The Nation Newspaper

Category: Pension

  • How to make Voluntary Contributions

    Do you know that it is easy to make Voluntary Contributions (VC) remittances to your Retirement Savings Account (RSA) account?

    All you need to do is inform your employer to make deductions from your salary at source.

    How much would you need to contribute into your Voluntary Contribution Account? You can decide this by using our RSA Calculator.

    Tax Rate Applicable On Voluntary Contribution Withdrawals

    The income earned on Voluntary Contributions is subject to Personal Income Tax if withdrawn within 5 years.

    However, where tax has been paid on the Voluntary Contributions, the burden of proof that such tax was paid lies with the RSA holder. In such instances, the RSA holder is required to apply to the relevant tax authority for a refund of any excess or double taxation or for the issuance of tax credit to be set off against future taxes.

    It is important also to note that income earned on contributions that are withdrawn after five years from the date the contribution was made will be tax free.

  • PENCOM appraises industry compliance, KYC, others

    The National Pension Commission (PENCOM) is strengthening its compliance and ethical culture and institutionalisation of Know Your Customer (KYC) processes in the pension industry, the Acting Director-General (DG) of the Commission, Mrs Aisha Dahir-Umar, has said.

    The Acting DG, who spoke at the Compliance Officers’ Forum at Le Meridien Ibom Hotel & Golf Resort Uyo, Akwa Ibom State capital, said the Commission was also reviewing the matters of identity theft in data capturing, emerging  risks and its mitigating factors, as well as other general industry operational issues.

    The forum, according to her, aimed at creating a platform in line with Section 80 of the Pension Reform Act (PRA), 2014 for compliance officers to regularly meet and share ideas on how best to optimally perform their functions and promote standards of excellence for compliance officers, thereby constructively impacting the industry.

    She noted that it is, therefore, imperative that compliance officers discharge their statutory roles with the required professionalism, independence and integrity.

    She said: “In an effort to promote a stable and sustainable pension industry, the Commission adopted zero tolerance for non-compliance and consultative supervisory philosophy in the issuance of guidelines and the review of existing ones to further promote sound corporate governance in the industry and ensure the security of the pension assets.

    “In addition, the Commission has, this year, moved to a more risk based approach to supervising pension operators by aligning its supervisory framework with that of the Financial Services Regulation Coordinating Committee (FSRCC).

    “We believe this will promote better risk management in licensed pension operators. It is also important to mention that the Commission recently released the framework and guidelines for the implementation of the Micro Pension Scheme, which is targeted at increased participation of employees in the informal sector, multi-fund structure and revised guideline for Fund Accounting as well as revised circular for branch opening and service centre by PFAs.

    “Similarly, circulars on pension enhancement and processing procedures of deceased benefits entitlement were also released by the Commission. The monitoring and reporting of non-compliance with regards to the implementation of these guidelines and other existing regulations remain part of the responsibilities of the Compliance Officers.”

    In a paper presentation on “Institutionalisation of KYC processes in the Nigerian Pension Industry”, by Chief Compliance Officer of Stanbic IBTC Pension Managers Limited, Edidion Akan,  the KYC principles under the Contributory Pension Scheme (CPS) have been incorporated in various guidelines issued by the Commission.

    He disclosed that this include Guidelines for the operations of Pension Fund Administrators (PFAs); registration of contributors/members; circular on client familiarity index; framework for micro pension plan; guidelines on voluntary contributions; working guide to PFAs on bio-data recapture; and guidelines for employer code requests by PFAs.

    He, however, said KYC requirements in these areas have been limited primarily to customer identification/information update, adding that threshold reporting requirements only commenced in January 2018 when introduced by the Circular on Voluntary Contributions.

    Stating reasons for KYC in the industry, he said so far, the Anti Money Laundering (AML) risk in the CPS has been largely mitigated by employer pre-registration requirement (employer code); defined contributions rates; defined source of contributions (monthly emolument) and; stringently regulated withdrawal of funds from the Retirement Savings Account (RSA).

    “The introduction of micro pension with allowance for contingent withdrawal by the informal sector provides opportunity to launder proceeds of criminal activity. Customer identification during onboarding, continuous account monitoring and reporting of suspicious transactions in addition to already existing threshold reporting is required.

    “The challenges are lack of a unique identifier for every individual in Nigeria to aid in the profiling of clients. The introduction of National Identification Number (NIN) addresses this and National Identity Management Commission (NIMC) should ramp up implementation across the country.

    “Also, Bank Verification Number (BVN) assists in mitigating this challenge. NIMC should be encouraged to consolidate all biometric databases in-country so that identity confirmation becomes effective and efficient.

    “Other challenges of KYC in the industry include too many guidelines/circulars touching on different aspects of KYC; lack of information and awareness concerning KYC within the Industry; Independence of the Pension Industry: closer collaboration with other financial sector regulators as well as investigative authorities is key and software for monitoring/reporting is not tailored to the CPS.”

    He recommended consolidating KYC requirements into one single regulation. “Other recommendations are; onboarding requirements should be clear and allow for categorisation of customers as envisaged under the MLPA and in consideration of financial inclusion; validation of customer identity documentation should be mandated. BVN, NIN, driver’s license, voters card have online verification portals.

    “There is need for identification of beneficial owners for employers should be introduced; account monitoring should be introduced to allow for suspicious transaction reporting in addition to threshold reporting; engage the Nigerian Financial Intelligence Unit (NFIU) to refine/agree pension industry reporting templates; operators to commence KYC/AML training for all members of staff, especially Business Development/client facing staff,”  he added.

     

     

  • Pension complaints and solutions

    HUSSAINI: My name is Hussaini, I retired in July 1, 2007 with the rank of an Assistant Superintendent of Police (ASP) 1 grade level 9 step 5. I did my screening with PENCOM in October 2008 and all documents indicated my level and steps. In September 2009, I was paid a lump sum of N2.3 million and arrears of monthly N9,577.13 from July to September. I do not know the total amount paid before the said amount was credited to my account. I wrote and submitted a complaint letter to Pencom in October 2010, but got no response. I sent a reminder to Pencom, but still no response. I have been on N9,577.13 up to date unlike my mates, who have participated in the recent verification exercise and who have had both their enlistment promotion and monthly pension increased.

    PENCOM: Please send us your PIN number to enable us investigate your complaint.

     

    EMMANUEL: My name is Emmanuel and my brother’s name is Lucky. My father is Ephiram. He retired on April 27, 2016. He died on May 8, 2017 after he retired as a police officer in Calabar, Cross River State. But the police man in-charge of police pension here in Port Hacourt, River State asked us to go and collect approval from the Court in Calabar, which we did. But since last year, we have not heard anything. Please, help me and my brother we have nobody.

    PENCOM: Please furnish us with additional information such as the deceased PIN number to enable us give you an updated information.

     

    UMAR: I have retired from Nigerian Prison Service voluntary after serving for 30 years. I attended my workshop with PenCom in Gombe State. From 21/7/2016 up to date, I was not paid. Why?

    PENCOM: Please provide us with additional information such as your PIN number and your PFA.

     

    Alfa: Sir, I am a member of staff of NTA with Pen 100327455777. IPPIS erroneously remitted my contributions between March to December 2012 to NLPC PFA instead of PAl, NLPC even admitted in their report dated 21/02/2014, but refused to remit my money to PAL. I wrote several letters to Pencom, but no response. Please use your platform for me. Thanks.

    PENCOM: You should forward your complaints to IPPIS for appropriate action.

     

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

    THE NATION: The paper 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: Please save me                 from hunger. l am Odukoga. I was retired in 2006, after servicing for 35 years in the Federal Ministry of Finance and was only paid my gratuity. l have not been paid any monthly pension. l was verified in September 2017 by PTAD, cleared and captured in their scheme. 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 paper 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  a n88 year-old  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 State as a midwife tutor. Kindly help me fast-track the process to enable me get paid urgently so that I can regain my health. Mrs. Ekpenyong.

    THE NATION: The paper 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 PTAD Executive Secretary 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 paper 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.

  • PEFON advises professionals on input in nation building

    Professionals should be given the opportunity to make the needed impact in the country, Founder, Professional Excellence Foundation of Nigeria (PEFON), Chief Dipo Bailey, has said.

    Bailey, who  spoke during the foundation’s induction and investiture ceremony in Lagos, said Nigeria’s infrastructure, road, power, education, health sector among other things are not what they used to be.

    He stressed that professionals must be given the opportunity to do their work to ensure that they look at what can be done to address the current depreciating situation.

    He said: “There was a time in this country when everything was moving well. But it is not so anymore. This is why PEFON is bringing professionals together so that we can contribute our quota to the nation’s development. We are encouraging professionals to join the Foundation. The Foundation is selective in doing so because it needs to identify those who are qualified to join.

    “With the new inductees, the membership of the Foundation will rise to about 270. We plan to organise a conference where all the inductees will be brought together to discuss how to make positive impact on national issues.

    “There are young graduates, who have no jobs but could be gainfully employed if they were professionally qualified. If we can help these youths to be professionally qualified, we will be building good leadership for tomorrow, reducing unemployment and crime in the society.”

    Bailey urged the new inductees to show commitment to the objectives of PEFON to help the foundation to achieve its aims, adding that if they are committed, they can come together to profer solutions to government on different issues.

    PEFON Oath Administrator, Wale Ogunade, further called on professionals to go into politics and not allow touts take over government.

    “We should be professional in everything we do. We should take part in politics and not leave politics to touts,” he said.

     

  • PTAD sensitises pensioners against fraudsters

    Pension Transitional Arrangement Directorate (PTAD) has embarked on sensitisation of pensioners and Next of Kin on the activities of fraudsters who target pensioners to defraud them of their hard earned pensions.

    According to a statement by the Directorate, the fraudstars penetrate pensioners and their next of kin by texting or calling them, soliciting for money to facilitate their pension payments.

    PTAD Executive Secretary, Sharon Ikeazor, stressed that the directorate’s members of staff will never demand for money from any pensioner or next of kin before their pensions are processed and paid.

    She said there are no intermediaries in the pension payments, noting that pensioners are paid directly through Government Integrated Financial and Management Information System (GIFMIS) platform into individual account.

    She advised pensioners to beware of fraudsters, who sometimes posed as PTAD staff to defraud them.

    She said: “The Directorate embarked on the awareness campaigns to proactively protect the pensioners and expose pranks employed by the fraudsters to swindle uninformed pensioners.

    “This is why the Directorate is sensitising the pensioners through SMS, adverts in national newspapers and radio jingle on Radio stations across the six geo political zones of the country.

    “The awareness campaign jingle will also be aired on 18 Radio stations across the 6 geo political zones of the country and FCT,” she added.

  • Pension complaints and solutions

    DADAH: My name is Dadah. I retired on September 1, 2008 as a Director on level 16 step 9. I have never been placed on federal share pension, nor paid my gratuity. Kindly help me solve this 10-year-old problem and God will surely bless you.

    PENCOM : All issues that have to do with Federal share fall under the purview of Pension Transitional Administrative Directorate(PTAD). Accordingly, we advise you to contact PTAD.

     

    PHILIP: Thank you for coming out to rescue police retirees. Police Pension PFA is paying us less and has refused to pay on time. Is it compulsory that after retirement, I have to stay between one to two years before my benefits will be ready, even if all documents have been processed six months before retirements? We are coming enmasse to Leadway Assurance. I was retired on December 1, 2017, up till now no headway. Please l need your advice.

    PENCOM: Lack of release of the accrued rights by the Federal Government is the reason you are yet to be paid your retirement benefits. You will be paid as soon as the accrued rights are released by the Federal Government. The last payment made was for those who retired in August, 2017. The Commission is working hard to ensure that the government releases the accrued benefits.

     

    TOYIN: Please, I will retire in January 2019, when will I be able to access annuity and pensions?

    PENCOM: You are expected to have done the verification and enrolment exercise organised by the Commission at designated centres across the country between July and October, 2018. If you did, just wait for the release of your accrued rights. But if you didn’t you have to come and do it at  the Commission in Abuja.

     

    ANONYMOUS: We retired under PENCOM how can we have access loan?

    PENCOM: There is no provision for accessing loan from your Retirement Savings Account (RSA).

    OYE: My name is Oye and I am an ex staff of one of Nigeria banks. I want to know if pension fund could be used as a collateral for loan in banks.

    PENCOM: Balance in the Retirement Savings Account RSAs cannot be used as a collateral for loan.

     

    OLAOGUN: I am OLAOGUN. I retired on November 11, 2017. When is my account likely to be credited? Also, any help to access at least N200,000 to use in paying school fees and feeding while it is deducted later. Please your help is needed urgently. God Bless you.

    PENCOM: Your account will be credited as soon as the Federal Government releases your accrued rights benefits. The last payment made was for August 2017 retirees. The funds in your RSA are strictly for pensions. Consequently, you cannot access any amount for school fees or feeding.

     

    ANONYMOUS:  Please, I have a question that is worrying me concerning pension, which is about gratitu money. The Question thus: Can someone demand to collect his gratitude money when such person as staff under the services of the Local government resigned and then joined the state as a new staff without him demanding for the pension but gratuity money.

    PENCOM: Gratuity depends on employer and as such, we advise you to contact your state or local government pension office for appropriate advice. Thank You.

     

    ASUQUO: Good day Ma, please what advice do you have for us as PENCOM now pay 20 per cent of gratuity? ASUQUO Akwa Ibom, thanks.

    PENCOM: The 20 per cent lump sum has been reversed, the Commission currently approves not less than 25 per cent as lump sum.

     

    JAPHET: Please, help me to ensure that Sigma Pensions transfers my pension to annuity. I have requested twice this year and on both occasions, I have been denied. The first time was on May 7 and second time was on July 24. All I was told is that they are waiting for approval from PenCom. Thank you.

    PENCOM: The Commission has already communicated approval to Sigma Pension for your movement from PW to Annuity since August 14, 2018 under batch 8. Please contact Sigma Pension accordingly.

  • PENCOM engages telcos, regulators, others on micro-pension

    The National Pension Commission (PenCom) has commenced the sensitisation of network service providers and other relevant regulators for efficient and effective registration of people for micro-pension scheme. The Commission plans to kick-start the scheme next year.

    A statement by the Commission said workers in the informal sector are also being targeted with a view to creating the enabling environment and buy-in.

    According to the Commission, it is evident that a robust technological platform that would support the provision of customer services is necessary to effectively and efficiently register, collect contributions, provide Retirement Savings Account (RSA) support, pay benefits and provide financial advisory services to this class of workers.

    The statement read: “Coincidently, special mobile phone applications had been successfully implemented in some jurisdictions for financial transactions, including provision of pension services to the self-employed and informal sector workers. The success stories of these applications drives the confidence that similar platform can be designed and implemented in Nigeria.

    “Consequently,  the Commission had already commenced the sensitisation of service providers and relevant regulators as well as the targeted workers in the informal sector with a view to creating the enabling environment and buy-in. In addition, a Department has been established in the Commission to drive the implementation of the Micro-Pension plan.”

    The Commission explained that 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 three employees.

    “As this category of workers constitute the larger percentage of the working population in the country, there is no doubt that 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, all efforts should be on deck  to extend coverage to this important segment of the Nigerian economy.

    “In addition, due to their widely dispersed nature and generally low and irregular incomes, there is need to provide a pension plan that would meet their special characteristics. In this regard, the Micro-Pension plan initiative has been conceived within the context of an industry wide strategy to bring this class of workers on board.”

     

     

     

  • PENCOM sensitises on micro-pension

    The National Pension Com-mission (PENCOM) has sensitised  Nigerians on micro-pension, multi-fund structure, voluntary contribution and other issues under the Contributory Pension Scheme (CPS). The enlightenment was done at the just-concluded Lagos  International Trade Fair.

    PenCom’s Head of Corporate Communications Peter Aghahowa said the pension clinic was used to clarify pension-related matters that bother workers and retirees.

    He said the pension clinic established at the Trade Fair was part of several initiatives that the commission embarked upon to sensitise and enlighten the public on the CPS.

    He said: “The Commission was at the Trade Fair to inform people on what the CPS is all about. It is part of the initiatives that the Commission has been bringing out to inform and educate the general public about pension schemes in Nigeria.

    “We had a stand at the trade fair which we named the pension clinic and it created an avenue for people to come in and get enlightened and educated and also make enquires about pension related matters. So we usually seize opportunities like this to sensitise people about different aspects of pensions.

    “Moreso, we have the initiative of the micro pension which we are working hard to launch come 2019. So it is another avenue to enlighten and inform people about that new initiative.

    “The commission also came up with a guideline for voluntary contribution to align and streamline the process and procedures for voluntary contribution. Before now of course, even the formal sector has engaged in voluntary contribution which is an additional contribution to the statutory one. The guideline streamlines the process of making and withdrawing contributions. It is expected to help the pension industry identify a uniform way of dealing with voluntary contribution transactions”, he added.

     

  • Pension complaints and solutions

    ANNONYMOUS: Good day, thank you for the great job you are doing for Nigerian pensioners through your column on pension solutions in The Nation newspaper on Wednesdays. I retired from National Orientation Agency (NOA) Osun State on June 4 2015. I had earlier, on  March 2, 2018, sent you details on my complaints on short payment of my retirement benefits via Messenger. But I am yet to get a response from PenCom. Please note that of all those who retired from NOA Osun State from levels 10 to 15, I am the least paid both in lump sum and monthly payment. It’s quite saddening and frustrating. I have gone to Trustfund but they insisted on acting on PenCom approval for me. A level 10 officer got N2.3 million lump sum, N41,000 monthly. I got N1.3 million and N34,973 monthly. We were all employed in 1988. Please I still rely on you for assistance on solution to my short payment. Thanks

     

    PENCOM PETER: Under the CPS, the amount of monthly pension is dependent on variables such as; age at retirement, balance on your RSA, final salary, total annual emolument and promotions.

     

    TRUSTFUND PRISCA: We        have carefully reviewed the accounts and computation of the customers and we found that his benefit was correctly computed, using the statutory variables which includes RSA balance, annual total emolument (ATE), age at retirement and gender in determining the benefits he was entitled to. The use of the above variables culminated to a maximum lump sum payable of 25 per cent (N1,379,036.21) of his RSA balance which stood at  N5,516,144.84. However, a review of his statement showed that an additional remittance was made into his account in 2017. We contacted him to make request for additional benefit which he did and we have sent it to PenCom for approval on November 5, 2018.

     

    AIYESIMI: Good day Omobola, I am a retired po lice officer. Please help me appeal to PenCom to approve Leadway to pay me my benefit. I have been suffering for the past three years. PenCom should urgently attend to Leadway so that they can pay me. Please do not let me die of hunger.

     

    ANNONYMOUS: I am a retiree of Nigeria Police Force. I retired on October 1, 2008. My PFA is Trustfund Pensions. In April 2009, I was paid a lump sum of N6, 305, 247. 13. Half of this amount will be posted into my account and the remaining half will be with them growing for my next of kin. As at December 2016, the statement of my account with Trustfund Pensions read as N3,194,391.37. Those I retired with on the same rank of D.S.P with other PFA are paid same amount but their balance is N4.5 million while mine is decreasing. Please help me out and investigate why my money is not growing with Trustfund.

    TRUSTFUND RISCA: We have carefully reviewed the accounts and computation of the complainant and we state that his RSA account have grown appreciably. As at the date of computation, his RSA balance was N6,408,353.50 out of which he was paid a lumpsum of N3,273,000.00 and arrears of N126,055.66, leaving a balance of N2,835,953.07 only in his retiree account from which he has been enjoying monthly pension of N25,211.14 from April 2009 to January 2018 after which his pension was enhanced (as a result of significant growth in his account) to N28,363.75 from February 2018 till date. The total monthly pension he has received hitherto is N2,945,780.59 which is above his account balance after the payment of his lumpsum and arrears. Despite that, he is still having a total of N3,419,528.91 in his retiree account. Consequently, we affirm that his account has grown significantly.

     

    AKPAN: Thank you for com   ing out to rescue police retirees. The police pensions are paying us less and refuse to pay on time. Is it compulsory that after retirement, one will stay between one to two years before her benefits will be ready, even if you have processed all your documents six months before retirements?

    We are coming en mass to Leadway Assurance company. I was retired on December 1, 2017, up till now no headway. Please l need your advice.

     

    PENCOM PETER:  Lack of release of the accrued rights  by the Federal Government is the reason why you are yet to be paid your retirement benefits.

    You will be paid as soon as the accrued rights are released by the Federal Govt. The last payment made was for those who retired in August, 2017.

    The Commission is working hard to ensure that the Federal Government  releases the accrued benefits.

     

  • Lagos facilitates industrial harmony with labour

    The Lagos State government   is keen on ensuring that the in-dustrial harmony that has existed between the organised labour  and the state continues, Governor Akinwunmi Ambode has said.

    Represented by the Commissioner, Lagos  State Ministry of Establishments, Training, and Pensions, the governor spoke on: “Leadership Development and Organisational Effectiveness” at the training facilitated by Tayinka Enterprises Nigeria Limited in Lagos.

    He emphasised the need  to  combine  efforts of the leadership of the organised labour unions in the Lagos State Public Service and the personal interest of the state to ensure industrial harmony.

    According to him, both sides have embraced a team spirt in the approach to addressing and resolving matters.

    He said: “I consider the trainings for labour leaders as perhaps the most strategic and consequential in terms of preserving, enhancing, and solidifying the commendable relationship of industrial harmony that has existed between the organised labour unions in the state and the administration of Governor Ambode.

    “Our investments in the public service and in matters of interest to the labour and trade unions are incomparable to those of any other state government in Nigeria. Within a short while and for a very long time to come, the good people of Lagos State will reap the dividends of the superlative services derivable from a public service that has been properly trained in the art of modern governance and administration.”