The Nation Newspaper

Category: Pension

  • ‘75% lump sum payment may destroy essence of pension’

    ‘75% lump sum payment may destroy essence of pension’

    The 75 per cent lump sum proposal sponsored by Senator Oluwole Oke at the National Assembly, if passed into law, may destroy the very essence of pension, the Managing Director, IEI-Anchor Pension Limited, Glory Etaduovie, has said.

    Etaduov, who spoke with journalists on the theme: ‘Industry Challenge and Ignorance on the Pension Industry Activities’ in Lagos, said the essence of pension is to ensure steady income at retirement.

    He said the Contributory Pension Scheme (CPS) is a social service that is ‘’pro-government, pro-people and they simply cannot play politics with it’’.

    He described what he called the ignorance of the activities of the industry is disturbing, stating that many of the leaders in the country show this symptom. He urged the leaders to cherish and grow it rather than deploying ways to kill it, stressing that Pension is a social service.

    He said: “Pension funds is not a pool of funds that can be accessed easily, as thought by many. They are individual accounts just like your personal accounts. No one can access more than he can. It took a lot of planning, discipline and diligence to assemble the funds.

    “The 75 per cent proposal sounds exciting but it is not futuristic. Steady pension payment is to both re-settle a retiree into a new life without creating a radical difference. It also retains income consistency considering the length of time one may live, up to 30 years of life after retirement. Many who may agitate for the 75 per cent lump sum in the name of business investment or building a house, may lose their money for not being skilled in business.

    Noting that managing pension fund requires a special skill,Etaduov said: ‘’Some may be duped of it. Managing bulk sum is not an easy skill, especially if it looks like your last chance for income at old age.We will all get there.We must not forget that aging is the alternative to dying and building a house should really not be with pension. It must be emphasised that the common complaints of delayed payments are not from the Pension Fund Administrators (PFAs) but the effects of transition from the old scheme to the new one.

    “The government is making efforts to pay up the accumulation of the old scheme to update the individual retiree accounts, hence, a lot of emphasis on using the Paris Club fund for pensions and salaries arrears. Pension business takes care of an important part of life when everything is looking down. It is a social service. It must be protected not destroyed. All of us will get there some day’’.

     

  • Lagos praises retired Perm Sec

    The Lagos State government has extolled  the virtues  of the  retiring Permanent Secretary, Ministry of Establishments, Training and Pensions, Mrs. Folasade Oluwatosin Ogunnaike.

    Speaking  at the retirement ceremony in Lagos, the Commissioner of the ministry, Dr. Akintola Benson, said Mrs Ogunnaike who is retiring at  60, has been competent, resourceful and diligent.

    He said she stood when duty called and broke new grounds in her various career positions.

    Benson said: “In Mrs. Ogunnaike, we are celebrating a well-rounded and vastly experienced loyal civil servant. Her career in the civil service has taken her round the entire gamut of the administration of Lagos State. She dutifully served at the then Ministry of Employment and Civil Service Matters as an Administrative Officer; she faithfully executed her duties at the then Office of Head of Service and Secretary to the State Military Government; and at the Lagos State Council for Arts and Culture, she showed class and creativity as the Principal Personnel Officer and Board Secretary seconded from the Ministry of Information.

    “She was appointed as an Assistant Director to head the Women Affairs Department in the Ministry of Women Affairs and Poverty Alleviation, rose to the position of director, appointed as the  Permanent Secretary in February, 2015 and now ends her illustrious career as the Permanent Secretary of the Office of Establishments and Training in the foundational and most important civil servants-focused ministry, the Ministry of Establishments, Training and Pensions.

    “As the Permanent Secretary in the Office of Establishments and Training, she had responsibility as the accounting officer for formulating establishments and training policies for the entire State Public Service among others.

  • Premium Pension’s assets hit N487b

    Premium Pension’s assets hit N487b

    Pension assets of Premium Pension Limited hit over N487 billion as at June, its Managing Director, Wilson Ideva, has said.

    He made this known to reporters in Lagos.

    Ideva, who was represented by the Southwest Regional Manager, Fatai Olufeso, said the company’s Retirement Savings Account (RSA) unit price stands at 3.4562 while retiree unit price was at 2.5735 in the period under review.

    Similarly, he said benefits paid to retirees were N128 billion while number of retirees grew to 70,374.

    He noted that the company  remains workers’ and retirees’ delight and has improved its services in the year.

    He explained that retirees included those who retired, those who lost their jobs, those who died in the service or after retirement and those who were retired because of illness.

    Ideva said: “The effectiveness and benefits of the Contributory Pension Scheme (CPS) has not recorded any case of fraud. This is because of the structures put in place and based on this, there can be no case of fraud. Once there is an effective structure in place, the structure will drive the system effectively.

    “The CPS will go a long way in eradicating corruption and poverty in the system. With this, retirees will see the benefits of the CPS in their lives and others will be forced to embrace the system. We believe that with the support of the media for the industry, the pension industry and the workers will be better in the future.’’

  • OAK Pensions records 76.8% growth in profit

    OAK Pensions Limited, a Pension Fund Administrator (PFA), has increased its profit by 76.8 per cent.

    It made N230.88 million in the financial year compared to the N130.57 million in 2015.

    Presenting a report during the 11th Annual General Meeting (AGM) of the company in Lagos, its Chairman, Dr Awa Ibraheem,  said the company was committed to increasing returns in its Retirement Savings Accounts (RSA).

    He said: “We made profit this year and we are satisfied with the returns we are generating for our RSA holders, which I believe, is a product of the service we are rendering. What is important to us is effectiveness in the totality of the services to our stakeholders.

    “OAK is  increasing its accessibility in all parts of the country while the company also  already has offices in the six geopolitical regions. An individual only needs to call the company’s Call Centre and be attended to. In Lagos, we operate two offices; we have office in Uyo. We have offices covering Southwest in Ibadan, Osogbo. We have in the Southsouth, Northcentral, Abuja and all over the place.

    “The company will explore the potential in the micro-pension scheme when it is introduced by the National Pension Commission. We are more than prepared because we have started doing our background work. We are just waiting for the Federal Government to launch the scheme,” he added.

  • FUG Pension targets N500b assets

    After 10 years of operation, Future Unity Glanvills Pensions Limited (FUG Pensions) is targeting N500 billion pension Assets under Management (AUM) in its medium-term strategic plans.

    The firm’s current assets under management have grown from zero in 2007 to over N57 billion this year.

    Its Managing Director, Usman Suleiman, who made this known during the company’s 10th anniversary at the head office in Lagos, said  things were looking good for the company.

    He said the company had put in place short, medium and long- term strategic plans that would see it grow its portfolio in AUM to N120 billion by 2019 and N500 billion within the next seven years of its medium-term.

    To drive its expansion programme, Sulaiman added that the management had begun discussions with some pension funds administrators to acquire one to actualise the expansion.

    The Chairman, Alhaji Farouk Yola, noted that though FUG was one of the late entrants into the industry, it has been able to weather the storm, now having to its credit over 120,000 RSA.

    He stressed that efficient and effective system and structure put in place by the Board and Management earned the company an internationally acclaimed ISO certification in Quality Management System (QMS) in 2016, assuring that the Company is working relentlessly to sustain the standard in the subsequent years.

  • PenCom DG’s name, others yet to be sent to National  Assembly 

    PenCom DG’s name, others yet to be sent to National  Assembly 

    Acting President Yemi Osinbajo is yet to send the name of the newly appointed Director-General of the National Pension Commission (PenCom), Funso Doherty, and members of the board to the National Assembly for confirmation, The Nation has learnt.

    This means that the most crucial organ of the Federal Government that supervises the country’s N6.5 trillion pension fund will not have a substantive Director-General and Board  soon. This is so because of the rift between the Presidency and the lawmakers that suspended confirmation of all nominees of the Executive until last week when it lifted the hammer.

    It was also learnt that the names of 22 other appointees to new boards of Federal Government agencies appointed by President Muhammadu Buhari  to replace sacked boards are also yet to be forwarded to the National Assembly for confirmation.

    Sources toldThe Nation  that the delay in sending the names of the directors to the National Assembly might not be unconnected with the resentment that greeted the appointment of Doherty by the Acting President to replace Dikko who was rejected by some people.

    Dikko replaced the former DG of the Commission, Mrs. Chinelo Anohu-Amazu.

    However, the implications of not having a board and a substantial DG on the industry are enormous bearing in mind its peculiarity.

    Another source said though the Commission is functioning with the Acting DG, Mrs. Aisha Dahir-Umar, it is not able to formulate policies where needed and as such is not functioning in its full capacity.

    Section 25 (1) of the PRA 2014 states that the Board shall formulate and provide general policy guidelines for the discharge of the functions of the Commission, monitor and ensure the implementation of the policies and programmes and shall also carry out such other functions as are necessary or expedient to ensure the efficient performance of the functions of the Commission under this Bill.

    Section 2 further reads: “The Board shall have power to approve rules and regulations relating to the appointment, promotion and disciplinary measures for the employees of the Commission and fix renumeration, allowances and benefits of the Commission.

    “It shall also regulate its proceedings and make standing orders with respect to the holding of its meetings, notices to be given, the keeping of minutes of its proceedings and such other matters as the Board may, from time to time determine.”

    The Managing Director of one of the leading Pension Fund Administrators (PFA), who spoke under condition of anonymity, said things are working and the pension fund remains safe.

    He however noted that there were some  areas that warrant critical decision.He listed such area to include getting approval for the multi-bond function, noting that the Presidency was yet to approved that because of the absence of a substantive board.

    He added that only the Presidency has the power to carry out the multi-bond function, adding that in such areas, there is need to have a board and substantive DG.

    He called on the Presidency and the National Assembly to ensure that a board was put in place.

    He said appointing a DG, who cannot assume duties, was affecting  activities at the Commission and the industry at large.

    A source at the PenCom said aside  hearing the announcement of Doherty in the news, officials at the Commission do not know anything else.

    According to the source, what they learnt, however, was that the name of the new DG and board members have not been sent to the National Assembly.

    Another source at the Commission affirmed that promotions and other projects that needed the approval of the Board could not be carried out, adding that some DGs, including that of PenCom’s, under the civil service rules, could not approve projects more than N2.5 million.

    Asource at the Presidency said he could not affirm, nor deny whether the name of PenCom board, or any of the other 22 appointed Boards have been sent to the National Assembly, saying that the procedure after announcement of such appointments, is for the National Assembly to pronounce that the Executive has written to it seeking confirmation of the  appointees.

     

  • Stanbic IBTC Pension lifts Kaduna Prisons 

    Stanbic IBTC Pension Managers Limited has inaugurated three blocks of toilets at the Nigerian PrisonsTraining School, Kaduna.

    The company, a Pension Fund Administrators ( PFA), said the renovated facilities would lift the living conditions of personnel of the Nigerian Prisons Service (NPS).

    NPS Controller-General, Ahmed Ja’afaru, represented by the Zonal Coordinator Zone B, NPS Kaduna,  Musa Mayaki, an Assistant Controller-General, expressed appreciation to the company for the gesture.

    He noted that a prison service is  community in the security-maintenance architecture with the relevant personnel, their families and inmates, all constituting part of the larger society.

    He added that the project would bring relief to the personnel and trainees as the community hitherto had to make do with less than fitting sanitary facilities.

    He stressed that the project would be useful to the cadets and officers as clean and satisfactory sanitary facilities means better disposal of human waste, reduced chances of disease outbreak and better living condition.

    The firm’s Executive Director, Investments, Mr. Oladele Sotubo, said: “The project, which is line with the Stanbic IBTC Group’s CSI focus areas, falls under the health pillar, others being education and economic empowerment. Its decision to renovate the toilets is part of a business strategy to support the well-being of the people and communities where it operates.

    ‘’A celebratory mood enveloped the community following the commissioning of the project.

    “The execution of the project is also in recognition of the fundamental importance of the right of every human to have access to decent sanitary facility and living condition.‘’

    The PFA, he said, understands the interconnection between good health and good sanitation in ensuring a healthy populace and overall wellbeing of the people.

    “It is an integral part of our corporate social investment initiatives, which is anchored on our strong belief in adding value to the communities where we operate. We understand the difficult conditions that often results from lack of access to amenities, the deplorable state even where available and we will continue to explore opportunities to provide support in this regard,” he added.

  • ‘PRA 2004 has aided government macroeconomic policies, others’

    ‘PRA 2004 has aided government macroeconomic policies, others’

    The Pension Reform Act (PRA) 2004 as repealed by PRA 2014 has been beneficial to government by its support to the overall macroeconomic policies of reform.

    The provisions of the law have also encouraged labour market flexibility while pensioners are no longer at the mercy of employers.

    These were the remarks of the Lagos State Governor, Akinwunmi Ambode while speaking on the state’s full commitment to pension reforms at the opening session of a training with the theme: Implications of the PRA 2004 for officers of the Lagos State Pension Commission (LASPEC) and all public servants.

    The governor, who was represented by the Commissioner for  Establishments, Training and Pensions, Dr. Akintola Benson, said the training is to ensure that the officers of LASPEC can effectively discharge their duties and the generality of the public service can adequately prepare for the future.

    He stated that the general benefits of the Act as implemented in Lagos State has boosted the welfare status of workers and pensioners in the state.

    He observed that it has allowed the maintenance of a Retirement Savings Account (RSA) by each employee, which gives the workers responsibility over their retirement savings.

    Pensioners on the other hand, will no longer be at the mercy of employers, he noted.

    He further stated that workers could choose how to allocate their retirement savings and diversify their investments over a range of investment instruments.

    He stressed that it has also been argued that personal accounts would provide all workers a higher rate of return than can be paid under the Direct Benefit plan, adding that this approach  affords participants an opportunity to pass wealth to survivors in the event of death.

    He said: “RSA maintained by millions of workers tends to generate massive long-term funds, which are available for investment. Owing to economies of scale, the cost of investing such funds tends to be relatively lower than if an individual worker were to undertake the investment on his or her own account.  Also, having a pension scheme that pays out benefits in the form of a life annuity affords workers with protection against longevity risk, by pooling mortality risk across others.

    “On a holistic note, the provisions of the law encourage labour market flexibility. The worker is free to move with his or her account as he or she moves to another place of employment and or residence.  In this way, it is an important tool for enabling workers and employers to adapt to changing circumstances especially in a global environment in which change is a constant aspect of social and economic life.

    “The government also stands to enjoy benefits under the law. The law will stem further growth of pension obligations and provide a platform for addressing this liability.  It will also impose fiscal discipline in the budgetary process because pension obligations would be accurately determined. Also, the health of the economy is always a major concern of the government’’.

    He added that the pension scheme has the capacity to promote national savings and grow the economy.His words: ‘’Aside from the law’s potential to promote national savings and by implication, economic growth, funded pension schemes have the capacity to promote capital market development.  Moreover, it is often argued that funded schemes have the capacity to promote economic reforms generally. Another area in which the government stands to benefit from the law is through the scheme’s ability to support the overall macroeconomic policies of reform.”

    Benson reiterated the work of the Lagos State government on pension matters so far.

    He maintained that on the occasion of the 38th presentation of Retirement Benefit Bond Certificates to retirees under the Contributory Pension Scheme (CPS) created Section 3 of the Lagos State Contributory Pension Scheme law of 2007 (hereinafter referred to as “the Law”).

    “Indeed, the Lagos State government has helped and continues to help public officers adhere to this invaluable advice as a result of its commitment to all-round welfare of its officers. It is thus important to pause and enumerate how the state has consistently demonstrated its commitment to the post-service welfare of its officers. Before the 2004 Federal Pension Reform Act, most state governments and companies in Nigeria operated under the Defined Benefits  Scheme (DBS), popularly referred to as the ‘Pay as You Go’ scheme’’.

  • IGI gets new management

    Industrial And General Insurance Plc (IGI) has announced the appointment of a new management to be led by Bayo Folayan, who was named the Acting Managing Director.

    In a statement by the Head, Corporate Communication of the firm, Steve Ilo, the appointment is in line with the company’s restructuring programme aimed at repositioning it for optimum performance.

    According to him, Shade Ajayi, becomes the firm’s Acting Executive Director, Technical and Operations, Nnamdi Iwuoha, acting Head, Technical Division, Bolade Ashaolu, acting Head, Marketing, and Emmanuel Udoh, acting Chief Finance Officer, adding that appointments take immediate effect.

    He said the Board of Directors noted that the new team would occupy the positions in acting capacities, pending when substantive officers are appointed in line with the regulations of the National Insurance Commission (NAICOM).

    According to the statement, the development follows the retirement of members of the executive management led by the Managing Director/Chief Executive Officer, Rotimi Fashola, alongside the Deputy Managing Director, Sina Elusakin, both of whom have served the company in various positions for over 20 years.

    He added that the Executive Director, Finance and Accounts, Yinka Obalade, also retired, while his Information Technology, Human Resource and Administration counterpart, Mrs. Foluso Gbadamosi, tendered her resignation.

  • ‘PFAs paid disengaged workers N4b in Q3’

    ‘PFAs paid disengaged workers N4b in Q3’

    Pension Fund Administrators (PFAs) paid N4 billion to 12,464 disengaged workers in the third quarter of last year, a Quarterly Summary Report of the National Pension Commission (PenCom), has shown.

    According to the report, the disengaged workers paid by the PFAs are those who have Retirement Saving Account (RSA) and are under 50.

    These disengaged workers were also not able to get another job within four months of their disengagement.

    The breakdown of the report showed that the private sector accounted for 95.43 per cent, which amounted to 173,578 of the disengaged workers.

    The public sector accounted for 4.57 per cent, which is 8,305 workers.

    The report further stated that N56.9 billion has been paid to 181,883 disengaged workers since inception of the Contributory Pension Scheme (CPS).

    Also, N1.84 billion as death benefits to beneficiaries of 532 deceased employees within the quarter.