The Nation Newspaper

Category: Pension

  • FAQs on contributory scheme

    When was the Pension Reform Act (PRA) enacted?

    The PRA was enacted in June, 2004. Having implemented the PRA for a decade,a review was conducted with a view to improving various provisions based on practical experiences. Consequently, it was repealed and re-enacted in July, 2014 as the Pension Reform Act of 2014.

    What is Contributory Pension Scheme (CPS)?

    The CPS is an arrangement where both the employer and the employee contribute towards the payment of the employee’s pension at retirement. It is fully funded through the monthly pension contributions that are remitted into an employee’s Retirement Savings Account (RSA) managed by the Pension Fund Administrator (PFA).

    What is the main objective of CPS?

    The main objective of the CPS is to ensure that every person that worked in either the public or private sectors in Nigeria including the self-employed persons receives his/her retirement benefits as and when due.

    Who is covered by the CPS?

    The CPS covers all employees in the public service of the Federation, public service of the Federal Capital Territory, states and local government areas, the private sector and the self-employed persons (Informal Sector).

    Who is exempted from the CPS?

    Judicial officers, members of the Armed Forces, the Intelligence and Secret Services of the Federation, existing retirees prior to June, 2004 and employees who had three years or less to retire as at June, 2004.

    What is a Retirement Savings Account (RSA)?

    A Retirement Savings Account (RSA) is an account opened by an employee with a PFA of his or her choice into which all pension contributions and returns on investment are remitted. It is also from the RSA that retirement and death benefits are paid.

  • Four PFAs commit infractions

    Four Pension Fund Administrators (PFAS) committed major infractions on investment of pension fund assets in 2017 and were made to refund the projected lost income, amounting to N418 million, a report by the National Pension Commission has shown.

    The infractions were made in the respective Retirement Savings Account (RSA) Fund. RSA is a dedicated account opened with a Pension Fund Administrator as specified under Section 11 of the Pension Reform Act of 2014. PENCOM made this known in its 2017 annual report.

    According to the commission, there were however two noted cases of infractions during the year.

    In the same vein, the commission said its review of corporate governance reports revealed that some key issues were observed, which include inadequate Board composition, absence of Independent Directors on the Board, attendance and frequency of Board meetings and that of the Board Committees, as well as non-submission of annual performance evaluation report of the Directors and Board of some of the operators.

    The commission stated that it carried out analysis of Investment Valuation Reports and it continued its analysis of the daily investment valuation reports submitted by pension operators in the pension industry in the year under review.

    The report read: “The Commission said the supervision of investment of pension assets, leading to the valuation reports enables it to monitor compliance by the PFAs with the regulations on Investment, Valuation and Fees Structure. The analysis revealed that PFAs substantially complied with the provisions of the investment regulation. However, there were two noted cases of infractions during the year.

    “Three PFAs were sanctioned for sub-optimal annual return on investment on their respective RSA Funds in 2017 while a PFA was sanctioned for sub-optimal investment in Federal Government Bonds.The Commission had applied the appropriate monetary penalties in accordance with the sanctions regime and the PFAs were made to refund the projected lost income, amounting to N418 million to the various RSA Funds.”

    On surveillance of the industry, the commission said in a bid to drive the achievement of a sound and sustainable industry, it conducted on-site and off-site examinations of the pension operators.

    “In compliance with Section 92(1) of the Pension Reform Act (PRA) 2014, routine examinations were conducted on all the 32 licensed operators, comprising of 21 Pension Fund Administrators (PFAs), seven Closed Pension Fund Administrators (CPFAs) and four Pension Fund Custodians (PFCs).

    “On off-site activities, all the 32 licensed pension operators successfully rendered returns on the funds under their management and custody as well as on the company assets and liabilities to the commission via the Risk Management & Analysis System (RMAS) during the year under review.

    “Similarly, the commission received Compliance Reports from all operators in 2017. The major issues observed from the reports were un-credited pension contributions, delay in the payment of retirement benefits to the retirees and outstanding commitments from the previous routine examination. The commission had taken all appropriate measures to ensure that these issues were effectively resolved”, the commission added.

  • Reform deepens financial market, says PenCom

    The introduction of diversified investment portfolio, the Multi-Fund Structure, by the National Pension Commission (PenCom), has increased the influx of pension funds into allowable investment instruments hosted by the capital market, Acting Director-General, Mrs Aisha Dahir-Umar, has said.

    The Muti Fund Structure introduced by the Commission on June 2, 2018, she said, is causing the capital market to assume more depth and liquidity.

    Mrs Dahir-Umar, who spoke at the 2018 Peninscope Annual Public Lecture in Lagos on the ‘Role of Pension in the Economy’, disclosed that pension funds and assets stand at N8.3 trillion, accounting for about five per cent of Nigeria’s Gross Domestic Product (GDP).

    She said there is a significant relationship between pension funds investment and the performance of the capital market in Nigeria since the 2004 Pension reform.

    Aside, she said the pension reform, which established the Contributory Pension Scheme (CPS), has provided jobs and employment opportunities for thousands of Nigerians, with the emergence of 21 Pension Fund Administrators (PFAs), four Pension Fund Custodian (PFCs), seven Closed Pension Fund Administrators (CPFAs) and Licensed Life Insurance firms.

    In the same vein, the Acting DG said the stimulation of Real Estate Development to Retirement Savings Account (RSA) Balance for equity contribution towards residential mortgage allows PFAs to apply 25 per cent of the RSA balance towards payment of equity contribution for  mortgage by a RSA holder. This, she noted, is in line with Section 89 (2), subject to guideline issued by PenCom.

    She said: “The pension reform has also helped in the provision of economic stability through incremental effect on Nigeria’s GDP. Pension funds and asset currently stand at N8.3 trillion, accounting for about five per cent of Nigeria’s GDP. The Commission has deployed measures to increase the pension funds to GDP ratio from five per cent to 10 per cent through the implementation of an expanded coverage strategy via the Micro Pension Plan to bring on board the informal sector by January 2019.

    “The introduction of the micro pension plan would assist the Commission to achieve the objective of ensuring at least, 20 million contributors by the end of 2019. PenCom, in accordance with the Provisions of Section 2(3) of the Pension Reform Act (PRA) 2014, is set to include the self-employed and persons working in organisations with less than three employees under micro pension. Micro Pension aims at ensuring that the informal sector participants save towards their old age. As this category of workers constitute a large percentage of the working population in the country, it is expected that micro pension would expand the coverage of pension contributors by an estimated 30 million people by 2024.

    “To implement this initiative, the Commission segmented the informal sector into three broad categories, namely: the low-income earners, the small & medium scale enterprises (SMEs), and the high-income earners. Each of these categories will be targeted with appropriate pension products and sensitisation programmes that suit their various peculiarities. Due to the peculiarities of the informal sector, micro pension would be flexible, safe, convenient and simple.

    Speaking on benefits of micro pension, she said over time, old age poverty will decrease with its introduction because the informal sector worker would have saved for retirement while active.

    “The additional savings from micro pension would aid economic development and macro-economic stability through investment in infrastructure and financial markets. Contributions will be transferred to designated beneficiaries in the event of a Contributor’s death.”

    Speaking on the challenges, she said despite the benefits of micro pension, there are a few envisaged challenges that need to be addressed, which include financial illiteracy and low income.

    “Some of the low-income earners, who constitute the third segment of the informal sector are mostly illiterate and inexperienced with formal financial transactions and institutions. This category of people must be educated on the importance/benefits of personal finance before they can be convinced to sign up for Micro Pension.

    “Unlike the high-income earners, who can deposit in lump sum, most low-income earners are daily wage workers and as such are unable to deposit large amount at a go. Therefore, Micro Pension requires specific characteristics in design and distribution to make the product affordable for low income earners. Low income earners need to be educated on how small amount of money can be saved individually and invested collectively to grow benefits.

    On the way forward, she said the Commission expects that the implementation of Micro Pension will yield positive results for Nigerians and the Nigerian pension industry.

     

    “The Commission has recently issued the guidelines and framework on micro pension. In addition, the Commission is working on the IT infrastructure that will support its launch. With the implementation, people under the informal sector can save in an account and receive the benefits when money is invested and protected under legislation instead of putting money under their matrasses.

    “In the absence of any other form of social security in Nigeria and in the light of shifting demography in favour of the retired or aged population, pension provides income security to the retired worker or his beneficiary in the event of death (Death Benefits). Pension as a steady stream of income provides the retiree with purchasing power that reduces the employed to unemployed dependency ratio”, she added.

  • Allianz reports safe shipping, unveils new challenges

    About 94 vessels were lost in the shipping world in 2017, a report by Allianz Group has shown. The figure, which was the second lowest in 10 years after 2014,  was down by four per cent year-on-year.

    According to the report, bad weather, such as typhoons in Asia and hurricanes in the United States (US) contributed to the loss of more than 20 vessels, going by the annual review, which analyses reported shipping losses over 100 gross tons (GT).

    It stated that the decline in frequency and severity of total losses over the past year has continued the positive trend of the past decade.

    Global product leader, Hull & Marine Liabilities, Allianz Global Corporate & Specialty (AGCS), Baptiste Ossena, said insurance claims have been relatively benign, reflecting improved ship design and the positive effects of risk management policy and safety regulation over time.

    He, however, stated that as the use of new technologies on board vessels grows, “we expect to see changes in the maritime loss environment in the future”.

    The number of more technical claims, the report said, will grow. This include cyber incidents or technological defects, in addition to traditional losses like collisions or groundings.

    The report further said: “Analysis has shown that a particular Friday in 2012 was the most dangerous day at sea, with the loss of 175 ships out of 1,129 total losses reported to have occurred over the past decade. “Friday, January 13, really can be unlucky as three ships were lost on this day in 2012, including Costa Concordia, the largest-ever marine insurance loss”. The ship wrecked off the coast of Isola del Giglio in Italy due to a collision with a submerged rock. It capsized hours later and was subsequently declared a total loss.

    The unluckiest ship of the past year is a passenger ferry, operating in the East Mediterranean and Black Sea region. It was involved in seven accidents in 12 months.

    Captain Rahul Khanna, Global Head of Marine Risk Consulting, AGCS, added that human error has continued to play major role in those incidents.

    “Inadequate shore-side support and commercial pressures have an important role to play in maritime safety and risk exposure. Tight schedules can have a detrimental impact on safety culture and decision-making.”

    It is estimated that 75 per cent to 96 per cent of shipping accidents involve human error. It is also behind the 75 per cent of 15,000 marine liability insurance industry claims analysed by AGCS , costing $1.6 billion.

    The Allianz Group, which has its headquarters in Munich, Germany, is one of the world’s leading insurers and asset managers with more than 88 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance.

    The Group manages over 650 billion euros on behalf of its insurance customers and an additional 1.4 trillion euros of third-party assets. It holds the leading position for insurers in the Dow Jones Sustainability Index and in 2017, over 140,000 employees in more than 70 countries achieved a revenue of 126 billion euros and an operating profit of 11 billion euros for the Allianz Group. In July 2018,  Ensure Insurance in Nigeria, was acquired by the Allianz Group and rebranded as Allianz Nigeria in December 2018.

  • Pension complaints and solutions

    FLORENCE: Dear PTAD, thank you for informing me that deduction in my May pension was due to computation correction. But the short payment is more than what it has stated. My Federal gratuity too has not been paid since my retirement in 2005. Please I need solution.

    PTAD: Please scan and email your verification slip and supporting documents to complaints@ptad.gov.ng. This will enable us investigate and resolve your complaint. Thank you

     

    OZEGBE: My name is Ozegbe. I retired on October 15 2006 as  senior foreman carpenter on grade level 7 step 8. I did my capturing in 2016. My problem is nonpayment of federal share since 2006 till date. Thanks

    PTAD: Kindly scan and email your verification slip to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    KAWONISE: I am Kawonise. I retired from Federal Ministry of Works and Housing, Lagos. I have not been paid my pension for April and May 2018. Kindly help me out of this problem and save me from hunger. Thank you.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement, covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    BAIYEGUN: My name is Baiyegun, I am an Ondo State pensioner with Federal share. I was verified by the PTAD during the last exercise and captured into their scheme. My financial benefit was supposed to start from January 1, 2002 but to my surprise when I received bank alert for the payment, the PTAD only paid me for March, April and May 2018. When am I going to receive the arrears of my pensions, starting from January 1, 2002? Please I am dying.

    PTAD: Please note that PTAD has compiled the list of pensioners for the next batch of pension arrears payment and is waiting for the allocation and release of funds from the Federal Government for this purpose. Thank you.

     

    ALI: My name is Ali; I am from Plateau State. I have not been put on payroll. I am being owed gratuity and accumulated pension arrears. Please come to my rescue.

    PTAD is concluding computation of pension benefits for pensioners in Northcentral. You will be put on the payroll as soon as this process is complete. Payment of pension arrears will make when funds are released and allocated by the Federal Government for that purpose. Thank you.

     

    MUFUTAU: I am Mufutau, a retiree of NICON Insurance in October 1990. I participated in PTAD verification in October 2017. I was later told that others were paid while mine has not been paid. PTAD claims my name was not forwarded to them.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    CHARANCI: I did not receive my pension in the month of April and May 2018. Yusuf Hassan Charanci.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    NENROT: I have been verified since November 2018 by PTAD in Plateau zone. PTAD has not put me on payroll.

    PTAD is concluding computation of pension benefits for pensioners in Northcentral. You will be put on the payroll as soon as this process is complete. Payment of pension arrears will be made when  funds are released and allocated by the Federal Government for that purpose. Thank you.

    ALI: My name is Mike. I will like to remind you of my late father’s pension increment arrears. He is retired inspector Ali and he retired in Benue State. I look forward to hearing from you.

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

    ADEJUMO: My name is Adejumo from Ibadan Oyo State. I am a Federal pensioner. I am being owed seven years and seven months’ arrears of pension from March 2003 to August 2010. I retired in February 2003 after 35 years of service with the Federal Ministry of Defence as a Senior Typist Grade 1 on GL 8 step 8. I started to get my pension from October 2010 and I am still receiving. On October 17, 2017, when I appeared for verification at International Conference Centre University of Ibadan, I presented my complaint with relevant documents, including bank statements from 2003 to 2017 to show clearly that I didn’t receive pension during the period of claim. I attended verification exercise on 17th October 2017 and was issued pensioner’s verification acknowledgement form. Please help me find out what is happening to my case.

     

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

     

    EMMANUEL: My name is Emmanuel the son of late James. I have an issue on the pension of my late father who pass away on 13 March 2015. I have paid the amount they ask us to pay and also submitted all the necessary documents required. But we have not receive any massage about his pension. Please help us.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

  • PTAD pays 500 NITEL, Mtel deceased pensioners’ next of kins

    •Group asks PTAD to pay eight years arrears of 20.4 % deductions on pension benefit

    About N1.56 billion has been paid to 500 Next of Kins (NOKs) of deceased pensioners of Nigerian Telecommunications Limited (NITEL), and its mobile subsidiary, MTEL, by the Pension Transitional Arrangement Directorate (PTAD).

    Its Executive Secretary, Sharon Ikeazor, who made this known in a statement to newsmen, said the NOKs are beneficiaries of deceased Nitel and Mtel pensioners, who died after service under the Defined Benefit Scheme (DBS).

    She said the NOKs have completed the process of documentation and have been cleared for payment by the Federal Auditors, adding that the timely payment was achieved through diligent verification exercise conducted by Directorate to authenticate genuine NOKs before payment was made.

    She assured those who are yet to be paid of the Directorate’s commitment to see that all NOKs receive their entitlement.

    Meanwhile, a group of pensioners, under the aegis of Association of Retired Federal Senior Public Officers of Nigeria (ARFESPON), has urged both the Federal Government and Pension Transitional Arrangement Directorate (PTAD) to make specific statement on the outstanding 20.4 per cent deductions from their pension entitlement made by the Goodluck Jonatham’s administration since 2010.

    Although, ARFESPON expressed its appreciation to PTAD for the recent six months’ arrears of the 33 per cent it paid to its members, it, however, said both PTAD and the government have decided to sweep the outstanding 20.4 per cent arrears of deductions from their entitlements for eight years under the carpet without any comment, despite several calls by the various pensioners’ group for government to pay attention to their complaints.

    ARFESPON Lagos Chapter President, Mr Olufemi Odewabi, while addressing the media on the outstanding arrears at the group’s secretariat in Lagos, said it was painful  that government has decided to turn deaf ear to their calls for payment of this huge outstanding arrears.

    He said for almost eight years, his members and other pensioners’ groups have been calling on the government to direct attention to this, but neither the government nor its agency for retirees under the Defined Benefit Scheme (DBS), which is the PTAD, has deemed it fit to issue a statement in that regard.

    Odewabi said this is the time for the Muhammadu Buhari-led administration and Sharon Ikeazor-led management to make a statement on the eight years outstanding pension arrears of benefits, noting that they will continue to ask for their money.

    He explained that the eight-year 20.4 per cent arrears were incurred by the government when it effected 53.4  per cent increase in workers’ salaries and pensioners’ benefits.

    He said a committee was set up by former President Goodluck Jonathan to look into the 53.4 per cent increase in pension entitlements, but that the committee suddenly woke up to factor in some illegal deductions from pensioner’s benefits.

    He said: “The committee recommended the following deductions from pensioner’s benefits which include Tax, Contributory Pension Scheme, Housing and National Health Insurance Scheme (NHIS), all totaling 20.4 per cent deductions and recommended that only 33 percent of the increase effected by the government should be paid to pensioners.

    “This is a rape on the right of the pensioners. It is obvious that the conclusion of the committee that reviewed the approved 53.4 per cent increase for pensioners acted in nullity and was even not logical in arriving at such conclusions.

    “As reviewed in the white paper report, it was stated that the committee believe that out of the 53.4 per cent increase Tax, Contributory Pension, Housing, NHIS  totalling 20.4 per cent should be deducted, which makes them arrive at the conclusion that only 33 per cent out of the 53.4 per cent should be granted over eight years.”

    He argued that 20.4 per cent of 53 per cent is not 33 per cent, rather  it is 10.68 per cent, adding that if 20 per cent of the granted increment is to be deducted, 20 per cent of 53.4 per cent cannot be 33 per cent.

    He further stated that the calls for the review of pension increase were wrong and deliberate intention to short change pensioners, and were constitutionally wrong and tantamount to economic sabotage.

    He questioned the tax deduction, adding that pensioner’s benefits are not supposed to be taxed. He also questioned the deduction for the CPS when they are under the DBS.

    He urged the government to review the illegal deductions and ensure payment of the eight years’ arrears of 20.4 per cent deducted by the Jonathan administration’s committee.

  • PTAD pays 500 NITEL, Mtel deceased pensioners’ next of kins

    About N1.56 billion has been paid to 500 Next of Kins (NOKs) of deceased pensioners of Nigerian Telecommunications Limited (NITEL), and its mobile subsidiary, MTEL, by the Pension Transitional Arrangement Directorate (PTAD).

    Its Executive Secretary, Sharon Ikeazor, who made this known in a statement to newsmen, said the NOKs are beneficiaries of deceased Nitel and Mtel pensioners, who died after service under the Defined Benefit Scheme (DBS).

    She said the NOKs have completed the process of documentation and have been cleared for payment by the Federal Auditors, adding that the timely payment was achieved through diligent verification exercise conducted by Directorate to authenticate genuine NOKs before payment was made.

    She assured those who are yet to be paid of the Directorate’s commitment to see that all NOKs receive their entitlement.

    Meanwhile, a group of pensioners, under the aegis of Association of Retired Federal Senior Public Officers of Nigeria (ARFESPON), has urged both the Federal Government and Pension Transitional Arrangement Directorate (PTAD) to make specific statement on the outstanding 20.4 per cent deductions from their pension entitlement made by the Goodluck Jonatham’s administration since 2010.

    Although, ARFESPON expressed its appreciation to PTAD for the recent six months’ arrears of the 33 per cent it paid to its members, it, however, said both PTAD and the government have decided to sweep the outstanding 20.4 per cent arrears of deductions from their entitlements for eight years under the carpet without any comment, despite several calls by the various pensioners’ group for government to pay attention to their complaints.

    ARFESPON Lagos Chapter President, Mr Olufemi Odewabi, while addressing the media on the outstanding arrears at the group’s secretariat in Lagos, said it was painful  that government has decided to turn deaf ear to their calls for payment of this huge outstanding arrears.

    He said for almost eight years, his members and other pensioners’ groups have been calling on the government to direct attention to this, but neither the government nor its agency for retirees under the Defined Benefit Scheme (DBS), which is the PTAD, has deemed it fit to issue a statement in that regard.

    Odewabi said this is the time for the Muhammadu Buhari-led administration and Sharon Ikeazor-led management to make a statement on the eight years outstanding pension arrears of benefits, noting that they will continue to ask for their money.

    He explained that the eight-year 20.4 per cent arrears were incurred by the government when it effected 53.4  per cent increase in workers’ salaries and pensioners’ benefits.

    He said a committee was set up by former President Goodluck Jonathan to look into the 53.4 per cent increase in pension entitlements, but that the committee suddenly woke up to factor in some illegal deductions from pensioner’s benefits.

    He said: “The committee recommended the following deductions from pensioner’s benefits which include Tax, Contributory Pension Scheme, Housing and National Health Insurance Scheme (NHIS), all totaling 20.4 per cent deductions and recommended that only 33 percent of the increase effected by the government should be paid to pensioners.

    “This is a rape on the right of the pensioners. It is obvious that the conclusion of the committee that reviewed the approved 53.4 per cent increase for pensioners acted in nullity and was even not logical in arriving at such conclusions.

    “As reviewed in the white paper report, it was stated that the committee believe that out of the 53.4 per cent increase Tax, Contributory Pension, Housing, NHIS  totalling 20.4 per cent should be deducted, which makes them arrive at the conclusion that only 33 per cent out of the 53.4 per cent should be granted over eight years.”

    He argued that 20.4 per cent of 53 per cent is not 33 per cent, rather  it is 10.68 per cent, adding that if 20 per cent of the granted increment is to be deducted, 20 per cent of 53.4 per cent cannot be 33 per cent.

    He further stated that the calls for the review of pension increase were wrong and deliberate intention to short change pensioners, and were constitutionally wrong and tantamount to economic sabotage.

    He questioned the tax deduction, adding that pensioner’s benefits are not supposed to be taxed. He also questioned the deduction for the CPS when they are under the DBS.

    He urged the government to review the illegal deductions and ensure payment of the eight years’ arrears of 20.4 per cent deducted by the Jonathan administration’s committee.

  • Pension complaints and solutions

    FLORENCE: Dear PTAD, thank you for informing me that deduction in my May pension was due to computation correction. But the short payment is more than what it has stated. My Federal gratuity too has not been paid since my retirement in 2005. Please I need solution.

    PTAD: Please scan and email your verification slip and supporting documents to complaints@ptad.gov.ng. This will enable us investigate and resolve your complaint. Thank you

     

    OZEGBE: My name is Ozegbe. I retired on October 15 2006 as  senior foreman carpenter on grade level 7 step 8. I did my capturing in 2016. My problem is nonpayment of federal share since 2006 till date. Thanks

    PTAD: Kindly scan and email your verification slip to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    KAWONISE: I am Kawonise. I retired from Federal Ministry of Works and Housing, Lagos. I have not been paid my pension for April and May 2018. Kindly help me out of this problem and save me from hunger. Thank you.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement, covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    BAIYEGUN: My name is Baiyegun, I am an Ondo State pensioner with Federal share. I was verified by the PTAD during the last exercise and captured into their scheme. My financial benefit was supposed to start from January 1, 2002 but to my surprise when I received bank alert for the payment, the PTAD only paid me for March, April and May 2018. When am I going to receive the arrears of my pensions, starting from January 1, 2002? Please I am dying.

    PTAD: Please note that PTAD has compiled the list of pensioners for the next batch of pension arrears payment and is waiting for the allocation and release of funds from the Federal Government for this purpose. Thank you.

     

    ALI: My name is Ali; I am from Plateau State. I have not been
    put on payroll. I am being owed gratuity and accumulated pension arrears. Please come to my rescue.

    PTAD is concluding computation of pension benefits for pensioners in Northcentral. You will be put on the payroll as soon as this process is complete. Payment of pension arrears will make when funds are released and allocated by the Federal Government for that purpose. Thank you.

     

    MUFUTAU: I am Mufutau, a retiree of NICON Insurance in October 1990. I participated in PTAD verification in October 2017. I was later told that others were paid while mine has not been paid. PTAD claims my name was not forwarded to them.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    CHARANCI: I did not receive my pension in the month of April and May 2018. Yusuf Hassan Charanci.

    PTAD: Kindly scan and email your verification slip as well as your duly signed and stamped bank statement covering at least six (6) months before complaint to complaints@ptad.gov.ng to enable us investigate and resolve your complaint. Thank you.

     

    NENROT: I have been verified since November 2018 by PTAD in Plateau zone. PTAD has not put me on payroll.

    PTAD is concluding computation of pension benefits for pensioners in Northcentral. You will be put on the payroll as soon as this process is complete. Payment of pension arrears will be made when  funds are released and allocated by the Federal Government for that purpose. Thank you.

    ALI: My name is Mike. I will like to remind you of my late father’s pension increment arrears. He is retired inspector Ali and he retired in Benue State. I look forward to hearing from you.

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

    ADEJUMO: My name is Adejumo from Ibadan Oyo
    State. I am a Federal pensioner. I am being owed seven years and seven months’ arrears of pension from March 2003 to August 2010. I retired in February 2003 after 35 years of service with the Federal Ministry of Defence as a Senior Typist Grade 1 on GL 8 step 8. I started to get my pension from October 2010 and I am still receiving. On October 17, 2017, when I appeared for verification at International Conference Centre University of Ibadan, I presented my complaint with relevant documents, including bank statements from 2003 to 2017 to show clearly that I didn’t receive pension during the period of claim. I attended verification exercise on 17th October 2017 and was issued pensioner’s verification acknowledgement form. Please help me find out what is happening to my case.

  • PenCom sanctioning PFAs on infractions

    The National Pension Commission (PenCom) has noticed  with dismay that some Pension Fund Administrators (PFAs) delay in the payment of retirement benefits to the retirees and do not credit pension contributions appropriately in the Second Quarter of 2018.

    Other major challenge observed from the review of the quarter include corporate governance issues.

    To this end, the Commission said it is sanctioning erring companies in its bid to ensure strict regulation and supervision of the pension industry, stating that the Commission has a document titled ‘Regime of Sanction’ which is applied to every infraction made by any company.

    According to the Commission, the issues in some of the companies were found after monthly routine examinations carried out by PenCom on the 19 PFAs, 7 Closed Pension Fund Custodian (CPFCs) and 4 Pension Fund Custodian (PFCs).

    In the Commission’s Second Quarter 2018 Report on regulatory and supervisory activities, another major issue observed from the review of the compliance reports forwarded by the operators include outstanding commitments from previous routine examination.

    The report stated that the issues identified formed part of the target areas for the target examination of operators to ensure compliance.

    During the quarter under review, the commission carried out a target examination on UNICO CPFA Limited to determine the final state of operations of the company before winding up.

    The commission has also issued Draft Reports for the 2017 routine examinations to 15 licensed pension fund operators.

    The report further showed final reports for the 2017 routine examinations were issued to Fidelity Pension Managers Limited and AIICO Pension Managers Limited.

    The commission stated that it began the 2018 routine examinations on 16 April, 2018 on Apt Pensions Limited, Fidelity Pension Managers Limited, Sigma Pensions Limited, NPF Pensions Limited, Premium Pensions Limited and IEI Anchor Pension Managers Limited.

    The report read: “The Commission continued its consultative philosophy in the regulation and supervision of the industry. The risk-based examination approach was implemented as a way of promoting transparency and providing early warning signals as well as encouraging pension operators to regularly self-evaluate their positions.

    On Corporate Governance, during the quarter under review, 27 out of the 31 operators forwarded their Corporate Governance reports for the year ended 31 December, 2017.

    “The major issues observed from the review of corporate governance reports forwarded by operators include inadequate size of boards; non-submission of annual performance evaluation of Directors; Executive Directors included as members of the Board Audit Committees; and some directors served as members of all Board Committees.”

    While giving update on Returns Rendition System, the Commission said 30 licensed pension operators comprising of 19 PFAs, 4 PFCs and 7 CPFAs rendered the returns for the pension funds under their management or custody as well as their companies’ accounts to the Commission via the Risk Management and Analysis System (RMAS) for June, 2018.

    The Commission stated the resolution on the activities of the operators thus:“The regulatory intervention on First Guarantee Pension Limited (FGPL) was ongoing and the Interim Management Committee of the PFA was reconstituted with effect from 03 April, 2018. Appointments were made for the positions of Chairman, Managing Director (MD), Executive Director (ED), Business Development & Operations and Executive Director (ED), Finance and Investment.

    “The Commission continued to apply various strategies to ensure compliance with the provisions of the Pension Reform Act (PRA) 2014. This included the application of sanctions and collaboration with key stakeholders on public enlightenment campaigns as well as engagement of defaulting employers through pension recovery agents engaged by the Commission to recover unremitted pension contributions.

    Head, Corporate Communications, PenCom, Peter Aghahowa in an interview with The Nation said that the Commission is very serious with its surveillance and routine examinations of the industry.

    He explained that operators are mandated to submit compliance reports to the Commission every month, noting that the Commission further carries out routine check every year on the operators.

    “When we carry out inspections on the companies and discover arears or issues that are not right, we ask them to do some things and they will be giving us information on how they are complying with the things we have lined out for them.

    “We started the routine check for 2018 in April. We are dealing with companies that fail to delay pension payment. Although some companies have tenable reasons for delaying payment, others do not  and we deal with them accordingly.

    “We have a document called ‘Regime of Sanction’. The companies are fully aware of the fines and penalties that await them should they fail in their responsibility. In fact, some of them say the Commission is too hard on them but others realise we cannot afford to do anything less bearing in mind the sensitivity and peculiarity of the industry”, he added.

     

  • Pension complaints and solutions

    Ekong: Good day, my name is Ekong.I have problem with the payment of my federal share of gratuity and pension since 1996. I have done several verification exercises

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    ODUKOGA:  Iam Odukoga. I was retired in 2006 after serving 35 years in Federal Ministry of Finance and was only paid my gratuity. l have not been paid monthly pension. l was verified in September 2017 by PTAD, cleared and captured in their scheme. Please save me from hunger.Kindly help me so that l can be placed on monthly pension and my pension arrears paid from July 2006. Waiting to hear from you soonest.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    MRS. EKPENYONG: I am 88 years of age and a widow with very serious sight and other health challenges which require   very urgent and regular medical attention. I cannot access the said medical treatment due to lack of funds, hence, my appeal and prayer to your humane disposition. I need your help regarding the arrears of short-payment of my monthly pension allowance for 14 years [2003-2016]. I retired from Ministry of Health, Cross River as a midwife tutor. Kindly help me fast-track the process to enable me get paid urgently so that I can regain my health.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    OLORUNWO: My name is Johnson. I wish to complain to the Executive Secretary of PTAD that my pension  since August, 2008 is yet to be paid till date. Kindly check your records and make the said amount payable to alleviate my financial burden. Thanks

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    EKWO: My name is Ekwo, I retired from Federal Girls College Abuluma Port Harcourt, Rivers State in 2000. They only paid three months in year 2018.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    JIDDA: I am Jidda, the son and NOK to the late Marwa. My father was a member staff of the defunct PHCN who died in 2007. Since then nothing has been done about the benefits. In 2016, we went for a verification conducted by BPE. Some NOKs like me have received their entitlement. But I did not receive any statutory benefit.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    OYETAYO: My name is Oyetayo, I retired in 1997 as an Assistant Director and was paid my gratuity and pension up to 2010. Since then what I receive monthly is less than N4000. I partook in the verification conducted in Osogbo, Osun State in August 2017 but PTAD continues to send me N3,997 naira monthly. Kindly intervene. I am in a fix. I do not know what to make of this. Kindly help me. Thank you.

    THE NATION: The Nation will intervene by sending your complaint to PTAD. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.

     

    UZOMA: Good day. I am a police retiree and a regular reader of The Nation newspaper. I retired in January 2017 without pension and gratuity. My PFA is Police Pension. Please I need my pension to cushion the adverse economic effect on me. Uzoma Dsp Rtd.

    THE NATION: The Nation will intervene by sending your complaint to PENCOM and Police PFA. Do watch out for the newspaper publication next Wednesday for a response from the PTAD and subsequently every week for pension news.