The Nation Newspaper

Category: Pension

  • All you need to know about micro pension

    The Micro Pension Plan refers to an arrangement for the provision of pension to the self-employed and persons operating in the informal sector.

    The Micro Pension Plan is also aimed at low-income earners, who are often financially illiterate and usually have limited or no access to financial services. It is also the sought-after solution to old age poverty as can be found in jurisdictions such as India, Kenya and Ghana that have successfully implemented a Micro Pension Plan.

    Features

    Due to the informal sector’s peculiarities, the Micro Pension Plan would be flexible, safe and convenient.

    Benefits

    • Over time, old age poverty will decrease with the introduction of the Micro Pension Plan because the informal sector worker would have saved for retirement while active.
    • The additional savings from Micro Pension Plan would aid economic development and macro-economic stability through investment in infrastructure and financial markets.
    • Enhance pension coverage and improve Gross Domestic Product (GDP).
    • Contributions will pass to the next of kin in case of contributor’s death.

    Challenges

    Despite the benefits of the plan, there are a few envisaged challenges that may hinder the smooth implementation of the Micro Pension Plan in Nigeria. The challenges are as follows:

    • Financial Illiteracy: Some of the low-income earners, who constitute the third segment of the informal sector are mostly illiterate and thus, inexperienced with formal financial transactions and institutions.
    • Low incomes: Unlike the high-income earners that can deposit in lump sum, most low-income earners are daily wage workers and as such are unable to deposit large amounts.

    The Commission expects that the implementation of the Micro Pension Plan will yield positive results for Nigerians and the Nigerian Pension Industry. There is however need to create more awareness about the plan.

     

  • Pension complaints and solutions

    KURE: PTAD omitted my name from August 2017 salary. Visits made and bank account statement submitted in September. It is yet to be paid. I retired in 1997. I need your urgent action please. I know it is human error. Thank you.

    PTAD: This is to inform you that your complaint has been reviewed and will be resolved.

     

    ALOZIE: My name is Alozie, a retiree from the National Institute for Nigerian Languages, Aba. I retired from Federal Public Service on February 28, 2005 on attainment of 35 years in service. My question is that having received the 33 per cent pension arrears paid to parastatals for 18 months only, may I know when the balance of the approved pension arrears would be paid to retirees of parastatals, especially the Universities and Inter University Institutions? Thank you for your cooperation.

    PTAD: Dear Mr Onwuegbu, PTAD pays pension arrears subject to availability of funds from the treasury. We are working hard to ensure the balance of pension arrears is paid. Thank you.

     

    AJAYI: This is my second letter on my pension issue. I have been verified since August, last year. My name is Ajayi from Ondo State. My date of verification is 14/8/2017. I have not been paid since January, 2011. My payment was stopped from pay roll since December, 2010.

    PTAD: Dear Mr. Ajayi, Please note that PTAD is currently computing all pensioner benefits in phases. Please be patient while we compute your benefits. Thank you.

     

    ANYIN: My complaint is non-payment of federal share since 2004 to date. My retirement date is November, 1985. My last post held was Secretary for Administration and Finance. Grade level 16. Cross River State.

    PTAD: Dear Mr. Anyin, Please submit the following documents through our complaint portal at complints@ptad.gov.ngfor further review:

    1. Bank Account statement from 2004. The bank statement he submitted started from August 2007. Please note that the statement from 2004 should reflect the last payment you received from Federal Government.
    2. Last promotion letter. This was not provided during your verification.Thank you.

     

    OLOWOLAGBA: Dear Omobola, thanks for your past assistance. Kindly help publish this in your Wednesday edition, as usual for PTAD’s urgent attention. The under-listed names are all NEPA/PHCN pensioners. Some were not paid their monthly pensions while others were short paid. They are Olore, who was not paid his July, August and September 2013 monthly pensions; Duribe, November 2015 monthly pension; Kasumu, Ashimiyu , Mrs. Agboola, Olaleye, November, 2015 not paid . Adesanya, Adedeji, Mrs. Akadri, Mrs. Ganiyu, were short paid. Ishola was not paid his November, 2013 monthly pension while Oluwafemi had not been paid his gratuity at monthly pension since February, 2012 after attaining the mandatory age of 45 years. All letters with necessary documents, including bank statements have been sent to PTAD. But up till now, nothing has been done. Kindly help expedite action to let PTAD pay them promptly, without further delay, Thanks. Olowolagba, Assistant Secretary, Esrewan, Ibadan chapter.

    PTAD: Below is our response

    1. Dear Mr Olore, kindly provide you bank statements from June 2013 to date to enable us resolve your complaint. Thank you
    2. Dear Mr. Duribe, kindly provide you bank statements from October 2015 to date to enable us resolve your complaint. Thank you
    3. Kasumu, Ashimiyu, Mrs. Agboola and Mr Olaleye should each provide their bank statement from October 2015 to date to enable us resolve their complaint. Thank you
    4. Adesanya, Adedeji, Mrs. Akadri. and Mrs. Ganiyu should each provide their bank statement from October 2015 to date to enable us resolve their complaint. Thank you
    5. Dear Mr. Ishola, your complaint is currently receiving attention. Please be patient while we try to resolve it. Thank you
    6. Dear Mr. Oluwafemi, your complaint is currently receiving attention. Please be patient while we try to resolve it. Thank you.

     

    MANUEL: My name is Manuel. My mother’s pension was stopped in November 2010. She was a staff of ministry of Communication (NITEL), she was on federal pension under the old scheme. Her monthly pay was N16,229.17k Thanking you in anticipation.

    PTAD: Dear Mr Morgan, kindly email your complaint to complaints@ptad.gov.ng and include the pensioner’s Name, Account Number and Bank Verification Number (BVN) to help us resolve your complaint.

     

  • PenCom develops IT infrastructure for micro pension

    The National Pension Commission has developed the Enhanced Contributor Registration System (ECRS) to facilitate the enrolment of participants in the Micro Pension Scheme when the scheme is rolled out, the Commission’s Acting Director-General, Mrs. Aisha Dahir-Umar, has said.

    Dahir-Umar who spoke in Calabar said the ECRS was developed to clean-up data in the Contributory Pension Scheme (CPS).

    She stated that the clean-up will enable the Commission to not only facilitate the enrollment of participants in the Micro Pension Scheme, but to also facilitate the transfer of Retirement Savings Account (RSA) holders from one Pension Fund Administrator (PFA) to another.

    She stressed that the Micro Pension Scheme will take off fully once the ECRS is fully tested and deployed.

    She disclosed that the Commission released the guidelines on micro pension, the first step in giving effect to Section 2(3) of the Pension Reform Act (PRA), 2014, which provides that employees of organizations with less than three employees as well as the self-employed persons shall be entitled to participate in the CPS in accordance with the guidelines issued by the Commission.

    She said: “PenCom, in accordance with the PRA 2014, introduced the Micro Pension Plan. The plan is set to include the self-employed and persons working in organisations with less than three employees. It aims at ensuring that the informal sector participants save towards their old age. It is also expected that the plan would expand the coverage of pension contributors by an estimated 30 million people by the year 2024. This category of workers constitutes a large percentage of the working population in the country.

    “To implement this initiative, the Commission segmented informal sector into three broad categories namely; the low-income earners, the high-income earners and the small & medium scale enterprises (SMEs). Each of these categories will be targeted with appropriate pension products and sensitisation programmes that meet their various peculiarities.

    The Commission has recently exposed the draft guidelines and framework on Micro Pension Plan to its stakeholders and the general public for comments and observations and is on the verge of finalizing the guidelines and framework. In addition to the exposed draft guidelines and framework, the Commission is working on the IT infrastructure that will support the launch of the Micro Pension Plan.”

    She noted that due to the peculiarities of the informal sector, the Plan would be flexible! Safe, convenient and simple.

     

  • CPS best for Nigeria’s pension system, say legislators

    •Refute cutting pension budget

    The National Assembly joint Committee on Establishment and Public Services of the Senate and House of Representatives Committee on Pensions has described the Contributory Pension Scheme (CPS) as best for the country’s pension system.

    Rising from the just-concluded retreat organised by Pension Fund Operators Association of Nigeria (PenOp) in Calabar, Cross River state, the Chairman, Senate Committee on Establishment on Public Service, Senator Emmanuel Paulker said the scheme is better than the old pension scheme- the Defined Benefits Scheme (DBS).

    According to him, based on the information gathered at the retreat,  there can be no going back to the old ways of pension administration in the country, assurng  that the legislators will on their part ensure that they put pressure on the Executive to release money for all accrued rights to be paid to pensioners.

    He denied that legislators cut pension budget submitted to the National Assembly, and urged the executive arm of government to  make enough budgetary provision that can meet pension needs.

    “The National Assembly never cut a kobo from pension budget. It was what was presented to the National Assembly that was passed by the National Assembly. As a committee we even defended extra fund that was not provided in the budget, we went to the appropriation committee and made a case and defended that extra funds should be made available to both PTAD and PenCom that were not provided in the budget,” he explained.

    The committee chairman said concerns were raised before the enactment of the Pension Reform Act (PRA) 2004 as amended in 2014 about how accrued pensions of all pensioners will be paid. Presently, he further said, while the Federal Government has not been able to address the issue fully, he assured that the legislators will try as much as possible as a committee overseeing the National Pension Commission (PenCom) and the Pension Transitional Arrangement Directorate (PTAD) to put pressure on the Executive.

    He further revealed that so far, the CPS established by the PRA 2004 as amend by PRA 2014 is a fantastic scheme. maintaining that there has been lots of benefits to workers and retirees under the scheme when compared to the old scheme. He said the Committee has been able to understand some of workings and challenges of the scheme at this retreat.

    “We have appraised ourselves with some of the difficulties of the pension fund operators, which if we have sat down in chambers we couldn’t have the privilege of knowing. We however think that the interactionn between us, PENCOM, PenOp and the Executives should be more frequent so that issues relating to pension problems can quickly be resolved,” Paulker said.

    On non participation by some State Governments in the CPS, the Senator said the States would have to join the CPS for the good of their workers and pensioners.

     

  • Almond holds forum

    Almond Productions Limited, promoters of the yearly Insurance Consumers’ Forum (ICF) is set to host this year’s edition.

    The forum with the theme: “Relieving customers pain points in insurance through exceptional service delivery” will hold on  November 16 at NECA House,  Central Business District, Alausa Ikeja, Lagos by 9:30am.

    Also, Almond Productions Limited Chief Executive Officer (CEO), Ms Faith Ughwode, said they were hosting another major event on November 16 at Muson Centre, Onikan, Lagos tagged ‘Insurance industry and consumers’ nite.

    The forum will be chaired by Dr. Justus Clinton Uranta, the former Group Managing Director, Niger Insurance Plc. Guest Speaker this year is Chief Chris Uwadiegwu Obi former Manager in Charge of Training, Personnel and Human Resources Exxon Mobil Nigeria and now Managing Director Blue Pearl Konsult Limited while the discussant is Mr. Tunde Oshadiya, the Managing Director  of Guinea Insurance Plc.

    Focus this year will be on issues, such as “What part of insurance transaction do customers experience the most pain or stress; What kind of products do you want from insurance companies and at what price’’.

    Ms Ughwode said the forum is bigger and better this year because of the scope of participants who are drawn from trade groups, formal and informal, federal and state government agencies and parastals, officers of the various law enforcement agencies who have dealings with the enforcement of insurance in Nigeria.

    She said: “We, at Almond Productions, believe in the growth of the insurance industry. Social events like this is the positive force that will open up the industry.

    “Insurance practitioners and their customers are in for a good time at this epoch-making event.”

  • Lagos releases N795m to retirees

    The Lagos State Government has paid another batch of 213 Public Service retirees under the Contributory Pension Scheme (CPS) N795 million as accrued pension rights for September.

    The Commissioner, Ministry of Establishments Training and Pensions, Dr. Akintola Benson, stated this at the 55th Retirement Benefit Bond Certificate Presentation in Lagos.

    He said 9,804 retirees have had accrued pension rights of N40.245 billion paid into their Retirement Savings Accounts (RSA) from inception of the Governor Akinwunmi Ambode-led administration till date.

    He reiterated that despite the huge funding obligations of the CPS, the governor was committed to the well-being of pensioners in retirement.

    For this reason, funds are released monthly into employees’ RSA account while accrued rights of retirees are paid to enable them have access to their RSA, he added.

    LASPEC Director-General, Mrs. Folasade Onanuga, appreciated the retirees’ service to the state.

    She informed the retirees that they are in the ‘evening’ time when they need not engage in activities that will aggravate their health status.

    She urged them to apply wisdom in managing whatever they have.

    Mrs. Onanuga also enlightened the retirees on the move by the National Pension Commission to fulfil the provision of the Pension Law on guaranteed minimum pension for life for retirees under the Programmed Withdrawal benefit option.

    She said the annuity option offers pension for life for the annuitants.

  • CSR: IEI Anchor takes on hepatitis

    In line with its Corporate Social Responsibility (CSR) drive, IEI-Anchor Pensions has developed an action plan to address hepatitis, the Managing Director, Glory Etaduovie, has said.

    Etaduovie, in a statement made available to reporters, said the plan was part of activities for the global Customer Service Week.

    He stated that the disease, which has become a major public health concern, is responsible for the loss of lives in Nigeria.

    He said the disease is tagged as one of the ‘silent killers’, with a record of about five million deaths yearly by a February 2018 report, noting that Nigeria had one of the highest prevalence of hepatitis B infections in the world in 2016.

    He stressed that IEI Anchor, a Pension Fund Administrator (PFA), has chosen to fight the disease by championing periodic health checks as well as public enlightenment.

    Etaduovie added: “It is quite disheartening to note that while deaths attributed to other diseases of great public concern are on the decline, the same cannot be said about viral hepatitis which seems to witness a steady rise in fatalities despite advances made in prevention and treatment. These surveys have been carried out by organisations of repute, such as the Global Burden of Disease, a non-governmental body as well as the World Health Organisation. The situation is made even more worrisome considering the limited number of health facilities, as well as experts who have to contend with the large number of patients in view of the population and size of our country.

    “Patients who detect these infections early enough, however, have a greater chance of survival, which is the thrust of IEI Anchor Pensions position in this fight. We want to champion a course of periodic health checks as well as public enlightenment in all there is to know about this disease. For our Customer Service Week, we will be engaging our customers in health lectures as well as checks to ascertain their health status in relation to this dreaded ailment. We realise that this silent killer can only make incursions into a natio’s health system where ignorance is ingrained.

    “As the major stakeholders in our operations and success story, we see our customers as partners in the growth and development of the pension industry and the economic benefits it presents to the nation. Our doors are wide open to our customers as we would love nothing more than a healthy society which surely is a happy and successful one.”

  • FBNInsurance gets ED

    FBNInsurance has announced the appointment of Festus Izevbizua as its Executive Director (ED), Finance and Administration.

    In a statement, the firm’s Head, Corporate Affairs, Elizabeth Agugoh said this followed Izevbizua’s appointment’s confirmation by the National Insurance Commission (NAICOM).

    She said Izevbizua started his carrer at the Deloitte Akintola Williams and Co. in 1991.

    “After a five-year stint at Deloitte Akintola Williams, he joined the banking industry and went on to have a glowing career for over 18 years spanning leading banks, including Diamond Bank, United Bank for Africa and Standard Chartered Bank where he was Finance Operational Risk Manager and later Financial Controller before joining FBNInsurance as Chief Financial Officer in 2014.

    Izevbizua has almost three decades’ experience in Banking, Operational Risk Management, Oil and Gas, Accounting, Tax Matters and International Finance. He is a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), an Associate Member of the Nigerian Institute of Management (NIM) and a Senior member of the Chartered Insurance Institute of Nigeria (CIIN).

    He holds a Bachelor’s degree in Economics from the University of Benin and an Masters in Finance from the University of Calabar.

    Izevbizua is an Alumnus of Colombia Business School, New York and a Fellow of the Institute of Credit Administration (ICA).

  • Despite N1.8tr bailout, 17 states owe pensions, salaries

    Seventeen states are owing pensioners entitlements ranging from one month to 36 months, a survey by BudgIT Foundation has shown.

    The states include Delta, Imo, Abia, Osun, Plateau, Bayelsa, and Ekiti.

    This is despite the Federal Government’s bailout of N1.8 trillion released to states to clear their outstanding liabilities.

    BudgIT in a statement signed by Ayomide Faleye further disclosed that 12 states were yet to fully offset the amount owed secondary school teachers, while midwives were also being owed.

    Many of the states, the survey reported, warned the workers to keep the information from the public.

    According to BudgIT, almost all pensioners expressed their dissatisfaction with their state governments.

    The pensioners also expressed how hard it had been for them to survive despite their years of service.

    BudgIT has, however, asked the affected states to offset the debts.

    The group said: “BudgIT, worried that some states are yet to fully offset the outstanding amount owed pensioners and civil servants despite series of bailouts aimed at offsetting the liabilities, recently conducted a survey. The survey aimed at ascertaining the frequency and magnitude of challenges civil servants and pensioners encounter. The survey focused on three different categories of workers in all 36 states namely: primary and secondary school teachers, state midwives and state secretariat workers. Also, attention was paid to ascertain if retirees at the state level are receiving pensions as at when due.

    “From the survey carried out, we discovered that 12 states are yet to offset the amount owed secondary school teachers fully and many states are threatening workers to keep the information away from public domain. Notable among states with outstanding liabilities to secondary teachers are Osun and Kogi states. Osun State has been paying secondary school teachers above level 8 only a fraction of their salaries and entitlements for the last 30 months. Cumulatively, Osun State is owing secondary school teachers above level 8 about 15 months salaries. Other states with outstanding liabilities include Abia, Benue, Bayelsa, Kwara, Imo, Ekiti, Oyo, Ondo and Zamfara. Kogi State, for instance, is owing teachers about 13 months’ salaries, according to the response given by secondary school teachers during the survey.

    “Midwives, whose responsibility include attending to issues around pregnancy, childbirth, postpartum, women’s sexual and reproductive health and newborn care, are also bugged down by issues, such as  failure of some states to pay salaries and emoluments as at when due. Midwives were questioned during the survey across the 36 states. BudgIT discovered that 10 states are owing midwives salaries as at close of business on September 24, 2018.”

  • Trustfund engages artisans, traders, others on micro pension

    Trustfund Pensions Plc has urged workers in the informal sector through the Federation of Informal Workers Organisation of Nigeria (FIWON), to take advantage of micro pension plan to save for their future.

    Micro pension, a plan by the National Pension Commission (PenCom, designed to capture the over 70,000 workers in the informal sector, is billed to kick off in January 2019.

    Trustfund, a Pension Fund Administrator (PFA), engaged the workers comprising Nigeria Union of Tailors (NUT), National Association of Motor Mechanics, Nigerian Association of Hairdressers and Cosmetologists (NASHCO), bricklayers and plumbers among others during the One Day Sensitisation Programme, which held in Lagos.

    Trustfund Regional Manager,  Obiora Ozoekwem, who spoke at the event, said the impact of the informal sector is going to be huge on the economy. He however said the company was prepared to capture the informal sector in January.

    Obiora stated that the company is capable of enrolling the workers based on its structure, expertise, branch network and the volume of assets under its management.

    He said Trustfund ownership is diversified and reflects various interests, which include the representative bodies of Nigerian workers, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), adding that the company is also owned by some employers and financial institutional investors from the private sector.

    He said:“The informal sector, which has over 70,000 of working people in the country, falls under labour union. We believe because the labour union is part of the owners of Trustfund, the people will be more comfortable to enroll with the company. They have a certain level of ownership.

    “This is where we draw our strength from knowing that our branch network, expertise and the volume of assets we are managing will go a long way. The issue of corporate governance and assets protection is top priority for us. We believe that you can’t be a judge in a case where you are also part of the story, and with NLC being part of us, we have an edge above any other organisation.

    “We also believe strongly in FIWON. It is an association of informal sectors’ organisations. FIWON is the central organising platform for working people in the informal sectors of the Nigerian. It has the tailor, farmer, bricklayer, taxi driver and many more workers.”

    Ozoekwem further stated that the company will embark on awareness creation on pension scheme, stressing that the informal sector also comprises of the self-employed, who are not necessarily low-income earners, adding that the company is prepared to engage these categories of people.

    He said there is going to be need for public enlightenment because they need to understand the Contributory Pension Scheme as a whole, as well as the micro pension plan. PenCom has also promised to embark on serious sensitisa-tion campaign on the scheme.”

    Meanwhile, FIWON Secretary General, Gbenga Komolafe, has  called on its members nationwide to stop playing lottery with their hard earned money and participate in the pension scheme to secure their future.

    He said FIWON which was launched in 2010 with about 24 organisation of former workers, currently has about 170 organisa-tions across 21 states, with the sole purpose of ensuring that the workers right is protected.

    “We also ensure that they benefit from mortgage care and support, maternal care and support and other basic amenities,” he said.

    While commending the government initiative to capture the sector, he called on the government to part fund the contributions required in the scheme.

    He called “the categories of workers in the informal sector contribute to the economy, but do not enjoy the benefits that the working people in the formal sector enjoy. “It is in the interest of everybody that government invests in the informal sector,” he said.

    “Government attitude and the need for it to create space for the people to carry out their trade activities is very important. The government is talking to us about pension today, but if they keep destroying our spaces where we engage in trade, where are we going to get money to be able to save for the future?

    “It is not enough for the government to say we should contribute to pension, it should also part fund the scheme for us. Even if it is not 50-50 as we have in the formal sector, but at least, it should encourage the informal sector. If government part funds it, the money will still be in the system while it encourages participation and helps to obviate the effects of inflation,” he added.