The Nation Newspaper

Category: Pension

  • Remit pension early to avoid sanction, says MD

    Employers have been advised to remit their employees’ pension contribution early to avoid sanctions, Trustfund Pension Plc Managing Director, Mrs Helen Da-Souza, has said.

    Mrs Da-Souza gave the advice at the company’s Regulatory compliance presentation for employers’ forum/interactive session  in Lagos. She said late remittance of pensions, besides sanctions, could also affect their reputation.

    Mrs Da-Souza, represented by the Chief Compliance Officer, Trustfund, Mrs Racheal Obi, said thie sanctions would come after a Pension Fund Administrator (PFA) and Pension Fund Custodian (PFC) must have reported a defaulting employer to the regulator, the National Pension Commission (PenCom), as mandated by Section 69(d) of the Pension Reform Act (PRA) 2004 as repealed by PRA 2014.

    She said the PFAs and PFCs should not cover any employer  which defaults in remittance.

    Similarly, she said employers should ensure that their workers maintained a Retirement Savings Account (RSA).

    She said: “Employers are also mandated to deduct at source the monthly contribution of the employee; not later than seven working days from the day the employee is paid his salary. They are to remit an amount comprising the employee’s contribution and the employer’s contribution to the Pension Fund Custodian (PFC) specified by the PFA of the employee (5.11 (3)(b) of PRA, 2014.

    “Where an employee fails to open an RSA within six months after assumption of duty, his employer shall, subject to guidelines issued by the Commission, request a Pension Fund Administrator to open a nominal retirement savings account for such employee for the remittance of his pension contributions.”

    Speaking on the ‘Must Do for Employers’, she said a PFA could not give a loan to RSAs because Section 89 sub-section C of the PRA 2014 prohibits it.

    She stressed that a PFA could not apply pension fund assets under its management to be used as loans and credits or as collateral for any loan by a  RSA holder or any person.

    Also, a garnishee order could not be granted on an RSA, she added. “Pension funds and assets in the retirement savings accounts shall not be subject to attachment, injunctive and any garnishee proceedings or used in satisfaction of a judgment debt obtained against any person,” she said

    On how they invest pension fund, she said they invested in bond, bills and securities guaranteed by the Federal Government and Central Bank of Nigeria, Bond and bills issued by State and Local Government; Bonds, debentures issued by organisations listed on NSE; Ordinary shares of Public limited companies listed on NSE; Bank Deposit and Securities; Investment certificate of closed end investment; Hybrid Investment fund listed on NSE; Units sold by open-end investment fund; Real estate development and Specialist investment funds approved by PenCom.

  • Premium Pension boss kicks against payment of 75% lump sum to retirees

    Premium Pension boss kicks against payment of 75% lump sum to retirees

    Allowing retirees to withdraw 75 per cent of their pension contributions under the Contributory Pension Scheme (CPS) is wrong, Chief Marketing Officer, Premium Pension Limited, Kabir Tijani, has said.

    Tijani made this known at a briefing on the proposed bill on lump sum payment of up to 75 per cent to retirees against the 50 per cent being paid now before the National Assembly.

    Tijani said if the bill was allowed to sail through, a major objective of the CPS would be defeated.

    He noted that a lot of people could not manage money. He said when such retire and take huge amount, they might squander it and later become liabilities to others, adding that the scheme had been designed to avoid such scenarios.

    ‘’This is why it is arranged that when you retire, you take a lump sum payment to adjust your life and the rest is spread as monthly pension.

    “We have  seen what is happening in the Senate in the news. The proposal by the distinguished senator that the percentage of the lump sum withdrawal should be increased to 75 per cent.

    “Our response to that is we are not going to support it as a Pension Fund Administrator (PFA) because we know that one of the objectives for having the scheme is to ensure that when people retire after they might have exhausted their adulthood in service. They should retire home and have something to live on until they pass on.

    “Under the new scheme, a retiree has the option to take lump sum. It is something that is provided under the law as an entitlement for the retiree. The law says you can take between 25 per cent and 50 per cent of the balance of your RSA as lump sum payment and the rest will then be spread as programmed withdrawal or annuity plan.

    “However, an employer is free to provide an additional benefit to its employees at retirement,’’  Tijani said.

  • ‘Lagos committed to pension payment’

    The  Lagos State Pension Commission (LASPEC) is committed to effective pension administration,Governor Akinwunmi Ambode has said.

    He spoke at opening of the workshop tagged: ‘The role of LASPEC in the administration of the Lagos State Contributory Pension Scheme Law’ organised by the agency for its officers.

    The governor, represented by the Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr Akintola Benson, pledged the prompt payment of the state’s retirees and pensioners.

    He said the LASPEC was empowered to ensure the smooth administration of pensions  under the Contributory Pension Scheme (CPS).

    He stressed that LASPEC was established by the  state’s CPS Law of 2007 to regulate, supervise and ensure the effective administration of pension matters in the public service in accordance with the provisions of the Pension Reform Act 2004.

    He noted that before the law came into being, the Federal and state governments, under the old dispensation, operated the Defined Benefits (DB) Pension Scheme, popularly referred to as the ‘Pay as You Go’(PAYG) scheme.

    He said: “Under this scheme, pension benefits were defined using the vesting scale which relied on the length of service and final emoluments of an employee. The benefits were thus easily calculated by employees. Employees, who had spent five to nine years in service were entitled to a lump sum payment referred to as gratuity, while those who had spent ten years and more were entitled to both the gratuity and monthly pension payment.

    “As with the Federal scheme, the state schemes were also fraught with problems such as lack of adequate funding, irregular pension payments and the rigorous exercise of verification of pensioners. In line with modern global changes, the Federal Government on June 27, 2004 changed from the Defined Benefit scheme to the CPS with the signing into law of the Pension Reform Act 2004, which set up the National Pension Commission (Pencom) to regulate and supervise the scheme and register the operators of the scheme.

    “The government, against the background of challenges with the Defined Benefit scheme, also adopted the new scheme and became the first State in Nigeria to commence the CPS with the signing into law on19th March 2007 of the Lagos State Pension Reform Law 2007 and eventual commencement in July 2009.”

    He said that since then, LASPEC has assisted all persons in the employment of the State Government to save towards their retirement,  ensured that persons who leave or retire from the Public Service of the State receive their terminal or retirement benefits as and when due.

    “LASPEC has also establish a set of rules and regulations for the administration and payment of retirement benefits in the Public Service of the State, established the group life policy for death benefits of employees, whilst in service, as well as the Retirement Bond for employees with past service benefits and the Redemption Fund from which the liability of the bond payment would be made.

    “The Vision of LASPEC is to provide first-class regulatory and supervisory services on pension matters to all stakeholders in the Lagos state public service while the mission is to provide exceptional services on pension matters to employees in the Lagos State Public Service.”

    Benson further said that it is based on this that the Ministry of Establishment, Training and Pensions has consistently trained LASPEC officers on the extent of the statutory powers of LASPEC, the internal organisation of LASPEC, the issued-guidelines for the execution of the mandate of LASPEC, and the overview of the identity and nature of the stakeholders in the administration of the pension law.

     

  • PTAD pays N834.4m to 1690 Southsouth pensioners

    PTAD pays N834.4m to 1690 Southsouth pensioners

    The Pension Transitional Arrangement Directorate (PTAD) has paid N834.45 million pension arrears to 1,690 pensioners from the SouthSouth, its Executive Secretary, Mrs.  Sharon Ikeazor, has said.

    She told reporters in Lagos that the pensioners were from the civil service.

    She said payment was effected on August 18 to verified pensioners and assured pensioners of the directorate’s commitment to its core mandate.

    She explained that pensioners under the Directorate were also under the old scheme – the Defined Benefit Scheme (DBS).

    Mrs Ikeazor said the Pension Commission (PenCom) would take over from the Directorate the payment of retired federal heads of service and permanent secretaries who fall under the Contributory Pension Scheme (CPS) next January.

    She said there were 217 retired federal heads of service and permanent secretaries, 137 of which fall under the DBS while 80 are of the CPS.

    She said:  “Recall that PTAD administers all pension matters under the DBS and PenCom handle retirees under the CPS.

    “Under two Memoranda of Understanding (MoU) signed in 2016 and 2017 between both pension agencies, an agreement was reached for PTAD to pay the monthly pensions of retired Federal Heads of Service and as such, budgetary provisions were made in the 2017 Budget for payment of all 80 retired federal heads of service and permanent secretaries under the CPS.’’

    She continued: “Thus far, PTAD has been able to ensure that these senior citizens have received their pension entitlements till date and will continue to do so until December 31, 2017. PenCom has prepared the necessary guidelines for the payment of the retired federal heads of service and permanent secretaries under the CPS. This was a critical area that PTAD, had earlier stressed a need for, to ensure smooth transition devoid of hitches which could negatively impact on pension payments.’’

    Mrs Ikeazor said the Acting Director-General of PenCom, Aisha Dahir-Umar assured the Council of Retired Federal Permanent Secretaries (CORFEPS) representatives of a smooth transition to ensure that payments were effected next year.

    She said recently PTAD verified retired federal heads of service and permanent secretaries. The event, she added, was attended by the CORFEPS General Secretary, Mr. Japh Nwosu; Publicity Secretary, Dr. Goke Adegoroye and Treasurer Mr. Akin Arikawe.

     

  • Lagos harps on efficient pension administration

    LAGOS State Governor Akinwunmi Ambode has identified poor administration as the bane of pension in the country.

    He spoke at the opening ceremony of the training for senior staff members of the state Civil Service.

    The event titled: ‘Digital and electronic administration of pensions in Lagos State’ was organised by Civil Service Pensions Office of the Ministry of Establishments, Training and Pensions.

    Ambode, represented by the Commissioner, Lagos State Ministry Of Establishments, Training And Pensions, Dr. Benson Oke, said the problem had resulted in huge pension arrears and untold hardship for pensioners, adding that this called for reforms.

    He said the government is aiming at the sustainability of digital and electronic mechanisms and innovation  in its Civil Service Pensions Office (CSPO).

    He said digital and electronic administration of pensions was crucial to effective and efficient administration of pension in the state.

    Ambode explained that the CSPO had been  responsible for processing of terminal benefits of staff who exit the system either statutory or voluntary retirement, noting that this is for pensioners who disengage on the “Pay As You Go” Scheme.

    Also, he said the CSPO is responsible for processing of payment of pensions and gratuities, maintaining comprehensive and up-to-date personnel records for pensioners of the civil service, among others.

    Ambode said in line with the recognised need for reforms, the government was committed to the task of ensuring a better and more effective pension administration system.

    He said it was to this end that the CSPO put in place various measures to ease the burden of retirees and ensure their comfort, he added.

    He urged the participants at the training to be prepared to deliver value to to pension administration in the State through digital and electronic measures.

    ‘’I am therefore confident that the participants at this training will be exposed to a considerable body of knowledge that will stand them in good stead to assume positions of responsibilities in the near future and to sustain the pace, level, and scope of innovation at the CSPO,’’ he said.

  • ‘Lagos ‘ll not abandon public sector retirees’

    ‘Lagos ‘ll not abandon public sector retirees’

    The Lagos State government will not abandon public sector retirees, Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr.  Akintola, Benson has said.

    He made this known at the workshop for Lagos State Civil Service retirees with the  theme: Coping with Life in Retirement, in Lagos.

    He said the government is resolutely committed to honouring its obligations to retirees and  giving out other benefits such as the workshop and other incentives in kind ‘’to help and assist our retirees and the older citizens’’.

    He urged the retirees to take advantage of the workshop by asking questions so that there can be a robust exchange of ideas.

    He told the retirees that the governor is always ready to receive feedback and suggestions regarding all matters concerning them and the older citizens.

    He said: “The state is delighted to train senior citizens. Efforts to train them was initiated by the Civil Service Pensions Office to reach out to the retirees of the Lagos State Civil Service and to offer nuggets of wisdom from experienced facilitators on how to cope with the peculiar challenges in retirement.

    “The governor on his part fully understands and appreciates the role that civil servants play in governance. Furthermore, he is a compassionate person who is irrevocably dedicated to the welfare of all public servants during and after active service.

    “I believe that it is in the interest of the society at large for government to embark on certain gratuitous initiatives that benefit the most vulnerable in the society. It is important for the society to take interest in the concerns of the elderly and the retirees. Our retirees and the older citizens worked hard for our today. They sacrificed their yesterday for our today. We owe today’s comfort to their efforts yesterday”, he added.

     

  • Foundation inducts members

    The Professional Excellence Foundation of Nigeria (PEFON), founded by former Commissioner for Insurance, Dr. Dipo Bailey, has inducted new members into its fold.

    At the ceremony in Lagos, Bailey said the foundation is committed to helping youths to be professionally qualified to increase their chance of getting a job.

    Bailey said: “We already have a committee in place to help the youth in that regard and we are planning to have a conference for professionals later in the year. The objectives of PEFON are to identify professionals at home and abroad who may wish to be part of the foundation and to recognise those among them who have excelled in their chosen professions.”

    According to him, the professionals have a lot to contribute to the growth and development of Nigeria.

    Some of the new inductees were: Dr. Emmanuel Iwuanyanwu; Mr. Ike Ugwu, chief executive officer  Pharmacare Support Group, a community of pharmacy and retail chain; Mr. Olasheni Ibiwoye, a senior partner with Messrs Bayo & Co, a law firm.

     

  • IEI Anchor gets Africa’s Innovative Award

    IEI-Anchor Pension Managers Limited has received Africa’s Best Innovative Pension Fund Administrator of the year 2017 award.

    In a statement made available to journalists in Lagos, the company said the award was presented to it by Developments in Africa Merit Awards  in La gos.

    Company Secretary and Legal Adviser, Femi Onoru who received the award for the company in her acceptance speech appreciated the conveners of the award and noted that being a service delivery industry, it was  exhilarating to know that every effort put into satisfying customers was taken into cognisance.

    She added that the company will continue to offer customer centric services according to best global practices.

    She said: “This is Iei Anchor Pensions second award this year. Not for its size but for it’s selfless customer service drive and sensitivity.

    “This feat proves that the Contribution Pension Scheme is a success and that the current challenges being experienced are only transitional from the old scheme.

    “We seek to use this opportunity to appeal to the general public that the pension fund be held as sacred by all and sundry, hence fragmenting the current settings with new laws without allowing it to mature would be a major dis-service to most and self serving to just a few. Presently, this scheme has been fraud-free that is why it is growing enviably”, he noted.

  • ‘Why 7.5m pension contributors can’t change their PFAs’

    ‘Why 7.5m pension contributors can’t change their PFAs’

    There is need to take the biometric of the 7.5 million pension contributors of the Contributory Pension Scheme (CPS) to  open transfer windows for them, Executive Director Operations, Crusader Sterling Pensions, Conrad Ifode, has said.

    Section 11(2) of the Pension Reform Act, 2014 allows employees to move their Retirement Savings Account (RSA) through a transfer window from one Pension Fund Administrator (PFA) to another, provided that it is not more than once in a year. But this has not been implemented due to multiple registrations and PIN numbers.

    He stated this while presenting a paper a titled: ‘Biometric issues and client familiarity requirement, challenges and potential’at a training organised by Pension Fund Operators Association of Nigeria (PenOp) for reporters in Abeokuta, the Ogun State capital.

    He said the regulator, the National Pension Commission (PenCom),  was taking its time to ensure that the registration of the contributors was done properly and devoid of multiple registrations.

    He said it was impossible to open the transfer window now because of the problems of multiple registrations, and pins, adding that there is no standard biometrics for the contributors.

    He said this was easy for all PFAs to do, that is bringing all pins digitalised.

    Ifode said biometrics, an automated method for recognising individuals based on measuring biological and behavioural characteristics, will enhance proper registration of the contributors to get rid of multiple registration, which is a challenge in the industry.

    He commended the Lagos State government for being in the fore- front of the CPS, calling on other states to join the scheme.

    He said the Lagos State government  had directed the PFAs to take biometrics of its 28,000 RSA holders between now and the two years.

    He said: “Multiple registration has been a major problem militating against implementation of the transfer window which the industry has been working to open. The transfer window enables contributors to move from one PFA to another based on the regulators specification.

    “Nigeria pension industry has moved up to a N6.5 trillion industry from N2.2 trillion deficit in 2004 while the total number of RSA holders under the CPS has risen to 7.5 million,” he added.

  • Lagos releases N515m to 252 retirees

    The Lagos State government has paid N515 million to another batch of 252 retirees.

    Governor Akinwunmi Ambode, represented by the Ministry of Establishments, Training & Pensions Commissioner, Dr. Akintola Benson, made this known at the 41st Retirement Bond Certificate Presentation in Ikeja.

    Ambode said the payment of retirees’ entitlements was to ensure that retirees enjoyed their benefits.

    He advised the retirees not to put their money into ventures they could not manage.

    He said in 24 months, August 2015 to last month, the government through the Lagos State Pension Commission ( LASPEC), had paid  N29.6 billion pension into the Retirement Savings Account (RSA) of 6,982 retirees.

    He said this was aside the mandatory 15 per cent contributions, which the government remits monthly into the RSA of its employees.

    LASPEC Director- General, Mrs. Folashade Onanuga, added that last month, the agency also released insured death benefit cheques of over N30 million to 24 beneficiaries/next of kin-of-deceased employees. He reiterated that the retirees should not use the money on projects, such as building a house that could not be completed.

    She emphasised the importance of educating their children. She stressed that while it is good for them to eat the fruits of their labour, it would not be too good if they had to depend on their children for survival. She urged them not to allow anyone force them into opting for a particular exit option, that is Programmed Withdrawal and Annuity; rather, that they should think deeply over any type that will suit them before going for it.