and General Secretary Felix Obi, in a statement, expressed gratitude to President Muhammadu Buhari for re-appointing Emefiele.

    “Your re-appointment by Mr. President in the first place and the subsequent very swift confirmation by the Senate is a veritable testimony to the fact of their assessment and verdict that your overall performance during your first term was very satisfactory.

    “We candidly hold the same view. Accordingly, we have also sent a thank you letter to President Buhari.

    “We are, therefore, particularly happy with your re-appointment primarily for the simple fact that you are already conversant with our problems, that is, matters relating to our welfare that are awaiting your necessary action.”

     

  • ‘Insure life, property against unexpected’

    Just as the definition of insurance which screams uncertainty, residents in Lagos and Ogun State last week woke up to an unexpected downpour, leading to damage of vehicles by fallen trees. Houses, telecommunications infrastructure and other properties were also destroyed by the wind and flood that came with it.

    The rain which came in torrents, with rising floods and wind blowing, lasted about two hours. It particularly uprooted a tree that fell on a jeep and car at Alfred Rewane, Ikoyi, Lagos, damaging the vehicle.

    Experts said for the unexpected that befell the owners of the two vehicles, is the reason vehicle owners should have a Comprehensive Motor Insurance.

    The Nation also learnt that the government, it was said, can also pay compensation in this instance, as it planted the trees that fell on vehicles.

    The Director-General, Nigeria Insurers Association (NIA), Mrs Yetunde Ilori, called on Nigerians to insure their lives and properties against the unexpected.

    She said owners of the two vehicles can make insurance claims if they have Comprehensive Insurance and not Third Party Insurance.

    She also said that the Federal Government also ought to have Liability Insurance Cover for trees that they plant of roads.

    This, according to her, will cover loss that may occur to citizens using the roads.

    She said: “A vehicle with Comprehensive Cover will be compensated but not the one with Third Party. Ordinarily, it is a public liability for which government should be responsible.

    But I doubt if the government has such cover. There might also be a law somewhere by which government relieves itself of such obligation. Someone can test the law by suing the government and this is why they should endeavour to have liability cover.”

    She advised Nigerians on the need to build a solid financial footing after working so hard.

    She said accidents and disasters can and do happen, and if you aren’t adequately insured, it could leave you in financial ruin.