The Nation Newspaper

Category: Pension

  • Despite recession, PFAs doing well, say operators

    Despite recession, PFAs doing well, say operators

    Pension Fund Administrators (PFAs) are striving to generate income on pension contributions despite the recession, Pension Fund Operators Association of Nigeria (PenOp) Chairman Egunarekhide Longe has said.

    Lounge, also the Managing Director of AIICO Pension, spoke in Calabar, the Cross River State capital.

    He said the recession had, however, slightly affected contributions from employers.

    He said based on the slight drop in contribution, making good returns on investment had been a major challenge for the PFAs.

    He said: “Contribution has gone down slightly and return on investment has also being a challenge for the PFAs. But we are doing our best to generate return in the asset classes that we are able to put money into while we look to diversify as we go on.

    “Recession is not a cause as some people see it. It is simply to make us realise as a country that we are not doing the right thing. If we have the mentality and discipline to get the right thing done, the country will grow better. As PFAs, this is the attitude we are using on investment portfolios.

    “It may not be brilliant but we are on top of the situation and we are looking to diversify as much as we can. When we do this, return on investment of contributors and retirees of the Contributory Pension Scheme (CPS) will be huge,” he added.

  • PDP chieftain defect to APC

    PDP chieftain defect to APC

    Scores of Peoples Democratic Party (PDP) and the Alliance for Democracy (AD) supporters in Oke-Agbe, Ondo State, have defected to the All Progressives Congress (APC).

    The defectors were led by their leaders, including a chieftain of PDP, Hon. Gabriel Talabi and the Secretary of AD in that council, Mr. Sunday Akindeji.

    They offically dumped their old parties at the campaign rally of the APC governorship candidate, Mr. Oluwarotimi Akeredolu (SAN) at Oke-Agbe.

    They were received by Akeredolu and the Director General of the Akeredolu Campaign Organisation, Hon. Victor Olambitan, Ade Adetimehin, Tunji Abayomi, among others.

    Talabi lamented the neglect of the local government area by the outgoing PDP administration, in terms of roads and other social amenities.

    He stressed that they have decided to join the progressive party and also believe that if Akeredolu emerges, Akoko will not be neglected.

    Abayomi promised to deliver the local government area to the APC on November 26.

    Akeredolu and Olabimtan, who spoke at the rally, promised to correct the mistakes of the past in the local government, if the APC wins the coming governorship election.

    They thanked the defectors for their support and equally urged them to beware of the antics of desperadoes who are deceiving people around that the APC had collapsed its structure with AD.

    They insisted that the APC remains intact in the state and that it is mentally, intellectually and physically-ready to end the age-long underdevelopment that had enveloped the state in the last eight years.

  • ‘Adequate database vital to power sector investment’

    ‘Adequate database vital to power sector investment’

    For pension operators to invest part of the N5.9 trillion pension funds in the energy sector, there is the need for an adequate database of power users, the Head, Investment Supervision Department, National Pension Commission (PenCom), Ehimeme Ohioma, has said.

    Presenting a paper on ‘Pension funds for economic development: Investing pension funds in infrastructure workshop in Calabar, the Cross River State capital.

    According to him, the quest to attract pension funds to develop the nation’s power sector may be stalled by lack of data on power users and illegal connections.

    He said the ability of power sector operators to develop correct database of power users and the menace of illegal connections pose great challenge to investing pension funds in power.

    He said: “At present, there are many people using power without paying and such a situation would make the recovery of any fund in the sector difficult. Safeguarding pension fund remains a priority to PenCom and pension operators.

    “Pension funds would not be invested in businesses where the funds cannot be easily recovered. The operators are willing to invest in infrastructure, but the template for investment must be transparent and understood by the investors. The road sector seems a veritable sector for investment as the recovery channels are clear and funds invested in roads can be easily recovered by tolling the roads.”

    Ohioma, who said pension funds account for about six per cent of Gross Domestic Product (GDP), noted that the pension reforms and introduction of the Contributory Pension System (CPS) have significantly enhanced savings mobilisation, capital (equity and bond) market development, economic growth and macroeconomic performance.

    He said there is, however, a huge infrastructure gap, cutting across critical areas of the economy, which has impacted on the level of economic growth and performance.

    “Infrastructure is a potential avenue for pension funds to reap higher and consistent returns on investment, if adequate policies, structures and regulations are instituted. Several countries in Europe, Latin America and Africa have successfully utilised part of the accumulated pension funds by investing in new infrastructure projects or renewing dilapidated ones.

    “Infrastructure: Is defined as the basic systems and services, such as transport and power supplies, that a country needs, to function effectively? They are the bedrock for economic development and prosperity,” he added.

  • Fidelity Pension assures retirees, others of pension safety

    Fidelity Pension Managers Limited offers pension contributions safety and, in turn, guarantees income, growth and capital preservation, its Managing Director Mrs Amaka Andy-Azike has said.

    She made this known in an interview with The Nation in Lagos. She said the company’s vision is to deliver competitive returns on investment of their cleints.

    According to her, the company, a Pension fund Administrator (PFA), is transparent in its transactions with retirees, Retirement Savings Account (RSA) holders and Next-of-Kin (NoK) and that there are no hidden charges.

    She assured that the company neither delays nor denys any of its retiree their request, once all requirements are met.

    She added that the firm guarantee tax relief on pension contributions made by employees, noting that tax relief on pension contributions is available for up to 100 per cent of earnings, provided the employee is under 75.

    She stressed that security of pension fund and asset is assured.

    Mrs Amaka said: “Fidelity Pension has pedigree, good corporate governance and is well capitalised. Under the pension reform Act 2014, sanity, decency and operational checks and balances are assured by the various PFAs with the strong surveillance, compliance and monitoring measures put in place by the National Pension Commission (PenCom).

    “Gone were the days when safety of pension contribution was in doubt. The fund managers, then, were hardly checked let alone monitored. But it is a different cup of tea now with the provisions of the new Pension Reform Act of 2004, amended in 2014. Pension contribution are no longer residing in the coffers of the establishment where the contributors are working but under the management of the contributors choice of pension fund administration who in turn keeps it in the custody of the pension fund custodian who holds the assets in the trust of the retirement savings account holder,” she added.

  • PTAD to restore confidence in pension administration

    PTAD to restore confidence in pension administration

    The Pension Transitional Directorate (PTAD) has said it is working hard to restore the confidence of Nigerians in the management and payment of pension to pensioners under the defunct Direct Benefit Scheme (DBS).

    Its Executive Secretary,  Ms. Sharon Ikeazor, who gave the assurance while inaugurating the Anti-Corruption and Transparency Unit of the Directorate, said the agency had been strategising on ways to tackle the menace of corruption in the management of pension under the DBS.

    Pensioners, who retired from service before the commencement of the Contributory Pension Scheme are captured in the DBS.

    Ms. Ikeazor said before the establishment of PTAD, pension administration in Nigeria fell into disrepute amid allegations of misappropriation of funds, maladministration, corruption and fraud, many pensioners complained about the non-payment of, or short-payment of pension and gratuity, removal of names from pension payment vouchers and unpaid pension arrears, among others.

    She said in the absence of strong regulatory oversight, the defund pension offices, the civil service pensions, Police pension, customs, Immigration and Prisons pension  and the Pension Board Trustees of Federal Government parastatals had many cases of misappropriation of funds running into billions of naira, adding  that cases of corruption and general mismanagement became a national embarrassment, with huge financial consequences while the pensioners’ welfare was relegated to the background, even as the government’s pension liability grew steadily due to the disputable fraud in the system.

    Independent Corrupt Practices Commission (ICPC) Chairman, Ekpo Nta, expressed confidence that with the establishment of the agency, and given its robust mandate, the dark times of pension fund mismanagement would be a thing of the past.

    The ICPC chief, who was represented by the Head of Anti- Corruption Unit of the Commission, Justin Kuatsey,  said: “There have been reported cases of alleged mismanagement and corruption in the handling of pension funds of retirees, a situation which is most unfortunate as it has contributed in no small measure to the daunting challenges. Being faced by our retired senior citizens over the years, it is the prayer of many that with the establishment of this Directorate and given its robust mandate to address the observed challenges, the dark ages of pension fund mismanagement would be a thing of the past,” he stated.

    He said positive results would be attained, especially now that “we shall be leveraging on the strong liaison between the Commission and this Directorate to produce positive results  in serving the people better.”

  • IEI-Anchor nets N54b

    •Celebrates 10th anniversary

    IEI-Anchor Pension Managers Limited, a Pension Fund Administrator (PFA), has recorded N54.056 billion and registered 82,188 clients,  its Managing Director, Glory Etaduovie, has said.

    He spoke at the firm’s 10th Anniversary in Lagos

    He said the PFAs’ investment policy is anchored on the objective of achieving maximum returns at minimal risks within the various asset classes okayed by PenCom.

    The MD said the company’s investment portfolio includes equities, fixed income securities and money market instruments.

    According to him, the company was incorporated in November 2004 with an authorised and paid up share capital of N2.22 billion.

    He said the shares are held by the International Energy Insurance Group and eminent Nigerians. The company commenced operations in 2006.

    Etaduovie said: “Having commenced operation 10 years ago with the vision to be a global financial institution, providing excellent pension solutions to the customers and the mission to be a dependable partner, helping its clients to protect and grow their pension assets, we are looking back with excitement.

    “We believe that our strengths lie on our strong financial position, consistent and competitive return on investment, superior customer service, first class office infrastructure, young, skilled professional workforce, strong corporate governance structure and a professional Board and Management teams. We have put in place robust operational and ICT infrastructure and accessibility across Nigeria with several platforms provided to customers.’’

  • NAICOM canvasses compulsory insurance in Gombe

    NAICOM canvasses compulsory insurance in Gombe

    The National Insurance Commission (NAICOM) is enforcing compulsory insurance products in Gombe State.

    Commissioner for Insurance, Mohammed Kari, stated this during a  visit to Gombe State Governor, Alhaji Ibrahim Hassan Dankwambo, at the Government House in Gombe.

    He said the objective of the visit was to seek the support of the Governor for the implementation of compulsory insurance products in the state.

    He said the commission was not unmindful of the fact that the laws establishing these products are federal laws, but that they can easily be domesticated by the states and enforced within their boundaries.

    He appealed to the governnor to kick off the process of domesticating the laws if it had not already done so, especially for buildings under construction and public building insurances for easy enforcement.

    He said while the collaboration would result in increased insurance penetration and written premium income for the insurance industry, it would also create another veritable source of Internally Generated Revenue (IGR) for the government.

    He said: “It is our intention to establish a mutually beneficial relationship with the state. Our proposed collaboration will hopefully stem the proliferation of fake insurances in the state and ensure the people enjoy the benefits inherent in the consumption of genuine insurance products.

    “Another disturbing issue is that of apathy to insurance by the government and its agencies at all levels. We have discovered that most government fails to insure their assets and property even when funds are provided in the budget for it. This has become something of great concern to us in NAICOM and I want to use this medium to solicit the support and understanding of the governor in ensuring that the government of Gombe provides adequate insurance for its assets and property.’’

    “We have indeed established a dedicated committee in NAICOM to assist various governments in insuring their assets and property accordingly. This committee will be ready to work with your people once we receive your nod.”

    He disclosed that the insurance sector in Nigeria has under gone many reforms which have significantly changed the face of insurance in the country. The reform efforts have also attracted significant Foreign Direct Investment in the sector.

    He stressed that as at today, no fewer than 10 companies have one form of foreign investment or the other with many more still waiting to come in which has brought about efficiency, prompt payment of claims and most importantly, healthy competition amongst operators.

    With an estimated population of over 170 million people and given the present level of insurance penetration in Nigeria, the potential of the market is yet to be fully explored, he noted.

  • NLC to Fed Govt: avert CPS collapse

    NLC to Fed Govt: avert CPS collapse

    The Nigeria Labour Congress (NLC) President Comrade AyubaWahab has called on President Muhammadu Buhari not to allow the Contributory Pension Scheme (CPS) to collapse.

    He made this call at a briefing in Abuja.

    He said there was the need for the Federal Government t devise a means of remitting its share of pension contributions and deductions from workers’salary.

    According to him, the government had not remitted its contribution since last October and that this was threat ening the scheme.

    He said it was sad that the private sector employers had not been remitting their contributions and that of their employees.

    He said: “I think it is, particularly, sad that the Federal Government has not remitted his contribution from October last year till date. This is a threat to the scheme. There is also the issue of the government not funding the retirement bond account that is with the Central Bank of Nigeria (CBN) for people that have to retire.

    “These are some of the areas that we think we have to look into. We have to look at the challenge and put the pensioner at heart even when we are investing the fund. It is not free money. It is the pensioner’s money that is being kept in trust. So, it is really a challenge and, therefore, we have called on the government to try to find means and ways of making sure that the scheme does not collapse.

    “This was the problem that affected the Defined Benefit Scheme (DBS). It was clear lack of funding and if we are at this point where contribution is also not being paid to the retirement savings account of workers, certainly the new scheme is under threat and therefore I think it is an issue. We have tried to find a means of engaging government but I think it is an important issue that government should look into to ensure that the scheme does go down.”

    Wahab said the CPS had come a long way. It had been running for 12 years and had been really successful, he said.

    He further said other emerging challenges which needed to be addressed to ensure safety of their investments in view of the economic challenge should also be looked into.

  • ‘CPS ’ll soon get a boost’

    Despite economic realities, the  Contributory Scheme (CPS) will soon witness a growth, Managing Director, Premium Pension, Wilson Ideva, has said.

    Speaking with reporters in Abuja, he said there was increased awareness and credibility around the scheme and that that was more important than anything.

    He said despite the phenomenal growth in overall pension assets of over N5.8 trillion, there was still  the sentiment that the economic downturn occasioned by dipping of commodity prices was leading to a decline in pension contributions and a squeeze in pension assets.

    He pointed out that the management of pension funds was a long-term endeavour which well-being could not be measured by short-term macro-economic calculations.

    Ideva explained that what is important today is how to profit from the rising importance of savings to grow the pension industry.

    He said: “It is also necessary to capitalise on the extension of the coverage of CPS to the informal sector to promote micro-pension and further grow pension assets. The economic circumstances and infrastructure deficit can only increase the importance of the scheme and the assets under management.

    “The scheme has been a resounding success and has come to stay as part and parcel of our socio-economic reality. Globally, there has been a shift from the defined benefit pension scheme to the defined contribution or the Contributory Pension Scheme, which, has in turn, led to the amassment of huge pension funds relative to the sizes of economies.”

  • Plan for retirement early, workers advised

    Planning for retirement should commence from the first day one starts working, Chief Executive, Stanbic IBTC Pension Managers Limited, Mr. Eric Fajemisin, has said.

    He gave this advice at a pre-retirement forum in Port Harcourt, the Rivers State capital.

    He said the pension system, with defined contributions as its foundation, presents a path for employees to maintain and enjoy a life of comfort in retirement.

    According to him, taking this decision might seem disheartening at the onset, but with the help of an experienced pension professional, the process is made easy and as retirement approaches, the individual would not encounter the usual apprehension associated with retirement from work.

    Fajemisin, who was represented by Executive Director, Investments, Mr. Oladele Sotubo, said as people headed towards retirement, a decision about the type of life they wished to live in retirement should be planned.

    The process, he said, should commence from the day one took on the first job and that it involved setting aside part of one’s income into a retirement savings account.

    He said: “Planning for retirement is imperative early in an individual’s working life as it typically takes many years to accumulate the necessary funds with which to live comfortably when the salary eventually ceases to arrive at the end of every month.

    “There are three crucial considerations which everyone must give a thought to for a secured future. The first is that since no one will care more about another individual’s retirement investments, the individual should educate himself about the process. The second thought is that when making retirement investments, the assistance of a professional should be sought. The third thought is even when the individual may have stopped working for money; the money should never stop working hard for him.

    “This seminar, besides celebrating all of you that will soon transit from contributors to retired clients of Stanbic IBTC Pension Managers, also provides an opportunity to address the concerns or anxieties you might have as retirement draws close,” he said, Other issues that were examined include preparation for retirement; accessing retirement benefits; health at retirement and investment opportunities post-retirement.

    He noted that the pre-retirement forum, which the firm launched three years ago, is part of initiatives aimed at encouraging retirement planning amongst Nigerian workers and employers. With the theme, ‘Life Continues at Retirement – Retire well’, the event had about 600 participants in attendance. Lagos and Abuja had earlier hosted similar sessions this year.

    Head, Business Development, Stanbic IBTC Pension Managers Limited, Mrs. Nike Bajomoassured that the company remains committed to rendering impeccable service to its clientele.

    “We make a promise to our clients: that they will retire very well. It is a promise we always keep. That explains why we are represented in virtually every part of Nigeria, so that our customers will not have to go over long distances in order to meet with us. Retirement is a time to rest and enjoy the fruits of your labour. At Stanbic IBTC Pension Managers, we help you to achieve just that,” said Bajomo.