The Nation Newspaper

Category: Pension

  • Fed Govt remits N13.2b pension contribution

    Fed Govt remits N13.2b pension contribution

    The Federal Government has released N10.3 billion for payment of pension contributions to pensioners, who retired in November and December 2015, The Nation has gathered.

    The government also released N2.9 billion to be paid to other batches of retirees, bringing the  amount released to N13.2 billion.

    Consequently, the Central Bank of Nigeria (CBN) has paid the monies to Pension Fund Administrators (PFAs), who have commenced payment to retirees some of who confirmed the receipt of such payments to The Nation.

    Findings have shown that the last Federal Government retirees  to receive pension after retirement were those who retired in October 2015.

    This is because retirement benefits payment, which is the last stage of the Contributory Pension Scheme (CPS), has witnessed some setbacks in recent times due to Federal Government’s inability to remit pension contributions and pay accrued rights.

    Head of Benefits and Insurance Department, National Pension Commission (PenCom), Lana Loyinmi, affirmed that payments were being made to the retirees.

    Loyinmi, however, said the Commission was working with the government agencies that are the direct employers of workers to ensure that more funds are released for payment of accrued pension.

    He said: “We are liasing with the government and engaging agencies that are direct employers of these retirees. Retirees from the private sector on the other hand do not have a problem with receiving their pension.

    “Part of the challenges of the scheme has been delayed remittance of accrued pension right by federal government in recent times.”

    He noted that the way forward is continued engagement of relevant agencies for the release of outstanding accrued rights while steps are taken to alleviate the waiting of retirees before the release of accrued rights.

    “Under the institutional framework of the CPS, the employer is mandated to contribute 10 per cent while employee contributes eight per cent of employee’s annual emolument into the Retirement Savings Account (RSAs),” he added.

    Interim Association of Contributory Pension Scheme Pensioners President, Comrade Matthew Shittu, confirmed that PFAs have started paying their pensions.

    He appealed to PenCom  to continue to prevail on the government to pay retirees under the CPS their retirement benefits while they are still alive.

    He said if the government had released funds for November and December 2015 retirees, it should also release funds for last year’s retirees too.

  • Stanbic reassures customers of good return

    Stanbic reassures customers of good return

    Stanbic IBTC Pension has reassured pension contributors and retirees with funds under the company’s management of fair returns on their pension savings.

    Executive Director, Operations, Stanbic IBTC Pension Managers Limited (SIPML), Steve Elusope, made this known in an interview  at a pre-retirement seminar held by the Lagos State Pension Commission (LASPEC).

    Elusope also assured that the company would be careful in investment of pension fund under it to ensure that investment is done prudently with interest of the owners of the fund at the back of the frame work of its investment scale.

    He stressed that their clients are guaranteed fair return and reasonable risk.

    He said: “The most important thing that should be paramount in the minds of a retiree is the security of the funds. Return is related to risk and so the riskier you go, the higher the return which gives it a balance. You have to balance your risk and return to ensure that retirees’ funds are not exposed to risky ventures.

    “For us at SIPML, we will continue to work, partner, relate with them and be at their service so that they can enjoy every bit of the rest of their lives with us. We will never do anything that will risk their fund. If you look at the Contributory Pension Scheme, the safety net is already there in terms of security. Asides from the fact that the organisation strives on integrity, we believe that security is a key pillar to get the trust of the people.

    “Security is not just about somebody misappropriating the fund, security is also about ensuring that the funds are used the way it is configured to be used and investment is done prudently with interest of the owner of the fund at the back of the frame work of the investment scale.

    “It is this total package that we stand for. Our retirees and contributors can be rest assured that their funds are secured. In terms of returns, we ensure that we do not move into risky ventures as laid out in the National Pension Commission (PenCom) guidelines on investment. We guarantee fair return with reasonable risk. The truth about return is that we do not look at it in one perspective; it is a long term thing because return is related to risk. So, the riskier you go, the higher the return and the lower you go, the lower the return. So, you have to balance your risk and return,” he added.

  • Fed Govt insensitive to our plight, say retirees

    Fed Govt insensitive to our plight, say retirees

    The Federal Government is insensitive to the plight of pensioners, some federal retirees have said.

    The reirees who retired between 2015 and 2016 under the Contributory Pension Scheme (CPS), made their complaints known in various interviews with The Nation.

    The retirees from various agencies and parastatals accused the government of not remitting their accrued rights and pension contributions into their Retirement Savings Account (RSA) account managed by their Pension Fund Administrators (PFAs) when they were in service. They complained that this had resulted in the non-payment of their pension benefits by PFAs since they retired in 2015.

    They appealed to President Muhammadu Buhari to prioritise pension payment.

    Interim Association of Contributory Pension Scheme Pensioners President, Comrade Matthew Shittu, said: “While we are not against the idea of investing pension funds in viable ventures that are characterised by open and transparent transactions, it is worth stating that investing pension funds should not assume the primary mandate of the new scheme far above the payment of pensioners as at when due.

    “For the records, the Scheme was introduced in 2004 to address the then increasing pension  burden on the Federal Government with the attendant inability of government to pay pensions as at when due.

    “The objectives of the new scheme according to the Pension Reform Act 2004 as repealed by PRA 2014 is to ensure that every person who works in the public sector receives his or her retirement benefits as and when due, assist individuals to save in order to cater for their livelihood during old age. The reform is also expected to establish a uniform set of rules, regulation and standards for administration of pension regime in the country and stem the growth of outstanding pension liabilities in Nigeria pension system.”

    Shittu said it was sad that PenCom officials only focused attention on investing pension funds instead of also ensuring that pensioners get paid promptly.

    “This is January 2017; pensioners who retired in 2015 under CPS are yet to receive one kobo from PenCom, despite that N5.96 trillion had been declared as the buildup funds under the scheme.

    “The primary concern of this letter is not to oppose the idea of investing pension funds in legitimate and credible ventures but to invite your kind attention to the potential threat facing the built up funds if care is not taken and to remind the authority of the overriding need to pay the long suffering pensioners their retirement benefits before all other transactional considerations,” he added.

    A retiree of Energy Commission of Nigeria, Mohammed Bako lamented that he completed verification in 2015 but that he had not received any payment.

    He said: “I completed verification in 2015 but up till now, I have not received any payment. If I go to my PFA, NLPC Pension; they referred me to PenCom and when I got to PenCom, they will tell me to exercise patience; this is what has been happening and I wonder how long I have to wait.

    “President Buhari should prioritise pension and the fact that there is recession is the more reason why we should earn our pension without delay. I need my benefits to enable me afford payment of drugs for my son who is receiving kidney treatment in National Hospital Abuja. He has undergone three dialysis now and I need to do more to save his life.”

    A retiree who identified himself simpy as Ndu said the Federal Government should explain the cause of the delay in the release of accrued pension to PFAs.

    He noted that since he retired as a civil servant more than one year, his contributions had not been released to his PFA.

    Another retiree, Dr. Yaya said: “I was told by my PFA that my accrued right that is yet to be remitted into my RSA was delaying my payment. Who is responsible for this and how long will it take such body to remit it my money?‘’

    PenCom Director-General, Mrs Chinelo Anohu-Amazu, explained that accrued rights are the funds that are due to a retiree for his service with the Federal Government prior to the commencement of the Pension Reform Act 2004.

    “The Federal Government has been remitting the five per cent of the wage bill that has to be paid in to the Retirement Benefit Bond Redemption Fund Account (RBBRF) at the Central Bank.

    “However, recently there have been financial constraints, which has delayed the payments of more funds into this account

  • Fed Govt insensitive to our plight, say retirees

    Fed Govt insensitive to our plight, say retirees

    The Federal Government is insensitive to the plight of pensioners, some federal retirees have said.

    The retirees who retired between 2015 and 2016 under the Contributory Pension Scheme (CPS), made their complaints known in various interviews with The Nation.

    The retirees from various agencies and parastatals accused the government of not remitting their accrued rights and pension contributions into their Retirement Savings Account (RSA) account managed by their Pension Fund Administrators (PFAs) when they were in service. They complained that this had resulted in the non-payment of their pension benefits by PFAs since they retired in 2015.

    They appealed to President Muhammadu Buhari to prioritise pension payment.

    Interim Association of Contributory Pension Scheme Pensioners President, Comrade Matthew Shittu, said: “While we are not against the idea of investing pension funds in viable ventures that are characterised by open and transparent transactions, it is worth stating that investing pension funds should not assume the primary mandate of the new scheme far above the payment of pensioners as at when due.

    “For the records, the Scheme was introduced in 2004 to address the then increasing pension  burden on the Federal Government with the attendant inability of government to pay pensions as at when due.

    “The objectives of the new scheme according to the Pension Reform Act 2004 as repealed by PRA 2014 is to ensure that every person who works in the public sector receives his or her retirement benefits as and when due, assist individuals to save in order to cater for their livelihood during old age. The reform is also expected to establish a uniform set of rules, regulation and standards for administration of pension regime in the country and stem the growth of outstanding pension liabilities in Nigeria pension system.”

    Shittu said it was sad that PenCom officials only focused attention on investing pension funds instead of also ensuring that pensioners get paid promptly.

    “This is January 2017; pensioners who retired in 2015 under CPS are yet to receive one kobo from PenCom, despite that N5.96 trillion had been declared as the buildup funds under the scheme.

    “The primary concern of this letter is not to oppose the idea of investing pension funds in legitimate and credible ventures but to invite your kind attention to the potential threat facing the built up funds if care is not taken and to remind the authority of the overriding need to pay the long suffering pensioners their retirement benefits before all other transactional considerations,” he added.

    A retiree of Energy Commission of Nigeria, Mohammed Bako lamented that he completed verification in 2015 but that he had not received any payment.

    He said: “I completed verification in 2015 but up till now, I have not received any payment. If I go to my PFA, NLPC Pension; they referred me to PenCom and when I got to PenCom, they will tell me to exercise patience; this is what has been happening and I wonder how long I have to wait.

    “President Buhari should prioritise pension and the fact that there is recession is the more reason why we should earn our pension without delay. I need my benefits to enable me afford payment of drugs for my son who is receiving kidney treatment in National Hospital Abuja. He has undergone three dialysis now and I need to do more to save his life.”

    A retiree who identified himself simpy as Ndu said the Federal Government should explain the cause of the delay in the release of accrued pension to PFAs.

    He noted that since he retired as a civil servant more than one year, his contributions had not been released to his PFA.

    Another retiree, Dr. Yaya said: “I was told by my PFA that my accrued right that is yet to be remitted into my RSA was delaying my payment. Who is responsible for this and how long will it take such body to remit it my money?‘’

    PenCom Director-General, Mrs Chinelo Anohu-Amazu, explained that accrued rights are the funds that are due to a retiree for his service with the Federal Government prior to the commencement of the Pension Reform Act 2004.

    “The Federal Government has been remitting the five per cent of the wage bill that has to be paid in to the Retirement Benefit Bond Redemption Fund Account (RBBRF) at the Central Bank.

    “However, recently there have been financial constraints, which has delayed the payments of more funds into this account

  • Pension fund grows by N1.25tr in one year

    Pension fund grows by N1.25tr in one year

    The  pension fund grew from N4.61 trillion to N5.46 trillion between March 2015 and March 31, 2016, The Nation has learnt.

    The growth between the first quarter 2015 and first quarter (Q1) 2016 represents 18.4 per cent (N0.85 trillion) in one year.

    The fund has however grown to N5.96 trillion as at September last year.

    This was contained in the National Pension Commission (PenCom) Quarterly Pension Industry Statistics released to journalists in Lagos. The industry witnessed 7.86 per cent growth in the Contributory Pension Scheme (CPS) membership during Q1 2016 as it recorded 7,071,791 contributors from 6,515,736 contributors it recorded in the preceding year.

    Further analyses showed that the total monthly pension contribution made by contributors from both the public and private sectors into the RSAs of employees was N3.55 trillion as at the end of first quarter last year, an increase from N2.95 trillion as at the end of first quarter of the previous year.

    This showed an increase of N0.6 trillion representing 16.9 per cent over the total contributions as at the end of the previous year.

    Giving an update on the recovery of outstanding pension contributions and interest penalty from defaulting employers, the commission said it made a recovery of N348.81 million during the period under review as against N540.94 million recovered in 2015.

    Surprisingly, many state governments did not implement the Contributory Pension Scheme (CPS) in their states as shown in the report. As at the end of Q1 2015, 26 state governments had enacted their pension laws with 10 states at the Bill stage. However, as at the end of Q1 2016, the number of states that have enacted laws on the CPS remained the same.

    PenCom also disclosed that the total number of retirees on Programmed Withdrawal (PW) increased from 106,421 in Q1 2015 to 132,405 in Q1 2016.

    The 25,984 increase represents 24.4 per cent from the figure recorded in the previous year

    Similarly, the lump sum withdrawals within the quarter stood at N12.63 billion with an average of N4.36 billion paid monthly to the retirees of the scheme as monthly Programmed Withdrawal as at the end of the reporting period. This showed an increase from the N2.55 billion recorded in Q1 2015.

    As regard the second pension payment option plan, Life Annuity, the Commission approved a total of 3,288 applications for annuity retirement plan as against the 1,914 applications received in 2015. This brings the total number of retirees receiving their retirement benefits through the annuity plan to 29,620 as at Q1 2016.

    The 3,288 retirees received N3.96 billion as lump sum payment and paid annuity premium of N15.44 billion cumulating to a total of N41.85 billion and N145.04 billion as lump sum payments and annuity premium respectively. The retirees received average monthly annuity of N1.51 billion as at the end of March last year.

    In 2015, a total premium of N79.18 billion was approved for payment to insurance companies on behalf of the 15,976 retirees in return for monthly payments amounting to N790.10 million 3.6 Approval of Death Benefits.

    The Commission also approved death benefit of 2,006 deceased employees with total value of N6.24 billion for payment to the beneficiaries and administrators of the deceased employees in 2016.

    In 2015, however, approvals were given for the payment of N4.44 billion as death benefits to the Next of Kins (NoKs) of 1,450 deceased employees

    Cumulatively, a total of N100.52 billion was paid as death benefits (including life insurance) of 34,410 deceased employees from both the private and public sectors as at the end of first quarter, 2016.

  • Philip Green seeks payment into BHS pension deal

    Sir Philip Green wants the pensions regulator to force Dominic Chappell, the former owner of BHS, to put money into the failed retailer’s pension fund as part of any settlement to resolve the £571m deficit in the scheme.

    Green has made a payment into the scheme from Chappell or his company Retail Acquisitions a condition of any rescue deal, according to sources close to negotiations.

    BHS collapsed into administration in April, leading to the loss of 11,000 jobs and leaving a £571m pension black hole. The demise of the 88-year-old retailer sparked a public and political outcry because Green and Chappell, the former owners, made millions from the business.

    Green owned BHS for 15 years until he sold it to Chappell, a former bankrupt, for £1. During his ownership, the Green family and other shareholders collected at least £580m from BHS. Chappell’s company Retail Acquisitions received payments of up to £25m from BHS despite owning the department store chain for just 13 months until it collapsed.

    Green promised to “sort” the problems facing the BHS pension scheme in June when he appeared in front of a parliamentary committee, but no deal has been forthcoming. The Pensions Regulator has started legal proceedings against Green and Chappell in an attempt to force them to fill the deficit. It is understood to be seeking around £350m from Green and as much as £17m from Chappell.

    However, a source close to the situation confirmed that negotiations have taken place between Green and the regulator since it initiated legal action in November. Those involved in the talks believe a settlement could be agreed early in the new year, before the regulator proceeds to the next stage.

    As part of any deal, it is understood that Green wants the regulator to ensure that Chappell pays into the pension scheme as well. The billionaire tycoon believes he was misled by Chappell about his track record in business and the money that Retail Acquisitions was paid by BHS.

    Green declined to comment. Chappell told the Guardian that he fulfilled all his duties as a director of BHS and “at no stage did we trade immorally”.

    He blamed Green for the collapse of BHS because of his failure to support the pension scheme after he sold the retail chain. Chappell said he had agreed a “deal in principle” with the regulator and the Pension Protection Fund, the government-backed lifeboat scheme, to restructure the pension fund before BHS collapsed. This involved Green pumping in £127m, BHS making annual contributions for the next five years, and the Pension Protection Fund (PPF) taking a 30% stake in the retailer. However, Green did not agree to the proposal, according to Chappell.

    The former owner of BHS also criticised the conduct of the Pensions Regulator, saying that the retailer was “screwed” by the investigation into the pension scheme shortly after it was sold by Green. This prevented Retail Acquisitions hiring a top chief executive and affected its finances, Chappell said.

     

    Culled from theguardian

  • SSAUTHRIAI laments non-payment of pension

    SSAUTHRIAI laments non-payment of pension

    Senior Staff Association of Universities, Teaching Hospitals, Research Institutes and Associated Institutions (SSAUTHRIAI) has expressed fear over non-payment of pension under the Contributory Pension Scheme (CPS)  hoping that the scheme will not go the way of the old pension system, the Defined Pension Scheme (DBS).

    SSAUTHRIAI’s Acting President, Dr B. A Akintola made this known in a Communique issued at the end of a two-day meeting of the National Executive Council of the association held in Ibadan.

    He said the National Executive Council (NEC) of Senior Staff Non-Payment of Retirement Benefits to Retirees Council received reports of non-payment of retirement benefits to retirees more than one year after disengagement from service.

    He stressed that this is despite the fact that they had contributed money for their retirement.

    This development, he said, was viewed with much apprehension by their members.

    He also said that the continued delay in the remittance of monthly contributions to employees’ RSA by employers as well as the failure of the Federal Government to release the accrued right has complicated their situation.

    He said they hope that the CPS will not go the way of the old pension scheme.

    He stated that the council therefore calls on the various establishments and the Federal Government to promptly remit the necessary fund to the RSAs of all workers.

  • Lagos pays 495 retirees N1.9b pension

    •Next-of-kin gets N56m insurance benefits

    The Lagos State Government has presented Retirement Benefit Bond Certificates to 495 retirees with an amount of N1.9 billion to be redeemed into the Retirement Savings Account (RSAs) of the beneficiaries.

    This was made known by the Director-General, Lagos State Pension Commission (LASPEC), Mrs. Folashade Onanuga, at the presentation of retirement benefit bond certificates to the 34th batch of Contributory Pension Scheme (CPS) retirees of the Lagos State Public Service  at its office in Ikeja, Lagos.

    According to her, the state government through the commission, before the presentation, paid to named beneficiaries of deceased employees, insurance benefit worth over N14 million and would pay another N56.1m death benefit at the event bringing the total to approximately N170 million.

    She stated that the insured death of 320 of the terminal salary of a deceased staff is designed by law to be paid to alleviate the immediate needs of the family members left behind.

    She said: “The insured death of 320 of the terminal salary of a deceased staff is designed by Law to be paid to alleviate the immediate needs of the family members left behind. The estate of a deceased staff is also entitled to receive the balance in the retirement account and accrued rights due, if the employee had joined service before the commencement of the CPS.

    “From mid-2010 till date, a total number of 12,426 retirees have received their retirement benefits, adding that they are considering various others  on benefits to make life easy for retirees in the state.”

    Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson Oke at the event said the comfort of workers at old age was what led to the state’s subscription to the CPS.

    He noted that the payment of state’s monthly contribution into the RSAs of public servants is given the same priority as payment of salaries.

  • FUG Pensions partners Down Syndrome Foundation

    Future Unity Glanvills (FUG) Pensions Limited has partnered the Down Syndrome Foundation (DSF) to organise a Christmas carol for children of the foundation, Managing Director, FUG Pensions Limited, Usman Suleiman has said.

    He made this known in a statement made available to journalists in Lagos.

    The company, one of the Pension Fund Administrators (PFAs) in the country, is keen to pay back to the society through its Corporate Social Responsibility (CSR) project.

    He said they have been in the forefront in ensuring that people with special needs, including the children with Down Syndrome have a sense of belonging.

    He said the gesture was to assist the children with Down syndrome have a sense of belonging in the society, adding that the PFA, in the past, has been supporting not just the DSF, but also in other CSR projects within the environment it operates.

    He maintained that his PFA had in the past, supported the foundation morally, physically and financially, in a bid to give back to the society it is conducting its business activities.

    Suleiman pledged that his firm will continue to impact the lives of the less privileged so that they can be successful in the society.

    He said this is also an avenue to sell not only FUG Pensions brand, but also the entire pension scheme in the country.

    FUG Pensions was licensed by the National Pension Commission (PenCom) on June 21, 2007 to carry on the business of Pension Fund Administration. Its shareholders are UnityKapital Assurance Plc- an insurance company with shareholders’ funds of N8billion and Glanvill Enthoven & Co Limited- an insurance broking company with over 30 years’ experience in pension fund management and administration. FUG Pensions has an authorised and paid up share capital of N1.5 billion and operates from six regional offices in Port Harcourt, Ibadan, Abuja, Kano Maiduguri and Lagos and several branch/zonal offices spread across the country.

  • Lagos pays N125.9b to pensioners in nine years

    Lagos pays N125.9b to pensioners in nine years

    Lagos  State government has paid N125.941 billion  to pensioners in the state in nine years, Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson Oke has said.

    He made this known in his keynote address at the 11th Retirement Benefit Documentation Seminar for Lagos State Public Service employees due to retire from January to June, 2017.

    According to him, the state government in last 16 months under Governor Akinmunmi Ambode’s administration has paid N21.929 billion as accrued pension rights to 5,027 retirees.

    He stated that as at November 2016, accrued pension rights of about N55. 941 billion had been paid to 12,426 retirees since the commencement of payment of entitlements in the CPS dispensation.

    The state government is also   committed to the regular contribution of the monthly deduction of 7.5 per cent from every employee and the employer’s 7.5 per cent, adding that the total contributions remitted to the Pension Fund Administrators ( PFAs) from April, 2007 is about N70 billion as at October, 2016.

    To bridge the gap in the inadequacy of the funding rate recommended in the Pension Reform Law and for the year 2016, he said the Governor Ambode has approved a pension bailout fund of N6.5b.

    He said while there are still some backlogs of pension payment to be cleared, the state is committed and hence all hands are on deck to ensure entitlements are promptly paid.

    Director-General, Lagos State Pension Commission (LASPEC), Mrs Folashade Onanuga added that the state government remains the only state that is up to date in monthly remittance of contributions into employees’ Retirement Savings Accounts (RSAs).

    She said: “The state has not shirked in her responsibilities and commitment to the regular funding of employees’ RSA. We remain the only state that has also not reneged in the funding of the Retirement Benefit Redemption fund and Pension Sinking Fund accounts.