The Nation Newspaper

Category: Pension

  • Lagos pays N582.2m as benefits

    The Lagos State government has paid another N582.195 million to 109 retirees March.

    The state government through the Lagos State Pension Commission (LASPEC) has since the inception of the administration paid 5,956 retirees from the mainstream civil service, local government and State Universal Basic Education Board, Teachers Establishment Pensions Office and other Parastatals of Government.

    The Director- General, Mrs. Folashade Onanuga, while congratulating the retirees at the 37th Retirement Benefit Bond Certificate Presentation held at Ikeja, Lagos, said the Contributory Pension Scheme (CPS) will be 10 years in Lagos State in April,  and some activities have been lined up to mark a decade of the CPS in the state.

    Assistant Director, Technical, Olawale Otun, took the retirees through the benefit available under the CPS.

  • PenCom seeks closer ties with RSAs, retirees with construction of six offices

    PenCom seeks closer ties with RSAs, retirees with construction of six offices

    IN its efforts to be closer to Retirement Saving Account (RSA) holders and retirees, the National Pension Commission (PenCom) has planned to construct six office buildings , its Director-General, Mrs Chinelo Anohu-Amazu, has said.

    She disclosed this in a memorandum presented to the National Assembly.

    According to her, the commission hopes to construct four zonal office buildings, acquire land for offices in Northcentral, Northwest and Southwest Zones and construct office buildings in Northcentral and Southwest.

    According to her, the construction of office building in four existing zonal offices, will gulp  N150,000,000, while land acquisition for offices in Northcentral, Northwest and Southwest Zones,   will cost N150,000,000 and office construction in two states both in the northcentral and southwest will cost N450,000,000.

    She said: “PenCom wishes to respectfully inform the Senate Committee on Establishment and Public Service that it was compelled, in its budgetary submission to the Ministry of Budget and National Planning, to stay within the limits stipulated in the template forwarded to it by the Ministry.

    “However, due to the need for the Commission to expand its activities, we would like to request for the appropriation of the sum of N5,000,000,000.00 as Capital Subvention instead of the N750,000,000.00 allocated. The request is broken down into the following project components: Purchase/Acquisition of Land; Remodeling/Construction of Office Building; Remodeling of Head Office; Construction of Zonal Offices and Architectural and Other Development Costs,” she said.

  • Alleged fraud: AIICO suspends, reports agent to police

    AIICO Insurance has reported  one of its agents, Bode Adesanmi, to the police over alleged fraudulent practices. He has also been suspended

    Adesanmi was alleged to have perpetuated fraud against some customers of the company.

    Speaking  with newsmen in Lagos yesterday, its Managing Director, Edwin Igbiti, called on its clients and prospective customers not to pay premium in cash to any agent or worker of the company.

    He said the firm’s attention was drawn to reports about unethical activities uncovered in AIICO Insurance with focus on  one Adesanmi, who is presently being investigated for fraudulent practices and misrepresentation of the company.

    He said: “Consistent with our practice and in line with the processes in the company, upon receiving reports of the fraud allegedly perpetrated by Adesanmi, he was immediately placed on suspension pending the outcome of an investigation that was commenced immediately and which is presently on-going.

    “While we empathise with those who might have fallen victim to this individual’s personal scam, we shall leave no stone unturned in pursuing the case to a logical conclusion and ensuring that all parties get the justice they deserve.

    “It is imperative to clarify here that AIICO Insurance Plc is an underwriter of more than 50 years’ experience, the largest life underwriter in Nigeria and one of the biggest underwriters in the West African sub-region. AIICO has created and sustained a reputation that cuts across the globe as an underwriter of repute, with clientele from within and outside Nigeria and claims profile payment that runs into multi-billion aira.”

    Igbiti said AIICO has since put in place a policy against the payment of cash to individuals.

    According to him, this is visibly indicated on their communication materials and policy documents.

    “We have invested in technology and infrastructure to provide multiple payment channels for payment and renewal of Insurance policies. These channels include: Point of Sale (POS) terminals at our locations, NIBBS &Quickteller payment platforms, Bank Branches, AIICO e-Insurance Web Portal, Third Party Scratch Cards, Direct Debit and Cashier Points at our locations. We encourage our customers to continue utilising these channels which provide instant automation of records.

    “The payment of over N30 billion in claims and benefits between 2013 and 2015 attests to our avowed commitment to prompt claims settlements to our valued customers. Whenever the unexpected happens, AIICO remains duty bound and owe our customers the responsibility to protect their interests. We hereby restate our unwavering commitment to continue to create and protect wealth for our highly esteemed customers,” he added.

  • Knocks for PTAD over verification

    Knocks for PTAD over verification

    Condemnation have trailed the Pension Transitional Arrangement Directorate’s (PTAD) mode of verifying sick and bedridden Federal Government pensioners under the Defined Benefit Scheme.

    Experts and pensioners accused the Directorate led by its Executive Secretary, Sharon Ikeazor, of being backward in its verification method, saying the body ought to have moved to the homes of the frail and sick pensioners for the exercise.

    They cited the Lagos State government, which has provision for verifying not only the sick pensioners, but also those who are too old to move around in their homes.

    Although the Nigeria Union of Pensioners, Delta State Council last week lauded the Directorate for creating a special centre for verifying the sick and special federal pensioners, experts criticised the act, noting that it was cruel to bring the pensioners out and display them as seen in the pictures from the exercise held two weeks ago in the state.

    An expert, who spoke with The Nation, described the PTAD’s action as humiliating and dehumanising.

    According to him, the pictures of PTAD officials carrying frail-looking pensioners show lack of empathy on by the Directorate in its pursuit to eradicate ghost pensioners from the system.

    He advised the Directorate to embrace the technetronic age.

    A pensioner at the University of Lagos State, Akoka, Moses Ogunsola, said PTAD’s non-payment of pension and gratuities of many pensioners across the country has brought upon them sicknesses and in some cases deaths.

    He said: “The women seen in the pictures would have been able to buy medicine and feed well if PTAD had paid them. But they were left to become sick, brought forward for display and they expect the public to applaud them.

    ”The recent photograph of PTAD in the front pages of newspapers carrying an obviously sick and fragile pensioner to a pensioners’ verification centre is an arrogant display of callousness on the part of PTAD. What stopped the officials verifying the women seen in the pictures where they were instead of displaying them? It is sheer wickedness.

    “If the pensioners had been paid their pension as and when due, they would have fed themselves better and be able to buy medicines than the frail looks, which obviously was due to malnutrition.

    “I am a pensioner and I know what I am passing through, having not been paid my gratuity since 2004, when I retired meritoriously from the University of Lagos. Aside from not paying my gratuity, they refused to pay my July 2015 monthly pension and all efforts to make them pay have proved abortive. Many of us have the same problem and when we go to their Lagos branch, they will start asking us to go and bring bank statement of two years, three years and sometimes 10 years. Where do they expect us to get money to print bank statements when, indeed, they ought to have records of payments to every pensioner?

    Another pensioner, who gave his name as Mustapha, called on President Muhammadu Buhari to rescue them.

    “PTAD has ignored all our petitions and appeals. We are calling on President Muhammadu Buhari to help us. He should look into our matter and pay pensioners their dues instead PTAD’s shed of crocodile’s tears.

    “My colleagues and I are suffering. We can barely feed ourselves, despite serving the country with our strength. PTAD should do the right thing instead of playing to the gallery around the country.

    Mrs Kuti Olayinka, a pensioner of the federal Civil Service, lamented that despite the verification, PTAD had  not paid her six years’pension after stopping it in August 2010.

    “I was disengaged from the service in July 2006 on a wrong level 07, instead of Gl 08, and I was paid my pension in 2009, which was stopped in August 2010 till. I have not been paid for six years, despite going through all verifications.

    “I wrote several complaints after submitting all the required document at the Lagos office in May 2016, yet I did not receive any response from them,” she added.

    A Radio Nigeria retiree, Emmanuel Omolah, in his letter to The Nation entitled, “Cry for help”, said PTAD’s non-payment of his pension arrears had caused him agony, such that he visited the hospital regularly for treatment, though he was not getting the medication due to lack of funds.

    “I thank the newspaper most sincerely for the efforts to ensure that PTAD pays my pension arrears and put me on monthly pay-roll. So far, PTAD has not done anything. In November, last year, they requested for the original of my file from my former employers Radio Nigeria, Lagos and it was immediately forwarded to them in Abuja.

    “Painfully, up till now, PTAD has refused to pay my pension arrears and has not placed me on monthly pay roll. The arrears was due for payment in April 2016 while the monthly pension has been accumulating since then. I don’t know what else to do for PTAD to answer me. The matter has caused me so much depression, such that I now visit the hospital regularly for treatment which I am not getting due to lack of funds.

    “Severe family commitments have also compounded my situation. I am on the brink of being evicted by my landlord because of accumulated rents and my children have been sent back home from school due my inability to pay their school fees. Please, tell PTAD that I am begging them to consider my plight and attend to me,” he said.

    PTAD’s spokesperson, Mrs. Theodora Amaechi, said confirmed that officials of the Directorate went to the homes of sick pensioners to verify them.

    She explained that the verification centre was only for people who could come out of their homes.

    She, however, noted that the Directorate officials could not go to the homes of all the sick pensioners, adding that it only went to those who  could still manage to come out.

  • Transfer window, micro pension to drive industry this year

    Transfer window, micro pension to drive industry this year

    The initiatives of the National Pension Commission (PenCom) to bring the informal sector and micro pension into the Contributory Pension Scheme (CPS) and open a transfer window by the end of the year will make substantial differences in the industry, FUG Pension Managing Director, Usman Suleiman, has said.

    Suleiman, who made this known to reporters in Lagos, said operators were working with PenCom to achieve these.

    The transfer window, when established, would allow Retirement Savings Account (RSA) holders to transfer from their current Pension Fund Administrator (PFA) to another of his or her choice.

    This is in line with Section 13 of the Pension Reform Act, PRA, 2014.

    Suleiman said there was a very high possibility that the Transfer Window would be opened towards the end of this year.

    Basically, he said, the issue of structuring the transfer window was such that you do not have problems down the line.

    On bringing the informal sector and micro pension into the CPS, he said the industry is looking at moving from six million account holders captured in the CPS to a minimum of 20 million over the next three years.

    He said: “We expect the commencement of the micro pension to frog jump participation in the CPS. It is very peculiar. The guidelines we have at present are all looking at a formal structure but the micro pension requires an informal structure. We are looking at moving from six million account holders captured in the CPS to a minimum of 20 million over the next three years and the key is the micro pension and the integration of informal sector.

    “On Transfer Window, for instance, we want to be sure that technology is right, the process is right and all the parties involved and particularly the central clearing system is correct and right and every party involved on the same page. This is not an easy thing to do because it involves a lot of resources. But I can tell you we are aware that the regulators have been working very hard on it. They have made a lot of headways in recent times to get the technology and process in place and I strongly believe that in not too distant future we will see the transfer window structure in place.”

  • Lagos retirees get N801 million

    Another set of 179 Lagos State retirees have received their accrued pension rights  of N801 million for last month, Director-General, Lagos State Pension Commission (LASPEC), Mrs. Folashade Onanuga, has said.

    She said the beneficiaries were from the mainstream civil service, local government, the State Universal Basic Education Board, teachers establishment pensions office and other parastatals of government.

    Mrs. Onanuga spoke at the 36th Retirement Benefit Bond Certificate Presentation at Ikeja, Lagos.

    She said the payment was in fulfillment of Governor Akinwunmi Ambode’s promise to give priority to  retirees’ entitlements payment.

    While congratulating the beneficiaries, she implored them not to engage in frivolities, but to be mindful of the economic recession and be very prudent.

    She said: “Adjust your lifestyle to the economic realities of the time. This is the evening season of your life and it is expedient to manage your level of expenditure so as to reduce stress that can hamper your health. Most importantly, be contented and do not seek quick gains as many schemes designed to empower you are actually traps to deprive you of what you laboured for.

    “This administration is very much interested in retirees’ well–being and as such the LASPEC will still keep in touch with the retirees to get feedback on their lives out of office and how the state could help.”

    She stressed that there are other packages in the pipeline to make sure they live comfortably well in retirement.

    Head, Technical Department, Olawale Otun further sensitised the retirees on the importance of “Will writing”.

    He spoke on how to process their Retirement Benefit Bond Certificates and the two exit options available to them.

  • Delta pensioners praise PTAD’s centre for the sick

    The Nigeria Union of Pensioners, Delta State Council has lauded the Pension Transitional Arrangement Directorate (PTAD) for creating a special centre to verify sick and special federal pensioners.

    Delta Chairman, Ogbuefi Robert Chukwunyem, while commending the Directorate in Asaba during verification for pensioners in the state, describing it as painless, stress- free and encouraging, saying that more than 300 pensioners have been verified and captured by the directorate.

    He also said the state council is compiling a list of dead pensioners to be submitted to the PTAD team led Philip Oki before the end of the exercise.

    He commended PTAD for its new techniques and trained personnel, stating that the directorate has moved from the old and torturing system to the peaceful exercise.

    He said the exercise which began in Asaba on Monday, was also going on simultaneously in Benin, Edo State, adding that it was the turn of all pensioners in the two states to be verified.

    He however said that the turnout by pensioners for the exercise was low, urging all pensioners who receive federal shares of pension and those who were purely federal to come out en-masse for verification.

    He said the medical team was provided with ambulance and the security situation was encouraging.

    The PTAD team leader, Oki,   lauded the pensioners for their compliance, comportment and good documentation which had made their work easy.

    He lamented the low turnout of the pensioners, but said that something was being done to improve on the turnout in collaboration with the state’s pension chairman.

  • Govt yet to implement 18% pension contribution, says PenCom DG

    Govt yet to implement 18% pension contribution, says PenCom DG

    •N10b increase sought for accrued rights

    The Federal Government is yet to implement the 18 per cent pension contributions as revised by the Pension Reform Act (PRA) 2014, National Pension Commission (PenCom) Director General (DG), Mrs. Chinelo Anohu-Amazu, has said.

    She spoke while defending the Commission’s 2017 budget before the National Assembly Joint Committee on Appropriations.

    According to her, N79.1 billion was needed for payment of pension increase for the 79,961 pensioners, who retired under the contributory pension scheme (CPS) from 2004 to 2014.

    On the implementation of the new rate of pension contributions, she said under the defunct PRA 2004, the rate of pension contribution for Federal Government employees was a minimum of 15 per cent of monthly pay. This, she said, is shared into two – 7.5 per cent each to be paid by the employer and the employee.

    These, she said had been reviewed upward by Section 4(1) of the PRA 2014, to a minimum of 10 per cent for the employer and minimum of eight per cent for the employee, thereby making it 18 per cent of an employee’s monthly emolument.

    The DG appealed to the Joint Committee on Appropriations to ensure adequate appropriation under the Federal Government’s recurrent expenditure in order to facilitate the implementation of the new 18 per  cent pension contribution rate.

    On the N79.1 billion required for payment of pension increase, she noted that it was constitutional that there should be periodic review of pensions.

    Mrs Anohu-Amazu said: “I wish to note that under the provisions of Section 173(3) of the Constitution 1999 (as amended) employees of Federal Government treasury-funded ministry, department, agencies (MDAs) have the right to periodic pension review. Following the Federal Government’s approval and payment of 15 per cent upward review of pension to pensioners under the defunct Defined Benefit (DB) Scheme, retirees under the CPS are also agitating for the implementation of same in line with their rights under the 1999 Constitution.

    “In compliance with Section 39(3) of the PRA 2014, the Commission engaged the firm of Alexander Forbes Consulting Actuaries Limited to determine the financial implication of the 15 per cent salary review in 2007 on the pension components of the defined benefits rights also referred to as accrued rights.

    “Consequently, the sum of N79.1 billion was determined as pension increase for the 79,961 employees, who retired under the DB Scheme from 2004 to 2014. The computation for the pension increases of FGN employees who retired in 2015, 2016 and those that were scheduled to retire in 2017 would be forwarded for inclusion in subsequent appropriations after due actuarial valuation is concluded.”

  • Premium Pension opens regional office in Lagos

    Premium Pension Limited has unveiled a regional office in Lagos to cater for its active and retired clients within Lagos Island, Ikoyi and Victoria Island.

    The National Pension Commission (PenCom) has lauded the company’s giant strides, especially in the area of better service delivery to Retirement Saving Account (RSA) holders and retirees.

    PenCom Director-General Mrs. Chinelo Anohu-Amazu, who was represented by the Commissioner, Inspectorate (PenCom), Prof Mohammed Kaoje, at the unveiling, said the company was improving on its spread, which has helped bring services to retirees.

    Premium Pension Chairman Aliyu Dikko said although the road to success has not been smooth, the company was working assiduously to achieve its vision and mission.

    According to him, the company’s vision and mission were centred on superior customer satisfaction in active and retirement life through best practice. He stated that in line with the vision of the company, it has implemented a number of initiatives that has led to major milestone in the pension industry.

    He said: “The achievements were made possible due to the commitments and dedication of board, management, staff and support of shareholders of the company. We applaud PenCom for its efficiency and support because without prompt regulation and guidance the company and the industry would not have been where they are today. We assure the commission of policy of zero tolerance to non-compliance with regulatory requirement.”

    The firm’s Managing a Director, Wilson Ideva, said the company has paid  N118 billion as benefits to retirees and client and has excess of 16, 000 retirees in its pay roll.

    He noted that the company has established 20 branch networks and 23 pension centres across the 36 states of the federation with its head office in Abuja.

    “Today, we are one of the leading Pension Fund Administrators (PFAs) in the country. The establishment of standard branch offices nationwide is to bring premium services closer to clients.

    “The new office will afford us the opportunity to serve its existing RSA holders better and equally provide them the platform for our potential RSA holders such as the movie industry, sports, professional group and high net worth  self- employed specs list and provide them the chance to enroll under the Contributory Pension Scheme, thereby ensuring real rest at retirement. The office was established with state-of-the-art facilities in terms of technology and strong human capital. It will afford us the opportunity to serve existing RSA holders better,” he said.

    Lagos State Acting Head of Service,  Folasade Adesoye, applauded the firm for its contributions to the development of the industry, adding that the new office will not only add value to pension contributors and retirees, but also add value to Lagos State by way of employment.

    Adesoye said she has watched with keen interest, attempts by Premium Pensions to entrench herself in the state. An office was opened sometime in 2015 in Ikeja just to service contributors and retirees along that axis and now, we are witnessing this move to service the Lagos Island, Ikoyi and Victoria Island customers.

    “At the commencement of the Contributory Pension Scheme (CPS) in the state, we approved only six out of the then 26 PFAs to be registering the state government, local government and parastatals employees. Each employee was allowed to exercise his or her right to choose the manager of their pension account out of the approved six PFAs.

  • CPS: Lagos develops workers’ skill on pension administration

    CPS: Lagos develops workers’ skill on pension administration

    Increasing capacity, efficiency, proper and transparent administration of pension desks officers across all Ministries, Departments and Agencies (MDAs) of the Lagos State government was the focus of the state government last week.

    The state which has fully complied with the Pension Reform Act (PRA) 2004 as repealed in PRA 2014 desires a more transparent administration of pension matters for civil servants.

    But the government admits that the lack of understanding amongst its heads of pension departments especially on the Contributory Pension Scheme (CPS) can hinder a smooth-sailing pension venture.

    It is worthy of note that many state governments across the country have been unable to implement the scheme while the few that managed to implement, encountered hitches that forced them to abandon it.

    Commissioner, Lagos State Ministry of Establishments, Training and Pensions, Dr. Akintola Oke, at the opening session of the training on CPS for civil servants organised by the Civil Service Pensions Office in conjunction with Messrs Nisrel Consulting Limited, said the training was the third initiative by the Civil Service Pensions Office to’ advance pensioners’ welfare.

    According to him, the initiative to train the pension desk officers spread across the 57 local council development areas (LDCAs) including the office of the local government pension, how to prepare civil servants for eventual retirement and understanding of the CPS.

    He said: “Understanding leads to informed preparation and informed preparation ensures smooth-sailing ventures. Of course, it is now public knowledge that the approach by Lagos State to pension management is far ahead of other similar efforts in the country so much so that the state has been applauded and severally recognised for its exceptional excellence in pension administration, including awards and recognition from the National Pension Commission (PenCom).

    “The officers are led through sessions on CPS under the Pension Reform Act of 2014 and the retirement payment options under the CPS, including Annuity and Programmed Withdrawal options. We expect them to appreciate the full provisions of the Act which has now been domesticated as a law of Lagos State. The domesticated law made defined pension contribution which is the CPS to be compulsory for all employees in the public sector and organisations with three or more employees in the private sector.

    The Commissioner said the pension officers are expected to be better prepared to take advantage of the CPS.

    He further stated that the other two initiatives of the government are I’m Alive Initiative and the Pensioners’ Welfare Initiative.

    He said the welfare of the people is the ultimate law and employers who deny it do so at the risk of ruining their organisations and enterprises, noting that the state government is one of the most notable among the many organisations living by this noble ideal.

    He restated the dedication of the government to the welfare of its workforce both during and after service.

    He said: “This is why the government, under Governor Akinwunmi Ambode did not hesitate in approving the holding of this training that is designed to equip civil servants with the knowledge required to fully appreciate and take advantage of the CPS that the state has been implementing to the admiration of all and sundry.

    “The Ministry of Establishments, Training and Pensions is charged with the responsibility of ensuring the adequate exposure of the civil service to knowledge on an on-going basis. We are committed to all matters relating to the proper and transparent administration of pension matters for civil servants in the state.

    He explained that the state in addition to the training initiative also has the I’m Alive Initiative and the Pensioners’ Welfare Initiative as part of programmes lined up for pensioners.

    “The I’m Alive is an initiative directed at enrolling the bio data and finger prints of pensioners under the old scheme of Pay As You Go in order to ascertain those who are alive and, therefore, entitled to receive payments under that scheme. This initiative demonstrates the commitment of the of the state to ensuring that resources are prudently managed for the benefit of all and sundry and, in particular, for the benefit of retired public servants who have served the state meritoriously.

    “The I’m Alive initiative is also an example of the commitment of the state to fully integrate technology into governance. The initiative has brought extensive improvement in service delivery to the Civil Service Pension Office (CSPO) such that, in most cases, pensioners need to bring only their Lagos State Resident Identity Cards to the verification centres in order to revalidate their records. This is made possible because of the connectivity and synergies of government activities among different agencies.

    “Also, the Biometric Verification Exercise that constitutes a core part of the I’m Alive Initiative has contributed greatly to effective pensions administration in the state and has helped to ensure the prompt payment of monthly pensions for pensioners under the old scheme. The essence of this is to ensure that every living pensioner is not left out of the scheme as non-participation will definitely jeopardise payment of monthly pensions to such pensioners under the old scheme,” he said.

    He added that the second initiative is the distribution of welfare items to pensioners.

    This initiative, he said, is informed by the commitment of Governor Ambode to continue to celebrate and appreciate the invaluable contributions made by public servants to the status of the state as a model state and as Nigeria’s centre of excellence.

    He said: “Additionally, the gesture aims to bring succour and make life worth more living for pensioners. Let me assure you that the state through the Civil Service Pensions Office will continue to ensure that public service retirees not only get what is due to them statutorily, but also continue to receive the support and assistance that will add value to their lives in retirement. Today’s training may be taken to be the third initiative by the Civil Service Pensions Office to’ advance pensioners’ welfare. This initiative relates to preparing civil servants for eventual retirement and understanding of the trail-blazing contributory pension scheme’’.

    An official of Teachers Administration and Pension Office (TEPO) Samson Idowu  said the training has enhanced and equipped them to face the challenges they encounter in the course of their duty.

    “It has also taught us what to expect from our colleagues who will be retiring from service in order for us to be able to accomplish the set goal of our employer which is Lagos State,’’ he noted.

    “I now have an able to have insight and what it takes to preform my job. I believe that I am better equipped to handle the transition of the Defined benefits to the CPS which has always been the problem that we encounter in the course of our duties?

    “We face some challenges from the part of retirees who will not present adequate papers that we will need to process their retirement benefit. They will also ask some inquisitive questions that some of us may not able to answer. They want to know what their lump sum would be, what their gratuity and pension would be and what annuity and programme withdrawal is all about.

    Another participant, Mrs Salako Oluwakemi  said she now understands how gratuity and pension works in the old pension scheme and how it works in the new scheme.

    She also said the new scheme is better than the old scheme in the sense that a retiree is assured of getting his money after retirement unlike the old scheme.