The Nation Newspaper

Category: Pension

  • 70,0000 retirees get N152b pension

    Premium Pensions Limited has paid over N152 billion to over 70,000 retirees since 2005 as benefits, its Executive Director, Mrs Kemi Oluwashina has said.

    She made this known during a seminar in Lagos where she presented a paper titled: “Repositioning the Nigerian economy- the insurance and pension industry perspective”.

    She said the company, a Pension Fund Administrator (PFA) with over N570 billion assets under management (AUM), Premium Pension is one of the top three largest PFAs.

    She said the company has an authorised share capital of N1.3 billion, significantly above minimum regulatory requirement and is 100 per cent owned by Nigerians.

    Speaking on why workers should choose Premium Pensions as their PFA, she said the company has strong historical investment returns, excellent customer service and operational efficiency–excellent use of technology platforms (online, mobile app, multi-lingual call centre with IVR, smsetc) and highly skilled and motivated workforce.

    She stressed that the company has integrated systems and processes with ISO/IEC27001 certification; operates from all 36 states; has Retirement Savings Account (RSA) Portfolio Return (2012 to H1-2018) and has won Africa Pension Awards in recognition of excellence in corporate governance.

    She said: “RSA portfolio return peaked at 13.16 per cent in 2013 following equity market boom, but subsequently dipped to 8.03 per cent in 2014 in the aftermath of the broad economic down turn. Return performance has since stabilised on the growth path; 2017 fully ear return was 16.25 per cent, while H1-2018 return is 7.58 per cent. Average return on the RSA portfolio between 2012 and 2017 was 12.01 per cent, higher than the corresponding inflation average of 11.8 per cent over the period.

    “The annual returns figures presented are audited, and net of all fees and taxes. Retiree portfolio return reflected more stability, maintaining a range of 10.7 per cent,12.65 per cent between 2012 to 2016. Return in 2017 stands out at 17.13 per cent, reflecting the high yield environment that characterized the fixed income space foremost part of the year.

  • Pension complaints and solutions

    OZEGBE: My name is Ozegbe. I am from Delta State. I retired on October 15, 2006 as a senior foreman (carpenter) on grade level 7 Step 8. I did my capturing in 2016. My problem is the non-payment of my federal share since 2006 till date. Thanks.

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    ORSHIO: My complaint is the non-payment of my late father’s pension entitlement by the Nigeria Police Pension Board. I am a registered next of kin to the late Inspector Samuel Adem, who died on October 2010. He retired from Nigeria Police on June 30, 2004, but did not receive pension. I underwent several verification to enable me collect his entitlement, but no fulfillment till date.

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    YUSUF: I am a CIPPO pensioner under PTAD. I forwarded my application  last November 7 to PTAD seeking review of my computation on gratuity and pension. But till date, there is no reply from PTAD.

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    SADIQ: I am Sadiq, a retiree of NICON Insurance, where in October 1990. I attended PTAD verification last October. I am told that others are paid while I have not been paid. They said my name was not forwarded to them.

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

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

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    FLORENCE:  Please how far have you gone with my case about pension cut since last May and the non-payment of federal gratuity since my retirement in 2005. Please I need a solution. Florence.

    THE NATION: The newspaper will intervene by getting PTAD to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    TUNDE: Dear Omobola, greetings. I am Tunde. I am a retired professor from University of Ibadan(UI). I retired in January 2008 and have satisfied all requirements to be paid my benefits. I have been cleared by UI and I have been at my PFA. I was told that they were awaiting PenCom’s approval. I have been without any income six months after 43 years of meritorious service. This is no joke. Please help me.

    THE NATION: The newspaper will intervene by getting your PFA and PenCom to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

    OGUNTOLA:Dear Omobola, I am a staff member of Federal Ministry of Works and Housing Lagos. I have not been paid my pension salary for April and May, this year. Kindly help me out of this problem, save me from anger. Thank you.

    THE NATION: The newspaper will intervene by getting your PFA and PenCom to respond to your complaint. Watch out for the newspaper every Wednesday for your response.

  • ‘Lack of foreign index bond impeding pension growth’

    •Calls for enlistment of blue chip firms at capital market

    The non-availability of foreign index bond is impeding the desired growth of pension fund assets, the Acting Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, has said.

    The Acting DG, who was represented by the Head, Corporate Strategy and Research Department, Dr. Farouk Aminu, spoke at the just- concluded Insurance and Pension 2018 Conference held in Lagos, saying the fund has grown to over N8.2 trillion.

    She believes that pension fund would have grown, if there were better instruments to invest the fund.

    According to her, about 200 companies listed at the Nigerian Stock Exchange (NSE), only 60 qualify for pension fund investment.

    Aminu said the Commission is not able to allow investment of the fund at the capital market, noting that its hands are tied.

    He called for the enlistment of blue chip firms, including Chevron, Mobile, Shell, MTN Nigeria, and Glo, at the capital market to allow foreign index bond to be available in the country.

    He said the Commission was concerned that if there were better instruments, the return on investment to the fund owned by contributors and retirees under the Contributory Pension Scheme (CPS) will be more.

    Aminu added: “If there were better instruments, I believe the pension asset would have overshoot. The return on investment of pension fund was 16 per cent and inflation was above 15 per cent. Unfortunately, this is the reflection of the entire financial system in the country. If you look at the NSE, there are just 200 companies listed on the exchange and if we have to go by our stringent regulation, only about 60 of them qualify for pension fund investment. So, the money is big when compared with the companies that are qualified to access it.

    “Also, we are yet to have an index bond in the country, whether regulatory index or any other index bond. The Commission has been pushing for such bonds to be issued in the market so that the pension asset can be invested on such instruments. Unfortunately, we don’t have that yet. Yes, we have 70 per cent of the fund invested in Federal Government Securities but this is nothing. This is because we have only seen 16 per cent return on the FG securities and up to 18 per cent in 2016.

    “Recently, there is the push for the fund to go into the telecom industry but unfortunately, we are unable to do so. If there are companies like MTN, Glo among others listed at the capital market, then we would have been able to invest in these kinds of companies. Unfortunately, that is a reality in the country and I hope that we would have better instruments.”

    He cited former South African President, the late Nelson Mandela, who, in a bid to empower blacks urged foreign companies to sell their shares to black citizens, noting that this could be done in Nigeria to make the blue chip companies list their shares at the capital market.

    He observed that MTN and Glo are not listed at the capital market.

    “If these companies can list at the capital market it will give opportunities for Nigerians to invest in the companies. Sectors like banking, insurance, and pension will also benefit from such development,” he added.

  • STACO invigorates e-portal

    TO bring insurance closer to consumers, STACO insurance Plc has invigorated her e-portal platform, having secured the nod of the National Insurance Commission (NAICOM).

    This was made known in  a statement made available by the company’ Head of Corporate Affairs, Tunde Odeyemi, in Lagos.

    According to the statement, the Commission has confirmed a ‘No Objection’ endorsement for the company to introduce e-payment portal into the  market.

    The statement read: “The company’s e-payment portal is a web based transactions solution. It operates twenty-fours round the clock payment system and utilising an automated insurance online real time service technology platform. The portal enables ease of business transaction, offers convenience, speed and seamless method of payment of premium by the company’s clients, especially for third party motor insurance and personal protection plan products.

    “The solution has the feature of issuing digitalised insurance policy certificates and eliminates the syndrome of issuance of fake certificates by fraudsters. The introduction of the transaction and e-payment platform into the insurance market is in line with the company’s commitment to boost exceptional customer experience and reduce turnaround time for customer service delivery, while responding to the technological needs of the sector. It is hoped that the system will create loyalty from customers, attracts additional clients to the company as purchase of insurance policies would become easier.’’

  • Ambode urges LASPEC officers on pensioners

    Lagos State Governor Akinwunmi Ambode has challenged officers of the Lagos State Pension Commission (LASPEC) on effective communication with retirees and pensioners.

    The governor, represented by the Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr. Akintola Benson, spoke during the workshop tagged: ‘Top skills for public-facing officers of LASPEC in Lagos.

    He said the training was designed for officers of LASPEC who interact with pensioners, retirees and the public.

    According to him,  the rationale for the training is to ensure that the officers are reminded of the fundamentals of communicating effectively and compassionately to those with whom they interact.

    He said members of the public expect senior public servants to possess general top skills.

    He added that the state recognises the fact that there was need to train the officers to ensure that they cultivate skills that public-facing officers of the LASPEC ought to cultivate.

    The Governor said: “The first skill or trait should be a passionate commitment to the mission of the agency and the service as a whole. Excitement trickles down from leadership to the employees on the ground. When the administrator is enthused about the organisation or agency’s mission, the employees will mirror those feelings. In times of crisis, great administrators remind their staffs of the purpose of their mission and the role their organisation plays in the larger society.

    “The possession of a conceptual skill is also part of the critical skills and traits. As public servants, they must also learn how to pay attention to details. As important as it is for leaders to see the big picture and think strategically, it is equally important for them to pay attention to the details. This does not mean that leaders have to be involved in every minor decision, or undermine the decisions of subordinates; rather, leaders must remain aware of the activities of their staff and the status of projects, allowing autonomy whenever possible,” he added.

  • Anchor gets NAICOM’s approval on 2017 accounts

    ANCHOR Insurance Company Limited has announced the approval of the organisation’s audited financial statement for the year ended 31st December, 2017 by the National Insurance Commission (NAICOM) as submitted.

    Its Managing Director Mr. Ebose Augustine, in a statement stated that  NAICOM approved the account having complied with its regulatory requirements.

    He said the company’s financial statement was approved as submitted without any query from the regulatory body, noting: “This outcome was a fallout of the company’s culture of getting things right the first time.”

    Ebose disclosed part of the highlights of the accounts to include N2.22 billion gross premium written as against N2.05 billion written during the corresponding period of 2016, an indication of eight per cent growth over the earlier result.

    He said that the total assets of the company during the period was N6.24 billion and shareholders’ fund was N5.07 billion, with its solvency margin standing at N5.12 billion.

    He noted that the company paid a total claim of N540.3 million to its affected genuine policyholders during the period of 2017 as against the N268.2 million in 2016, stating that it demonstrates our strength to accommodate any volume of genuine claims reported.”

    He explained that with the trend of results being achieved by the company in the year, the management was hopeful of delivering a much better bottom line to the owners of the company at the end of the year.

  • Insurers step up Brexit plans in absence of clarity

    Insurers in the United Kingdom (UK) accessing business in the European Union (EU) are making arrangements to ensure that they are able to provide insurance services in the other 27 EU countries post Brexit, it was learnt.

    The ability to continue to conduct cross-border business is a particular concern for Lloyd’s, the London market and other UK-based commercial insurers.

    Director, Market Development and Communications, A. M. Best, Dr. Edem Kuenyehia, disclosed this in a statement in Lagos.

    According to him, it is less of an issue for retail insurers as they principally underwrite domestic business.

    He stated that in the absence of clarity as to what a future trade deal will look like between the UK and the EU this year; affected insurers have accelerated their plans to establish new EU subsidiaries.

    He said these subsidiaries will ensure that they are able to underwrite EU business post March 2019 or after any formally agreed transition period. Small insurers that do not have the resources to create additional companies, are forming relationships with local carriers that can front business for them in the EU.

    He added that insurers are also addressing the possibility that, in the absence of a political solution, companies in the UK, which currently make use of passporting rights, will not be able to service claims on existing EU policies after Brexit.

    As a contingency, he noted that a growing number of companies are exploring potentially expensive Part VII transfers of existing EU business to their newly-created subsidiaries.

    Kuenyehia stated that the cost implications of setting up a new risk carrier in the EU are weighing on insurers and the associated operating and restructuring expenses will impact their earnings.

    He said: “Furthermore, the creation of an additional, separately-capitalised subsidiary may reduce the fungibility of capital across an insurance group and its capital efficiency.”

     

  • PenOp: micro pension’ll boost economy

    Micro pension billed to kick off before the end of this year will boost the economy, Pension Fund Operators Association of Nigeria (PenOp), has said.

    Its President, Mrs Aderonke Adedeji, said it will reduce the level of poverty associated with the informal sector and old age in the country.

    Micro pension is an arrangement for the provision of pension and retirement benefits to the low income, self-employed and persons operating in the informal sector.

    Mrs Adedeji who is also the Managing Director, Leadway Pensure PFA Limited spoke on: “Exploring the Micro Pension Concept” at the just concluded conference on insurance and pension in Lagos.

    She said a key policy issue in developing countries and an imperative in the countryare the planning and execution of micro pensions which is a missing link in increasing pension coverage in the country.

    She said over 90 per cent of the population in sub-Saharan Africa and South Asia are not covered by any pension arrangement due to general unemployment, low incomes, poor saving culture and above all pension arrangements that only favour workers in the formal sector.

    She further said the World Bank on the other hand estimates the size of the informal labour market to be between four and six per cent in the high-income countries and over 50 per cent in the low-income countries.

    She said what is needed for the micro pension plan is a unique regulatory framework to govern the scheme which the National Pension Commission (PenCom) is addressing.

    The OenOp chief also stressed the need for registration, investment of funds, risk management, membership, withdrawal of benefits and taxation incentives for participants that will be captured under the plan.

    She said: “The Pension Reform Act (PRA 2014) Section 2 (3) paved the way for micro pension.

    “Employees of organisations’ with less than three employees as well as self-employed are entitled to participate under the scheme in accordance with guidelines issued by PenCom. This group covers the informal sector which plays an indispensable role in Nigeria and world economies.

    “The informal sector plays significant role in micro pension as it generates jobs, amplifies entrepreneurial undertaking, reduces unemployment and underemployment, alleviates poverty and promotes economic growth.”

    According to her, the country  has an adult population of 96.4 million, out of which 50.8 per cent male and 49.2 per cent female with 63.9 per cent residing in the rural areas. “Meanwhile, 56.2 million adults representing 58.3 per cent of the adult population are under 35years while 21.8 million adults representing 22.6 per cent of the adult population have no formal education. 18.4 million adults representing 19.1 per cent of the total adult population have farming as their main source of income 18.9 million adults representing 19.6 per cent of the total adult population get their income from own business,” she added.

    Some of the attributes of the informal workers that isolate them from formal pension arrangements and  create a need for separate well thought out design are continuous job changes; likely opportunities to self-employment and not on payrolls in most cases.

    Others, she said, are temporary nature of employment contracts; educational status; unfamiliar with the workings of pensions and limited experience in dealing with formal financial institutions.

  • Dahir-Umar, Ogunbiyi, others speak at BusinessToday anniversary, awards

    PENCOM Acting Director-General (DG), Mrs. Aisha Dahir-Umar and Mutual Benefits Group Chairman, Dr. Akin Ogunbiyi, are among dignitaries  who will speak at the fifth edition of BusinessToday Anniversary and Awards.

    The annual event is scheduled to hold on August 28 at Sheraton Hotels & Towers, Ikeja, Lagos.

    Ogunbiyi will chair the event. The keynote addresseswill be delivered by Mrs Dahir-Umar and Nigerian Insurers Association (NIA) Chairman, Tope Smart.

    A statement by the Editor-In-Chief/Chief Executive Officer, BusinessToday, Nkechi Naeche, said experts drawn from insurance and pension sectors would be on hand to speak on  the theme : “Repositioning the Nigerian economy: Insurance and pension industry perspective”.

    She explained that the experts would seek solutions to how the economy can be repositioned by both sectors and in turn better the lives of policy holders, contributors and retirees and investors.

    Speakers expected at the events are: IEI-Anchor Pension Managers Limited Managing Director, Glory Etaduovie; Universal Insurance Plc Managing Director, Ben Ujoatuonu; Managing Director, Sovereign Trust Insurance Plc, Olaotan Soyinka;  and Managing Director, Premium Pension Limited, Umar Mairami.

    The event, according to her, will also feature the launch of BusinessToday Magazine and award presentation in different category to insurance and pension companies while, who distinguished themselves last year, would be celebrated.

    She said the yearly award was designed to celebrate creativity and excellent performances exhibited by individuals and organisation and by extension deepen insurance and pension awareness in the country.

  • PenCom warns pensioners, others against graft

    • Lists ethical conduct as gain of pension reform

    The National Pension Commission (PenCom) has cautioned  the public, particularly pensioners and pension contributors, against giving kickbacks or other forms of gratifications to anybody to facilitate payment of retirement benefits, issuance of compliance certificate to vendors and service providers.

    PenCom Acting Director-General, Mrs Aisha Dahir-Umar, who made this call in a statement in Lagos, urged the public to immediately report to the Commission anyone who makes any demand or ask for any form of inducement in whatever disguise.

    According to her, the Commission remained dedicated to safeguarding pensioners, contributors’ rights and payment of retirement benefits as and when due.

    She further disclosed that one of the major achievements of the pension reform is the establishment of robust legal and institutional frameworks for pensions’ administration in Nigeria.

    She said: “One of the major achievements of the pension reform is the establishment of robust legal and institutional frameworks for the administration of pensions in Nigeria. The reform has instituted transparent processes in the operations of PenCom and the Pension Fund Administrators (PFAs) in the retirement benefits payment process, enforcement of compliance with the provisions of the Pension Reform Act (PRA) 2014 as well as other operations of the industry.

    “Consequently, the public is hereby invited to note that payment of retirement benefits under the CPS is made by the PFAs strictly from the Retirement Savings Accounts (RSA) of pension contributors. The RSA has three basic components, namely, the monthly pension contributions; the returns on investment earned for the contributors by the PFAs and the retirement benefits that accrued under the defunct Defined Benefits Scheme.

    “Section 7 of the Pension Reform Act 2014 and the Regulations on the Administration of Retirement & Terminal Benefits demand that the three components of the retirement benefit must be consolidated in the RSA before any payment is made by the PFA. Accordingly, payments of retirement benefits are made promptly into the bank accounts of the retirees except for cases where the employer delays in the release of funds to pay the accrued rights component of the retiree’s benefits.”

    She stressed that in the performance of its statutory mandate, the Commission issues compliance certificate to organisations wishing to bid for contracts with Federal Government institutions, pursuant to the requirement of the Public Procurement Act 2007.

    “Furthermore, as it is the case with all institutions, the Commission engages vendors and services providers from time to time. In addition to the legal safeguards and institutional checks and balances of the CPS, the Commission, as the regulator of all pension matters in Nigeria, has entrenched good corporate governance practices, high ethical standards and zero tolerance to any form of malpractice in the conduct of its staff and the PFAs that manage the pension assets. In this regard, the Management and staff of the Commission do not receive money or other forms of gratification to facilitate payment of retirement benefits, issuance of Compliance Certificates and engagement of vendors and service providers.

    “The Commission does not also give or accept kickbacks to or from any individual or organisation in the discharge its responsibilities. The members of the public, particularly pensioners and pension contributors are, therefore, reminded that no financial or other form of inducement should be given to anybody to facilitate payment of retirement benefits, issuance of compliance certificate or engagement as vendor or service provider.

    “Indeed, members of the public are earnestly requested to immediately report to the Commission, anyone who makes any demand for any form of inducement in whatever form or disguise. The Commission remains totally dedicated to the safeguard of your rights and payment of your retirement benefits as and when due,” she added.