The Nation Newspaper

Category: Pension

  • NUP condemns jumbo pension for governors

    The Nigeria Union of Pensioners (NUP) Oyo State has described State Houses of Assembly approving jumbo allowances for outgoing governors and their deputies as “insensitive” and “wicked”.

    The union said their action  is insensitive when viewed with the present state of pensioners who spent 35 years of their productive years serving their fatherland and ending in unpaid gratuity and pensions ranging from 43 to 72 months in some states of the federation.

    Chairman, NUP Oyo State chapter, Gbadegesin Akande made this known while speaking at the “2016 Pensioners Day” held at the Union’s Office Complex, Onireke/Dugbe road, Ibadan.

    According to him, it is a wicked thing to do when juxtaposed with looting of public funds by some governors and their deputies during a mere four to eight years.

    He said many of the State Houses of Assembly are mere appendages of the state governments.

    Akande however noted that some state governments like Rivers, Enugu and Yobe have been reported to have paid pensioners about seven months pension arrears, lamenting that the fate of Oyo State pensioners is unknown especially as Christmas and New Year celebrations approach.

    He urged the state government to begin payment of gratuities to retired primary school teachers who have not been paid since 2008.

    He also demanded that the state should implement six per cent and 15 per cent pension increase to retired local government staff, noting that other categories of pensioners in the state have been enjoying this increase since February, 2013.

    He said the union is also requesting for 43 months unpaid pension to retired primary school teachers and arrears of six per cent and 15 per cent pension increase to state pensioners.

    Professor Moses Akinola Makinde who delivered a lecture at the event titled: Nigeria’s Much Neglected Senior Citizens, said the Federal Government should take seriously the problem of non-payment of salaries of workers and pensioners with the governors.

  • Stanbic IBTC Pension lists micro pension benefits, challenges

    Stanbic IBTC Pension lists micro pension benefits, challenges

    The micro pension scheme, though good for the country, has challenges.

    These challenges, according to Chief Executive, Stanbic IBTC Pension Managers Limited, Mr. Eric Fajemisi, include insufficient awareness and negative perception towards it, modest financial literacy in the country, high cost of promoting awareness on the Contributory Pension Scheme (CPS), lack of reliable data on the informal sector and low buy-in by unions in the pension sector, among others.

    Fajemisi, who made this known during an interactive session with journalists in Lagos, said on the other hand, the micro pension scheme, when finalised, would ensure improved standard of living for the elderly, guarantee the safety of funds and may provide access to other incentives, such as mortgage facilities and health insurance.

    According to him, other benefits would include flexible contribution remittances, the opportunity to make withdrawal prior to retirement and the enhancement of financial inclusion and attainment of economic stability objectives.

    On the other hand, the initiative, he said, faces challenges such as insufficient awareness and negative perception towards pensions, modest financial literacy in the country, the high cost of carrying out awareness of the CPS, lack of reliable data on the informal sector and low buy-in by unions in the sector, among others. These challenges, he noted, are expected to be addressed prior to commencement of the scheme and thereafter.

    He described the proposed micro pension scheme as having the capacity to deepen asset accumulation in Nigeria, which will also provide the vital capital required for investment in critical sectors of the economy.

    He stressed that it was an initiative designed to cover over 70 per cent of Nigeria’s working population in the informal sector, adding that the mini or micro pension scheme offers enormous benefits to the society.

    Reviewing some provisions of the 2014 Pension Reform Act and the impact on the CPS, the Stanbic IBTC Pension boss noted that the introduction of more stringent penalties for erring operators and directors, especially as it relates to mismanagement of funds, has engendered greater corporate governance, making it almost impossible to misapply pension funds by anyone.

    He said: “By increasing the contributions of the employer and employee to 10 and 8 per cent respectively, the Act has ensured the availability of more benefits to contributors at retirement. In addition, the Act makes the non-remittance of employees’ contribution by the employer an offence, which the National Pension Commission (PenCom) can prosecute in court. Amongst its provisions, which expanded the coverage net, private sector organisations with just three employees or more are now free to register under the scheme; while the law also compels an employer to open a Temporary Retirement Savings Account (TRSA) on behalf of an employee that fails to open a Retirement Savings Account within three months of being employed.

    “With 7.3 million registered Retirement Savings Account (RSA) holders, the CPS presents a clear path for employees to maintain and enjoy a life of comfort in retirement.  He said as people head towards retirement, a decision about the type of life they wish to live in retirement should not be made from the hip, but rather through a well-structured financial planning process. The process, he said, should commence from the day one takes on a first job and involves setting aside part of current income into a retirement savings account.”

    He assured that his company remains committed to rendering impeccable service to its clientele.

    He noted that the company commenced operations in 2006 and has paid over N204 billion to retirees, paying approximately N2.6 billion to over 42,000 retirees monthly.

    “With assets under management in excess of N1.82 trillion, the PFA currently boasts of over 1.5 million retirement savings account holders nationwide. The shareholders’ funds are in excess of N14.51billion, well above the N1 billion capital base for PFAs,” he said.

  • CSR: Pension firm gives 400 reflective jackets, 20,000 brochures to FRSC

    CSR: Pension firm gives 400 reflective jackets, 20,000 brochures to FRSC

    Future Unity Glanvills (FUG) Pensions Limited has presented 400 reflective jackets and 20,000 brochures to the Federal Road Safety Corps (FRSC) to boost the organisation’s safety drive in the ember months.

    Managing Director, FUG Pensions, Usman Sulaimon, said it was part of the company’s Corporate Social Responsibility (CSR).

    He stated that the company was introduced to the special activities of the FRSC during the ember months and they decided to partner with them.

    He said the company believed that motorists should be educated and enlightened on the dangers of over speeding and use of expired tyres on the highways.

    He said: “We got to understand that the FRSC carry out special activities during the ember month on the Nigerian highways to ensure road users, especially those going on holidays, arrive at their destinations safely.

    “FUG also believes that people should get to their destinations alive and not dead to celebrate and enjoy their holidays. It is in this sense that we decide to support the FRSC and we reach out to them to find out what they need to do their job effectively.

    “There are three things that came up in their lists which are reflective jacket, speed limit and use of expired tyres. The road safety corps and special marshal who support them wear reflective jacket which they wear on the highways.

    “As the name implies, it is reflective and you see it from afar. Therefore you are cautious and you give attention to what they are indicating to you in terms of dangers on the highway which include speed limits among others. It is based on this that we are presenting the jackets to the FRSC. We believe it will serve the purpose for which we are providing them and that is ensuring safety this holiday period.”

    “The second thing we decided to do is the brochure on speed limit device. The device was introduced by FRSC in recent times for commercial vehicles. It was later introduced to private vehicles but is still voluntary. We at FUG have decided to have the device installed in all our vehicles even before our partnership with the corps for our safety and safety of our drivers.”

    He noted that it was in this sense that “we are providing information leaflets to the corps to make it available to the public so that they can understand why they should limit the speed of their vehicles and tyres”.

    He stressed that not many accidents were caused by drunk drivers, but by over speeding.

    “We also provided information brochure on usage, maintenance and safety of tyres. Many people just branch at a roadside vulcanisers, who are illiterates to inflate tyres for them. They inflate the tyres to whatever level which endangers the tyres. People also do not know that tyres have expiring dates and for whatever reasons the manufacturers print the expiring dates in coded forms.

    “People also buy used tyres and all of these contribute to tyres bursting while on highways. It is in this sense that we are making this brochure available to the corps to give out to motorists on the highway so that they are educated as to the importance of the tyres.” he said.

  • Lagos pays N941m to 228 retirees in November

    Lagos pays N941m to 228 retirees in November

    The Lagos State Pension Commission (LASPEC) has paid another N941 million to 228 retirees of the state government.

    The payment was made to those who retired from the Mainstream Civil Service, Local Governments, and State Universal Basic Education Board (SUBEB), Teachers Establishment and Pensions Office (TEPO) and other parastatals of government for the month of November.

    LASPEC Director-General, Mrs. Folashade Onanuga, who disclosed this said the amount was issued as bond and presented to the retirees at the 33rd Retirement Benefit Bond Presentation ceremony in Lagos.

    According to her, the administration has, from August, 2015 to date, paid N21.9 billion as accrued pension rights to 5,027 retirees under the Contributory Pension Scheme (CPS).

    She urged them to take good care of their health by going for comprehensive check-ups and desist from frivolous spending.

    She also advised retirees not to desire quick gains as fraudsters would make offers to defraud them of their benefits.

    She reiterated that Lagos Governor, Akinwunmi Ambode, is interested in the welfare of the employees both in and out of office hence, salary and pension issues are given  priority.

    She further explained that beneficiaries can only choose Programmed Withdrawal benefit option as it is the option tenable presently pending the time, that Life Insurance Companies would open operational account jointly with a Pension Fund Custodian (PFC) to secure the funds for the provider of annuity services.

    The retirees commented on the good human relations exhibited by members of staff of the Agency. They gave kudos to the government for making such an office responsible for the elderly with well cultured, humble staff with good disposition.

  • Axa Mansad Pension: Know your fund’s performance

    Are you a Retirement Savings Account (RSA) holder or a retiree under the Contributory Pension Scheme (CPS)? Do you know how to determine if your pension fund is growing? Do you know if your Pension Fund Administrator (PFA) is taking high or low investment risk on your fund? Are getting good return on your investment?

    Axa Mansad Pension has stressed the need for RSAs and retirees under the CPS to understand the techniques surrounding the calculation and performance of their pension fund.

    According to the PFA, calculating one’s fund performance will enable one to know the returns on one’s investments.

    Its Assistant General Manager, Naomi Aduku explained that to for retirees and RSAs to calculate their fund performance, they should get the unit cost of their PFA’s fund as at December 31, 2014 and compare it with the unit price as at December 31, 2015.

    She said Axa Mansad Pension’s 2015 unit price, which can be checked on its website is 1.9074 and unit as at December 31, 2014 was 1.7075.

    To know its performance, divide the new RSA unit by the old RSA unit, subtract one from the figure you get and multiply the result by 100.

    She said the PFA has discovered that there have been some contentions on why the public does not understand the techniques surrounding the calculation of the performance as most people only looked at its unit price.

    She stressed that based on this, the PFA embarked on enlightenment campaign to sensitise and educate  customers on how to calculate their fund performance.

    She said: “We have embarked on an enlightenment campaign to sensitise RSAs and retirees to be able to look at our fund performance in the right manner. We have deployed a video available to the public on youtube. in this regard. We also want our existing customers to calculate our fund performance to be able to see what the returns on investments are in respect to funds with us.

    “Let’s say you just got a job and you need to open RSA as mandated by the National Pension Commission (PenCom). One of the things you should look out for is funds’ performance within a period of time because the performance will tell you how much money has been generated, how much savings was made and what they have done with the savings in a specific time and period.

    “Usually, a PFA will invest savings in various financial instruments. It could be bonds, treasury bills, equities among others. The overall value of the fund could be divided into units. Each unit of RSA fund has a price. You need to know what instrument is invested into. All of it will form a pool which includes the initial amount, principal and investment.“

    She said the firm has performed well in terms of returns on investment (RoI).

    “In the pension industry, the most important thing is protection of the fund. No PFA will allow the funds to be eroded. They prefer to even have a lower return and maintain the capital and we as an individual PFA will never allow that to happen,” she added.

  • Fed Govt retirees urge Buhari to defend CPS, pay pensions

    Fed Govt retirees urge Buhari to defend CPS, pay pensions

    Federal Government retirees, acting under the aegis of Interim Association of Contributory Pension Scheme Pensioners, have appealed to President Muhammadu Buhari to defend the credibility of the new  scheme by making money available for payment of pension benefits.

    The aggrieved pensioners said they had formed an interim association as a result of the neglect pensioners by the Nigeria Union of Pensioners (NUP), which will focused mainly on the old scheme, the Defined Benefits Scheme (DBS).

    In a statement made available to The Nation’s Pension Complaints and Solution section, the President of the association, Comrade M. A. Shittu, said the association is a group of federal pensioners who retired under the CPS 12 a year ago and are yet to receive any pension benefits.

    He lamented that their situation was so bad and pitiful because government officials have not told them why they deserve this untold neglect and hardship after serving their father land meritoriously for several years before retirement.

    He said his members were getting agitated over the delay and neglect.

    He said: “Indeed, at the beginning of the CPS, things were working fine as a result of the payment of retirees’ benefits as at when due.

    “But today, it appears that the cankerworm that plagued other lofty ideas and dreams in Nigeria in the past is gradually and steadily creeping into the fabric of the CPS.

    “This is why this letter does not only represent a save our souls (SOS) but a clarion call on President Buhari and all stakeholders to come forward to defend the credibility of the scheme.

    “This call is necessary and urgent because as at today, pensioners under the scheme who retired since November last year, exactly 12 months ago, are yet to be paid kobo either as gratuity or pension. We wonder if those who retired in 2015 are yet to collect their benefit what will happen to those who retired in 2016 and those retiring now?

    “The perceived neglect of pensioners under the present CPS is possible because we are not adequately covered or not covered at all by the regular pensioners unions which have focused its interests and attention on its members who are largely from the old scheme.

    “In Nigeria, experience has shown that once there is no union body to fight for you anything can happen to you and your benefits.”

    He said it was in the light of this  that his members are drawing the attention of the three unions they belonged to while in active service to come to their rescue before it is too late.

    “This situation is so bad and painful because nobody, including PenCom, PFAs, insurance companies or government officials has told us why we deserve this untold neglect and hardship after serving our father land meritoriously for several years before retirement. This letter of appeal is urgent and necessary now with the hope of rescuing us and the new scheme,” Shittu said.

    The group’s Secretary, Comrade S. A. Kolawole, recalled that the CPS was put in place by the Federal Government in response to the pay-as-you-go system, which had become a serious burden on the government due to its inability to pay pension and gratuity to pensioners promptly.

    He noted that some of the reasons put forward by the government to justify its introduction was to stop the growth of outstanding pension liabilities; ensure that every person who works in either public or private sector receives his or her retirement benefits on time.

    Others are to assist workers to save through the monthly contributions  to cater for their old age; remove the burden of pension payment from government; and set up credible body to efficiently regulate, supervise and administer the scheme in a way to overcome the usual administrative bottleneck.

    He urged the Federal Government  to keep to keep its promise and pay pensions promptly.

     

  • World’s Biggest Pension Fund Finds New Best Friend in Trump

    One of the world’s most conservative investors has found an unlikely new ally in one of its most flamboyant politicians: Donald Trump.

    The unconventional president-elect’s victory is helping Japan’s giant pension fund in two important ways.

    First, it’s sending stock markets surging, both at home and overseas, which is good news for the largely passive equity investor. Second, it’s spurred a tumble in the yen, which increases the value of the Japanese manager’s overseas investments. After the $1.2 trillion Government Pension Investment Fund reported its first gain in four quarters, analysts are betting the Trump factor means there’s more good news to come.

    “The Trump market will be a tailwind for Abenomics in the near term,” said Kazuhiko Ogata, the Tokyo-based chief Japan economist at Credit Agricole SA. “GPIF will be the biggest beneficiary among Japanese investors.”

    While most analysts were concerned a Trump victory would hurt equities and strengthen the yen, the opposite has been the case. Japan’s benchmark Topix index cruised into a bull market last week and is on course for its 12th day of gains. The 4.6 percent slump on Nov. 9 now seems a distant memory. The yen, meanwhile, is heading for its biggest monthly drop against the dollar since 2009.

  • Pensioners seek verification

    Pensioners seek verification

    NO fewer than 4000 Cross River State pensioners under the Defined Benefit Scheme (DBS), have urged the Pension Transitional Arrangement Directorate (PTAD) to verify them  to enable them get their benefits.

    According to the pensioners, the call became imperative after waiting for years on PTAD to conduct the verification and capture them in the system for payment.

    They said it was disheartening for PTAD to say it won’t pay unverified pensioners.

    The Secretary, Nigeria Union of Pensioners (NUP), Calabar,  Elder Fymefate Ogolo, told The Nation that some pensioners have not been paid pension and gratuity since they retired 16 years ago.

    He said PTAD was in Calabar last year to verify the police, immigration and prisons pensioners and promised to return to verify federal pensioners with state pension share.

    They promised to come to Cross River and Akwa Ibom, Rivers, Edo, Delta and Bayelsa states last January,  he said, noting that up till now, they have not come.

    PTAD, he said, directed those who had not been paid pensions and gratuities  to fill complaint forms.This Ogolo said,they had done and sent to Abuja, adding that so far, there has not been any response from the directorate.

    He said: “Some pensioners have not received federal pension share since 1999 and we have been sending forms to PTAD, but there is no word or assurance that these forms are being processed and this has made our people to be worried. From time to time we call for a general meeting to pacify our people. At present, we want to know when they are coming for documentation in the Southsouth states, including Cross River because our people believe that after the documentation they will be paid.

    “They came to Calabar, verified the Prisons, Immigration and Police and it is supposed to be the turn of state pensioners with federal share, but up till now, they have not done anything and the year is coming to an end. The question the pensioners are asking is: when are they coming to verify the state pensioners with federal share in Southsouth? Many of us are getting older and can no longer come out,’’ he said.

  • Firm’s pension assets hit N46.5b

    Pension assets under the management of IEI-Anchor Pension Managers Limited have grown to N46.5 billion in 2015 from N39 billion recorded in 2014 –  a 19.8 per cent growth.

    IEI-Anchor Pension Chairman, Senator Jonathan Zwingina, at the company’s Annual General Meeting (AGM) in Abuja, said the growth was achieved despite the prevailing economic challenges. He said the company’s average growth in return on investment is above industry average, showing a turnaround in the company’s fortune.

    According to him, the company moved from a loss of N17 million in December, 2015 and  made N98 million profit.

    Zwingina said: “The year 2015 also saw the company grow by 12 per cent in its Retirement Savings Account generation with 83,568 accounts as against 74,901 accounts in 2014.

    “We continue to provide an amiable atmosphere for our employees to advance their careers and at the same time keeping in view our responsibility to our customers.

    “The Board has continued to maintain its oversight functions, in ensuring proper risk management, accounting and financial management through its various Board committees  to ensure strict compliance with its business strategies and other guidelines.

    As a part of its fiduciary responsibilities, the Board has maintained its unwavering commitment to safeguarding the assets entrusted to it.

    “In the year, the Board took proactive measures to ensure that despite prevailing economic downturn, it maintained profitability, thereby enhancing shareholder’s value.”

    Its Managing Director, Glory Etaduovie, said despite the overwhelming changes, the company recorded a modest growth in revenue by about 22 per cent, from N370 million in 2014 to N450 million in 2015.

  • Pension fund investment: Four states provide land for housing

    Pension fund investment: Four states provide land for housing

    Four states have provided land for the Federal Ministry of Finance FMOF to build houses under a mortgage scheme.

    The ??? are to built with pension funds in order to bridge the 77million housing gap.

    The scheme is the outcome of  a recommendation by a committee established by the FMOF comprising the Debt Management Office (DMO), Nigerian Sovereign Wealth Investment Authority, Pencom and Nigeria Mortgage Refinancing Company.

    The Head, Investment Supervision Department, PenCom, Ehimeme Ohioma, in a paper titled: “Pension funds for economic development: Investing Pension funds in infrastructure” in Calabar, the Cross River State capital, presented at a seminar for reporters, said the land and Certificates of Occupancy were part of the states equity contribution to the mortgage.

    Six other states, he said  have also shown interest in the project, adding that the Federal Government’s aim is to provide land  to reduce the cost of finance and ensure a single digit mortgage.

    He said if the government did not provide land and infrastructure, the cost of the houses would not be affordable.

    Ohioma said: “There is a steering committee being anchored by the Ministry of Finance on enhancing the mortgage finance industry. Houses are going to be built and people are going to be given mortgage to have those houses. The Federal Government is looking at providing land as its own equity contribution and what this means is that it will reduce the cost of finance.

    “The target of the Federal Government is that the mortgage rate should be single digit. If the government does not provide the land and infrastructure, the cost of those houses will not be affordable to the ordinary Nigerian that would require them. So, they are working with state governments starting with 10 pilot states.

    “The land and infrastructure is financed by governments and there are budgetary provisions for this. When PenCom sees that it is working, then the pension funds will come in. But for now, the government is financing the initial stage in conjunction with 10 states.

    “The last meeting was held some weeks back and as at this time, four states have already given Cs of O to show commitment to the project and they will ensure that it is an owner occupier so you must live in the houses. This will ensure that it goes to the right people. So, if you already have a house somewhere, searches will be done and your name will be cancelled from it if you are successful. It must be owner occupier houses.”

    Meanwhile, PenCom has almost finalised guidelines for mortgage to enable contributors under the Contributory Pension Scheme (CPS) to own their homes.

    This is based on the new insertion in the Pension Reform Act (PRA) 2014 that allows Retirement Savings Account (RSA) holders to access part of their RSA fund for payment of equity contribution for residential mortgage.

    He said what this means is that when they come out with the guideline, all the grey areas would have been addressed.

    Ohioma said: “The Commission has been in talks with the Nigeria Refinancing Mortgage Company and other mortgage lending institutions. We are trying to fine-tune the grey areas because we are aware that if the guidelines are issued today, the whole seven million contributors, including the two million that already have their own homes, would want to just grab the money. Many will see it as an opportunity to just take their money and this is not the thrust of the federal government for pension.

    “We are coming up with a very robust guideline that will ensure that the system is fool proof to a great extent. Although you cannot totally eliminate malpractices, you can minimise it to a great extent that the purposes to which contributors access and drawdown on the funds are been met and they are really going into having their own homes.’’