The Nation Newspaper

Category: Pension

  • ‘Employers better informed on CPS’

    Employers under Trustfund Pension Plc are getting more knowledgeable and compliant with the Pension Reform Act (PRA) 2014 laws.

    Trustfund Compliance Officer, Miss Tosin Adebayo, who made this known during a sentitisation programme organised for employers under the company in Lagos, said Trustfund has been sensitising employers on the modalities for remittance of contributions and other pension issues relating to the individual contributions of the employer.

    She explained that the forum was organised to educate employers on regulatory requirements in accordance with the PRA 2014 and other extant guidelines.

    Adebayo revealed that there has been a drastic improvement in the level of compliance from their clients as challenges experienced by them have reduced.

    She said: “We have seen positive changes in the administration of pension by employers under the firm’s management. Where we have issues mostly are with date of birth and remittance. But we see that those issues are not as much as they used to be.

    “When we organise forums to sensitise the employers, we make sure we invite people that have one challenge or the other in complying with the scheme. We don’t invite people that are already okay with the scheme. The people that are present at this forum are not so many. The challenges have drastically reduced. So, this tells us that a lot of their problems are being solved.

    “We have always ensured that our clients comply with the CPS by educating them at various forums. Our employer’s forum is organised to make our employers understand our guidelines, codes and conduct. We also ensure that they are aware of the developments and changes in the pension industry.”

    She further stated that part of the new developments in the industry is the Multi Fund Structure and based on this, they have structured a multi fund asset for clients.

  • PTAD pays N1.7b arrears to 5,382 new pensioners

    The Pension Transitional Arrangement Directorate (PTAD) has paid N1.7 billion outstanding pension arrears to 5,382 civil service pensioners, its Executive Secretary, Mrs Sharon Ikeazor, has said.

    A statement from the PTAD explained that the pensioners are among the 7,969 civil service pensioners enrolled on the PTAD monthly payroll in March this year with a total payment of N71.5 million for the month.

    In addition, she said the Directorate has adjusted monthly pension payments for 10,522 pensioners to reflect their correctly computed monthly pension based on their employment records.

    Besides, 4,292 pensioners had their monthly pension payments adjusted downward, while 6,230 were adjusted upwards, the statement added.

    She assured all pensioners under the Defined Benefit Scheme (DBS), who have outstanding pension arrears that payments will be made as soon as the Federal Government allocates and disburses funds.

    She further assured pensioners that the President Muhammadu Buhari’s administration’s is committed to senior  citizens’ welfare.

    The PTAD plans to put 3,542 pensioners of Delta Steel Company (DSC), Aladja on the payroll next month. The payment of their monthly pension will also begin, she said.

    Mrs Ikeazor said this was coming 13 years after the Federal Government concluded the privatisation of the company in February 2005. According to her, the Directorate recently concluded computation of the pension benefits of the DSC pensioners.

    She, however, noted that the computation, audit and payrolling of NICON, Nigerian Reinsurance and NITEL/MTEL would be completed soon.

    She said: “It is significant to note that this milestone achievement is coming 13 years after the Federal Government concluded the privatisation of the company.

    “In March 2017, my management team and I paid a working visit to Aladja, Warri Delta State to meet with the retirees to assure them of President Buhari administration’s commitment to the welfare of pensioners.

    “PTAD had successfully verified 4,182 regular pensioners and deceased pensioners’Next of Kin (NoKs) in November 2017 in an exercise that held concurrently in Abuja, Lagos and Aladja in Delta State.

    Following the successful conclusion of the exercise, 3,542 pensioners, who were cleared by Federal Audit, will be payrolled in August 2018 and will start receiving their monthly pension for life.

     

  • Fed Govt unpaid ex-employees can’t access 25% pension

    Federal Government employees under the Contributory Pension Fund (CPS), who lost their jobs before 50, have not been able to access 25 per cent of their pension benefits, The Nation has learnt.

    Investigation has revealed that the government is yet to pay their accrued pension rights into their Retirement Savings Account (RSA) managed by Pension Fund Administrators (PFAs).

    The accrued rights unpaid by the government makes the 25 per cent fund inaccessible for the workers, contrary to the provision in the Pension Reform Act (PRA), as repealed by the PRA 2014. Similarly, it makes it impossible for retirees to access their fund after retirement, years after retirement.

    While employees in the private sector who lose their jobs are able to access 25 per cent of their fund, those in the public sector are unable to do so.

    Section 7, subsection 5, of the Act states that without prejudice to subsection (1) of this section, any employee who disengages, or is disengaged from employment before  50 and is unable to secure another employment within four months of such disengagement, may make withdrawal from his retirement savings account.

    Accrued rights on the other hand, is the debt owed by the government to the workers as pension benefits  before the commencement of the CPS in June 2007.

    Section 15 ( 1 ) states: “From 25 June, 2004, being the commencement of the Pension Reform Act, 2004, the accrued pension right to retirement benefits of any employee who is already under any pension scheme existing before the commencement of that Act and has over three years to retire, shall in the case of employees of the public service of the Federation where the scheme is unfunded, be recognised in the form of an amount acknowledged through the issuance of Federal Government Retirement Benefits Bonds by the Debt Management Office in favour of the employees and the bond issued under this subsection, shall be redeemed upon the retirement of the employee in accordance with section 39 of this Bill and the amount so redeemed shall be added to the balance of the retirement savings account of the employee and applied in accordance with the provisions of Section 7 of this Bill.

    “Where there is such a debt, the employer shall immediately issue a written acknowledgement of the debt to the relevant employee and take steps to meet the shortfall, and such debt shall not be affected by the provisions of any limitation law in force for the time being. The employer shall notify the Commission of any written acknowledgment that arises under paragraph (c) of subsection (I) of this section and any steps taken or planned to meet the shortfall.

    “The accrued pension rights and entitlements of employees of the public service of the Federation as provided for under subsection (1) of this section, shall be reviewed by the Federal Government from time to time in line with the provisions of section 173 (3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), provided that the variation so derived from the salary reviews shall be provided by the Federal Government and credited directly into retirement savings account of individual retiree”, the Act read.

    One of the affected out of job persons, 45 year old Adebayo Aderibigbe who spoke with The Nation lamented his ordeal. He said he needs the money to be able to start a trade.

    He stated that his PFA, ARM Pension told him they cannot pay him 25 per cent out of his pension because they have to wait for the federal government to pay his accrued right to pension account before they can pay.

    He said: “I told them to pay me from the money remitted as my contributions that was deducted from my salary when I was working, but they said no.

    “I and my family have been suffering. I cannot pay my children’s school fees nor feed them, yet I have money locked up with my PFA because government has refused to pay my accrued right. I do not understand why I have to be left to wallow in abject poverty when I have money somewhere. This us unbelievable.

    “I am appealing to the government to pay me my money.

    Head, Corporate Communications, Peter Aghahowa said the commission was aware of this shortcoming and had been working to correct the anomaly.

    “We have been on the accrued right issue for Federal Government workers for some time.

    “By law, accrued right and pension need to be consolidated. The Commission is inhibited to abide by the law but we are working to address it. But ideally, this is one of the issues that are inhibiting the progress of the CPS,” he said.

     

  • Lagos trains directors on decision making

    Lagos State Public Service urged to implement government policies for the benefit of the citizenry.

    Governor Akinwunmi Ambode   gave the advice during the training of directors tagged, “High impact decision making programme for directors in the Lagos State Public Service”.

    Ambode, represented by the Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr. Akintola Benson, said it was in recognition of the importance of the officers that  the government trained the directors.

    He stated that since the inauguration of the his administration, almost every senior public servant had been trained.

    He was confident that the training would be of benefit to the  people.

    He said: “Decision-making is a truly fascinating science, incorporating organisational behaviour, psychology, sociology, neurology, strategy, management, philosophy, and logic. The ability to make effective decisions that are rational, informed, and collaborative can greatly reduce opportunity costs while building a strong organisational focus. Effective decision-making is a central skill necessary for success. This requires the capacity to weigh various paths and determine the optimal trajectory of action.

    “It is also important to distinguish between problem analysis and decision-making. Indeed, while they are related, problem analysis and decision making are distinct activities. Decisions are commonly focused on a problem or challenge. Decision makers must gather and consider data before making a choice. Problem analysis involves framing the issue by defining its boundaries, establishing criteria with which to select from alternatives, and developing conclusions based on available information. Analysing a problem may not result in a decision, although the results are an important ingredient in all decision making.

    “As to the matter of decision-making styles, the need for senior officers to develop a decision-making style that will make the proper implementation of government policies effective and will be tuned to achieving intended goals can never be over-emphasised.”

    The governor believes that the job of a manager is, above all, to make decisions.

    “At any moment in any day, most executives are engaged in some aspect of decision making: exchanging information, reviewing data, coming up with ideas, evaluating alternatives, implementing directives, following up. But while managers at all levels must play the role of decision maker, the way a successful manager approaches the decision-making process changes as he or she moves up in the organisation.

    “At lower levels, the job is to get widgets out the door or, in the case of services, to solve glitches on the spot. Action is at a premium. At higher levels, the job involves making decisions about which widgets or services to offer and how to develop them. To climb the corporate ladder and be effective in new roles, managers need to learn new skills and behaviours to change the way they use information and the way they create and evaluate options,” he added.

     

  • Expert blames federal, state, local govts for PRA 2014 non-compliance

    Governments at the Federal,  state and local level have remained a problem to the successful administration of the Contributory Pension Scheme (CPS), a pension expert, Ivor Takor, has said.

    Takor, a lawyer and Executive Director, Centre for Pension Right Advocacy, said several acts of noncompliance with the provisions of the Pension Reform Act 2014 call for the Civil Society, which include the labour movement, represented by the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC) and the Industrial Unions to take action against the government.

    He noted that while Lagos, Kaduna, Edo and a few other states must be singled out for commendation for implementing the Contributory Pension Scheme (CPS), many other states are yet to comply with the law.

    He stressed that Lagos stood out as the face of the CPS even better than the Federal Government, adding that the CPS is running smoothly in the private sector as workers who retire from the sector are paid as and when they retire.

    Takor said: “The challenge of the scheme is in the public sector; federal and states, where workers for some years now are not being paid as and when they retired. The crisis facing Federal Government retirees emanated from the fact that the Federal Government has not been funding the Retirement Benefits Bond Redemption Fund Account in the Central Bank of Nigeria as it ought to. The bulk of retirement benefits of employees, who were in employment before the reform in 2004, is in the accrued rights. For example, benefits from date of their first employment, up to June 2004, the date of the commencement of the Contributory Pension Scheme.

    “The second issue militating against employees in the federal public service is that of delays in the remittance of contributions into the Retirement Savings Accounts (RSAs) of employees and implementing the new rates of contribution of 12 per cent and 8 per cent for the employer and employee respectively, which came into effect from June 2014. These are acts of noncompliance with the provisions of the Pension Reform Act 2014.

    “As at the last count, only about 10 state governments have either enacted pension laws or are at various stages of enacting pension laws for their employees. More disturbing is the fact that even those that have enacted their own pension laws, thereby keying into the CPS, operate the schemes in default of their own laws. Is anyone, therefore, surprise that most states government are owning their workers’ pensions for upward of 2 to 3 years, while those that pay, pay what they like not based on any law?

    “Lagos, Kaduna, Edo and a few other states must be singled out for commendation for keying into and implementation of the Contributory Pension Scheme. Without any fear of contradiction, Lagos State stands out as the face of the Contributory Pension Scheme even above the Federal government.”

    “I call on the Civil Society, which include the labour movement, represented by the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC) and the Industrial Unions, to have a major role to play as they remain the voice of the voiceless of this nation. The movement therefore, has to organise and mobilise the full potentials of its vast membership to stand united against the deliberate pauperisation of workers and their families by the predatory political ruling class and the vested interest of unregulated capital by ensuring that the pension rights of workers in the public and private sectors are protected.

     

  • PenCom educates prospective retirees

    The National Pension Commission (PenCom) has sensitised and enlightened prospective retirees (due to retire in 2019), on sundry steps, procedures and documentations required for a stress-free retirement.

    The prospective retirees comprised staff of Ministries, Departments and Agencies (MDAs) of the Federal Government.

    The workshop was meant to educate participants on how to transit seamlessly from active employment to retirement under the Contributory Pension Scheme (CPS).

    Also, the regulatory agency released the time table for the 2018 verification and enrolment exercise of employees of the federal government Treasury Funded MDAs retiring in 2019.

    The verification will take place in 15 centres across the six geo-political zones of the country, including the Federal Capital from the 25th of June 25 to August 17, 2018.

    According to PenCom Acting Director-General, Mrs. Aisha Dahir-Umar, “one of the salient objectives of the Pension Reform Act (PRA 2014) is to make pension administration transparent and seamless. Accordingly, the Commission has established uniform set of rules, regulations and standards for all aspects of pension administration, including payment of retirement benefits to retirees.

    “This was achieved in the case of the latter, through issuance of the Regulation on Administration of Retirement and Terminal Benefits; Regulation on Retire Life Annuity; the Frameworks on Pension Enhancement & Programmed Withdrawals; and the Circular on Voluntary Contributions amongst others.”

    She added:  “As part of our annual regulatory activities, the Commission has finalised arrangements to commence the verification of prospective retirees, who will be retiring in 2019 from the public service. The verification exercise is scheduled to be undertaken from June 25, to August 17, 2018 in 15 centers across the country. The impending exercise, therefore, necessitated the need to undertake adequate sensitisation and public enlightenment in order to prepare prospective retirees on the steps to take towards a hitch free retirement life.”

    Also sensitized on the consolidation of benefits on retirement, modes of withdrawal of benefits on retirement, rights of retirees and roles of the Pension Fund Administrators(PFAs) and PenCom in the retirement process.

    They were also advised to enroll for retirement during the ongoing enrolment of prospective retirees by the commission, as enrollment by proxy will not be entertained except on proven cases of medical incapacitation.

    According to the Commission, participants, having been armed with the requisite information at the workshop, should be in a better position to make informed decisions that will make their retirement from active service stress-free.

     

  • Lagos ‘paid N37bn monthly pension in 3 years’

    ABOUT N37 billion have so far been paid by Lagos State  into  workers’ Retirement Savings Account (RSA) since the inception of the current administration in the state. The government has never failed to remit workers’monthly pensions’ contributions, Governor Akinwunmi Ambode has said

    Besides, he said, the state has also been consistent in setting aside funds for the payment of accrued rights as provided for in the Pension’s Reform Law such that about 9,045 retirees have had their accrued pension rights paid.

    Ambode, who was represented by Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson, spoke at the 14th Retirement Benefits Documentation Seminar, organised by Lagos State Pension Commission (LASPEC) for employees due to retire from the state Public Service. between July and December, 2018 in Lagos.

    He further stated that in spite of the onerous funding obligations under the Contributory Pension Scheme, Governor Ambode’s administration  has been dogged in meeting the funding obligations

    Speaking on “the Full Commitment of the Lagos State Government to Pensioners, Pension Reforms, and Pension Obligations”, he reiterated his administration’s commitment to the welfare of pensioners, the dutiful discharge of pension obligations, and the regular reform and retooling of the government’s pension systems from time to time and as the exigencies of the times may demand.

    While congratulating the officers of the service due to retire in the second half of the year, the Governor said it is no mean feat to reach the age of retirement in health and retire honourably from service.

    He also commended the leadership and staff of the Lagos State Pension Commission (LASPEC) for faithfully and diligently pursuing its mandate as a regulator and manager of the pension obligations and assets of the Lagos State Public Service.

    He said: “Over the years, LASPEC has dutifully carried out the objectives of the Lagos State Contributory Pension Scheme Law. LASPEC’s stewardship of the trust assigned to it has been chiefly responsible for the several accolades and awards that Lagos State has won over the years. Furthermore, LASPEC has also been responsible for the fulfilment of the wider objectives of the Law as espoused under Section 4 of the Law.

    “These include the assistance of all persons in the employment of the state government to save towards their retirement; ensuring that persons who leave or retire from the public service of the state receive their terminal or retirement benefits as and when due; establishing and monitoring the adherence to the rules and regulations for the administration and payment of retirement benefits in the public service of the state; establishment of the group life policy in respect of death benefits for employees, who die while in service; administration of Retirement Bonds for employees with past service benefits; and the establishment and maintenance of the Redemption Fund from which the liability of the bond payments would be made.

    “Today’s event marks yet another indication that the Ministry of Establishments, Training and Pensions, operating through LASPEC, remains committed to pursuing not only the objectives of the law setting it up, but also the welfare of the officers of the public service for whose benefit the law was made. Lagos in the implementation of the schemes by the Lagos State Government through LASPEC, huge success has been recorded”.

    According to LASPEC Director-General, Mrs Folashade Onanuga,  the state has invested heavily in ICT infrastructure to ensure that pension operations are uninterrupted.

    She added that automation of salary progression in order to improve on accrued pension rights valuation of turnaround time and error elimination in the final calculated figure of retiree benefits under the discontinued Pay As You Go pension scheme cannot be underestimated.

     

  • Lagos needs workers for success

    Balancing competing interests, judicious allocation of re-sources, and the increase of productivity are often the major challenges that confront the management of any organisation, whether it’s a full-fledged commercial entity or a governmental outfit such as the Lagos State Civil Service, Governor Akinwunmi Ambode has said.

    The Governor, who was represented by Commissioner for Establishments, Training, and Pensions, Dr. Akintola Benson at a training session for workers entitled: “Strategic planning in Lagos State Civil Service: An essential piece in a Jigsaw puzzle in Lagos”, said to achieve the equilibrium managers will need to define organisational objectives, itemise, rank and evaluate its resources, and adopt an approach to allocating the resources to meet the stated objectives.

    According to him, the training and retraining of the state civil servants have remained the special focus of his administration as a result of all these.

    He said those who have carefully followed the programmes in the Governor’s administration for the state civil service will rightly identify the training as critical to realising an essential piece in the jigsaw of organisational productivity.

    He said: “Since his assumption of office in 2015, the Akinwunmi Ambode’s administration has exposed Lagos State civil servants to a number of workshops designed to increase, and in some cases, deepen the soft skills essential for success in a 21st Century public service. These include soft skills such as office etiquettes, communications skills, office relationship skills, emotional intelligence skills, and problem-solving skills, among others.

    “The Ambode’s administration also identified the ministries, departments, and agencies where core new hard skills were needed and initiated training and workshops required to augment skills and knowledge in these ministries, departments, and agencies. Furthermore, the adminis-tration’s strategy for retooling the state civil service led to the exposure of a number of officers and officials to international trainings for the purpose of obtaining the comparative knowledge that will stand them in good stead to aspire to global best practices while pursuing the state objective.

    “It is necessary to emphasise and teach the values and benefits of strategic planning. It is precisely so because strategic planning is the essential piece in the puzzle to institu-tionalise the framework for productivity in the state civil service.’’

    While all the foregoing interventions were aimed at ultimately promoting productivity, it is apparent that strategic planning is the glue that holds them all together, it is the essential piece in the jigsaw puzzle.

    He reiterated the benefits of strategic planning to organisations and to give an overview of the best practices for the development and implementation of a strategic plan for institutions such as the Lagos State Civil Service.

    He pointed out that strategic planning allows organisations to be proactive rather than reactive.

    “A strategic plan allows organisations to foresee their future and to prepare accordingly. Through strategic planning, organisations can anticipate certain unfavourable scenarios before they happen and take necessary precautions to avoid them. With a strong strategic plan, organizations can be proactive rather than merely reacting to situations as they arise. Being proactive allows organizations to keep up with the ever-changing trends in the society and always stay one step ahead of the competition”, he added.

  • PenCom prepares workers for 2019 retirement

    The National Pension Commission (PenCom) has begun to prepare prospective retirees, who will be retiring next year from the public service, Acting Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir-Umar has said.

    She made this known in her opening remarks at the pre-retirement workshop for Federal Government retirees due to retire in 201 under the Contributory Pension Scheme (CPS)

    The Commission, she revealed,  has, however, finalised arrangements to commence the verification of prospective retirees from June 25, to August 17, 2018 in 15 centres across the country.

    According to her, the pre-retirement workshop was part of their annual regulatory activities. “The verification exercise is scheduled to be undertaken The impending exercise, therefore, necessitated the need to undertake adequate sensitisation and public enlightenment in order to prepare prospective retirees on the steps to take towards a hitch-free retirement life.

    “We consider contributors, who are about to join the CPS retirees as very important stakeholders. One of the salient objectives of the Pension Reform Act (PRA 2014) is to make pension administration under the CPS transparent and seamless,

    “Accordingly, the Commission has established uniform set of rules, regulations and standards for all aspects of pension administration, including payment of retirement benefits to retirees. This was achieved through the issuance of the regulations on administration of retirement and terminal benefits; regulation on retire life annuity; the frameworks on pension enhancement & programmed withdrawals; and the circular on voluntary contributions among others.

    Papers presented  included enrolment exercise and documentation requirements, accessing retirement and terminal benefits under the CPS and Life after retirement. She expressed hope that the workshop would educate pension participants on what they need to know on documentation requirements, payment of retirement benefits and life after retirement.

     

  • 158 retirees get N859m accrued rights, says LASPEC

    About N859, 059 million has been paid to 158 public service retirees under the Contributory Pension Scheme (CPS) for the month of May in Lagos State as accrued pension rights.

    Lagos State Pension Commission (LASPEC) Director-General, Mrs Folashade Onanuga, made this known at the 51st Retirement Benefit Bond Certificate Presentation Ceremony at the Conference Room of the Commission, said Governor Akinwunmi Ambode released the money to pay the accrued rights to ensure that retirees in the state receive their pension as and when due.

    According to her, 9,045 retirees have received accrued pension rights of over N37, 546,464 billion, paid to date into their Retirement Savings Accounts (RSA) from the inception of the current administration to date. She said: “Despite the fact that the funding obligation of the current pension scheme is high, the Governor is committed to the well being of the pensioners and the active staff. Hence, funds are released regularly to pay staff salaries and pensioners dues.”

    She informed the retirees that Ambode’s administration was fine tuning the process of rolling out benefits that would make life easier for them.

    She implored them to study the leaflets distributed by the state government in respect of the two options for receipt of monthly pension entitlements before they make   their choice