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Category: Pension

  • PenCom issues Consumer Protection Framework (Part 1)

    PenCom issues Consumer Protection Framework (Part 1)

    Continuing its commitment to protecting pension consumer rights and enhancing service standards, the National Pension Commission (PenCom) has issued the inaugural Consumer Protection Framework for the pension industry.

    The framework is designed to ensure exceptional service delivery from the PenCom and Licensed Pension Fund Operators (LPFOs).

    The Director-General, PenCom, Mrs. Aisha Dahir-Umar in a statement, said an essential feature of the Contributory Pension Scheme (CPS) is the involvement of active contributors and retirees in critical decision making for their pension savings.

    According to her, Retirement Savings Account (RSA) holders play an active role in the CPS, having defined rights such as selecting a Pension Fund Administrator (PFA), choosing the type of Investment Fund for their pension contributions, and determining the mode of pension payment upon retirement.

    Since its inception, she said PenCom has refined strategies to safeguard pension consumers’ rights and ensure exceptional service delivery.

    She said: “In April 2017, PenCom issued a Circular on Service Delivery by PFAs, emphasising RSA holders’ entitlement to quality services. The importance of outstanding service and protecting pension consumer rights was further underscored in the Code of Ethics and Business Practices for Licensed Pension Operators introduced in 2017. Furthermore, PenCom issued a Circular in August 2023 concerning the Operations of Branch Offices and Service Centres by PFAs. The aim was to expand the reach of PFAs and enhance service quality for RSA holders.

    Mrs Dahir-Umar explained that as a precursor to issuing the Framework, PenCom established the Consumer Protection Department (CPD) as part of its Corporate Strategy, aimed at enhancing consumer confidence, a critical element in fostering a robust and sustainable pension industry.

    “The CPD focuses on monitoring and ensuring compliance with the rights of contributors and retirees, as well as handling complaints related to the CPS. The Consumer Protection Framework is essential to achieving the high service delivery standards within the Pension Industry, setting forth guiding principles to meet consumer expectations.

    “The primary objective of the Framework is to boost consumer confidence, thereby ensuring the stability and sustainability of Nigeria’s pension industry. Specific objectives include effectively managing Pension Funds to provide sustainable retirement income, promoting transparency and accountability in pension management, ensuring fair treatment of consumers, facilitating consumer access to information for informed decision-making, promoting professionalism and ethics, and expeditiously handling complaints and resolving disputes.

    “Consumer Protection Framework is applicable to organisations that render pension-related services, including Pension Fund Custodians (PFCs) and Closed Pension Fund Administrators (CPFAs). This Framework is informed by international best practices, drawing from guidelines such as the International Organisation of Pension Supervisors (IOPS) Good Practices and the G20 High-Level Principles on Financial Consumer Protection.

    “Additionally, it aligns with the Central Bank of Nigeria (CBN) and the Saudi Arabia Central Bank’s Consumer Protection Frameworks. It is structured into four primary sections: Introduction, Principles of Consumer Protection, Rights and Responsibilities of Consumers, and Reviews and Inquiries.  Within the Framework, the basic rights of pension consumers have been established for adequate protection. Consumers are to be treated fairly, regardless of the complaint, financial knowledge, status, physical ability, age, gender, tribe, or religion.

    “Pension contributors and retirees have access to an efficient redress mechanism for settlement of claims or disputes. PenCom and LPFOs protect consumer information from unauthorised access and disclosure. Also, LPFOs provide a safe and conducive environment, channels, and platforms for use by the consumers”.

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    In addition, she stated that pension contributors and retirees have the liberty to choose from a variety of products and services without restriction. Prospective RSA holders have a right to choose their PFAs. RSA holders also have the choice to transfer from one PFA to another.

    “They can decide to select either Programmed Withdrawal or Retiree Life Annuity at retirement for pension payments. They also have the right to be provided with adequate and necessary information needed to make informed decisions. Therefore, LPFOs are required to provide consumers with accurate and timely information on products and services to enable consumers make informed decisions.

    “Meanwhile, PenCom has instituted measures for enforcing strict compliance with provisions of the Framework.

    “These measures encompass comprehensive examination of complaints, performance audits, and the application of essential administrative penalties on any Pension Fund Operator discovered to be in breach of consumers’ rights. These enforcement measures are carried out promptly, impartially, and resolutely, underscoring PenCom’s dedication to consistently safeguarding consumers’ rights. This commitment demonstrates PenCom’s unwavering dedication to safeguarding consumers.

    “This initiative reflects PenCom’s proactive approach to consumer protection, ensuring that pension contributors and retirees are treated fairly and that the pension system operates with transparency and accountability. Through ongoing collaboration and vigilant enforcement, PenCom remains steadfast in its mission to uphold consumer rights within Nigeria’s consolidating pension landscape.’’

  • Pension complaints and solutions

    Pension complaints and solutions

    KWAMI: I am Kwami. I have not been paid my pension. I want Access Pension to transfer my contribution to AIICO Insurance Plc. What is going on with Access Pension?

      I submitted my provisional agreement two months ago, precisely January 2024 authorising Access Pension to transfer my money to AIICO. Why is the PFA refusing to do so to enable me purchase annuity plan.

      Also, I want know if Access has submitted my provisional agreement to PenCom for approval.

      Finally, I want to know if PenCom has approved it.

    PENCOM: Dear Mr. Kwami, please note that your request has not been submitted to the Commission. Kindly liaise with your PFA.

    AORNAN:  Good day, I strongly need your help.

    My dad, Aornan,  a staff member of Federal Government Girls College, Gboko, died in service on July 8, 2015.

    He was even on his way from work when he had an accident. He didn’t susrvive it.

    My brother and I are his next of kin, but we have not been paid. I would be very happy if you could help me on this matter.

    PENCOM: Dear Sir, kindly liaise with your late dad’s Pension Fund Administrator (PFA) to ensure the necessary documents are submitted for the processing of his benefits.

    However, in case the documents have been submitted to his PFA, do provide his RSA PIN and other details to enable the Commission verify further.

    ELIZABETH: My name is Elizabeth. I worked at NIPOST Bayelsa for 16 years and transferred my service to the Bayelsa State Government where I retired in 2020.

     I came to the PenCom office in Abuja to complain in respect of the non-payment of my benefit.

    I have done everything about clearance with my documents at Premium Pension office in Bayelsa State.

    Finally, I did my capturing on the October 6, 2023.

    But, Premium Pension has refused to pay me my contribution.

    I look forward to hearing from you for the payment of my benefits.

    UFOT: Good day, my name is Ufot. I wish to complain about my unpaid pension by my former employer of over three years.

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    My former employer is Caverton Helicopters Offshore Support Group, based at Murtala Muhammed International Airport, Ikeja. My PFA is ARM Pension. I have not retired as I am still under 60.

    Caverton Offshore Support Group put me on furlough and even before they put me on leave without pay, they had not been paying my pension contributions to my PFA for over three years, yet they were deducting my contributions from my salary without adding their part to remit to my pension administrator.  

     I would appreciate it if you could compel them to pay my contributions of many years as it runs into a couple of millions.

    If you require any proof, I can provide it. Thank you.

    PENCOM: Dear Mr. Ufot, kindly write a letter of non-remittance to the Compliance and Enforcement Department of the National Pension Commission, stating the necessary information such as name and address of the employer, period in which remittances were not made and any other useful information for your complaint to be resolved.

    FATAI: I applied to my PFA, Stanbic IBTC, for my pension benefit for more than a year.

    Since then, I have been receiving messages from them thanking me for my patience and informing me that they are yet to get approval from PenCom. I want to sue them. Do I add PenCom or LASPEC too?

    PENCOM: Dear Mr. Fatai, please be advised that your request is yet to be forwarded to the Commission. Kindly get in touch with your PFA.

    DSP BASSEY: I am DSP Bassey. I am with ARM Pension. Should I join the NPF Pension too?

    PENCOM: Dear Mr. Bassey, please note that it is not compulsory that you move to NPF Pensions but it is advisable you discuss with your employer.

    OKPOSO:  I retired on September 22, 2022 from Cfao Nigeria Plc. Please, assist me on the payment of my pension which covered July 2023 to March 2024. Best regards.      

    PENCOM: Dear Pastor Okposo, kindly forward your RSA PIN as well as other information to enable the Commission investigate further.

  • How expatriates, Nigerians in diaspora can participate in CPS

    How expatriates, Nigerians in diaspora can participate in CPS

    The National Pension Commission (PenCom) has urged Nigerians working abroad and expatriates who are willing to save for their retirement under the Contributory Pension Scheme (CPS) to do so through the Voluntary Contribution (VC) window provided under the scheme.

    According to PenCom, many Nigerians are working abroad due to increased global work mobility just as the country attracts expatriates from various parts of the world.

    The Director-General of the commission, Mrs. Aisha Dahir-Umar, said in some cases, Nigerians who moved abroad for work were enrolled in the CPS and might wish to continue saving for their retirement.

    Similarly, she said foreigners working in Nigeria might be members of various pension plans in their home countries and desired to participate in the CPS while working in the country.

    Recognising these needs, she stated that the commission issued Guidelines for Cross-Border under the Pension Reform Act (PRA) to facilitate the participation of the  workers in the CPS.

    Noting that the PRA 2014 applies to Nigerians working in Nigeria, she said those working abroad are allowed and encouraged to participate in the Scheme.

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    Mrs. Aisha-Umar further said that while the scheme is not mandatory for expatriate employees, such can elect to participate by making voluntary contributions under the CPS.

    She said: “The CPS covers Nigerians working in Nigerian Missions abroad if these workers are employees of Nigerian institutions required to implement the CPS under the PRA 2014, as in the case of career diplomats routinely posted to missions abroad. However, where the Nigerian Missions employ Nigerians as local temporary support staff in the host countries in line with their domestic laws, the PRA 2014 does not apply to these workers.

    “A Nigerian previously working abroad can be part of the CPS if he secures formal employment in Nigeria upon return. Where the returnee is not employed, the person may make voluntary contributions under the Scheme. A person who resigns from an organisation operating in Nigeria and takes up an appointment with an organisation outside Nigeria can make arrangements with the new employer to continue remitting his pension contributions to his RSA in Nigeria. If such an employee chooses to discontinue contribution under the Scheme in Nigeria or where the new employer has an entirely different pension arrangement, he can access his RSA upon retirement or attaining the age of 50 years, whichever is later.

    “Notably, the CPS aims to provide financial security for employees in their retirement years. The CPS requires both employees and employers to contribute at least 18 per cent of the employee’s monthly salary into a Retirement Savings Account (RSA). This account serves as a pool of funds that grows over time, ensuring a stable income for individuals during their retirement.

    “Nigerians working abroad can initiate the process by contacting a Pension Fund Administrator (PFA) through their website or by visiting its offices for information and guidance to facilitate enrolment in the CPS. The PFA will guide them through the account opening process, ensuring the required documents are submitted.”

    The DG explained that where a Nigerian working abroad hadjoined a retirement scheme abroad, the person could repatriate the accumulated benefits to his RSA with a PFA in Nigeria, where the offshore pension legislation permits such transfers. The repatriation of earned benefits must comply with the relevant Exchange Rate and Money Laundering Rules.

    “A Nigerian already contributing to an RSA that is going on transfer abroad or changing employment for another employment abroad should notify his PFA and request the PFA to freeze his RSA until he returns to continue his contributions. The employee shall indicate whether he intends to send voluntary contributions to the RSA.

    “For expatriates working in Nigeria, the process is relatively similar. Any foreign employee in Nigeria is allowed to join the CPS, irrespective of a pension arrangement in his home country. The employee shall inform his employer of his interest in joining the Scheme and open an RSA with a PFA of his choice. Where the employee’s wage is paid in foreign currency, the employer shall convert the contribution to the Naira equivalent and remit it to the Pension Fund Custodian (PFC). In the event of permanent relocation, the expatriate shall give the PFA three months’ prior notice before exiting from the Scheme..

    She maintained that by extending the CPS to Nigerians abroad and expatriates in Nigeria, the government aims to ensure that these individuals can secure their financial future and enjoy a comfortable retirement.

    It is, however, essential for all parties involved to comply with the guidelines set by PenCom towards a seamless process, she noted. 

  • Experts to workers: plan your early retirement

    Experts to workers: plan your early retirement

     Experts have implored workers to prepare for retirement early.

    They spoke at the maiden edition of the Inspenonline Retirement Summit in Lagos.

    They noted that contributions under the Contributory Pension Scheme (CPS) alone could not guarantee comfort in retirement, noting that those who rely only on such would have missed it.

    They, therefore, enjoined workers to set aside funds for the Additional Voluntary Contribution (AVC) or purchase an Endowment Policy in insurance companies to augment what may  come from the CPS monthly.

    While they agreed that workers should negotiate retirement plans with their employers the same way they negotiate their salaries, they advised them to search for their passion  and plan towards it at an earlier stage.

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    The keynote speaker, who is the founder & Managing Director ZER Consulting Africa Limited, Ms. Adeolu Adewumi-Zer, urged workers to identify their passion early and invest in it at retirement, saying this would amount to investment meeting opportunity.

    Adewumi-Zer, who is also the former Managing Director/CEO of Allianz Insurance, said most people  entered into retirement unprepared because they didn’t plan for it, noting that each worker should have a financial advisor who would guide them on the best investment options and management of their wealth.

    He said: “Retirement isn’t an ending, it’s a magnificent new beginning – a chance to unleash your resilience and craft a fulfilling future that transcends the confines of your workplace. Don’t be passive participants in your own retirement! Raise your voice, ask questions, and engage experts, network to create a personalised retirement plan that ignites your passions and fuels your dreams. Together, we can redefine retirement, making it a time not just for financial security, but also for purpose, passion, and lifelong exploration.’’

    “Financial security is crucial, of course. But true fulfillment comes from a life rich in purpose, connection, and continuous growth. Embrace personal transformation as you plan for the future. Explore your passions, reconnect with loved ones, and consider ways to contribute your skills and knowledge to the world. Retire from your job, but never retire from your passions; the greatest adventures await you in this next chapter.”

    Former Director-General, Lagos State Pension Commission (LASPEC), Mrs Folashade Onanuga said employers should inculcate retirement training for each employee, such that, he or she can be financially independent in retirement.

    While also canvassing ADC as alternative funding option for would-be retirees, she urged retirees as well as workers to cut their expenses by focusing mainly on what they need and not what they want.

    “You need financial discipline at retirement because your pension contributions alone cannot give you comfort in retirement. Don’t live above your limit, don’t live within your limit, but live below your limit, such that, you can cope with financial pressure that comes with retirement,” she advised.

    Similarly, the Managing Director/CEO, Universal Insurance Plc, Mr. Ben Ujuatuonu said those who start work early has a lot of opportunities to plan retirement early, adding that five years to retirement, one should have concluded and finalised on what business to do at retirement.

    Similarly, the Managing Director/CEO, Sanlam Life Insurance, Mr. Tunde Mimiko, urged workers to envision the life they wanted to live in retirement and should avoid a situation where their current life is defined by career alone, adding: “Pursue your passion as well, build a network of long-lasting friends as they will be instrumental in your retirement life, don’t let your life be defined by your position, it’s transient and derive fulfillment in whatever you decide to do.

    Chairman of the event, a past President Chartered Insurance Institute of Nigeria (CIIN), Fatai Lawal, implored the public to give adequate consideration to retirement as it would come whether they prepare for it or not.

    Publisher/CEO, Inspenonline, Mr. Chuks Udo Okonta, who organised the event, stressed that the summit was based on findings that most people enter into retirement unprepared. Thus, its objective was to prepare them for retirement early.

  • Pension complaints and solutions

    Pension complaints and solutions

    ANNONYMOUS: Good afternoon. I’m staff member of the Nigerian Television Authority (NTA). Please, how can I get my outstanding contributions from June 2013 to December 2018, which were not remitted to my RSA account?

    PENCOM: Dear Mr. Adamu, kindly liaise with the Office of the Intergrated Payroll Personal System (IPPIS) Accountant-General of the Federation.                       

    SAMINU: My name is Saminu. I am a retiree from NIPOST. I was unable to do verification due to data capture issue. I have NIN. Help me.

    PENCOM: Dear Mr.Saminu, you are advised to approach your Pension Fund Administrator for Data Recapturing.                           

    EGBE: I am Egbe, a teacher at Federal Girls Government Colege (FGGC) Keana, Nasarawa State. I want my date of birth to be corrected. It has been corrected by NIMC but not yet effected by PenCom.

    PENCOM: Dear Mr. Egbe, you are advised to approach your Pension Fund Administrator (PFA0for submission of documents to initiate the process of updating your date of birth.       

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    ANNONYMOUS: Good day, since I retired from Federal Medical Centre (FMC), Markurdi on April 30, 2020, my monthly pension has not been paid.

    PENCOM: Dear sir/madam, you are advised to approach your Pension Fund Administrator (PFA) for further clarifications.                                     

    AKINGBOLA: Good day. My name is Akingbola. I retired from the Ogun State Universal Basic Education Board on March 16, 2023.

    Thereafter, I applied for the payment of my pension from Tangerine/Apt Pension on April 25, 2023 but I haven’t got it. Meanwhile, those who retired months after me have been paid. Kindly use your good offices to look into this matter. Thank you very much.

    PENCOM: Dear Mr. Akingbola, the process is being reviewed by the Benefit and Insurance Department.

    ANNONYMOUS: Hello, I am from Maritime Academy of Nigeria (MAN), Oron. I cannot enrol and verify 2024 retirees on PenCom portal. Kindly help me.

    PENCOM: Dear sir/madam, kindly approach the Pension Fund Administrator (PFA) of your employees for assistance with the Online Enrolment  Application.               

    ADEYEMI: I am Adeyemi. I retired in December 2022. I was with ARM before I joined Stanbic IBTC.

     I want to transfer my contributions to Stanbic. I was told to write to PenCom. Kindly guide me.

    PENCOM: Dear Mr. Adeyemi,  kindly approach Stanbic IBTC for data recapture to facilitate merging the two PINS. Stanbic IBTC will guide you.                             

    SALIU: My name is Saliu. I learnt it takes five working days for you to okay an application forwarded by an PFA.

    I want to find out why it’s not so with my application. It is two weeks, according to Leadway Pension, that my application has been sent to you. What is holding it?

    PENCOM: Dear Mr. Saliu, kindly provide the name of your Pension Fund Administrator (PFA) to enable the Commission process the complaint.

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

    PENCOM: Dear sir, kindly provide the two Retirement Savings Accounts  (RSAs) you are trying to merge to enable the Commission process the complaint.

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

    PENCOM: Kindly provide your Retirement Savings Account (RSA), Personal Identification Number (PIN) and PFA to enable the Commission process the complaint.

    MOHAMMED: Dear sir, we are the administrators of our late father Mohammed. He worked at the Nigeria Immigration Service (NIS) from 1987 to 2006, when he was retired by the Presidential Taskforce.

    Since then, we have not collected one kobo from either the National Pension Commission or NIS. We don’t know where to go or what to do. Help us.

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

    ANNONYMOUS: I am Oforlea. I retired on September 14, 2022.

    My date of birth, November 23, 1964, which was wrongly captured in my NIN as November 23, 1965, which has been corrected.

    I later went for recapturing at Premium Pension but the staff member of I met refused to attend to me. He said my date of birth was different from that  in the PenCom record.

    Meanwhile, I have November 23, 1964 in my records. What should I do?

    PENCOM: Please send the complaint to info@pencom.gov.ng.

    ANNONYMOUS: I am a police officer.  My pension has not been paid into my account since 2017.

    I have been on this for the past three years – moving from one office to another – but my efforts have proved abortive. Kindly help me.

    PENCOM: Kindly provide your name and PIN.

    ANNONYMOUS: Good Day, I am Omobulejo. I retired on August 15, 2020 at the Vintage Press Ltd in Lagos. I regularised my documents with my PFA, Stanbic IBTC confirmed in November 2021 and they confirmed it as okay. Since then, they send me messages to be patient. For how long will I be patient. I have no job at hand. Thank you.

    PENCOM: Please visit your PFA to resubmit your application.

  • Experts chart new path for insurance

    Experts chart new path for insurance

    Experts have charted new growth narratives for the insurance sector, identifying low insurance awareness, education and penetration as its bane.

    They canvassed a strong need for insurance operators to think innovations, leveraging technology to chart new distribution channels for insurance products and services.

    The experts spoke at the maiden Insurance Summit of The Independent tagged: “Inclusive insurance: navigating the new narratives for sectorial growth” in Lagos.

    The event attracted insurance  chieftains, regulators, Lagos State Police Command, students of higher institutions, analysts and women entrepreneurs, among others.

    In his keynote address, the immediate past Commissioner for Insurance, National Insurance Commission (NAICOM), Olorundare Sunday Thomas, represented by Ajibola Bankole, a Deputy Director at NAICOM, noted the progressive trend of the sector occasioned by positive market performance at the close of 2023 fourth quarter.

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    According to him, the industry has sustained its progressive trend of positive market performance recording a milestone growth to close at N1.003trillion, representing about 27per cent growth compared to the N790 billion recorded in 2022.

    He stressed that despite this achievements, Nigeria’s insurance sector is still largely underexplored, with the industry’s penetration at less than 1per cent of gross domestic product (GDP).

    Group Chief Executive Officer, Consolidated Hallmark Holdings Plc, Eddie Efekoha noted that since NAICOM came up with an insurance bill in 2003, the public understanding of insurance, particularly among the retail service, has gradually improved while its penetration rate has increased.

    He stressed the need for the sector to create awareness through partnership and initiatives.

    Managing Director/Chief Executive Officer, Royal Exchange General Insurance Company Limited, Ebelechukwu Nwachukwu, believes that the industry has evolved in the past 10 years.

    She stated that the industry has come a long way from a focus to serve the corporate market to focusing, very significantly, on serving the retail market and the other side of the economy with a shift agriculture insurance.

    Nwachukwu acknowledge that technology and digitalisation havehelped their inclusion journey significantly.

    She urged operators and other stakeholders in the industry to collaborate with the regulators, the banking sector, entertainment industry as well as agriculture and other sectors, noting that by so doing the insurance sector will drive the desired change.

    Lead Strategist at Avalon Media Group and panelist, Ayodele Adio called for a policy action by the insurance operators to ensure strategic marketing and campaign that would reposition the industry for its desired growth.

  • What you need to know about old pension scheme

    What you need to know about old pension scheme

    The old pension scheme, Pay-As-You-Go named Defined Benefit Scheme (DBS) is a pension administration that existed before June 30, 2007. 

    Consequently, those who retired before this period are being managed under the DBS.

    In total, there 226, 693 pensioners managed by Pension Transitional Arrangement Directorate (PTAD).

    PTAD established in 2013 under the Pension Reform Act (PRA) 2004 and repealed in 2014, is expected to be wind up when the last pensioner under the scheme passes on.

    According to the Directorate, the last pensioner is projected to pass on in about 45 years.

    What does PTAD stand for?

    PTAD is a treasury funded extra-ministerial agency under Federal Ministry of Finance, responsible for the management of pensions under the old pension scheme (Defined Benefit Scheme-DBS) for pensioners who did not transit to the new Contributory Pension Scheme (CPS) which is currently in effect in Nigeria.

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    What is the difference between the DBS and the CPS?

    The Defined Benefit Scheme (DBS) is the pension scheme that was in effect in Nigeria until 2007 when it was replaced with the Contributory Pension Scheme (CPD) as stipulated in the Pension Reform Act (PFA) 2004 and 2014.

    Under the DBS, the total pension obligation is borne by government as against the CPS where the accumulated pension at retirement is based on a pension plan in which an employer or employee contribute in varying percentages to build a retirement fund for an individual.

    Under the CPS, the pension fund exists from the onset and payments can be made as at when due unlike the DBS, which is dependent on government treasury for funding.

    Who are the Pensioners under PTAD management?

    Any federal public sector employee entitled to retirement benefits that retired on or before June 30, 2007 and has worked in any of the pension groups that includes Civil Service Pension Department (CSPD), Police Pension Department (PPD), Customs, Immigration and Prisons Pension Department (CIPPD), Treasury Funded Parastatals Pension Department (PaPD) and Pension Support Services Department (PSSD) falls under PTAD management. These are Pension Groups under PTAD in accordance with Section 43 (3) of the Pension Reform Act.

    What of State Pensioners?

    There are also some state pensioners who are entitled to federal share. To be a state pensioner with federal share, a retiree must have been in employment for one of the regions of Nigeria before March 31, 1976 and retired before March 31, 2011. Some public sector employees irrespective of when they retired are, however, not under PTAD’S jurisdiction. The categories of persons mentioned in Section 291 of the Constitution of the Federal Republic of Nigeria as amended are the Judicial officers of the Supreme Court and Court of Appeal; members of the Armed Forces; and the Secret Services.

    Why is verification necessary?

    It is necessary for PTAD to carry out verification to ascertain the proof of life and create a credible database of all pensioners under the DBS. PTAD did not inherit a credible pensioners’ database, there is therefore an urgent need to verify all pensioners under the DBS to enable PTAD resolve their complaints.

    The verification of pensioners is aimed at the establishment of an accurate, credible, and digitised database of pensioners under DBS and for complaint resolution; eliminating duplicate payments and ghost pensioners; regularising anomalies such as over payments and under payments; obtaining relevant work records to ensure accurate computation of pension payment; and Updating the records of the Next of Kin (NoK) for payment of death benefit.

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    SUNDAY: Good day. My name is Sunday from Cross River State. My father died on July 10, 2005 while in the Police service. He was the late Inspector Okimba. His last state of service was Akwa Ibom. I went on to process his entitlement as his next of kin (Nok) in 2015 at PTAD office, Abuja where I was verified and captured with my pensioner number. But up till date, I have not been paid. Kindly help me.

    PTAD: There was incomplete documentation during verification. Nok is requested to come forward with these additional documents: Enlistment form, emolument form, letter of administration, marriage certificate, introduction letter from last command, valid means of identification, NoK’s birth certificate, and Nok’s BVN.

    ABDULLAHI: I am Abdullahi from Jos, the Plateau State capital. My father was a staff member of the Ministry of Defence, Civilian Unit for 16 years before he died in 1995. I have attended various screenings and verifications and the last one was in Jos in 2017.

    I have submitted the required documents for the payment of gratuity and pension benefits as a Next of Kin (Nok), but up to no avail. In 2020, I was called from PTAD to submit some documents, including the bank account details which I did. From your publication of my case, PTAD is asking for my verification number, which I scanned and sent since then. I hope Omobola will assist me.

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    PTAD: Nok should provide deceased name and bank statement.

    IRIOGBE: Dear Omobola, I am Iriogbe, a NIPOST retiree. Once again, I refer to The Nation of Wednesday January 24, 2024 entitled: “PTAD to correct anomalies in grade levels, step, others”. It went further to state that the PTAD Executive Secretary (ES) had set up a committee to look into the complaints that greeted the outcome of PTAD’s PAPD back end computation. The ES, in the report, promised that any pensioner from any sector yet to be reviewed by the end of March 2024, would be returned to the September 2023 pension payroll, among others. My phone is inundated with calls by many retirees who want to know if PTAD will not renege on the promise. It was a good step to take by PTAD since they have over 262,500 retirees on their payroll which they cannot finish reviewing, sector by sector between January and March 2024. Thanks for your efforts towards pensioners.

    ODUNTAN: Good day, I am sending this on behalf of my father. Although his pension monthly is N51,000, he was paid N37,000 for October. What went wrong?

    SGT BASSEY: I am Sergeant Bassey, I have not received my pension for October. Kindly help me.

    ANNONYMOUS: Good day, I am one of the pensioners that did verification six months ago. I am surprised some people have done it a second time. Please, I am alive but up till now, no message has been sent to me for the second verification as others have done. Kindly, advise me on what to do.

    GODWIN: Good day, my name is Godwin. I withdrew from the force on June 1,1995 and I started enjoying pension from February 26, 2002 till September 2023, though I have not been paid since October and November 2023. I learnt that I missed verification. Please, assist me.

    ROSEMARIE: I am Rosemarie. My NTA pension from November till date has not been paid.

    The network has been inconsistent in my locality for months. Kindly help me.

    OLAWALE: Hello Omobola, I am one of the federal pensioners living at ijebu Ode. l have been taking our pensioners who could not confirm “l am Alive” to go for fingerprint verification at a business centre in Ibadan. Mr Adesiyan of PTAD should kindly trace the address.

    EMMANUEL: Good afternoon, my name is Emmanuel. My elder brother, a Police Sergeant, died in 2006. The wife was verified, captured and given a pension number in 2019, but till now she has not been paid. PTAD is asking for a letter of administration. What should I do? Thanks.

    TIMOTHY: My name is Timothy from Oyo State. I want to know what was used to compute my monthly pension since October 1993. I have been on federal share since 1993. Kindly assist me.

    CHUKWUDUBEM: Hello, my father, Chukwudubem, a retired police man, did not receive his pension for October 2023. Please, we need assistance from your good office.Thank you

    OWEI: Hello, I am a NIPOST retiree. I have been getting my stipend. But, to my utmost surprise in October 2023, I was short paid N4000.

    THE NATION: The newspaper will intervene by sending your complaints to PenCom. Therefore, Iriogbe, Oduntan, DSP Bassey, Rosemarie, Olawale, Emmanuel, Timothy, CHUKWUDUBEM and OWEI should watch out for the pension page on Wednesdays for PenCom’s  response to your matter.

  • ‘How CPS is easing job loss impact’

    ‘How CPS is easing job loss impact’

    • As 8,651 disengaged workers get N14.2b in three months

    The National Pension Commission (PenCom) has approved the payment of N14.20 billion to 8,651 Retirement Savings Account (RSA) holders who were disengaged from work in the first quarter of the year, The Nation has learnt

    The beneficiaries were under 50 years and did not secure jobs within four months of their disengagement.

    From the inception of the Contributory Pension Scheme (CPS) to the end of last month, Pension Fund Administrators (PFAs) have paid N238.19 billion to 518,850 RSA holders who sought to access 25 per cent of their RSA balances due to temporary loss of employment.

    This is how the CPS has been easing the impact of job loss on workers and the economy.

    The Director-General, PenCom, Mrs. Aisha Dahir-Umar, made this known in a statement.

    She maintained that an integral feature of the CPS is the provision of social security through benefits payments during temporary job loss.

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    According to her, this innovative measure mitigates the impact of unexpected unemployment on RSA holders and helps alleviate the broader effects on the economy.

    She stated that this social security for CPS participants underscores the scheme’s commitment to supporting individuals during challenging economic periods, promoting stability, and fostering resilience within the workforce.

    She said: “The Pension Reform Act 2014 (PRA 2014) allows pension contributors to access 25 per cent of the balance in their RSA due to a temporary job loss. Section 7 (2) of the PRA 2014 states: “Where an employee voluntarily retires, disengages or is disengaged from employment as provided for under section 16 (2) and (5) of the PRA 2014, the employee may, with the approval of the Commission, withdraw an amount of money not exceeding 25 per cent of the total amount credited to his RSA, provided that such withdrawals shall only be made after four months of such retirement or cessation of employment and the employee does not secure another employment.

    “The above provision of the PRA 2014 is one of the novel changes made by the CPS. Unlike the old Defined Benefits Scheme (DBS), which left many employees who lost their jobs without retirement benefits, Section 7(2) of the PRA 2014 guaranteed financial security to employees under the CPS as they have their RSA balances to fall back on in case of temporary job loss. It is pertinent to note that RSAs are individualised; therefore, account holders can change employers without the fear of losing their retirement benefits.

    “Accessing 25 per cent of RSA balance in the event of a temporary job loss offers several significant benefits. It provides financial support to RSA holders facing temporary unemployment, helping them cover essential expenses such as rent, utilities, and other living costs during the period of job loss. The withdrawal option cushions the financial impact of job loss, reducing the stress and anxiety associated with sudden unemployment and enabling individuals to maintain financial stability.

    “Significantly, accessing a portion of the RSA balance ensures that individuals can continue to maintain their standard of living and meet basic needs while seeking new employment opportunities.

    “In addition, by accessing funds from the RSA, individuals can avoid falling into debt or resorting to high-interest loans to sustain themselves during the period of unemployment. By supporting individuals during temporary job loss, the CPS contributes to economic recovery by reducing the negative impact of unemployment on households and communities. Furthermore, having access to financial resources during unemployment can positively impact mental health and well-being, reducing stress and promoting resilience,” he noted.

    The PenCom DG also said their swift and impactful response to the financial needs of unemployed RSA holders underscores the importance of a progressive and adaptable regulatory environment.

    She stressed that with its commitment to empowering workers, PenCom continues to pave the way for a more secure and promising future for all RSA holders.

    “However, the PRA 2014 provides that where an employee has accessed the 25 per cent for temporary loss of job, such employee shall subsequently access the balances in the retirement savings account only at the time of retirement.

    “Notwithstanding the provision of section 7(2) of the PRA 2014, it is pertinent for RSA holders to understand that the CPS is designed to cater for life at retirement. Therefore, the RSA is unlike the regular savings account with a commercial bank, where a customer deposits and withdraws funds at any time. Consequently, all withdrawals from an employee’s RSA are based on conditions allowed under the PRA 2014, including the 25 per cent access for temporary job loss.

    “Notably, an employee who had accessed his RSA balance due to job loss is expected to resume pension contribution once he secures another employment by providing his new employer with his RSA details. Overall, accessing 25 per cent of the RSA balance in the event of temporary job loss under the CPS provides essential financial relief and support, fostering economic stability and individual resilience in challenging times,” she added.

  • Guinea Insurance strengthens partnership with brokers in South south

    Guinea Insurance strengthens partnership with brokers in South south

    Guinea Insurance PLC has reaffirmed its commitment to excellence through a partnership with the Nigerian Council of Registered Insurance Brokers (NCRIB) Evening in Port Harcourt, Southsouth Area Committee.

    At the event, Guinea Insurance received commendations for its exemplary service and prompt claims processing from industry leaders and stakeholders, reinforcing its position as a trusted insurance provider.

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    Managing Director, Guinea Insurance PLC, Ademola Abidogun, emphasised that the event underscored the company’s dedication to excellence and cooperation. He expressed confidence that the enhanced partnership with NCRIB’s Southsouth Area Committee would result in mutually advantageous outcomes, solidifying Guinea Insurance’s position as the preferred insurance provider in the region.

    He said Guinea’s strategic investment in fostering strong industry relationships underscores its dedication to growth and innovation, positioning the company for continued success in the dynamic insurance market.