The Nation Newspaper

Category: Pension

  • ‘UK pensioners receive smallest proportion of working income in developed world’

    The UK’s retirees are facing the greatest drop in income when they stop work compared with pensioners in other developed countries, research from an influential think tank has revealed, as it warns that further reforms are needed around the world to cope with the financial consequences of ageing populations.

    The Organisation for Economic Co-operation and Development (OECD), an intergovernmental economic organisation, has revealed that British pensioners receive only 29 per cent of the average working wage from state schemes once they retire.

    That’s less than half the 63 per cent typical proportion received in other member states, which include Mexico, Latvia, and Korea as well as the USA, Australia, New Zealand and the Nordic countries.

    In Turkey, retirees receive an average of 102 per cent of the typical working wage once they stop work.

    The calculations, designed to compare pensions systems around the world, are based on the mandatory components of pension savings in each country, in other words the state pension arrangements.

    The OECD concludes that Britons must be offered strong incentives to save more, with private pensions, particularly in light of automatic enrolment well placed to fill the gap. Meanwhile, pension freedoms are now pushing more savers to take responsibility for managing the effect of longevity on their finances.

    “Pension systems around the world are shaped by a combination of social, economic and political factors,” says Tom Selby, senior analyst at AJ Bell. “Some place a greater emphasis on collective provision, while others – including the UK – have a strong private pillar to supplement state income.

    ‘Transformational’

    “This report emphasises the importance of maintaining incentives to save and ensuring people have confidence that the rug won’t be pulled from under their feet by politicians prioritising short-term cash generation over long-term policymaking.

     

     

  • Ambode advises public servants to be IT compliant

    public servants in Lagos  must be fully compliant with information technology (IT) as the country journeys on in the 21st Century, Lagos State Governor, Akinwunmi Ambode, has said.

    Represented by the Commissioner, Ministry of Establishments, Training, and Pensions, Dr. Akintola Benson, at the ongoing workshop for public servants, he  said the workers must begin and complete their work on computers and the internet to get the benefits of speed, scalability, and inter-operability of systems.

    At the workshop tagged, “Strategic management and transformational leadership in the 21st Century-Agile Management Model”, he stated that this has become necessary as the state government and its institutions position to be adaptable to the changes of the unique challenges of the century.

    He said the workshop was designed to further the commitment of the government to the fundamental transformation of the state public service.

    Ambode added that the government has demonstrated that it will not be deterred in its determination to ensure the realisation of this vision.

    He said from a citizen and governmental perspective, the key expectations from a 21st century public service are the ability to transplant private sector-tested management theories into the public service, realistic and practically-grounded policy formulation and execution. Others are the deepening of technical knowledge and utilisation of modern tools, the appreciation of the need to focus on details and, importantly, the prioritisation of productivity on individual levels in terms of time utilisation and work modalities.

    He said: “I am confident that this training will address the practical steps to realise these expectations and many more that will be identified in the course of this training. It is gratifying to note that in Lagos State, we have a government that has boldly embraced this challenge of modernising governance and innovatively approaching the task of public administration. We are poised to examine those areas, processes and institutions and practices that need to be overhauled or remodeled in order to achieve this end.

    “And as we journey on in the 21st Century and as the Lagos State government and her institutions position to be adaptable to the changes necessitated by the unique challenges of the century, the Ministry of Establishments, Training and Pensions recommended, and I have approved, that selected officers of the state public service be made to pioneer the service-wide adoption of a 21st century-compliant agile management model in the public service.

    “Amongst others, this model has been shown to empower people, build accountability, encourage diversity of ideas, allow for the early release of benefits, and promote continuous improvement.

    “It allows decisions to be tested and rejected early with feedback loops providing benefits that are not as evident in other scenarios. In addition, it helps deliver change when requirements are uncertain, helps build engagement with stakeholders on what is most beneficial, and ensures that changes are incremental improvements which can help navigate the shock of cultural change.”

    “In order to deliver on its promises, the agile management model calls for public service institutions such as the Lagos State Public Service to be ready and open to integrating contemporary leadership principles and management theories into its modus operandi.

    “In a review of the most recent developments in the field of business leadership, the number of business leadership styles and trends has been noted.”

    He stressed that officers of the public service must deepen their technical skills and knowledge if they must be an integral and functional part of the 21st century-compliant agile management model.

    He posited that many projects required the buy-in of members of the public many of whom are savvy enough to demand to see charts, diagrams, models, graphs and other tools before accepting the proposals or acknowledging the competence of those charged with the execution of the project.

    “It is now the age of information technology and public servants have to begin and complete their work exclusively on computers and the Internet in order to claim the benefits of speed, scalability, and inter-operability of systems that the agile management model calls for. Agile management in the State Public Service also calls for officers to develop a penchant for laser-like focus on the minute details of projects and policies in their formation and execution. Policy makers can no longer afford to take their eyes off the ball of details.

     

     

     

    Amongst others, there is now unprecedented and unrelenting attention by the public on the activities of policy makers.

    “Added to this is the fact that these members of the public are savvy enough to evaluate policy proposals and to appreciate the ramifications of unattended details. Additionally, almost all policy proposals now have a thousand moving parts where every part has the potential, not only to affect the other parts, but also to have ramifications for other tangential policies and projects. Focus on details and attention to details is therefore of crucial importance for officers of the Lagos State Public Service in the context of agile management on the 21st century”, he said.

     

  • Wapic posts N6.9b gross written premium

    Wapic Insurance Plc has posted a gross written premium of N6.97 billion in the six-month period ended June 30, 2018, up by 18 per cent compared to N5.89 billion 6-month periods ended  June 30,  2017.

    The underwriting firm’s unaudited Financial Results Statement for the six-month period,  was released to reporters in Lagos.

    Managing Director of the firm, Mrs Yinka Adekoya, said the underwriting profit grew by 113 per cent to N1.33 billion driven by an increase in gross written premium.

    She stated that profit before tax declined by 54 per cent to close at N241 million, negatively impacted by the declines in investment and other income, and the slight growth in operating expenses for the period.

    She also said N1.65 billion was paid out in claims year to date; an eight per cent increase in claims payout compared to half year 2017.

    She noted that gross claims ratio decreased to 24 per cent in half year 2018 against 26 per cent in half year 2017 driven by improved risk selection year-on-year and topline performance risk rating

    Meanwhile, the result further showed that Wapic Life Assurance Ltd, a subsidiary of Wapic Insurance Plc, recorded 11 per cent increase in gross premium written to N1.25 billion in half year 2018 from N1.12 billion in prior year.

    Claims payout however decreased by 20 per cent to N363 million in the year under review, compared to N454 million in the corresponding period of 2017.

    The subsidiary recorded a commendable 946 per cent growth in underwriting profit from its half year 2017 position of N14.9 million to N156.7 million in half year 2018.

    Investment income reduced by 25 per cent to N279 million from N375 million in half year 2017 and profit before tax closed at N16.8 million for the period.

    Mrs Adekoya said: “The firm’s half-year performance is a reflection of the company’s continued focus on its business strategies and to deliver on all growth targets in a sustainable manner.

    “As a group, we recorded an underwriting profit of N1.33 billion, a commendable growth of 113 per cent from the previous year position of 8622 million.

    “This performance was driven largely by the growth in Gross Written Premiums for the period as well as enhanced efficiencies in our risk selection processes.

    “We remain committed to the focused execution of all our growth strategies especially with respect to our priority products and the delivery of an enjoyable experience across board for all our Wapic Insurance Plc customers.

    “ We will stay focused on deepening our retail penetration and share of wallet, improving operational efficiencies and consolidating on our brand profile in order to achieve our growth targets for the rest of the year. Our digital transformation drive also remain well on course and will be pursued aggressively in the second half of the year.”

    She said the firm is set to hold a teleconference call for investors and analysts on Thursday, August 16 at 2pm Lagos Time, 1pm London, 3pm Johannesburg and 9am New York with its senior management, to announce the unaudited financial results for the period ended June 30, 2018.

     

  • Industry gets 312,291 new pension contributors

    •Records N8.23tr pension assets

    The number of contributors under the Contributory Pension Scheme (CPS) has increased by 312, 291 from 7.89 million as at December, last year,  to 8.14 million as at last June.

    Besides, net assets value of the pension assets of the contributory pension fund was N8.23 trillion as at June, 2018, representing an increase of N 716.94 billion, up from the value of N 7.52 trillion as at December 31, 2017.

    PenCom Acting Director-General, Mrs. Aisha Dahir-Umar who spoke in Lagos, said the industry has witnessed significant growth.

    Represented by the Head, Contributions Bond Redemption Department, Mr. Olulana Loyinmi, who presented her keynote address at the third Annual National Insurance & Pension Corresspondents Conference,  she attributed the increase to new contributions received, interest/coupon from fixed income securities and net realised/unrealised gains on equities and mutual fund investments.

    Speaking on the enhancement of pensions of retirees under the Programmed Withdrawal, the PenCom chief said  to enhance the monthly pension of retirees in the CPS, the Commission initiated the Pension Enhancement Programme.

    She stated that it was discovered that the returns being generated by the Pension Fund Administrators (PFAs) on the balances of the Retirement Savings Account (RSAs) of majority of retirees could be used to enhance their monthly pensions.

    She said: “Consequently, the Commission sought for and obtained the approval of the Secretary to the Government of the Federation to implement the pension enhancement, which resulted in increased monthly pensions for most retirees receiving pension under the Programmed Withdrawal arrangement. Accordingly, the PFAs commenced the enhance-ment of pensions of all retirees under Programmed Withdrawal with effect from December 2017.

    “The implementation of the pension enhancement is one of the significant milestones attained since the commencement of the CPS. It confirms that the CPS has workable internal mechanisms to respond to legitimate demands of retirees as they seek a reasonable retirement income. The Commission intends to sustain this periodic review exercise in line with relevant provisions of the law.

    “The Commission also recently introduced a new template for programmed withdrawal, which took effect from 15th May, 2018. There has however being concerns expressed by some stakeholders. The Commission in its usual responsive and consultative manner has decided to review the template. Consequently, the Commission has directed that Pension Fund Administrators (PFAs) revert to the old template till further notice.”

    She further said the Commission issued a circular on Withdrawals from Voluntary Contributions (VC) last November, adding that the circular was necessitated by the observed incidences of high rates of withdrawals from VCs by contributors. This, she said appeared to negate the main purpose of using such contributions to augment pensions at retirement.

    She said the Commission is seeking to ensure strict adherence to Anti-Money Laundering provisions and relevant taxes laws.

    The main thrust of the circular, she noted, is that 50 per cent of the VCs could be withdrawn once in every two years, while subsequent withdrawals would be on incremental contributions from the last withdrawal.

    The remaining 50 per cent of VCs shall be domiciled for augmenting pensions upon retirement, she added.

  • Denmark unveils $650m devt fund

    Denmark and six pension funds on have launched a 4.1 billion crowns ($650 million) investment fund aimed at promoting Danish technology and fighting poverty and climate change in developing countries.

    The aim is to raise an additional 1 billion crowns in the autumn and to use some of the funds for projects worth 30 billion in total.

     

  • Lagos okays N466.85m for 187 retirees

    The Lagos State government said it has credited N466.85 million to the Retirement Savings Accounts (RSA) of 187 of its retirees under the Contributory Pension Scheme (CPS) for  last month.

    More retirees from the State Universal Basic Education Board (SUBEB) benefited from this batch.

    Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson Oke, said despite the paucity of funds, Governor Akinwunmi Ambode  ensured that he released funds monthly for their entitlements.

    He said 9,401 retirees had been paid about N38.5 billion.

    LASPEC Director-General, Mrs. Folasade Onanuga, said the government would continue to play the mother-hen role.

    She advised retirees on the importance of putting their houses in order in case of any eventuality by ensuring that they wrote their wills while they were alive.

    She also advised them to be active in retirement, because the more they moved around, the better for their health.

    Speaking on behalf of the others, two of the retirees, Mr. Orisayomi Olafemi and Mrs. C. B. Adewole commended Ambode  for accelerating the payment of their entitlements, which they said could not be compared with what obtained in other states.

     

  • AXA Mansard launches First Responders Service

    AXA Mansard Plc, a member of AXA Group, has launched the first responder service, which aims to support customers whose vehicles are insured with the company whenever they are involved in road accidents, Divisional Director, Retail Solutions, AXA Mansard Insurance, Mrs. Rashidat Adebisi, has said.
    In a statement in Lagos, she stated that the First Responder Service is an initiative meant to provide immediate assistance to customers on AXA Mansard’s retail motor insurance plan right at the scene of an accident.
    She said the service also aims to reduce turnaround time for service delivery to customers.
    According to her, with the introduction of the new service, customers with vehicles worth a minimum of N3 million will have access to trained First Responder Officers.
    She said: “The First Responder Officers will provide on-the-spot assistance to eligible customers at the scene of an accident, assess the damage to customers’ vehicles and start the claims settlement process with a view to concluding it rapidly.
    “We are delighted to introduce AXA First Responder service to our motor insurance subscribers. Customer experience is very important to us and we are ensuring that we provide services that would be customer-oriented. The service would help our customers to get both service and support in the event of a road traffic accident. We assure our customers that they would receive the needed support as they navigate their way around town.
    “With the First Responder service, eligible customers will have access to the First Responder officers who will provide on-the-spot assistance to them should they be involved in an accident. This is another benefit of being on the AXA Mansard comprehensive motor insurance plan. The officers will be accessible to customers between the hours of 7:00am and 7:00pm on weekdays; and access to the service is absolutely free. The service is currently only available in Victoria Island, Ikoyi, Lekki, Ikeja, and Surulere areas in Lagos. But it will expand.”
    Reccently, AXA Mansard won the Outstanding Insurance Brand of the Year by the Marketing Edge Brand and Advertising Excellence Award for her innovative solutions in pensions, investment, health and protection.

  • Premium Pension promises more service delivery

    The Board of Directors of Premium Pension Limited has  held its 59th meeting in Lagos, promising to provide more effective management  of pension.

    Its Chief Executive Officer, Mr. Umar Sanda Mairami, in a statement said the meeting, which is first of its kind outside the corporate head office of the company in Abuja, was held at its Lagos Island regional office in Ikoyi.

    He said the meeting, attended by all members of the board and executive management of the company led by the Chairman Yunusa Yakubu, was geared towards satisfying its numerous customers countrywide.

    He said: “Premium Pension Limited is a licensed Pension Fund Administrator company, which started operations in 2005, with current assets under management (AUM) in excess of N570 billion.

    “We are bringing relationship closer to our clients and providing environment for them to experience our premium services.

    “There is no gainsaying the fact that the business of pension fund administration is delicate and tasking especially with regard to the required technical input.

    “But our capacity and level of preparedness and alertness is not in question. The office of the new Executive Director, Business Development South and Strategy Mrs. Kemi Oluwashina, is also located within the precinct of the Lagos Island regional office.”

     

  • CPS: Obaseki presents N7.3m cheques to four next-of- kins

    Edo State Governor, Godwin Obaseki, has disbursed N7.32 million to four next-of-kins (NoK) of two deceased enrollees in the state’s Contributory Pension Scheme (CPS).

    The beneficiaries are Oriomon Morrison, Oriomon Emuata, Osahenrunmwen Iyawe and Patience Iyawe, who received the sum as benefits under the Group Life Assurance Scheme.

    Presenting the cheques at the Government House, Benin City, Obaseki said the presentation of cheques to the NoK to deceased civil servants with the State Civil Service Commission is history being recorded during his administration.

    He said the payments demonstrated the benefits of pension reforms in the state.

    He stated that when the government came to power, he promised that he would not leave the pension scheme the way he met it.

    He said: “When we came into office, we assured Edo people that all issues relating to pension are going to be resolved.

    “Those who do not believe that our government is working will now know that we mean well for our people and those who served the state.”

    Obaseki assured workers who are in active service that they have nothing to worry about regarding their pension, noting that his government has put measures in place to settle pension benefits after service.

    The Head of Service, Mrs Gladys Idahor, expressed appreciation to the governor for initiating the CPS, adding that with the scheme in place, pensioners will have no reason to protest and demand for pension.

    Idahor said a provision under the scheme requires that aside NoK receiving pension, they are also entitled to three times the annual salary prior to death.

    Speaking on behalf of the beneficiaries, Mr Osahenrunmwen Iyawe expressed appreciation to the governor for the scheme.

  • ARM Life posts N486m profit

    ARM Life Plc has posted a profit before tax of N486.9 million for the year ended 2017.

    This was due to the focus by the management and board of the company to grow policyholders fund, particularly in the individual life segment, the disciplined-risk management practices and investment management strategies, its Chairman, Dapo Oshinusi has said.

    He made this known at the 20th Annual General Meeting (AGM) of the company held in Lagos.

    He stated that the company’s gross premium written increased by 31.5 per cent from N2.75 billion in 2016 to N3.62 billion in 2017 despite the challenging market conditions.

    He disclosed that the company’s total assets also grew by 27 per cent to N16.13 billion in 2017 from the N12.71 billion recorded in 2016 underscoring the success of the company’s investment management strategy and culminating in 18 per cent increase in shareholders’ funds equity to N3.23 billion, up from N2.75 billion achieved in 2016.

    Speaking on development in the insurance industry, he said the sector struggled to overcome the challenges posed by the lingering effects of the economic recession, which slowed down economic activities and moderated profitability of businesses, limiting capacity to renew their insurance policies, purchasing power of individuals was also eroded thereby abating industry patronage.

    He said: “As a result, efforts by the sector operators and the regulators to deepen insurance penetration in Nigeria and improve on the sectors contributions to GDP did not yield much result as the sector merely recorded minimal growth during the year.

    “During the year, the National Insurance Commission (NAICOM), and the Central Bank of Nigeria (CBN) released guidelines for the Bancassurance Referral Model. This model is expected to support the growth of insurance business, by leveraging on partnerships between banks and insurance companies. Also, during the year, various activities were undertaken within the industry in the light of the transition to Risk Based Supervision. Naicom, in this regard, is working to ensure that operators imbibe sound risk and solvency management practices to strengthen the industry.’’