The Nation Newspaper

Category: Pension

  • NLPC records 14.35% returns on RSA investment

    NLPC records 14.35% returns on RSA investment

    NLPC Pension Fund Administrator, a pension fund administrator has generated 14.35 per cent returns on the investment in Retirement Savings Account (RSA) pension funds in 2013 financial year.

    The PFA recorded gross earnings of N1.6 billion in the year under review, a 30 per cent increase from the N1.23billion recorded in 2012.

    Total fund under the management also grew from N59.5billion in 2012 to N79.15billion in 2013. The company however, recorded a profit after tax of N388.58 million in 2013 from N294.1 million in 2012, a 32 per cent increase.

    The Managing Director, NLPC, Wale Kolawolewho disclosed this during the firm’s ninth annual general meeting in Lagos, said the company will continue to render qualitative services to its numerous account holders and retirees so as to ensure that their life after retirement is full of happiness with sound mind.

    The Chairman of the company, Olabode Emmanuel, said earnings per share also increased from 20.14k in 2012 to 25.9k in 2013.

    He said: “Shareholders funds increased from N1.2billion in 2012 to N1.6billion in 2013 and global fund has continued to grow.

    “Despite stiff competition and a challenging economic climate, the firm had  continued to forge ahead, which confirms the ability of the management to steer the company on profitable course. The emergence of the world economy from global recession and the impressive growth rate of the Nigerian economy is expected to impact positively on output and employment in 2014.”

    Emmanuel saidthis is expected to lead to increase in contributions and remittances as well as reduction in the rate of untimely retirements and claim.

    All things being equal, we expect more funds under the management and increase in earnings and improved profitability in the years ahead, he said.

  • Retired policeman petitions govt over non-payment of benefits

    Retired policeman petitions govt over non-payment of benefits

    A retired Assistant Superintendent of Police (ASP), Richard Ogundare, has petitioned the Chairman, Police Service Commission (PSC), Mike Okiro, over non-payment of his retirement benefits 10 years after serving the Nigeria Police Force for 35 years.

    Ogundare, who served between 1969 and 1979 in the Nigerian Army before he was seconded to the Nigeria Police, is also aggrieved because the PSC refused to merge his number of service years.

    The Inspector-General of Police, Mohammed Abubakar was copied in the petition written and signed by his lawyers, Kehinde Hassan Bamibola& Co.

    According to the petition, Ogundare has not received his retirement benefits since he retired in 2004.

    The petition stated: “We have the authority, instruction and consent of our client to call your attention to the inhuman treatment he has been receiving from your commission after he has duly served his fatherland, Nigeria meritoriously formerly as a military personnel from 1969 before he got seconded/enlisted to the Nigeria Police Force in 1979.

    “Our client informed us with documentary evidences that, he applied to merge his service years sometimes in 2002 and that the application was not recommended. He would have served for 35 as at December 1, 2004, if the merging application had been granted.

    “However, he served the Nigeria Police meritoriously till April 2007 before he was retired from the service. It is so painful and we consider it an act unleashing unmerited hardship on our client, that ever since his retirement, he has not received his retirement benefits. He has been suffering and languishing in abject poverty as a result of non-payment of his retirement benefits.”

    The petition further read that a letter from PSC dated July, 2006 put Ogundare’s retirement date at April 24, 2004 while another letter dated May 3, 2007 with the heading “Retirement Benefits” put the effective date of his retirement at April 24, 2006 with factual affirmation that he was not indebted to the Federal Government.

    “Going by the letter from PSC, he actually applied for merging of his service years comprising the service years with the Nigerian Army from 1969 to the period he joined the Nigeria Police 1979, but the application was turned down. He was made to serve beyond December 2004 till April 2007. Assuming the merging application was granted, he would have clocked 35 years at the service by December, 2004.

    “He actually served the Nigerian Police Force for 28 years from 1979 to 2007. That, the period between December 2004 and April 2007 should be reasonably computed into his service years for the treatment, calculation and payment of his retirement benefits.

    “We hereby appeal to your good office to pay our client all his retirement benefits as he is in great need of finances for his health and other necessities. The ‘dead does not spend money’ and so he should enjoy what he has laboured for while he is still on earth now. We are looking forward to hearing from you that his Retirement Benefits have been paid fully” it read.

    Efforts to get the PSC’s reaction proved abortive as at press time.

  • Wiggle becomes NIA chairman

    Wiggle becomes NIA chairman

    • Association holds 43rd AGM

    Managing Director of Linkage Assurance Plc, Godwin Wiggle, will be sworn in as the new chairman of the Nigerian Insurers Association (NIA) at the association’s 43rd Annual General Meeting.

    The event is billed to hold on June 26, 2014 at Atlantic View Hall, Best Western, The Island Hotel, Bar Beach, Victoria Island in Lagos.

    The Director-General, NIA, Sunday Thomas, said the occasion will avail the outgoing Chairman, Dr. Remi Olowude, the opportunity to address the general assembly of insurers of his stewardship and developments in the sector.

    The representatives of member companies of the association will also be electing a new deputy chairman and other principal officers of the Governing Council.

    The General Assembly will also consider the presentation of chairman’s statement and report of the governing council, consideration and adoption of the audited accounts for year ended 31st December 2013 and the treasurer’s report thereon; Appointment of new auditors; election of officers to fill vacant positions in the governing council; and to consider and if thought fit, approve the following as a special resolution to alter the articles of association of NIA

    Thomas added that “this year’s AGM will provide the needed opportunity for the association to present a scorecard of its activities in the last one year as well as release vital statistics on the performance of the insurance industry’’.

  • ARM Pension grows fund to N340b

    ARM Pension grows fund to N340b

    ARM Pensions Limited, a Pension Fund Administrator has grown its funds to N340billion in a 10-month period ended December 31, 2013, representing a 28 per cent growth.

    Its Managing Director, Sadiq Mohammed who made this known, said the firm’s subscriber base also appreciated in the period with over 539,075 contributors currently holding accounts with the company.

    He noted that the company has changed its financial year-end from February to December in line with the National Pension Commission’s (PenCom) directive of a uniform financial year-end for Pension Fund Administrators.

    He further said that ARM Pensions’ gross revenue grew by 16 per cent to N3.3 billion over the 10 month period, adding that when compared to February 2013, profit before tax (PBT) and profit after tax (PAT) grew by 37 per cent and 27 per cent to N1.9 billion and N1.3 billion respectively.

    He said: “In line with the directive of the National Pension Commission on uniform financial year end for Pension Fund Administrators, the company shifted its financial year-end from February to December.

    “On a comparative basis, over a 12 month period of January to December 2013, ARM Pensions’ fund under management, grew by 37 per cent, revenue appreciated by 43 per cent, while profit before tax for the same period went up by 86 per cent.”

    Mohammed said ARM has a successful track record of protecting and growing investments for private investors and institutions for over a decade and we are committed to creating value for its contributors and retirees.

    “We appreciate the desire of every employee to maintain a comfortable standard of living after their active working life. Therefore, we have built our core tenets around the preservation of, and superior returns on, pension assets and investments, as well as prompt and efficient benefit administration.This also reflects our overall investment philosophy, which is aimed at delivering consistent long-term growth through value investing and rigorous risk management.”

    “ARM Pension Managers (PFA) Limited was among the first seven (7) Pension Fund Administrators licensed by the National Pension Commission in 2005.” a subsidiary of investment management firm Asset & Resource Management Company Limited was committed to creating value for its retirees”, he said.

  • African brokers plan reinsurance firm

    African brokers plan reinsurance firm

    Brokers around the continent are working on reinsurance brokers project that would challenge foreign brokers who have over the years taken away reinsurance businesses from Africa for lack of skills and capacity, Chairman, Association of African Insurance Brokers (AIBA), Prince FeyisayoSoyewo, has said.

    Prince Soyewo spoke with The Nation in Kigali, Rwanda while speaking on the impact of the association on brokers across the continent.

    According to him, the project will soon produce a reinsurance company that will enable AIBA members to be shareholders.

    He said: “We have a project which we call reinsurance brokers project. It will bring all brokers in the continent together.

    “Over the years the foreign brokers have used skill and capacity to shortchange us and the bulk of the money goes out of Africa. There was no single broker that could challenge them, and so the of executives African Insurance Organisation (AIO) executives came up with the idea that we should form a body.

    “They urge us to pull our efforts together, become one and then come to them, the AIO for support. Presently, we are coming together and updating our figures. In about six months from now, before the next AIO, we would have put everything together and then invite our members’ to be shareholders of the company. It will be similar to legal session in Nigeria of those days”.

    The AIBA Chairman explained that Africa Reinsurance will be encouraged to support them in that session and it would transform into savings for Africa.

    He said the association has achieved a lot at the just concluded AIO conference.

    “We are consolidating the AIO chairman has taken special interest in AIBA and gave his words to give us all the necessary support to move forward.

    “I am very optimistic that AIBA will come out strongly and will achieve lofty goals. We held our Annual General Meeting during the conference and the attendance was impressive. More people are itching to join us and about 20 new members came and are processing necessary documentationto become our member.

    “AIBA is getting stronger and by next year when we’ll hold another AIO conference, we’ll see a stronger, more virile and larger AIBA”, he said.

  • New bill awaits President’s assent

    New bill awaits President’s assent

    It is about a month since the National Assembly passed and harmonised the Pension Reform Bill, 2014 but it is yet to get the assent of President Goodluck Jonathan.

    The Nation learnt that the new bill which will automatically repeal the Pension Reform Act 2004 has since left the chambers of the National Assembly.

    The proposed law covers private organisations with at least three or more employees in the Contributory Pension Scheme.

    Chairman of the Senate Committee on Establishment and Public Service Matters, Senator Aloysius Etok, in a telephone conversation confirmed that the bill has since left chambers.

    He said the bill is now going through some administrative process as it is in the office of the Clerk of the National Assembly. Etok however said he cannot confirm if it has been sent to the presidency for assent.

    A senior official of the National Pension Commission (PenCom) who asked not to be mentioned , said  they are expecting the National Assembly to send the bill to the Presidency.

    He said the Commission is happy that the National Assembly has passed the bill and hopes that there will be a quick assent by President Goodluck Jonathan.

    A quick assent by the president is necessary to further bolster the pension industry.

    Director-General of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, said the new bill when signed, would into law would enhance the protection of pension fund assets and unlock the opportunities for deployment of pension assets for national development.

    She said it would also review the sanction regime to reflect current realities and provide for the participation of the informal sector and also provide the framework for adoption of the Contributory Pension Scheme by states and the local governments.

    She also said that in line with the joint resolution of the National Assembly to put a stop to some instances of widespread corruption in various pension departments, the new bill seeks to enhance the regulatory authority and efficiency of the Commission to provide greater oversight on, and reposition the Pension Transition Arrangement Departments (PTAD) for greater accountability in the administration and payment of pension under the Defined Benefit Scheme (Pay As You Go).

    It is noteworthy to state that the new Pension Reform bill stipulates at least a 10-year jail term on conviction for pension fund administrators, or anybody who misappropriates or diverts pension funds.

    Under the new law, the provision of a fine of an amount thrice the misappropriated, or diverted sum must be paid when convicted of diversion or misappropriation.

    The bill also stipulates that any pension fund administrator or pension fund custodian, or anybody convicted for diversion or misappropriation of pension funds, would be compelled to refund the said amount and forfeit property, asset or fund with accrued interest to the Federal Government.

    Basically, the bill is meant to address the serial stealing of pension funds.

    In January 2013, a Director of the Police Pension Office, Mr. John  Yusuf, practically walked away free after allegedly embezzling billions of naira of police pension funds after he was left off with a bail of N750, 000.

    He was handed a two-year jail sentence for conniving with others to defraud  the office and pensioners of N27.2 billion out of which he admitted to stealing N2billion but Justice AbubakarTalba gave  him an option of fine in the sum of N750,000 for three offences he  pleaded guilty to. Each of the three offences attracts a two-year jail term and the sentences were to run concurrently.

    Yusuf’s case raised national uproar as he was the first to be jailed among persons involved in the N38.8billion Police pension scam. It also exposed the loopholes in the Pensions Act and emphasised the need for urgent reforms in the sector.

  • Mansard settles MTN Y’ello cover claim

    Mansard settles MTN Y’ello cover claim

    Mansard Insurance plc, has made good its promise of prompt settlement of claims by paying the accident claim of an electrical engineer, Mr. Ameh Thaddeus Adiga who lost a finger in an industrial accident.

    According to Mr. Adiga, he was on duty at a food processing company in Kano where the accident happened, ‘’after repairing a granulating machine, it started up by itself and it cut off the third finger of my right hand.’’

    Mr. Adiga was rushed to Murtala Mohammed Specialist Hospital, Kano where he was treated for injuries sustained. It was in the course of the treatment that he notified Mansard Insurance and later sent in details of the accident as well as the medical and police reports.

    The necessary processing was done and an elated Mr. Adiga has this to say upon receiving his claims settlement, ‘’in fact, it is such a mystery for Nigerians to have such opportunity. I am so excited and joyful having this claim a reality because as I am speaking now, I am financially uplifted and revived, thanks to MTN and Mansard insurance’’.

    Mr. Adiga had subscribed to the MTN Y’ello Cover in October 2013. He had the accident in January 2014 and sent in claims substantiating documents in March, he received compensation payment just four days afterwards.

    Earlier in the year, Mrs. Ogunyemi in Lagos, made a claim on the same MTN Y’ello Cover insurance plan and said she was impressed with Mansard’s quick response to the disbursement of her claim.

    MTN Y’ello Cover offered in collaboration with Mansard Insurance, is a simple and convenient way everyone on the MTN network can access an affordable life protection plan directly from their mobile phones. For just N15/ day, or N100/ week, subscribers can enjoy up to N350,000 life insurance cover for medical expenses incurred in case of accidents and also enjoy benefits in the case of accidents resulting in permanent disability or demise.

  • Wanted: Fraud-free pension system

    Wanted: Fraud-free pension system

    The trend is worrisome. A situation where tax payers’ money is spent on public hearings and probes of serious isues and at the end, the outcome does not see the light of day. This practice is simply put, untenable.

    Apart from the resources usually committed into such exercise(s), a lot of manpower and energy is also wasted.

    This happens not only at the executive arm alone but also at the legislative arm of government.

    Between May 1999 and now, many of such reports have emanated from the National Assembly. The question that comes to mind is what has happened to these reports or why were some of those probes aborted midway?

    One of such investigative hearings is that of the Senate Committee on Establishment and Public Service Matters, which is popularly known as Pension Report Investigative hearing. It was a hearing that elicited a lot of interests from within and outside Nigeria.

    The first public hearing on the matter was held on March 6, 2012, during which the Senate committee suspended of the Pension Task Force Team (PTFT) led by Alhaji Abdulrasheed Maina, even when the Task Force had not appeared before it.

    The Task Force, duly set up by the Federal Government, was saddled, primarily, with restructuring the pension system. Its membership was drawn from the various anti-corruption agencies like the Economic and Financial Crimes Commission, EFCC, Independent Corrupt Practices and Other Related Offences Commission, ICPC and the State Security Service, SSS as well as other para-military agencies. The offices of the Accountant-General of the Federation and the Attorney-General of the Federation were also represented on the team. Considering the membership of the Task Force, it would have been logical, sensible and appropriate to have listened to it first before taking any decision. But was this was not the case in that instant.

    Hardly had the Task Force finished its assignment than it was ordered suspended by the Senator Aloysius Etok-led committee, thus suggesting that the Senate committee was set up to achieve a pre-meditated objective of working from the answer to the question instead of the other way round.

    The matter took a new twist when the committee was alleged to have been influenced by the Task Force to look the other way on some issues. Although the committee denied the allegation, some members of the PTFT are insisting that it has not told the public, everything it knows about the pension scam.

    One of the accused persons in the pension saga, Dr Sani Shuaibu Teidi, who is currently standing trial, had alleged in an interview that they reached an agreement with the committee to give them a soft landing.

    Senator Etok has always absolved the panel of any wrongdoing. He even asked the EFCC, the Police and the SSS to investigate him and panel. In fairness to him, nothing has been found against him.

    Some questions are, however, begging for answers. Why did the committee suspend the Pension Task Force Team? Was that the right thing to do at that time? Was there any law that allows such to be done? Was the step in tandem with the rule of fairness and natural justice?

    In a recent interview, Senator Etok said: “My job at the Senate is quite challenging and interesting. It is interesting in the sense that I deal directly with the welfare of the people as well as the future of Nigerians. My committee oversees a critical sector of the Nigerian public service. I chair the Senate Committee on Establishment and Public Service Matters. We oversee recruitment, promotion and discipline of civil servants. We also deal with pension matters of the civil, public, military and the police services. It is a very sensitive and challenging assignment”.

    Has the panel fairly dealt with pension matters as claimed in the interview? Many Nigerians are still waiting eagerly to see how this issue will be resolved. How the issue is settled will speak volumes on whether the Senate, is ready to assist the Federal Government in fighting corruption or not.

  • Ogun pays N17b as pensions, gratuities

    Ogun pays N17b as pensions, gratuities

    Over N17 billion has been paid as pensions and gratuities since the inception of the Senator Ibikunle Amosun-led administration came on board in Ogun State in May 2011, the state Head of Service, Mrs Modupe Adekunle, has said.

    Speaking in Abeokuta during the Ministerial Press Briefing to mark the third anniversary of the Amosun government, Adekunle said over N12.2 billion had been paid to pensioners while gratuities totaling over N5.5 billion, including the back-log owed by the immediate past administration, had  been paid to date.

    She added that the government had implemented the Contributory Pension Schedule for officers employed since January 1, 2008 till date.

    On employment, Adekunle said 10,504 unemployed citizens of the state were recruited or empowered  as at May, 2012; 967 last year while 296 candidates who were successful during the Civil Service Selection had been issued letters of appointment.

    “In the same vein, the Civil Service Commission recruited 459 officers into various cadres as replacement of those that retired from the service so as to beef up the staff strength in special areas,” Adekunle added.

    The Head of Service noted that promotions of public servants had been done promptly, revealing that no fewer than 2,141 officers were promoted duirng last year’s promotion exercise, adding  that 742 of their counterparts in the parastatals were also moved up.

    Meanwhile, the state government has assured that improvement in resource management and budget discipline towards increasing the level of productivity and accountability would continue to be given utmost priority.

    The state Commissioner for Budget and Planning Mrs. Oluwande Muoyo, said this was to ensure a reduction of the cost of governance in state.

    The commissioner said at  the briefing that this necessitated the launch of the state Public Financial Management (PFM) Reform Agenda in May, last year.

    She said since the launch of the reform, significant achievements had been recorded in the control and preventive vigilance on payroll preparation in which a substantial amount had been recovered while the certification of pay analysis reports and nominal roll by the accounting officer of each agency of the government was strictly adhered to, which enhanced integrity of the pay roll.

    Muoyo said despite the short fall in the receipt from Federal Account, coupled with harsh economy environment, the state 2014 budget has achieved a first quarter performance of 61.87 per cent.

  • Pension Alliance takes financial literacy to schools

    Pension Alliance takes financial literacy to schools

    Pension Alliance Limited (PAL), a Pension Fund Administrators (PFA), has taken financial literacy awareness campaign to primary and secondary schools across the country.

    The pension manager also intends to consolidate ongoing efforts in the financial services market of creating a wider savings culture through financial inclusion as being promoted by the various financial industry regulators – Central Bank of Nigeria (CBN), the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM), among others.

    Its Managing Director, PAL, Dave Oduanu, who led a team of the company to Home Science Association Primary School, Ikoyi, Lagos, said the firm  believed that inculcating the tenets of good financial management into young generation of Nigerians at an early stage of life will build in them the savings culture.

    He said this had eluded adult Nigerians.

    He said: “On this campaign kick-off tagged “Financial Literacy Initiative in Schools”, which coincided with the Children’s Day, PAL is engaging 25 schools in Nigeria with 20 in Lagos and five in other parts of the country.

    “In the past, we used to have CSR whereby we visit motherless babies’ home and old people’s home to donate things to them. But this year, we thought we should expand it to promote financial literacy in a bid to improve financial inclusion.

    “The idea is to teach them what money is all about, how to save money and what to do with money. By so doing, we begin to inculcate the culture of savings in them right from their young age.”

    Uduanu pointed out that if they cultivate the habit, when they grow up the culture of savings will resonate with them.

    He said they also gave piggy banks to the deserving pupils so that they will begin to save right away.