The Nation Newspaper

Category: Pension

  • ‘Nobody understands pensions’

    Pensions are impossible to understand and are harming Britons’ efforts to save the right amount of cash for later life, the Bank of England’s chief economist admitted last Wednesday.

    Andy Haldane, one of Britain’s most senior banking officials, said consumer confidence in the financial industry had been damaged because even he cannot make “the remotest sense” of most pension deals.

    “I consider myself moderately financially literate – yet I confess to not being able to make the remotest sense of pensions”

    In a scathing appraisal, he added that banks should use less jargon and speak more clearly as the system has been mired by the loss of the personal touch on the high street.

    His comments came after a series of reports found both high street and workplace pensions are too confusing for the general public. As many as six in 10  people do not feel they know enough about pensions to decide with confidence how to save for retirement.

    Mr Haldane confessed he and most top experts could make little sense of the system in a speech on trust in the financial sector.

    “To give a personal example, I consider myself moderately financially literate – yet I confess to not being able to make the remotest sense of pensions,” Mr Haldane said at the New City Agenda annual dinner.

    “Conversations with countless experts and independent financial advisers have confirmed for me only one thing – that they have no clue either. That is a desperately poor basis for sound financial planning.”

    As a result, Mr Haldane believes savers are struggling with big financial decisions, leaving them out of pocket.

    Culled from Telegraph

  • Defined Benefits: PTAD reiterates safety of pension fund

    The Pension Transitional Arrangement Directorate (PTAD) has reiterated the safety of pension fund to retirees of the Defined Benefits Scheme.

    PTAD Head of Communications, Theodora Amaechi, made this known in an interview with The Nation in Abuja. She stated that the recent issue of alleged fraud by its former Director-General, Ms Nellie Mayshack, has nothing to do with pension fund of retirees, noting that the issue surrounding her suspension had to do with operational fund of the directorate.

    She further noted that the country has a lot of pension problem and challenges inherited from the old pension system, adding that the directorate is, however, solving the problems on a daily basis despite numerous challenges encountered.

    She said: “In those days, there were aggrieved pensioners all over the country claiming that the government was not paying them their pensions and the world thought the country has failed in this regard. But in the real sense, they were fake pensioners. We have money to pay verified and genuine pensioners and we are paying them.

    “We don’t have any problem with funding. The suspension of the former DG by the Minister of Finance has no connection with pension funds but with operational funds. It has nothing to do with pensioners.”

  • Lagos remits N67b pension contribution in 10 years

    Lagos remits N67b pension contribution in 10 years

    The Lagos State Government has paid total pension contributions of N64 billion from April 2007 to March 2016 into its active employees Retirement Savings Account (RSA) managed by the 10 Pension Fund Administrators (PFAs) approved by the State, Director-General, Lagos State Pension Commission (LASPEC), Folashade Onanuga has said

    She made this known at the 10th Retirement Benefit Documentation Seminar for employees who are due to retire from the Lagos State Public Service between July and December this tear.

    She said that to date, on a total number of 10,334 retirees, accrued pension rights of about N48 billion has been paid by the state government.

    She also said that the state government’s funding of employees’ pension rights under the contributory pension scheme is approximately N112 billion, adding that from August, 2015 to April, 2016, the sum of N13.7 billion naira was paid to 3,069 retirees.

    She further stated that the commission is set to pay another batch of retirees this month.

    She noted that the commission ensures that all accrued pension rights in terms of entitlements for years spent in service before the commencement of the CPS are credited into the RSA accounts.

    While reminding soon-to-be retired employees that their service is drawing to a close, she said their comfort out of service is premised on their taking some steps to guarantee prompt release of their terminal entitlements.

    She stated that the programme is designed to further enlighten participants on the best way to prepare for their retirement and ensure quick access of their terminal benefits.

    She stressed that early processing of their accrued pension rights by employees of PFAs depends on how early they begin documentation.

  • ‘Why there’s N41.7b Fed Govt retirees accrued rights shortfall’

    ‘Why there’s N41.7b Fed Govt retirees accrued rights shortfall’

    The existence of N41.7 billion shortfall in the 2016 Budgetary for retirees  may stall the payment of all accrued pension benefits of Federal Government retirees by the  National Pension Commission (PenCom).

    PenCom Director-General Mrs Chinelo Anohu-Amazu, who briefed the House Committee on Pensions on compliance with the Contributory Pension Scheme (CPS) in Abuja, said from 2014 to date, there has been a decline in budgetary provision in funding the Retirement Benefit Bonds Redemption Fund (RBBF) Account and the remittance of monthly contributions.

    She explained that N20.07 billion was required to pay all outstanding accrued benefits for deceased and mandatory retirees of the Federal Government for October and December last year.

    She stressed that N79.16 billion has been computed as the arrears of 15 per cent pension increase owed to 79,961 Federal Government retirees under the Contributory Pension Scheme (CPS) as at December, 2014.

    She said: “The Committee may wish to also note that N50.20billion was provided for the 2016 Budgetary Appropriation for the Retirement Benefits Bond Redemption Fund (RBBRF) Account presented to the National Assembly, compared to the Commission’s projection of N91.91 billion, resulting in the shortfall.

    “Also, the  Federal Government is yet to commence the implementation of the revised 18 per cent minimum pension contributions for its employees as stipulated under Section 4 of the PRA 2014.

    “From the inception of the pension reform in 2004, the Federal Government had been religiously implementing the CPS  by payment of monthly contributions of its employees in a dedicated account in the Central Bank of Nigeria, the Contributory Pension Account. It was equally making payment of five per cent of its monthly wage bill into the Retirement Benefits Bond Redemption Fund Account for the payment of the accrued pension rights of its employees who had worked under the old Defined Benefits Scheme and transited to the CPS.”

    Speaking on the compliance level of the private sector, she said regular remittance of contributions is an important aspect of compliance with the law.

    “The monthly remittance by private sector has gradually improved and the returns for the month of December 2015 indicated that N45 billion or 70 per cent of the total expected remittance was remitted to 1,607,361 RSAs. The engagement of recovery agents in 2012 contributed in the improvement of the amount of average monthly remittance of pension contributions from N35 billion in 2011 to over N55 billion in 2015.

    “Through the efforts, the pension assets of the industry have grown steadily from N110.69 billion in 2006 to N5.302 trillion in December, 2015; similarly, the membership of the various pension schemes has grown from 1.6 million in 2006 to 6.89 million in December, 2015,” she said.

     

  • Lagos pays 260 retirees N1, 080b pension rights

    The Lagos State government has issued Retirement Benefit Bond Certificates for April worth  N1.080 billion to 260 retirees, the Director-General, Lagos State Pension Commission (LASPEC), Mrs Folasade Onanuga, has said

    Those covered are  from the Mainstream Local Government, State Universal Basic Educaion Board (SUBEB), TEPO and  government parastatals  under the Contributory Pension Scheme,  .

    In a statement, she said the payment brings to 3069 the number of retirees paid between August last year to April this year, adding that  the total accrued rights paid by the state government from the those months to date is N13, 701 billion.

    “The fact that this administration commenced and has been able to maintain the trend of paying terminal entitlements of retired employees monthly since it started in August, 2015 showed that it is committed to its retirees,” she said.

    She advised the retirees to carefully take decisions on how the funds would be utilised and urged them to be wary of pension fraudsters who deceive retirees into believing  that there are balances to be paid to them and make demands.

    She assured that in the not too distant future, all retirees will receive their entitlements.

    In appreciation, one of the retirees, Mr. Animashaun Taoheed, prayed for the state governor,  Mr. Akinwunmi Ambode for his magnanimity. He said, since the governor would not like to see those who had laboured for the state suffer, God will give him the wisdom to steer the affairs of the state.

     

  • PTAD arrests two fake pensioners

    Two men, including one pension desk officer of the Nigerian Police Command, Nassarawa State, purporting to be next-of-kin of a pensioner have been caught by officials of the Pension Transitional Arrangement Directorate (PTAD) at their headquarters in Abuja.

    The Directorate had, after establishing that the men are fake next-of-kins, invited the police who arrested them and took them to the Force headquarters, Abuja.

    PTAD Head of Corporate Communications, Mrs Amechi Theodora, told The Nation that the two men came into the Directorate asking that their brother’s pension be paid to them.

    She said the mastermind of the fraud is the civilian who works as a police pension desk officer of Nassarawa Police Command.

    She said: “The police pension desk officer generated fake documents and recruited another man to act as a brother to a deceased pensioner. The recruit came into our office and asked that he be paid his brother’s pension.”

    “These are the kind of people that have made pension payment difficult or to run smoothly in the country. They pretend to be pensioners and next-of-kins just to perpetuate fraud.

    “But PTAD is working hard to identify fake and genuine pensioners and this is why the Directorate was able to stop both men fake men in their tracks. We have also embarked on a nationwide verification which is still ongoing,” she added.

  • ‘Workers deserve financial dignity in retirement’

    The Executive Secretary Pension Fund Operators Association of Nigeria (PenOp), Ms. Susan Oranye, has canvassed for financial dignity for workers in retirement.

    Speaking at the Workers’ Celebration at Onikan Stadium in Lagos last Sunday, Oranye said in the face of challenges confronting the labour force, Nigerian workers still deserve financial dignity in retirement.

    “There is diginity in labour and  workers deserve to have financial diginity even in retirement. Steady pension helps maintain a decent standard of living after retirement,” she said.

  • Premium gives prizes to social media campaign winners

    Premium Pension Limited, one of the Pension Fund Administrators (PFAs), has given out four categories of prizes to winners who competed in the first phase of its social media campaign, which ran from February 15 to March 19.

    The campaign tagged #Reward4DHustle was on the social platforms of Twitter, LinkedIn, Instagram and Facebook and was anchored by Alder Consulting Limited.

    The campaign provided an opportunity for the company to address public enquiries and requests through the instrumentality of modern information technology and also contribute to the generation of public awareness as to the workings of the Contributory Pension Scheme.

    Kofoworola George-Taylor, an event manager based in Lagos won on Instagram and received a prize of a fully-paid project management course and international travel while Olanike Oyediran, a Lagos-based lawyer won on Facebook and got the opportunity to undergo a fully-paid project management certification course.

    Another prize was for Idris Abubakar Sadiq, a computer engineer/teacher based in Kaduna who won a home office (laptop, printer and modem) while Ogbonna Kingsley Leo, an Enugu-based nurse won on Instagram and received a laptop.

    The Managing Director of Premium Pension Limited, Wilson Ideva, said the winners have become the company’s brand ambassadors. He said that pension is all about one making plans on how to take care of oneself at old age.

  • Pension call in questions

    Pension call in questions

    Babayo: My name is Babayo. I worked with the Federal College of Education, Yobe State. I was retrenched along with others during President Olusegun Obasanjo’s administration in 2008 when he ordered retrenchment in the Bureau for Public Service. As at that time, we had joined the new pension scheme, the contributory pension scheme and my PFA was Premium Pension. But after the retrenchment, we were paid gratuity.  Our pension was reversed backwards into the old pension, the Defined benefit Scheme and we were put under PTAD. They did this by calculating what I had with Premium Pension, added it to my 15 years of service and paid me pension. Today, I am earning monthly pension from PTAD. I later got a job with INEC and I registered with Stanbic IBTC Pension as my PFA. I am now under the new pension scheme. INEC now deducts and remits my contribution to Stanbic. My question is that I want to know if this is normal or can it be likened to fraud. I am afraid and my conscience is disturbing me. This is why I have come to report this to The Nation and now I pass the issue to you appropriately. Kindly advise me on what to do.

    The Nation will intervene by getting PenCom and PTAD respond to you. Do await their response and also watch out for the newspaper next week Wednesday and subsequently every Wednesday as we keep you updated with pension news. Thank you

    1. rs. Nduoyo: My name is Mrs. Nduoyo. I worked with the Ministry of Defence. I retired in 2005, and till date, I have not been paid my gratuity. I was only paid pension from September to December 2010. My EPEN is ((anonymous). In 2014, I submitted all my documents and fulfilled all the requirements at PTAD office, Maitama, Abuja. Yet I have not received a single kobo or an update. Even when I call the office number they gave me, nobody picks. Please help me. I am a widow. I am on a monthly medication because of my health, I need to feed and buy my drugs. Thanks.

    PTAD Theodore: Please complete the complaints form on our website www.ptad.gov.ng and  take the under-listed document to the nearest PTAD state offices (Kaduna, Enugu, Lagos, Benin)  closest to you or bring them to the head office of PTAD at No.22 Katsina Ala Crescent, off Yedseram Street, Maitama, Abuja; Letter/Gazette of First Appointment, Letter/Gazette of Confirmation of Appointment, Letter/Gazette of last Promotion, Letter/Notice of Retirement approved by a Competent Authority, Computation Sheet (For State Pensioners with Federal shares & Steel Rolling Mills Pensioners only for State Pensioners with Federal Shares, the Computation Sheet must be stamped and signed by the State      Auditor-General, Birth Certificate/Sworn Affidavit of Age (for due pensioners only), Evidence of Payment of Gratuity, Severance Pay Slip (for disengaged retirees only) and Evidence of Change of Name (where applicable).

    Others are Letter of Appointment as a Head of Service of the Federation or Federal Permanent Secretary either from the Secretary to the Government of the Federation, or the Head of the Civil Service of the Federation (for retired permanent secretaries and heads of service of the federation only), duly stamped and signed NUBAN bank statement of account with the bank logo showing the last six months of activity. (For state pensioners with federal share, the bank statement must show payments of state share of monthly pension with at least six months of activity.

    For pensioners with complaints, the bank statement must be from date of retirement or six months before the complaint, till date), Bank Verification Number (BVN) is mandatory for all pensioners, Approval letter for Condonation/Merger of Services from the Head of Service of the Federation, one coloured passport photograph. Please note that sick and infirm civil service pensioners should contact PTAD through the toll-free telephone number below for any special arrangements. 0800-CALL-PTAD (0800-2255-7823)

    aruna: Bola, please my pension arrears have not been paid since 1999, only my monthly salary that I have been collecting from November 2015 till date after the general verification exercise. What do I do now? My Pin: Pensioner Number is (anonymous). Thanks.

    PTAD Theodore: Please do indicate the MDA, paramilitary agency or Police department and year of retirement. Kindly refer to the answer for Mrs. Nduoyo.

    kagha K.O: I was disengaged from the Federal Road Safety Commission in 2005. I served for a period of nine years and six months. I am yet to get neither any pension nor my F.M.B Housing Fund contribution. Please help. Ukagha, Ilorin.

    PTAD Theodore: The Federal Road Safety Commission is not under PTAD, Please refer to the PFAs or PenCom.

    RS Kuti : I was disengaged from the federal civil service in July 2006 on a wrong level 07 instead of Gl 08 and I was paid my pension in 2009, which was later stopped in August 2010. As at today, I have not been paid for six years. I attended all the verifications and made several complaints. Please take up my case, I am under PTAD and the number I was given during the last verification is (anonymous).

    PTAD: Add PTAD initial response to Kuti

    KUTI: Omobola thanks for the intervention. I saw my case published in The Nation newspaper of March16. You are doing a good job. However I will like you to send me PTAD Lagos office address so that I can take the required document to them as stated in the newspaper. I am really troubled because PTAD stated in their response in the newspaper that they cannot find my name in their complaint tracker.  Please follow up my case as my mind is really troubled with the news. My colleagues that we retired together are getting their monthly pension why should mine be different? Mrs. Kuti.

    The Nation: It is a pleasure. Not to worry, it is good that you have started this process; The Nation will follow it up with you. PTAD address is Tafawa Balewa Square, Lagos Island.

    Mrs Kuti: Omobola I went to PTAD Lagos office to lay my complaint as directed in the newspaper by PTAD headquarters but the attendant did not collect the documents from me. She said I should wait for the next verification.

    PTAD Theodore: Please Mrs. Kuti, PTAD has never stopped collecting complaints. Kindly call Nafisah Sambo on 08136048117 at our Lagos office located in Tafawa Balewa Square, Lagos State.

     

  • PenCom to unveil micro pension for celebrities, tailors, others

    PenCom to unveil micro pension for celebrities, tailors, others

    •’Old age poverty may increase’ 

    It is time to bring on board the self-employed including celebrities,  artisans, traders, plumbers, hairdressers, tailors, vulcanizers, food vendors, Okada/Keke riders, among others into the Contributory Pension Scheme (CPS) through micro pension, Director-General of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu has said.

    PenCom also highlighted the need for adoption of pension scheme by the big and small players in the informal sector, noting that study showed that old age poverty will be on the increase following failed family support system in Nigeria and current unemployment rate in the country. As a result of the development, few parents will depend on children at old age while individuals with no pension plan will retire to old age poverty.

    The Director-General represented by the Head, Micro Pensions Department of PenCom, Polycarp Anyanwu, made this known while speaking with reporters in Lagos. She said the micro pension’s guideline, which will soon be unveiled by the Commission has captured these categories of people in the informal sector, noting that among them are  low, middle and high income earners.

    According to her, the informal sector represents 70 per cent of Nigeria’s total working population hence the target of the Commission to extend coverage to a total of 20 million Nigerians by 2019 and 30 million by 2024.

    She stressed that pension funds have grown by over 300 per cent in 10 years while coverage of the working population by the scheme is growing in the public and private sectors.

    She said: “The number of registered contributors was 7.01 million as at March, 2016 representing about 6.9 per cent of total labour force in Nigeria and four per cent of total population.

    “Public sector represents 47 per cent while private sector represents 53 per cent. In the same vein, 26 states have adopted the scheme and are at different stages of implementation, the informal sector is largely uncovered by the scheme and represents about 70 per cent of Nigeria’s total working population. Therefore, there is a need for an expanded coverage.”

    Explaining the rationale for expanding coverage to the informal sector, Anohu-Amazu said study has shown that old age poverty will increase with the current unemployment rate in the country.

    She also said that failed family support system in Nigeria implies that few parents will depend on children at old age while individuals with no pension plan will retire to old age poverty.

    She noted that given the importance of pension as a safety net, there is the need to develop urgent solutions to enable active participation in the informal sector.

    Anohu-Amazu said micro pension is a long term voluntary financial plan for the provision of pension coverage to the self-employed, persons working for organisations with less than three employees and the informal sector workers.

    She noted that micro pension is a pension industry strategic initiative to have an inclusive and expanded coverage. Micro pension has been implemented in India, Kenya, Ghana and other countries.