The Nation Newspaper

Category: Pension

  • PFA roles on fund investments, retirement benefit payments, others, by PenCom

    PFA roles on fund investments, retirement benefit payments, others, by PenCom

    The successes achieved since the introduction of the Contributory Pension Scheme (CPS) have been attributed to the robust structures of the system, the National Pension Commission (PenCom), has said.

    The commission stated that a key feature of the 2004 pension reform was the licensing of Pension Fund Administrators (PFAs).

    According to the commission, these are private companies entrusted with the management and administration of retirement savings of workers and retirees.

    To understand the roles and responsibilities of PFAs, there are valuable insights into the operational framework of the CPS.

    Explaining, the commission said it is vital to understand Registration of Contributors; Crediting of Individual RSAs; Taking Investment Decisions; Payment of Retirement Benefits; Customer Support to RSA Holders; Customer Support to RSA Holders; Rendering Returns to PenCom among others.

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    Registration of contributors

    PenCom said the PFA is responsible for opening a Retirement Savings Account (RSA) for an employee and issuing a Personal Identification Number (PIN) to the employee. This is done after the employee has completed the RSA registration forms and provided other necessary documentation. It is noteworthy to state that the selection of a PFA is the exclusive right of an employee.

    Crediting of individual RSAs

    “PFAs are responsible for crediting RSAs with monthly pension contributions. The monthly pension contributions are deducted by the employer and remitted to the Pension Fund Custodian (PFC) with an accompanying schedule that contains the names, RSA PINs, and amount and period of remittance. The PFC in turn advises the PFA upon receiving the schedules.’’

    Taking investment decisions

    “The pension contributions in individual RSAs are pooled together by the PFA into funds that are invested in various allowable asset classes. The PFA is responsible for taking investment decisions as a fiduciary duty to ensure safety and fair returns for the benefit of contributors. These investment decisions must be in accordance with the Investment Regulations issued by PenCom. All incomes earned are exclusively for the benefit of contributors.’’

    Payment of retirement benefits

    “The main objective of the CPS is to ensure the payment of retirement benefits as and when due. The PFA is therefore responsible for processing the retirement benefits of a retiree under the CPS.This includes ensuring the retiree provides all required documentation at least six months prior to retirement. The PFA is also responsible for obtaining necessary approvals from PenCom and issuance of instructions to the PFC for payment of retirement benefits.’’

    Customer support to RSA holders

    “The PFAs provide customer support services to the RSA holders, including issuing RSA statements at least once every quarter. In carrying out this function, PenCom ensures that PFAs have an adequate number of branches to serve locations where they have a significant number of registered RSAs under their management. In addition, PFAs are also expected to have the necessary technology that widens access to their services for RSA holders.’’

    Rendering returns to PenCom

    “PFAs are mandated to maintain proper books of account and render off-site returns to PenCom. The off-site returns assist PenCom to adequately supervise the PFAs. The returns include the valuation reports on investment, monthly and quarterly returns on various aspects of PFAs’ operations, amongst others. In addition to the off-site reviews, PenCom conducts routine on-site examinations annually and special examinations whenever the need arises.’’

    Appointment of Pension Fund Custodians

    “The management and custody of pension funds are carried out by the PFA and PFC, respectively. It is therefore, the PFA’s responsibility to appoint a Licensed PFC to provide custody and safekeeping for the pension funds under its management.’’

    Delivering excellent service to contributors and retirees

    “One of the strategic focus areas of PenCom is ensuring excellence in service delivery to stakeholders. This partly informs the increase in Minimum Regulatory Capital for PFAs by PenCom from time to time. Prioritisation of excellent service delivery by PFAs is expedient considering their functions.

    “PFAs are required to provide accessible complaint channels to ensure speedy resolution of issues. RSA holders are, therefore, expected to seek a resolution of issues with their PFAs before escalating to PenCom when necessary. Some of these issues include non-remittance of pension contributions, payment of retirement benefits and administration, amongst others. PFAs satisfy rigorous licensing criteria. There are 18 PFAs managing pension fund assets on behalf of RSA holders. PenCom is committed to effective regulation and supervision of the pension industry to ensure that retirement benefits are paid as and when due,” the commission stated.

  • AIICO strengthens bonds with retiree community

    AIICO strengthens bonds with retiree community

    AIICO Insurance Plc has reaffirmed its commitment to the well-being of its annuity customers, primarily retirees at an annuitants forum.

    The company spoke at the second Annuitants Forum.

    Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun, stated that the event reflects AIICO’s dedication to supporting and nurturing a strong relationship with those who have entrusted the company with their financial security in retirement.

    He stated that as part of its customer care efforts, AIICO provided free health checks and investment tips at the programme, demonstrating its holistic approach to the welfare of its esteemed customers in this important phase of life.

    He said: “At AIICO, we don’t just provide products, we provide security, stability, and a future that allows you to thrive. Our commitment goes beyond paperwork and contracts; see our roles as helping you enjoy the fruit of your labour in a manner that is dignifying and empowering.

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    “I am proud to share that our annuity customer base has steadily grown over the years and continues to increase, each one part of a strong and thriving community.

     Our annuitants are not just customers; they are members of the AIICO family. In terms of financial performance, we disburse an outstanding N1.3 billion per month, ensuring that each one of you receives a guaranteed income stream, regardless of market fluctuations. This consistency is the hallmark of AIICO’s stability.’’

     Head of Retail Business Division at AIICO,  Mr. Gbenga Ilori, said: “We believe in actively listening to our customers rather than making assumptions from behind our desks. This forum is designed to engage with them directly, allowing us to truly understand their needs and preferences. It’s our way of ensuring that we’re not just meeting their expectations but exceeding them. By hearing their feedback firsthand, we can identify any gaps, address concerns, and continually enhance the quality of our service. Their satisfaction and well-being are our top priorities, and we are committed to serving them in the best way possible.’’

  • Guinea Insurance launches campaign for customers

    Guinea Insurance launches campaign for customers

    Guinea Insurance Plc has announced the launch of its #ComfortAssured campaign, an integrated marketing initiative to enhance customers engagement and reinforcing the company’s commitment to delivering comprehensive and reliable insurance solutions.

    The insurer said with approvals secured, the campaign is set to increase brand awareness and strengthen relationships with customers.

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    Managing Director/CEO, Guinea Insurance PLC, Mr. Ademola Abidogun, said the company will introduce new products tailored at meeting the needs of  individuals and businesses.

    He said:“We are excited to roll out the #ComfortAssured campaign and bring our message of comfort and assurance to Nigerians nationwide.

     “This marks a significant step in our mission to offer dependable insurance solutions that our customers can rely on. The campaign will be launched across multiple platforms, expanding Guinea Insurance’s reach and presence across the country.’’

  • Leadway Capital & Trusts CEO retires

    Leadway Capital & Trusts CEO retires

    • Seweje takes over

    Leadway Capital and Trusts Limited (LCTL) has announced the retirement of the Managing Director, Mr. Ayodeji Wuraola.

    Also, it said Ms. Sola Seweje has been appointed to succeed him.

    In a statement, it said: “The leadership succession reflects the company’s relentless commitment to delivering exceptional trust and fiduciary services and ensuring business and generational continuity and peace of mind for its clients’. During his tenure, Mr. Wuraola made significant contributions and drove the company towards sustained growth and market expansion, rendering trust services to corporate bodies, individuals, governmental agencies, and parastatals.

    “Ms. Seweje brings over 18 years’ experience in the financial services industry, particularly in trust services, asset management, and financial planning. She has held senior positions, including Managing Director of Capital Express Global Trustees Limited and Coronation Trustees Limited as well as Head of Business Development at ARM Trustees Limited and United Capital Trustees Limited. She has a proven track record in strategic business expansion, stakeholder management, and delivering bespoke solutions to high-net-worth individuals (HNI) and institutions, equipping her well to lead the organisation into the future.”

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    Wuraola said: “It has been an honour to lead this organisation and contribute to its achievements, whilst shaping the trusts industry. I am deeply grateful for the support received from the team, our esteemed clients and Directors. I have every confidence that Sola Seweje, with her extensive expertise and clear vision, will continue to lead the company to even greater heights.”

    Seweje stated: “I am truly honoured to step into this leadership position at such an important moment. Wuraola’s legacy is one of excellence, probity and dedication, and I am committed to building on his legacy and the strong foundation he built over the years.”

    Alongside the management team, we look forward to enhancing the innovative solutions and client-focused approach that have established the business as a leader in the financial services sector.”

  • PenOp unveils pension fund managers’ sentiment report

    PenOp unveils pension fund managers’ sentiment report

    The Pension Fund Operators Association of Nigeria (PenOp) has unveiled this year’s Pension Fund Managers Sentiment Report, which provides insights into the investment climate in Nigeria from the perspective of chief investment officers (CIOs) managing pension funds.

    The report, serving as a barometer for the broader financial markets, highlights key economic indicators, market trends, and the evolving regulatory environment, PenOp submitted.

    Macroeconomic Landscape

    The Nigerian economy has been experiencing a mixed performance in the year, as evidenced by the country’s gross domestic product (GDP) growth of 2.98 per cent in Q1 2024, up from 2.31 per cent in the same period last year. This modest growth has been primarily driven by the services sector, contributing 58.04 per cent of total GDP and growing 4.32 per cent year-on-year.

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    The agricultural sector, although showing signs of recovery, grew by only 0.18 per cent. The industrial sector, which has lagged in previous years, grew by 2.19 per cent, a significant jump from the 0.31 per cent recorded in 2023.

    A dominant feature of the Nigerian economic climate has been persistently high inflation. In the first half of 2024, inflation peaked at 34.19 per cent in June.

    The inflationary pressures have been exacerbated by higher food prices, currency depreciation, and increased consumer spending, with food inflation reaching 40.87 percent by midyear.

    The Central Bank of Nigeria (CBN) responded with aggressive monetary tightening, raising the Monetary Policy Rate (MPR) to 26.75 per cent in July 2024, up from 18.75 per cent in May 2023.

    While these actions have helped to slow inflation, concerns remain that high borrowing costs could stifle business activities and hinder investment.

    Investment Sentiments: A mixed outlook

    The report highlights that pension fund managers are closely monitoring the macroeconomic indicators to guide their investment decisions. Over 60 per cent of fund managers stated that their investment levels would be dictated by these indicators, particularly inflation and interest rates.

    Pension fund managers have responded to the CBN’s hawkish stance by increasing exposure to government securities, which now represent over 63 per cent of total pension fund assets. Despite macroeconomic headwinds, fund managers expressed optimism about future investments.

    One hundred per cent of respondents reported intentions to increase their investments in the upcoming quarter, driven by growing assets under management (AUM).

    However, the overall sentiment towards the economy remains bearish, with more than half of the managers expecting no improvement in key economic indicators over the next quarter.

    Sector-Specific Outlooks

    Equity market

    Despite a 34 per cent growth in the equities market in the first half of 2024, fund managers exhibit a cautious stance towards equities. While the market has performed well, some managers have opted to shift to treasury bills due to concerns over future market volatility.

    Only 36 per cent of managers are actively looking to increase their exposure to equities, while 28 per cent are considering reducing their equity allocations

    Fixed-Income securities

    Pension fund managers maintain a strong preference for fixed-income securities, with 64% of managers indicating that they wil increase their allocation to this asset class.

    Government bonds continue to dominate as a safe haven amid economic uncertainty. This trend is expected to persist as inflation cools and interest rates potentially decline later in the year.

    Infrastructure

    Infrastructure investments are gaining traction, with 73 per cent of fund managers intending to increase their allocation towards this sector.

    The growing pipeline of bankable infrastructure deals and government-backed projects are driving this interest, positioning infrastructure as a critical component of pension fund portfolios.

    Alternatives

    An increasing appetite for alternative investments is emerging, with 64 per cent of managers looking to expand their exposure.

    However, there is a call for more specialized funds to cater to the growing demand for alternative asset classes such as private equity, venture capital, and real estate.

    Key concerns and risks

    Market Volatility

    Market volatility remains a significant concern for fund managers, with only 18 per cent expecting improvement in volatility over the next quarter. Factors such as exchange rate uncertainty and the high interest rate environment continue to weigh on the market.

    A substantial 36 per cent of respondents expect further market volatility, attributing it to foreign exchange concerns and high borrowing costs.

    Political uncertainty

    The current political climate has added a layer of uncertainty to the investment landscape. Political protests and industrial strikes, couped with a cost of living crisis, have made fund managers more cautious about investments in the real sector.

    The majority expect political uncertainty to persist, potentially impacting economic recovery and investor sentiment.

    Optimism on regulation

    Despite the challenges, there is optimism surrounding the ongoing regulatory review by the pension industry’s regulatory body. Many fund managers expect more investment-friendly guidelines to emerge, which could stimulate increased investments across various asset classes.

    However, some managers are concerned that the regulatory review process may stretch into the following year, delaying its positive impact.

    The Pension Fund Managers Sentiment Report offers a nuanced view of Nigeria’s investment landscape in 2024.

    While inflation and high interest rates present significant challenges, pension fund managers remain optimistic about growth in certain sectors, particularly infrastructure and alternative investments.

    The mixed sentiment towards equities and the strong preference for fixed-income securities reflect the cautious approach fund managers are adopting in response to macroeconomic uncertainty.

    As the regulatory landscape evolves and economic conditions stabilize, pension fund managers will likely continue to play a critical role in shaping Nigeria’s financial markets, making this biannual index a valuable tool for stakeholders across the investment spectrum.

  • Heritage Bank account owners to provide alternatives

    Heritage Bank account owners to provide alternatives

    The Pension Transitional Arrangement Directorate (PTAD) has reiterated the need for pensioners whose pension bank accounts were domiciled with Defunct Heritage Bank to provide alternatives.

    The Executive Secretary, Dr. Chioma Ejikeme who made this call, said this is to ensure that pensioners who fall in this category continue to receive their  pension.

    She stated that the pensioners are expected to send an email to complaints ptad.gov.ng.

    She said: “Following the revocation of the operating licence of Heritage Bank by the Central Bank of Nigeria (CBN), pensioners are required to provide an alternative bank account to make sure they continue to receive their monthly pension.

    “The affected pensioners are expected to send an email to complaints ptad.gov.ng with a letter indicating they are Heritage Bank pensioners.

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    “They are to attach documents that include Pensioner’s Account Statement From The New Bank; BVN SLIP; and PTAD Verification Slip”, she noted.

    She urged them to contact the Pensioner Support Services Department on 0800, call ptad 0800-2255-782a or 0209-4621700 from Monday to Friday between 5am to 4.30pm if they require any further information.

    She however pointed out that due to high traffic on the lines, there may be delays in answering calls, appealing for patience.

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    AKAGBOSU: Good day, my name is Akagbosu. My complaint is about the non-payment of my monthly pension for months. I am the eldest child and next-of-kin to Mrs Akagbosu, the complainant.

    She retired as a staff member of NIFOR on March 10, 1994. She received her monthly pension up to October 14, 2016. But after this payment, no money has come in for her till date. She has not received any monthly pension payments due to her, while her colleagues are getting theirs.

    She did PTAD verification in Benin City on May 29, 2019. She complained several times at the PTAD Benin City office on various occasions of which she was given a complaint form to fill and attached documents needed, alongside a follow up and do ‘I AM ALIVE’ capturing, all to no avail. This non-payment of her benefits has worsened her condition.

    She is battling partial stroke/hypertension and eyesight diseases.

    Kindly use your good offices to intercede for her to ensure that she is restored on the payroll and her arrears paid promptly. Thanks for your anticipated response.

    ADEGEBO: Good day, I am Dr Adegebo. Thank you for the good job you are doing to help pensioners to get their entitlements.

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    I am about 80 years old. I retired in May 2008 on consolidated salary from the Oyo State Civil Service. Duly completed gratuity and pension documents were sent to PTAD before my retirement date to enable it to pay the Federal Government portion of my retirement package.

    I was not placed on monthly pension until 27 months after my retirement. Up till now, my gratuity and 27 months of pension arrears are yet to be paid. I have participated in verification at Ibadan by PTAD and on each occasion resubmitted my pension documents including my bank statements. PTAD officials would promise to take action on my outstanding entitlements but PTAD has not paid me. A friend of mine in Abuja visited their office more than six times on my behalf in 2020/2021. PTAD confirmed they were in possession of all my necessary documents and I should expect payment soon. Yet, no payment was made to me. My entitlement has been outstanding since 2008, i.e. 16 years ago. I hope PTAD will rise up to its responsibility and pay my outstanding entitlements.

    ADAJI: Dear sir, help me urge PTAD to pay me my gratuity which they informed me through The Nation of Wednesday, June 15, 2022 that my gratuity had been computed for payment. I have waited for the bank account alert but to no avail. I wrote several times to that effect but till date, they have not told me the delay.

    Recently, precisely July 11, 2024, I received a call from PTAD, requesting for my account details for the payment of my gratuity which I obeyed. Yet, till date, I have not received a bank alert. I called several times through the line but they refused to pick my calls. I don’t understand the game at all. Please, help me relay my message to PTAD. Thanks for your good work.

     My name is Adaji from Kogi State.

    TEMITOPE: My name is Temitope, I was disengaged from Federal Civil Service 2006. My pension administrator is Stanbic IBTC Pension Manager. Since then, my money has not been paid. l need your help.

    EBITARI: Good day, my name is Ebitari. I had complained about my benefits which had to be paid.

    ANONYMOUS: I am a pensioner from one of the Federal establishment, residing in lbadan, Oyo State. I will like to know where your satelite office at lbadan is. Kindly send me your office address. Thanks.

    IRIOGBE: Dear Omobola, my name is Iriogbe, a NIPOST retiree. Information at my disposal is that PTAD is yet to invite NIPOST union and its desk officers to work with the committee to re-compute the issues that arose after the back-end-computation exercise that resulted in the embarrassing deductions from our pension from October 2023 till this moment. I have in the recent past, written to PTAD that many of us are still shocked and devastated over the deductions and reversion to what we were earning as at September 2023 earlier promised when the panel was set up on January 19, 2024. It is important to bring in the NIPOST union and other sectoral unions that have vital documents to submit to the panel to enable it to make informed decisions on this issue. We cannot afford to be disappointed again. Thanks for your good job.

    MABAWONKU: My name is Mabawonku, a federal/state pensioner. I worked at the Nigeria Educational Research and Development Council (NERDC) from September 14,1982 to July 6,1993. Later, I joined the Lagos State government on July 15, 1993 and retired on January 28, 2008 as a Director. Despite several demands in writing, calls and presence the gratuity has not been paid. I did verification with PTAD at Lagos in 2019. On request, I have sent my verification certificate and bank details from 2008 till date to PTAD. With all the conditions met since 2019, still my gratuity of 11 years and pension arrears of six months (January to July 1993) has not been paid. The Nation, through you (Omobola), should please help me. Thank you.

    OJO: I am one of the defunct Heritage Bank customers at Ado Ekiti, who has not paid their pension since May. I sent a message to you with my particulars. Please, I am waiting for your help. Ojo from Ado Ekiti.

    BAIYEGUN: PTAD, while appreciating your hard work, and your constant quick action to pensioner’s complaints, please kindly be informed that as of date, I am yet to receive my Federal share of state pension for July 2024. Thanks for your anticipated quick action.

    MURITALA: Dear Omobola, thanks so much for solving retirees’ problems. I am Muritala, a former staff member of the National Youth Service Corps. My last monthly payment was September 2020. I have sent my documents several times. Kindly see to the payment of my unpaid monthly dues. I was verified by PTAD on May 30, 2023 and they promise that my cumulative arrears will be paid within three months. My last monthly payment was September 2022. I am alive so PTAD should please pay me.

    ANNASTECIA: Good afternoon, madam. My name is Annastecia. I retired from the University Teaching Hospital, Port Harcourt. My pension was stopped in October 2020 because I was not in the head-count exercise then. However, I have been screened in the Abuja PTAD office, cleared and given pension number as at December 2023. Since then, I have not received any payment. Please, I need your kind intervention.

    THE NATION: The newspaper will intervene by sending your complaint to PTAD. Therefore, AKAGBOSU, ADEGEBO, ADAJI, TEMITOPE, EBITARI, ANNONYMOUS, IRIOGBE, MABAWONKU, OJO, BAIYEGUN, MURITALA and ANNASTECIA should watch out for the pension page on Wednesdays for response from PTAD and subsequently every Wednesday for pension news.

  • Inflation threatens insurers, policyholders, says NAICOM

    Inflation threatens insurers, policyholders, says NAICOM

    National Insurance Commission (NAICOM) has identified inflation as a major concern for the insurance sector with rising prices affecting both insurers and the insureds.

    Commissioner for Insurance/Chief Executive Officer of NAICOM, Olusegun Omosehin who spoke at the Insurance Meets Tech (IMT) 2024 with theme: ‘Revitalising the Insurance Industry to Risk-Manage Nigeria’s One-Trillion-Dollar Economic Aspiration’, in Lagos, said inflation makes it difficult to operate profitably, especially if claims costs increase due to inflation.

    Nigeria’s headline inflation rate eased to 32.15per cent in August 2024 down from the 33.40per cent recorded in July 2024, reflecting a decrease of 1.25 percentage points.

    This represents the second consecutive monthly slowdown in inflation after easing in the previous month.

    This is according to the Consumer Price Index (CPI) report published by the National Bureau of Statistics (NBS).

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    However, on a year-on-year basis, the August 2024 inflation rate was 6.35 percentage points higher than the 25.80 per cent rate recorded in August 2023, indicating a significant increase over the past year.

    Represented by the Head, Lagos Control Office NAICOM Julius Odidi, the Insurance Commissioner said to mitigate the challenges posed by inflation, insurers must carefully manage their investment portfolios, adapt pricing strategies and maintain adequate reserves.

    He said the Commission plays a vital role in fostering innovative business solutions that address pressing economic and social issues in Nigeria’s insurance sector, adding that this commitment extends to ensuring prompt settlement of legitimate claims, promoting market growth through innovation, and driving commercial value within the industry.

    He said: “In achieving the objective of revitalising the insurance industry, stakeholders must of necessity address the following fundamental issues plaguing the sector, which include among others; low insurance penetration: lack of public trust; market fragmentation; regulatory reforms and digital transformation and adaptation.”

     “While the surge of COVID-19 raged in the year 2020-2021 threatening global safety and testing the abilities, resilience and preparedness of nations globally to deal with the unexpected outbreak, the pandemic highlighted the need for digitalisation. In the insurance sector for instance, while lockdowns negatively impacted traditional distribution channels, they also encouraged insurers to develop digital offerings. This has come to show that investing in technology, online platforms, and mobile apps can improve customer experience and accessibility.”

    He maintained that essentially, revitalising the Nigerian insurance industry to risk-manage the country’s $1trillion economy literally speaks to the insurance industry’s readiness and preparedness to de-risk the activities that is projected to galvanize productivity, innovations, economic growth and development.

    “With the rapid changes in technology and economic/business environment, this discussion is not just timely but also topical to reawaken the need for our dear industry to rise up to the current realities of what is expected of us as an industry,” he stated.

  • Pension complaints and solutions

    Pension complaints and solutions

    DUKER: My name is Duker. My complaint is on the non-payment of my pension from May 2024 till date by African Alliance Insurance Plc.  I signed an agreement for a life annuity contract with the company after moving my money from NLPC Pension Managers.

    GBOLAGADE:  My name is Gbolagade. I am on an annuity programme with African Alliance. Since May, this year, I have not been paid my benefits. I am retired and I need the stipend for my upkeep. Please help.

    AIMINHIEFE: My name is Aiminhiefe. I worked in Auchi Polytechnic from April 1985 to March 2023. I retired as Chief Lecturer on 20/03/2023 under CPS. My complaint is that my accrued pension right has not been released to my PFA, Stanbic IBTC Pension. 

    OMOREGIE:  My name is Omoregie. I retired in March 2023 from Auchi Polytechnic but till now we are still waiting for our pension and gratuity to be paid after following the process. I will be very delighted to know the reason for the delay because my wife and I, who retired at the same time, are suffering in pain.

    UCHARA:  Hello, I want to remain anonymous. I want to start Voluntary Contribution (VC). I spoke with my pension managers, Stanbic IBTC but they are unable to help me out. What am I to do to start the Voluntary Contribution?

    MOSES: Good day, I am Moses. I completed my tenure as Executive Director, Engineering in March 31, 2023. But up till now, I am yet to receive my pension. Kindly help me.

    NURU: Dear Omobola, my name is Nuru. I retired in March 2023 from the Auchi Polytechnic, Edo State 16 months ago. My PFA is TrustFund. Kindly help me to ask PenCom why they have not paid me my pension benefits. Thank you.

    NIFEIPIRI: Good day, I write on behalf of my mother. She is a retiree but she has not been paid her stipend by African Alliance for the past four months. Is there any explanation to this? My mother retired from NIPOST in 2011

    OJEBOLA: Good day, kindly look into the matter in respect of Abike. Her PFA is Crusader Pension. All documents have been submitted to the pension office since September 2020. I am her Administrator. Thank you.

    TSEAVE: Good day, my name is Tseave. The African Alliance has not paid my pension for five months. I am calling on you to use your offices to prevail on the African Alliance to do the needful. Thank you.

    THE NATION: The newspaper will intervene by sending your complaint to PTAD. Therefore, DUKER, GBOLAGADE, AIMINHIEFE, OMOREGIE, UCHARA, MOSES, NUHU, NIFEIPIRI, OJEBOLA, TSEAVE should watch out for the pension page on Wednesdays for response from PTAD and subsequently every Wednesday for pension news.

    ANNONYMOUS: Good day, my complaint has been made by one of my pension account officers on my behalf but I am yet to get an update and it has been over three months now. How long does it take for merging?

    PENCOM: Dear Sir, kindly provide the details of the two Retirement Savings Accounts you are trying to merge to enable the Commission process the complaint.

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    ANNONYMOUS: Madam, I need your help. We are leaving the country today and we need money for upkeep as we go. We are banking on my 25 per cent pension savings. PenCom is yet to approve. Kindly help us.

    PENCOM:Kindly provide the details of your Retirement Savings Account, the PIN and the PFA to enable the Commission process the complaint.

    MOHAMMED: Dear sir, I am Bawa. We are the administrators of our late father Mohammed. He worked at the Immigration Service from 1987 and was retired by the Presidential Task force in 2006. Since then, we have not collected kobo from the National Pension Commission or Nigeria Immigration Service. We don’t know where to go or what to do sir. Help us out.

    PENCOM: Please provide the PFA and PIN number to enable the Commission to investigate your complaint.

    ANNONYMOUS: l recently retired from one of the MDAs. What do I do to get my benefits?

    PENCOM:Please visit your PFA and ensure that you have the required documents,  undergone the enrolment and data recapture (ifapplicable). Your PFA will provide more information to you and guide you through the process.

    OBADARE: My name is Obadare. I am a retiree from Radio Nigeria. I did my PenCom verification in September 2022 but I am yet to be paid. Kindly look into my case, thank you.

    PENCOM:Dear Obadare, kindly provide the name of your Pension Fund Administrator to enable the Commission process the complaint.

    MEFE: Good day, I have requested 25 per cent for months without success. Last month I was told to wait for PenCom’s approval but I have not got a response.

    I have a huge debt to pay and this money is my only hope.

  • States implementing CPS prospering, securing retiree’s future, says PenCom

    States implementing CPS prospering, securing retiree’s future, says PenCom

    • Holds consultative forum for State Pension Bureaux

    States that are implementing the Contributory Pension Scheme (CPS) are on the right path to a glorious future without pension liabilities, economic development and assured financial security for workers and retirees, the Acting Director-General, National Pension Commission (PenCom), Ms. Omolola Oloworaran, has said.

    She spoke during the Consultative Forum for states and the Federal Capital Territory (FCT) Pension Bureaux  in Lagos last week.

    The Forum was part of PenCom’s efforts to facilitate the adoption and implementation of the CPS by states as provided by the Pension Reform Act 2014 (PRA 2014).

    The event, which was a focal point for state-level pension administrators, brought together key stakeholders to address the growing concerns surrounding pension reforms at the sub-national level.

    Ms. Oloworaran underscored the critical role of the Forum as a vital platform for fostering collaborative solutions to pension-related challenges and catalysing long-overdue reforms in state pension systems.

    Since its inception in 2014, the forum has facilitated the exchange of ideas and expertise that are crucial for states to develop frameworks for CPS implementation.

    Lagos commended for CPS Implementation

    Specifically, PenCom DG commended the Lagos State Government for its notable strides in the implementation of the CPS, highlighting the state’s consistent remittance of pension contributions, its commitment to funding accrued pension rights, and establishment of a Group Life Insurance Policy.

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    She stated that these efforts have positioned Lagos as a beacon of pension sustainability, serving as a model for other states.

    The Head of Service, Lagos State, Mr. Bode Agoro, said the state has prioritised the welfare of its workforce and the retirees by aligning its policies with the aims of the CPS under the PRA.

    Agoro, who was represented by the Permanent Secretary, Office of the Head of Service, Mrs Sunkanmi Oyegbola, assured participants that Lagos remains committed to ensuring that pension contributions are regularly remitted, and retirees receive their entitlements promptly.

    Non-Compliant states

    However, Oloworaran said beneath the commendations lies a stark reality: Nigeria’s subnational pension landscape is still marred by inadequate reforms, with many states still lagging in their adoption of the CPS.

    She said of the 25 states that have passed laws to adopt the CPS, only eight have fully implemented the scheme while six other states have adopted the Contributory Defined Benefits Scheme (CDBS).

    She noted that the pace of implementation has remained relatively slow as more action is required by the states to make appreciable progress.

    She said the commission plans to engage with the 26 states that have either enacted CPS or CDBS laws but are yet to commence implementation.

    Pension funds for development

    Ms. Oloworaran also pointed out the potential of pension funds to be a force for economic development, particularly through infrastructure investments.

    She cited five states: Lagos, Niger, Osun, Ekiti, and Delta — that have issued state bonds, which were subscribed with pension funds.

    She said: “These bonds, in turn, have been used to finance critical infrastructure projects, such as the Lekki-Ikoyi Bridge in Lagos, noting that the CPS thus offers states a unique opportunity to access accumulated pension funds for infrastructural development.

    “As of July 2024, pension fund assets under the CPS have surged to over N20 trillion, demonstrating the immense potential of these funds if properly harnessed. Since January 2020, states have remitted over N236.7 billion in pension contributions, which underscores the need for even greater compliance”, she added.

    Proposed reforms

    Recognising the complexities and financial burdens states face in adopting the CPS, the Acting DG encourages flexibility in a manner that suits each state.

    “In this regard, PenCom proposes that states adopt the CPS for new employees or those employed for 10 years or less.  The strategy would substantially reduce the burden of accrued pension rights payable upon retirement under the CPS.

    “PenCom also announced that, effective December 2025, it will introduce a Recognition and Award System to acknowledge states that have made significant strides in implementing pension reforms. This initiative is intended to incentivize lagging states to follow suit, fostering healthy competition and encouraging faster CPS adoption,” she said.

    She urged states that have made progress in implementing the CPS to share their experiences and best practices with states that are still in the early stages of reform, adding that collaboration is key to overcoming the pension challenges facing the nation.