The Nation Newspaper

Category: Pension

  • PenCom partners FMDQ for improved governance

    PenCom partners FMDQ for improved governance

    The Regulatory Supervision Collaboration Agreement signed by the National Pension Commission and the FMDQ OTC Securities Exchange  will enable the realisation of PenCom’s investment objectives of safety of pension assets and maintenance of fair returns on investment, Director-General of PenCom, Mrs. Chinelo Anohu-Amazu has said.

    The PenCom boss who made this known while speaking to reporters in Lagos reiterated that the agreement executed with the Exchange is part of efforts geared towards the realisation of its corporate vision and agenda.

    She said based on this, FMDQ has formalised its partnership with the Commission and commended FMDQ on its positive impact and giant strides in the development of the Nigerian Financial System.

    The Managing Director, FMDQ, Bola Koko said the partnership will seek to achieve, among other things the Commission’s objectives as outlined in the Pension Reform Act, 2014, through data access and visibility of its supervisees’ –  Pension Fund Administrators (PFAs)) transactions on FMDQ.

    It will also improve transparency of all PFAs’ transactions in the Nigerian fixed income market as well as the money market through the applicable systems; capacity building sessions for relevant PenCom staff on the use of the applicable systems; and the development of performance benchmarks for fixed income asset classes: bonds (sovereign, sub-national and corporate), money market securities (treasury bills, commercial papers, among others) and fixed deposits.

    FMDQ Chairman represented by Independent non-Executive Director at FMDQ, Ms. Daisy Ekineh said the event marks the formalisation of a partnership expected to be formidable and long-standing, as it will bring about integrity of service, assured investor protection and fair return on investments.

    She said: “It will also serve to fundamentally change the way in which our financial markets operate to the benefit of the nation’s investors, in particular, the pension assets, and ultimately the Nigerian economy.

    “FMDQ, in its unwavering commitment to support efforts to galvanise the development of the Nigerian economy remains resolute in promoting an efficient, transparent and well-regulated financial market, which will attract and retain domestic and foreign investors.

    “PenCom, via this agreement, will be conferred membership of FMDQ as an Affiliate Member (Regulators), providing the Commission with benefits including, but not limited to data access and market visibility rights over the market activities of the Commission’s supervisees within FMDQ and access to real-time pre- and post-trade prices on fixed income securities.

    “For PenCom, the regulator and supervisor of the Pension Industry in Nigeria, this partnership which would allow it online real time access to FMDQ’s trading system, will among other things promote increased transparency in trades, efficient pricing of transactions, higher professionalism of players in the fixed income markets and fair returns on pension fund investment, for the ultimate benefit of pension contributors and the Nigerian economy at large.”

     

    Present at the ceremony were the Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, Chair, Board Regulation and Risk Management Committee, FMDQ, represented by Ms. Daisy Ekineh, FMDQ, Managing Director/CEO, Mr. Bola Onadele Koko, representatives of the Central Bank of Nigeria Banking Supervision and Financial Markets Departments and other from FMDQ and PenCom.

  • ‘Nigeria’s pension fund to hit N20tr’

    ‘Nigeria’s pension fund to hit N20tr’

    Nigeria’s Pension fund will hit the N20 trillion mark in the next eight years from the current N5.3 trillion, Chairman, Pension Fund Operators Association of Nigeria (PenOp), Longe Eguarekhide has said.

    He gave this projection while speaking at the Pension Industry Operators 2016 media  retreat organised by PenOp in Lagos.

    Eguarekhide, who is also the Managing Director of AIICO Pension Managers Limited, stated that pension fund managers priority is ensuring that the funds are safe.

    He stressed that the group will not compromise in protecting the accumulated asset from contributors and would guard its safety jealously.

    He added that the funds will only be invested in wise and profitable investments, adding that new ways   growing the fund will be developed.

    He said the little challenge on accrued rights would be resolved when the government settles down fully, adding that the government before now has been faithful to its pension responsibilities.

    In the same vein, the Head, Investments, Pensions Alliance Limited, Mrs. Abimbola Sulaiman, said lack of investment options,  bankable projects, transparency, shortage of data as well as high risk related Greenfield investment, among others have been identified as clogs to investment of pension funds especially in infrastructure.

    In a paper titled: “Investment of Pension Funds, Processes- Challenges, Risks and Rewards,” she highlighted some consideration and review of existing engagement rule to create opportunities for investment in critical areas in the economy.

    According to her, infrastructure bonds remain the easiest way to introduce majority of pension funds into infrastructure investments, as it is similar to traditional bond investments

    She said when considered that an estimated $3 trillion is required over a period of 30 years to cover infrastructure deficit according to the National Integrated Infrastructure the limit of spending is grossly inadequate.

     

  • Lagos pays 2,654 retirees N11.44b accrued rights

    Lagos pays 2,654 retirees N11.44b accrued rights

    The Lagos State government, through the Lagos State Pension Commission (LASPEC) has paid N11.44 billion pension accrued rights to 2,654 in eight months, Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson Oke has said.

    He said out of this, 165 retirees received Retirement Benefit Bond Certificates for accrued pension rights of N912 million over the weekend.

    Oke spoke during the presentation of Retirement Benefit Bond Certificates to the 25th Batch of Retirees of the Lagos State Public Service in April, this year.

    He stated that the payment has been made possible because of the premium Governor Akinwunmi Ambode places on pensioners’ comfort.

    Director-General of LASPEC, Mrs. FolashadeOnanuga, explained that Governor Ambode requested for a briefing on the challenges faced by the commission in ensuring prompt payment of terminal entitlements.

    She stated that government had never reneged in meeting all the statutory pension obligations like monthly contributions into the Retirement Savings Account (RSA) of employees, funding of the Retirement Bond Redemption Fund & Sinking Fund Accounts and maintenance of the group life assurance scheme.

    She said the LASPEC intimated him of the challenges faced as a result of the fact that the accrued pension right liabilities far exceeded the provisions made statutorily.

    She noted that the major challenge was with the Local Government & State Universal Basic Education Board (SUBEB) retirees whose five per cent statutory funding provision was a far cry from the liabilities that had crystallised.

    She said: “This is why as at the beginning of the present administration, we had many retirees in the Local Government and SUBEB whose accrued pension rights were yet to be paid. The governor graciously decided and gave instructions for state government funds to be utilised to pay retirees from the local governments.

    “He also instructed that those who had retired from parastatals of government up to December 31, 2014 should be paid.  This is on the understanding that the parastatals would be going forward to meet up with their obligations.  This is why today, we have some retirees from self-funding parastatals in this auditorium.

    “To ensure that the backlog is cleared, we have since August, 2015, been crediting the RSA of retirees’ with their accrued pension rights on a monthly basis.  From August 2015 to February, 2016, the state government through LASPEC had paid the sum of N11.44 billion into the RSA of 2,654 retirees.  1,108 of the retirees were from the Local Government and SUBEB, 669 from TEPO, 583 from the Mainstream Service and 294 from Parastatals.

    “Today, a total number of 162 retirees also mainly from Local Government and SUBEB where we have the greatest backlog will have the sum of N924 million credited into their Retirement Savings Account.  In essence, in a period of eight months, this administration has been able to put smiles on the faces of a total number of 2,815 retirees and amount expended as accrued pension rights is approximately N12.4billion.”

  • PTAD declines to reveal Acting DG’s identity

    The Pension Transitional Directorate Department (PTAD) has declined to reveal the identity its Acting Director-General to the public. The acting director is a Director from the Office of the Accountant-General of the Federation.

    This has made pensioners under the Directorate, the Defined Benefit Scheme pensioners, to be jittery over who is temporarily superintending over their pension matters.

    Some of them are worried and have asked if he is a ghost acting DG the way there are ghost pensioners in the country.

    The acting DG resumed at PTAD on March 15, this year following the suspension of the substantive DG, Nellie Mayshack by the Minister of Finance, Mrs Kemi Adeosun over allegations of fraud.

    Investigation has however revealed that the Acting DG is a male.

    Since his resumption, two press statements have been issued by PTAD  signed by the acting DG and the other endorsed by Head Corporate Communications, Theodora Amechi

    The first statement announced the suspension of Mayshack and the resumption of the Acting DG without mentioning his name.

    The second statement endorsed by the acting DG assured pensioners of the payment of 33 per cent arrears and the payment of benefits to Next of Kin (NoKs) of deceased pensioners.

    Suprisingly, he failed to disclose his name to the  public throughout his statement and in a group picture.

    When the Directorate was called to find out his name, no one including the Head of Communication was willing to respond.

  • Budget 2016: Fed Govt votes N154.3b for retirees

    Budget 2016: Fed Govt votes N154.3b for retirees

    A total of N154.3 billion has been earmarked for pension payments of Federal Government retirees, including monthly pensions, arrears of gratuities and Group Life Insurance Policy.

    This was shown in the 2016 Appropriation Bill passed by the National Assembly on March 23, 2016. Out of this amount, the pension industry would receive N139.73 billion on pension payments, including monthly pensions, arrears and gratuities.

    The insurance industry on its part would receive N14.69 billion earmarked for Group life for Ministries, Departments and Agencies (MDAs) of the Federal Government, including Department of State Security Service (DSS), Insurance of Sensitive Assets and Corpers.

    A breakdown of the budget showed that the military alone would receive N59.8 billion for payment of pensions and gratuities. It also showed that N7.41 billion was earmarked for Police Pension, while Customs, Immigration and Prisons Pension got N8.42 billion. Al;location to Department of State Security Service including arrears, got (N7.64 billion), Nigeria Intelligence Agency Pensions and dependants benefits receiced (N3.7 billion).

    Meanwhile, N26.75 billion was budgeted for Parastatals Pension and Railway Pensions, while pre-1996 Nigeria Railway Corporation Pension got N2.25 billion.

    The budget showed that N3.52 billion was earmarked for expected retirees in 2016, while N4.3 billion was earmarked for death benefits and N14.34 billion for Universities’ Pensions, including Arrears.

    Office of the Head of the Civil Service (Civilian Pension), received N28.39 billion for Pensions and N2.3 billion for Gratuities, while benefits of Retired Heads of the Civil Service of the Federation and Federal Permanent Secretaries stand at N2.59 billion.

    Under the Service-Wide votes, N3 billion was earmarked for payment of Arrears of PAYG Pension DPR, N27.4 billion for payment of Arrears of 33 per cent increase in Pension Rates and N500 million for payment of outstanding Death Benefit to Civil.

    In the same vein, payment into the Redemption Fund at five per cent of total Personnel Cost including Arrears of 2014 and 2015 stands at N50.19 while arrears of Police Death Benefits between 2004-2010 is N3.75 billion.

    Public Service Reforms including payment of Severance Benefits of Civil Servants stood at N1.5 billion.

  • PTAD assures pensioners of 33% arrears, NOKs benefits

    Pension Transitional Arrangement Directorate (PTAD) has assured pensioners of the payment of 33 per cent arrears and benefits to Next of Kins (NOKs) of deceased pensioners in the very near future.

    PTAD Head, Corporate Communications, Mrs. Theodora Amechi ,made this known in a statement made available to reporters in Lagos. She said the assurance came during a meeting between the management of PTAD and representatives of the National Union of Pensioners (NUP), National Association of Retired Paramilitary Officers (NARPO), Association of Retired Police Officers of Nigeria (ARPON) and the Association of Public Service Retirees in Abuja.

    According to her, details of the 33 per cent arrears payment are to be agreed with the various pension groups before payment.

    She said the unions’ representatives were reassured that the Federal Government recognises its obligation to pensioners, adding that the Directorate apologises for any delays pensioners may experience in the course of complaint resolution, stressing it is a process they have to undergo for things to be done correctly to enable PTAD pay the right persons.

    She reiterated that PTAD is working hard to resolve all complaints and other issues affecting their members, and noted that their doors are always open for the resolution of complaints and communication between PTAD, their pensioners and other stakeholders.

  • Pension call in questions

    • Anonymous: Good day ma, I lost my wife in March 2011. She worked with (name withheld). Her PFA is Premium Pension Limited during her life time, and her Pen No is (withheld). I was paid N1.1 million. Last year June, I called her PFA and they said the rest will be paid whenever they receive instruction from PenCom. I want to know how long it will take for them to pay the rest of her entitlement. Kindly help me out. I and my first child are her next-of-kin. Thanks and God bless.
    • PenCom: Good day Sir. Please contact your PFA for clarification, because PenCom’s records showed that all your wife’s entitlements have been paid. Thank you.
    • Anonymous: Can one have an idea of what one would collect under the terms below to assist planning? (1) 60 years old on retirement (2) 33 years 45 days service on retirement? (3) grade level 16 step 9 (4) level 13 step 10 in 2004 (5) level 15 step 10 in 2007. Who determines what percentage to be given as lump sum, take home and monthly pension? Thanks
    • PenCom: Good day sir. A person’s pension cannot be determined by this means. A person’s salary structure and various other factors are used to determine pension upon retirement. With regards to the percentage given as lump sum to retirees, PenCom gives all PFAs a template which is used to compute how much a person can take as lump sum. Thank you.
    • Mrs. Kwaplong: I am one of the state government’s retirees from Plateau State with Federal Government’s share of pension and has not received one kobo since retirement six years ago in spite of several verifications. I now desperately need this money to address my health issue. I have no PFA because Plateau is one of the states that has not keyed into the contributory pension. Hence I am entitled to both state and federal share pension, having retired in 2009 on reaching 35 years of service. Thank you.
    • PenCom: Good day madam. Please you are required to make a formal complaint in form of a letter to the Director-General, National Pension Commission, Plot 174 Adetokunbo Ademola Crescent, Wuse II, Abuja, Nigeria. Attn: Head, States Operations Department, Head, Compliance and Enforcement Department.
    • Ogunji: I was issued pension certificate some years ago and lost it to fire incident. What do I do now? Please is it true a contributor can access part of his pension while still working? – Ogunji A
    • PenCom: Good day Sir. Please reapply for a new Compliance Certificate from PenCom. The requirements for a Compliance Certificate can be found on the Commission’s website on www.pencom.gov.ng . Under the Pension Reform Act 2014, a person who voluntarily retires, disengages, or is disengaged from employment for more than four months and still has not secured another employment may withdraw not more than 25 per cent of the amount of money in his/her Retirement Savings Account (RSA). After this, access to money in the RSA can only be upon retirement. Thank you.
    • Anonymous: I work with the Nigeria Immigration Service. My PFA is First Alliance. I was made to know that my PFA has fused with another PFA. Please, I want to know the new PFA, Thanks.
    • PenCom: Good day Sir. First Alliance PFA merged with ARM Pension. Thank you.
    • Umukoro: Please ma, I want know if you are capable to help me prevail on ARM pension to accept return certificate of my pension contribution. I need my payment in full, outside their commission. Let them calculate their service charge and release my balance to me. I am closing my account to have money to train my children. I have my children at a very late time before the disengagement. So in any way you can help please do. I am suffering in silence; to feed now is a big problem,just as funding my children’s university education has become a challenge. Thanks.
    • PenCom: Good day Sir. Please, it is not possible to collect all your pension contributions at once upon retirement. Thank you Sir.
    • Ali Custom: I am a pensioner.I applied for employment, if am opportune, can l register for new pension system.
    • PenCom: Good day Sir. Please can you further explain your question to enable us assist you? Thank you.
    • Dennis: I retired from the Nigerian Army. I have been receiving my money till last year October. From November till now, I have not received anything. Please I need help.
    • PenCom: Good day Sir. Please contact the Military Pensions Board as they are responsible for paying military pensioners. Thank you.
    • Oyediran: I am working with Nigeria Immigration Service. My PFA is ARM Pension. I have not received alert since 2007 and I have been to their UBA Abeokuta office several times. They have been promising that everything will be rectified and that I am not the only person affected. But up till now, I have not seen or heard anything from them. Sir, whatever assistance you can render, I shall be very grateful.
    • PenCom: Good day Sir. Please contact your PFA for your alerts and updates on your retirement savings account. Thank you.
  • PFAs invest 66.4% pension fund in FGN bonds, treasury bills

    PFAs invest 66.4% pension fund in FGN bonds, treasury bills

    But of the N5.219 trillion pension funds accumulated in November 2015, a total of N3.49 trillion was invested in Federal Government (FGN) Securities by Pension Fund Administrators (PFAs).

    This represents 66.41 per cent investment of the total fund in FGN Securities.

    On the other hand, N1.4 billion was invested in infrastructure funds in the month under review by the PFAs, indicating a 0.02 per cent investment out of the N5.219 pension funds.

    This was shown in the National Pension Commission (PenCom) Summary as at November 30, 2015.

    The report showed that N2.95 trillion was invested in FGN Bonds representing 56.16 per cent, while N480.26 billion was invested in Treasury Bills, representing 10.25 per cent of the fund.

    The PFAs however invested N157.13 billion in State Government Securities, N179.45 billion in Corporate Debt Securities and N12.69 billion Supra-National Bonds representing 3.14 per cent, 3.04 per cent and 0.22 per cent respectively.

    The report further showed that Local Money Market Securities received N516.18 billion representing 10.39 per cent. There was no trade at the Foreign Money Market Securities except in the Closed Pension Fund Assets (CPFAs) which has only N645 million representing a 0.01 per cent investment.

    Meanwhile, Real Estate Properties got N231.25 billion representing 4.5 per cent. Others like the Open/Close End funds, Private Equity, and Cash at Hand received N19.36 billion, N13.43 billion and N58.71 billion representing 0.42 per cent, 0.34 per cent and 0.70 per cent respectively.

    Chairman, Pension Fund Operators Association of Nigeria (PenOp), Mr. Eguarekhide Longe said the larger chunk of the pension fund is invested in Federal Government bonds and Treasury Bills.

    He noted that the Federal Government is currently using the fund to finance recurrent expenditure.

    He stressed that contrary to claims that PFAs don’t want to invest pension fund to fix infrastructural deficit in the country, larger chunk of the money is already with the government.

    He said the pension fund operators are ready to assist the government with funding, provided the government floats infrastructure bonds to which the operator can invest in, noting that such infrastructure products must follow the investment guidelines in the Pension Reform Act(PRA) 2014.

    He said: “The fact is that there are ample provisions in the investment guidelines that allows for investment in projects, so to say, infrastructure, private equities and real estates, bonds, among others.

    “But what has happened is not that the money is idle in the PFAs or that the fund managers have not looked for those projects. In truth, it is not their job to go and create projects, but we have actively sought the investment banking community to develop products that we can invest in”, he noted.

  • ‘CPS is safest pension scheme’

    ‘CPS is safest pension scheme’

    The Contributory Pension Scheme (CPS) remains the safest pension scheme with no record of fraud since its inception in 2004, the Director-General,  National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, has said.

    Mrs. Anohu-Amazu, who gave this assurance while speaking to reporters in Lagos, said the feat was made possible by the pension law, the Pension Reform Act 2004 as repealed by the Pension Reform Act 2014.

    She stated that the commission has been able to address the myriad of challenges which beleaguered pension administration in Nigeria, both in the public and private sectors.

    According to her, prominent among those challenges were lack of transparency in pension administration, un-sustainability due to the accumulation of huge pension liabilities and insufficiency or absence of retirement benefits coverage in the private sector.

    She said: “It is heartwarming to note that within a decade of the pension reform and the implementation of the CPS, modest achievements have been recorded by PenCom.

    “Payment of pension under the CPS is now both prompt and consistent since 2007. From a story of about N2 trillion pension deficits under the defunct Defined Benefit Scheme (DBS) as at 2004, the CPS has accumulated a large pool of investible fund of over N5.3 trillion pension assets as at February 2014.”

  • Teamsters unions call for Costco contract rejection

    Teamsters unions representing 16,000 workers of Costco Wholesale Corporation has recommended its members reject a contract offer from the retailer due to a long-running disagreement over its pension plan.

    According to Reuters, the main sticking point is Costco’s decision not to bend to a union request that 3,500 members on the East Coast on a 401(k) pension plan be allowed to join the defined benefit pension plan provided to 12,500 members in California, the International Brotherhood of Teamsters said in a statement.

    Costco has characterised the proposal as its “last, best and final offer,” the union said. Costco could not immediately be reached for comment.

    Rome Aloise, a chief negotiator for the union, said the pension issue was also a sticking point three years ago during the last round of contract negotiations when members ultimately accepted Costco’s contract. In addition to giving East Coast members a defined contribution pension, California workers want a higher company contribution to the plan, the union said.