The Nation Newspaper

Category: Pension

  • ‘Micro pension, multi-fund structure to change industry dynamics’

    •StanbicIBTC Pension to capture informal sector

    The proposed Micro Pension Scheme aimed at capturing the informal sector, the self- employed and the multi-fund structure under the Contributory Pension Scheme (CPS), which categorises pension fund investment, will change the dynamics of the pension industry, Stanbic IBTC Pension Managers Limited Chief Executive, Eric Fajemisin, has said.

    He spoke at a parley with the media on the company’s preparedness for the two programmes at Radission Blu, Victoria Island, Lagos.

    Fajemisin said the micro pension scheme and the multi fund structure, are initiatives with great potentials and capability aimed at taking the industry into the next phase of growth.

    He said the multi-fund structure, is expected to kick off on July 1, adding that schemes categorise pension fund investments into four funds by aligning the age and risk profile of RSA holders to match the four funds.

    He said the Fund One is targeted at people of 49 years and below, who want higher returns and are willing to take higher risks.

    Fajemisin said: “Membership into this fund is strictly based on request. Fund Two is aimed at people who are aged 49 years and below and still working but are satisfied with moderate returns and levels of risks. Fund Three targets people who are 50 years and above but still working and have very low risk appetite. In Fund Four are retirees, who have the lowest risk profile of all categories.

    “The most outstanding feature of this scheme, apart from diversification of pension fund portfolio, is the resolution of risk appetite based on the various categories of funds. For PFAs, the multi-fund structure provides considerable flexibility in terms of risks associated with the four classification

    “Whether we are speaking of the micro pension scheme, the multi-fund structure, or the pension industry in general, one key imperative is public enlightenment and awareness. PENCOM and the operators in the industry could never do too much in this regards,” he stated.

    He said regardless of the inner challenges, the micro pension has a capacity to deepen asset formation in the country, considering that 70 per cent of the Nigerian working population operate in the informal sector.

    Highlighting other benefits of micro pension, Fajemisin said, it will improve the standard of living for the elderly and provide safety of funds, provide other incentives, such as mortgage facilities where there is regular savings or streams of income for the pension account, providing health insurance and establish planning in majority of Nigerians, flexible contribution remittances at the contributors convenience, opportunity to make withdrawal prior to retirement and the enhancement of financial inclusion in the country.

    Fajemisin, however, said the company is ready to kickstart the micro pension scheme, as soon as the regulator unveils the guidelines.

    He said Stanbic IBTC Pension Managers Limited is the largest pension fund administrator in Nigeria with assets under management in excess of N2.53 trillion and over 1.6 million retirement savings account holders nationwide, saying that from inception to December 2017, the company has paid N66.5 billion to 37,772 retirees.

    “We see tremendous opportunity not just to grow our assets, but to be of service to 70 per cent of population of Nigerians, who are in the informal sector. We believe that everybody requires a life after retirement.

    “We have put in place high level technology that will enable smooth relationship with our customers. We will also find other creative ways of communicating with them. We have a 24-hour functioning call centre in English, Yoruba, Ibo and Hausa. We will be ingenious in how we will communicate with the market. We will also take guide from people to know what their needs.

     

     

     

     

     

     

     

     

  • CHI posts 76% profit

    Consolidated Hallmark Insurance Plc 2017 operating results have shown a 76 per cent growth of profit before tax to N641 million from N368.1 million recorded during the preceding year.

    Investment Income grew from   N472.3 million to N796.5 million in 2017.

    Total assets of the company hit an all-time high of N9.49 billion in the 2017 financial year under review from the N7.44 billion of 2016.

    The underwriting firm, however, generated a gross premium ofN5.680 billion against N5.826 billion in 2016, recording a 2.5 per cent decline in the top line.

    But there was, a 9.2 per cent growth in the net underwriting income from N3, 711,989,442 in 2016 to N4,053,742,495.

    Its Chairman, Obinna Ekezie, who spoke on the results achieved in 2017 during the firm’s 23rd Annual General Meeting (AGM), said the firm has also continued to keep its commitments to policy holders through prompt claims settlement.

    He stated that claims expenses rose significantly by 93 per cent from N1.730 billion in 2016 to N3.354 billion, but was cushioned by the robust reinsurance arrangement in place.

    He stressed that in keeping to their promise of ensuring better returns, the firm was able to grow its bottom line.

    He noted that a total dividend of N140 million, translating to two Kobo per share will be paid to shareholders. He further disclosed that the firm was able to successfully add the N500 million set out to raise its working capital.

    He said: “During our 22nd Annual General Meeting in May, last year, we informed shareholders approved additional capital raise. I wish to express my appreciation for the support shareholders displayed during the first phase of the exercise by picking up your rights. We were able to successfully add the N500 million we set out to raise to our working capital through your full support.

    “We have since commenced expansion of our operations with the deployment of the additional capital raised. The next phase of the exercise shall be carried out shortly,” he added.

     

  • Regency rakes in N3.36b

    Regency Alliance Insurance Plc has described 2017 has one with mixed fortune as it posted an increase in the gross premium production from N3.1 01 billion in the 2016 financial year to N3.368 billion in 2017, an increase of 8.61 per cent.

    The effect of increased premium generation, the company said, was however, significantly eroded by the 117.46 per cent increase in net claims, 18.08 per cent increase in underwriting expenses and 14.63 per cent increase in management expenses when comparing the 2017 figures with that of 2016.

    Despite the development, the firm declared a dividend payout of N200, 062,500 representing 3k per 50k share for eligible shareholders.

    Its Chairman, who made this known at the company’s 24th Annual General Meeting in Lagos (AGM), said one salient result of the economic situation has been an increase in both the number of claims and value therein throughout the insurance industry. He noted that in 2017, there were huge claims pay-out in the oil and gas, accident and motor classes insurance.

    There was an increase of 76.15 per cent in the investment income of the company, which is reflective of the high deposit rates and government yield rates offered during the year coupled with the effect of the increase in prices of equities held by the company which are quoted on the floor of the Nigerian Stock Exchange.

    He added that the resultant effect of this showed a decline of 58.25 per cent in profit after tax from N470.59m in 2016 to N196.48m in 2017.

    He said: “Though the drop is significant, the company’s fundamentals are still strong. It is expected that the company, building on the gains of past financial discipline and strategic positioning, will produce a better result in 2018.

    “The total asset base of our company grew by 5.7 from N6.856bn in 2016 to N7 .248bn in 2017. For our group, the contribution of the subsidiaries to the overall profit after tax, after deducting that attributable to non-controlling interests, decreased from N74.041 million in 2016 to N23.369m in 2017.

    “The total assets for our Group and the company as at December 31, 2017 stood at N9.309 billion and N7.248 billion.

  • A pension scheme for informal sector operators

    The National Pension Commission (PenCom) is set to unveil the micro pension scheme for the self-employed and workers in the informal sector to join the Contributory Pension Scheme (CPS). The guidelines are being fine-tuned, writes Omobola Tolu-Kusimo.

    ARE you an architect, lawyer, actor, musician, business-man, trader, caterer, electrician, carpenter, cab driver, or a commercial motor cyclist? If yes, you will soon have an opportunity to save for your future under the Contributory Pension Scheme (CPS), courtesy of the Federal Government.

    How? The government through the National Pension Commission is planning to release a micro pension scheme that will enable self-employed persons and the informal sector to join the CPS. At present, the guidelines for the new scheme are being finalised preparatory to the take off of the micro scheme.

    The CPS, designed for the public and private sectors, was established under the Pension Reform Act 2004, which was repealed and replaced with the Pension Reform Act 2014, in 2014. Section 4 of the Act provides for a mandatory minimum contribution of eight and 10 per cent of employee’s monthly emolument by the employer and employee. Each employee is expected to open a Retirement Savings Account (RSAs) into which the contributions are to be paid, with a Pension Fund Administrator (PFA) licensed by the National Pension Commission (PenCom), established under section 17 of the Act, to regulate and supervise pension schemes in the country. The PFA is to manage and invest the fund in the RSA, from where a contributor will draw benefits on retirement in line with the provisions of the Act.

    Experts have described the scheme as the best thing to ever has happened to workers in the country and the economy, as it has given many who never knew they could have savings,  the opportunity to save for their future.

    Savings can be termed as money set aside through banks, or any other financial institution  for the rainy day.

    A legal practitioner and Executive Director, Centre for Pension Right Advocacy, Ivor Takor praised the scheme, saying  the CPS, being a mandatory scheme, has compelled employees and employers in the public and private sectors to save a minimum of 18 per cent of an employee’s monthly emolument into the employee RSA, from where employees will be paid retirement benefits. This, he said, has increased savings nationally.

    PenCom Acting Director-General, Mrs. Aisha Dahir-Umar, while apprising reporters of some positive developments in the CPS, said the net assets value of the pension assets of the contributory pension fund, was N7.779 trillion as at February 28.

    She said this represents an increase of N270 billion up from the value of N7.52 trillion as at last December 31. She ttributed the increase to new contributions received, interest/coupon from fixed income securities and net realised gains on equities and mutual fund investments.

    She said the number of contributors has grown by 390,000, as it increased from 7.50 million as at March 31, last year, to 7.89 million as at December 31, last year and then to 7.90 million as at last February 28.

    She said the Commission is intensifying efforts at ensuring the provision of the necessary infrastructure for the launching of the micro pension scheme, in line with the commission’s strategic objective of expanding coverage of the CPS to the under-served sectors, pointing out that it is a major part of the strategy for expanding CPS coverage.

    Mrs Dahir-Umar, who said guidelines for the micro pension scheme, were being finalised for the take off of the scheme, called on the public to send their suggestions to the commission.

    She said: “Micro pension refers to a financial arrangement for the provision of pension services to self-employed persons and informal sector workers in various trades and professions in Nigeria.

    “The Draft Framework and Draft Guidelines on the Micro Pension Plan, are available on PenCom’s website: www.pencom.gov.ng. The public is invited to send their comments and observations tomppguidelines @pencom.gov.ng.”

    Pension Fund Operators Association of Nigeria (PenOp) President, Mrs. Aderonke Adedeji, said the micro pension scheme was one of the best things that has ever happened to workers.

    She believes that the introduction of micro pension will enable the self-employed and those in the informal sector who, before now are not captured under the CPS, to be part of it.

    She said as, pension operators,, she and her team were waiting on PenCom to release the guideline for the the micro pension scheme to start, ststing that the CPS has provided a platform for workers to be part of the over N7.7 trillion pension fund assets.

    She said people who didn’t think they would have savings, now would have it it through the scheme.

    Mrs. Adedeji said the country can also boost of long-term funds, even as the pension industry has proved itself that it is here to stay. With good regulatory functions, pension fund managers have been able to build a solid foundation over the years.The scheme has made a lot of difference in people’s lives.

    “Sometimes, I think it is underestimated because today, you have people who didn’t think they would have savings. Now they would have it. Nigeria is now a country that has a pool of long-term funds. These are some of the benefits of the scheme and we are happy about it.’’

     

     Excerpts from Draft Guidelines

     for Micro Pension

    Section 2(3) of the Pension Reform Act, 2014 (PRA 2014) provides that employees with less than three employees as well as the self-employed persons shall be entitled to participate in the CPS in accordance with guidelines issued by the Commission.

    These persons mainly in the informal sector constitute the majority of the working population and are not covered by any retirement benefit scheme. Accordingly, the commission considers it necessary to develop the guidelines for the implementation of the provisions of section 2(3) through a “Micro Pension Plan”.

    The plan refers to an arrangement for the provision of pension to the self-employed and persons in the informal sector.

     

    Eligibility for participation

    The following persons not below 18 with legitimate source of income shall be eligible for participation in the Micro Pension Plan under Section 2 (3) of the PRA 2014:

    • Self-employed persons that belong to a trade, profession or Business association
    • Self-employed persons with a business registration as a company, partnership or enterprise.
    • Employees in the informal sector who work with or without formal written employment contract.
    • Other self-employed individuals

    Notwithstanding the provisions of above, persons from 15 and below 18 may also participate subject to the approval/consent of their guardians.

    Micro pension contributors shall be resident in Nigeria. A prospective Micro pension contributor shall be required to open a RSA by completing a registration form with a PFA of his/her choice.

    • Electronic registration through the internet or mobile phone should be made available by all PFAs.
    • PFAs shall electronically capture the applicant’s ten fingerprints and must pass the AFIS quality requirements specified in the guidelines for the registration of contributors/members issued by the commission.
    • Where the quality of the ten finger prints does not meet the required AFIS specification due to physical impairment, the PFA shall treat such prospective micro pension contributor as physically/partially challenged and shall register such in line with the guidelines for registration of contributors/members issued by the commission.
    1. The registration information shall be transmitted to the commission electronically by the PFA to enable PIN generation.
    • A maximum administration fee of N50 shall be charged on each RSA by the PFAs only in the months where the total contributions remitted into the RSA is above N4,000.
    • Where the nature of engagement of the contributor is not continuous, contributions could be made intermittently.
    • The narration of the standing order shall include the contributor’s PIN.
    • In all cases the narration of the transfer shall include the contributor’s PIN.

     

    Investment of Micro Pension Fund/Assets

    • Contributions under the Micro Pension Plan shall be managed as two separate funds, namely: Micro Pension Contingent Fund (MPCF) for the 25 per cent contingent contributions and Micro Pension Retirement Benefits Fund (MPRBF) for the 75 per cent retirement benefits contributions.
    • The investment of both Funds shall be in line with the Regulation on Investment of Pension Fund Assets issued by the Commission.
    • Management fees shall be in accordance with the Regulation on Fees Structure issued by the Commission.
    • PFAs shall render statements of accounts and other similar services enjoyed by Contributory Pension Scheme RSA holders/contributors.

     

    Benefit Administration

    • The participation of the informal sector in the CPS as provided by Section 2(3) of the PRA 2014 is primarily to provide for retirement benefits. Withdrawals/accessing benefits shall be two types reflecting the flexibility incorporated in the treatment of the contributions.

     

    Contingent withdrawal

    • The Micro Pension contributor shall be eligible to access the portion of his/her contribution available for withdrawal one month after making the initial contribution.
    • Subsequently, the Micro Pension Contributor shall be eligible to make contingent withdrawals at any time.
    • The Micro Pension contributor may withdraw the total balance of the contingent portion of his/her RSA including all accrued investment income thereto.
    • The timeframe for processing and payment of contingent withdrawals shall not exceed two working days.
    • Payment shall be made only to the Micro Pension Contributor’s designated bank account.
    • The PFA shall process all requests for contingent withdrawals.
    • The PFA shall notify the Commission of all payments made weekly.
    • The Micro Pension Contributor has the option of transferring part of his outstanding balance on the contingent portion to his retirement benefits portion.

    * Contingent withdrawals shall be subject to applicable tax laws.

     

    Retirement Benefits

    Withdrawal

    The Micro Pension Contributor shall qualify to access pensions upon attaining 50 or on health grounds in accordance with the Regulation for the Administration of

     

    Retirement and terminal benefits

    The Micro Pension contributor shall be required to fill a Micro Pension Retirement Notification Form at retirement. The PFA shall inform the Micro Pension retiree on the various options of accessing retirement benefits. The Micro Pension retiree shall decide on the mode of accessing retirement benefits either through the Programmed Withdrawal or the Life Annuity.

    The Commission shall approve all Programmed Withdrawals, Life Annuity and exit payouts under the Micro Pension Plan.

  • CPS: Retirees in 25 non-compliant states face uphill task

    Retired civil servants  in some states will find it difficult to receive their pension benefits as their state governments  are yet to implement the Contributory Pension Scheme (CPS), almost 14 years after its establishment.

    Among the states are Zamfara, Kebbi, Rivers, Imo, Benue, Kwara, Bauchi, Adamawa, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Kogi, Nassarawa, Oyo, Sokoto, Taraba, Abia and Niger.

    Others are Bauchi, Benue, Borno, Cross-River, Katsina, Kwara, Plateau and Akwa Ibom.

    While pension problems in the states differ from one to another, the case of Yobe is precarious as it is the only state yet to take any step to join the CPS.

    But retirees from Lagos, Osun, Ogun, Ondo, Kaduna, Delta, Anambra, Jigawa, Federal Capital Territory (FCT), Edo and Ekiti are meant to retire into a pleasant lifestyle as the states are remitting both employee and employer proportion of pension contribution to preferred Pension Fund Administrators (PFAs) of their workers.

    Data made available to journalists by the pension regulatory authority, the National Pension Commission (PenCom) showed that some of the states have commenced the process of resolving their pension problems.

    PenCom said only three states, Zamfara, Kebbi and Rivers, have  joined the scheme and are remitting only the employee proportion of pension contribution to Pension Fund Administrators (PFAs) of the  affected workers.

    In Imo, Benue, Kwara, Bauchi and Niger, only self funded agencies are remitting both employee and the employer portion of their contributions.

    However, Adamawa, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Kogi, Nassarawa, Oyo, Sokoto, Taraba, Abia and Niger have enacted laws at their State House of Assemblies, but are yet to commence remittances.

    On the other hand, states such as Bauchi, Benue, Borno, Cross-River, Katsina, Kwara, Plateau and Akwa Ibom are only at the stage of enacting Bills in their respective states. On the contrary, Yobe State is yet to implement the CPS in any form.

    PenCom at a workshop with journalists said the Commission is doing all it can to ensure that the states implement the scheme to solve the myriads of pension problems accompanying the Defined Benefits Scheme (DBS) operated before the introduction of the CPS by the Federal Government.

    PenCom’s Acting Director-General, Mrs Aisha Dahir-Umar represented by the company secretary at a workshop in Uyo, Akwa Ibom State capital, explained that when it comes to remittance or handling of finances for the states, the constitutional principle of fiscal federalism provides that appropriation from state treasuries has to be endorsed by state Houses of Assembly.

    She said: “If states have not enacted laws nor appropriated monies for remittance, then PenCom does not have any legal power to enforce compliance. We have our own ways of getting the states to do the needful. We have been engaging them through Labour.

    “But we have limitations. Many states have issues with their financials to the extent that they cannot even pay salaries. Salaries must be made first before you talk about pension contribution because it has to be remitted from salaries.

    “But we are trying our best to ensure that as they pay salaries, they remit pensions. We have also been engaging stakeholders especially the Nigeria Labour Congress,”she added.

  • Ambode emphasises need to equip civil servants

     

     

    The civil service represents the permanent government that must be equipped to adequately advise the government of the day, Lagos State Governor, Akinwunmi Ambode, has said.

    He added that they are also to implement government’s programmes, and effectively communicate the reason behind government-sanctioned programmes to the citizens.

    Ambode spoke at a workshop facilitated by Messrs Xls Consult Limited and organised by Ministry of Establishment, Training and Pensions, tagged: “Information Management for Positive Perception of Lagos State Government Programmes.” He said the net effect is that, if civil servants are well-equipped to discharge these tasks, government programmes will be positively perceived by the populace and will receive the needed support for success.

    The governor was represented by Commissioner for Establishment, Trainings and Pensions, Dr Akintola Benson.

    He challenged the civil service to come up with data-backed and data-inspired ideas that will rival the examples of France and Moscow.

    According to him, the popular support, which translated into legitimacy has enabled government to deliver benefits to all. This, he said, implied that citizens’ support for government has to be more concrete than some vaguely positive feelings.

    Ambode noted that in order to go beyond the vaguely positive feelings, there must be positive perceptions of government along three distinct dimensions.

    The government, he said, must be seen as capable and effective in carrying out its activities; it must be seen as treating all people equally and impartially without favouritism or discrimination; and it must be seen to be sincerely caring about each person’s welfare.

    He stressed that it is only when the government is seen as competent, fair, and caring that it can have the kind of support that amounts to legitimacy. He added that three dimensions – competence, fairness, and caring – are all necessary because a lack of any of them is enough to weaken legitimacy.

    He said: “For instance, if the government is perceived as unfair, then its legitimacy is reduced even if it is otherwise seen as being competent and caring. Indeed, it is difficult to argue or disagree with the postulations above. The reason why I have gone to some length to identify these parameters is that I may point out what the objectives of information management by civil servants in Lagos State ought to be.

    “Information has been described as the fuel of government. But when it comes to government, information and the systems that manage it take a front seat. One may suppose that what sustains a government and, in fact, a system of government, is the will of the people. That may be true. But what influences the will of the people is information and the way it is managed. This is why every responsible government will place premium on the establishment, maintenance, and sustenance of a modern, robust, effective and scalable information management system.

    “The responsibility for all these fall on the civil service, of course. In most democracies, the civil service represents the ‘permanent government’ that must be equipped to adequately advise the government of the day, implement government programmes, and effectively communicate the reasoning behind government-sanctioned programmes to the citizens. The net effect is that, if civil servants are well-equipped to discharge these tasks, the programmes of government will be positively perceived by the populace and will thus receive the needed support for success.”

    Ambode stressed that his administration is unrepentant and unapologetic in its dogged belief in the all-important role of the civil service.

     

     

     

     

  • Oluwashina is Premium Pension ED

    The Board of Premium Pension Limited has appointed Mrs. Kemi Oluwashina as Executive Director Business Development South & Strategy.

    A statement by the firm’s Corporate Communications officer, Aliyu Mohammed Ali, said the appointment formed part of company’s strategy to achieve higher business development potentials aimed at repositioning the it to greater enviable heights.

    According to the statement, Oluwashina’s appointment is expected to enhance the firm’s reach  in the southern part of the country as well as bringing decision making at the higher level closer to clients.

    “Mrs. Oluwashina holds a Bachelor of Pharmacy degree from Obafemi Awolowo University, Ile-Ife and a Masters in Business Administration from Manchester Business School, United Kingdom. She also attended LeadershipDevelopment programmes at Harvard Business School. She has over 18 years’ experience in Asset Management, Strategy and Investment consulting and has extensive institutional and retail interaction,”the statement said.

    It continued: “While welcoming the new Executive Director on her assumption to duty at the corporate head office of the company, the Chief Executive Officer Umar Sanda Mairami expressed confidence that the appointment of the new Executive Director would further strengthen the company for improved performance.

    He ascribed the growth level achieved by the company in the last decade to being customer-centric, gender sensitive and richly endowed executives with multi-disciplinary talents.

    Prior to joining Premium Pension, she was an Executive Director at ARM Securities Ltd, a role she functioned in after a 10-year stint in the Pension industry with ARM Pension Managers.

    She joined ARM Pension Managers as a pioneer staff member in 2006, went to head the Investment Management team and later rose to become the Executive Director overseeing Investment Management, Business Development, Relationship Management, Human Resources and Risk Management functions of the business.

    During her initial time in the industry, she was an active member of the Technical Committee of Pension Fund Operators Association of Nigeria (PenOp) and was involved in the input or recommendation and review process of various versions of regulatory investment guidelines. She also worked as a research analyst and Portfolio Manager for six years.

     

  • PenCom approves Ottun as AIICO Pension ED

    THE National Pension commission (pENCOM) has approved the appointment of Babatunde Ottun as Executive Director Operations and Business Development. Ottun had been a Director on Board of AIICO Pension Managers Limited.

    In a statement by the firm’s Head of Strategy and Corporate Communications, Olubankole Ekundayo, the appointment was announced by the AIICO Chairman, Ernest Ebi at the company’s 13th Annual General Meeting (AGM) in Lagos.

    The statement, in part stated: “Ottun, until his appointment to the board, was the Head of Strategic Planning and Corporate Communications of the company and had oversight responsibility over the Business Development and Sales function. In his new capacity, he will be charged with the responsibility of driving the operational functions of the company, including contribution and collections, Benefit Administration, Information Technology, Business Development and Client Services.

    “He is expected to bring to the board his wealth of experience in the areas of business development, strategic planning and processes improvement that will help in achieving the company’s goals and objectives. Ottun holds a Bachelor of Science in Economic & Social Policy from Birkbeck College University of London, Post Graduate Diploma in Management Studies from Greenwich School of Management and a Masters in Business Administration from London School of Management & Technology.

    “He has also attended Senior Management Programme of the Pan Atlantic University (Lagos Business School) and the Strategic Thinking and Leadership for Growth Programme at the Wharton Business School, University of Pennsylvania. He is an associate member of the National Institute of Marketing Nigeria (Chartered) and the Certified Institute of Pension,” it added.

     

  • PTAD pays N18.9b to verified pensioners

    The Pension Transitional Arrangement Directorate (PTAD) paid N18.99 billion to verified pensioners between January and March, its Executive Secretary, Sharon Ikeazor has said.

    She said 7,969 civil service pensioners would receive monthly pension payments.

    In a statement, the Dictorate  said the pensioners were verified in the Southwest and Northcentral in the fourth quarter of last year and had been paid their March pension.

    The statement read: “The addition of this group has improved the economic livelihood of pensioners who have been deprived of their rights for a long period. Thus, further supporting the role of PTAD in making sure the labours of our heroes is not in vain. Before this addition, over 19,500 verified civil service pensioners from the Northwest, Southeast, Northeast and Southsouth had been reinstated and paid their arrears.

    “Also ongoing is the computation of benefits for over 5,000 verified civil service pensioners. This will conclude the payrolling of all verified civil service pensioners

    In January, the Civil Service Pension Department (CSPD) paid N2.215billion to 111,525 pensioners, 219 retired permanent secretaries and Heads of Service.

    In February, N2.216billion was paid and in March, N2.216billion was paid to pensioners, retired permanent secretaries and Heads of Service.

    “For the Parastatals Pension Department (PaPD), which started verification of defunct and privatised agencies in Q4 2017, 98,259 pensioners were paid monthly pension of N4.097bilion in January 2018. For February, N4.134billion was paid to the pensioners while N4.117billion was paid in March. For pensioners verified in Q4 2017 & Q1 2018 under the Parastatal Pension Department (FHA, NNN, NICON, Nigerian-Re, DSC & NITEL/Mtel), the accurate computation of their benefits is being made.

    ‘’Over 30,000 pensioners under the defined benefit scheme, who were yet to be payrolled over the years, have been cleared and added to PTAD payroll post verification of Civil service, Police, Customs, Immigration and Prisons pensioners across the country,” it said.

     

  • ‘Women to earn less in pension scheme’

    WOMEN stand to earn 37 per cent less in pension income due to pay gaps and shorter careers, a report from the European Commission has shown.

    The Pension Adequacy Report 2018 stated that 20.7 per cent of women were at risk of “poverty or social exclusion” in retirement, compared to 15.1 per cent of men.

    Across both genders, more than 17million people aged 65 and over in the the European Union (EU) were at risk of poverty or social exclusion, the Commission’s report said – a figure that had remained “nearly unchanged since 2013”. The risk increases with age, the report said, as incomes fall and needs increase.

    With 45.4 per cent, the Netherlands recorded the second-largest difference of all EU countries in average pensions between men and women.

    Out of 28 EU member states, the difference is only greater in Cyprus (48.7 per cent), with Germany following after the Netherlands at 42 per cent, the UK at 35 p[er cent, France at 33 per cent and Belgium at 27 per cent.

    Estonia recorded the smallest gap in average pension income between men and women (1.8 per cent), followed by Denmark, with a gender difference of 7.8 per cent. Other eastern European nations also fell below the 20 per cent mark, including the Czech Republic and Hungary.

    The Commission said that the relatively large pension gap in the Netherlands could be attributed to the lower total income from paid labour by women during their lifetime. This was reflected in their pension, due to the large share of work-related accrual in second-pillar pensions.

    Other factors affecting the total income, according to the Commission, were the popularity of part-time work among Dutch women and their relatively late entry into the labour market compared to other EU member states.

    The Netherlands’ female population also accrued an average of five years’ less employment history, in addition to 16 per cent lower hourly wages on average in comparison to the male workforce. These Dutch figures are on a par with the European average.

    The UK’s figures were broadly in line with the EU average. However, the report noted that pension coverage in the country was on the rise since the introduction of auto-enrolment in 2012.

    Overall, the difference in income over a lifetime accounted for two-thirds of the pensions gap between men and women in Europe, the Commission wrote.

    The link, however, cannot be made equally as strongly for all systems. Denmark and the Czech Republic, for example, had substantial differences in income between men and women, yet their pension gaps between men and women are relatively small, the report noted.

    Elements in pension systems that contributed to a smaller difference in pension accrual between men and woman included risk-sharing with minimum and maximum levels and the provision of pension cover when women did not work due to care responsibilities.

    In Estonia, income had virtually no influence on pensions, the Commission found, making the pension gap between men and women small. At the same time, however, the Estonian system had many pensioners living close to the poverty line.

    The Commission reported that countries with lower absolute levels of pension income had smaller gaps between male and female income.

    The pension difference between men and women has decreased somewhat in Europe: from 41 per cent in 2009 to 37 per cent in 2016, due to the arrival of new cohorts of women with a higher employment rate.