The Nation Newspaper

Category: Pension

  • ‘Benefits of Voluntary Contributions’

    ‘Benefits of Voluntary Contributions’

    To further achieve better savings culture for employees under the Contributory Pension Scheme(CPS), the National Pension Commission (PenCom) has emphasised the need for the Retirement Savings Account (RSA) holders to embrace Voluntary Contributions (VC).

    The VC is a non-mandatory contribution remitted into an employee’s RSA through the employer. It allows employees to make additional contributions beyond the mandatory contributions. This is a minimum of 10 per cent from employers and eight per cent from employees.

    Director-General, PenCom, Mrs. Aisha Dahir-Umar, who has embarked on campaigns, said saving for retirement had become crucial as retirees have a plethora of needs during their retirement.

    She stated that the CPS has played a vital role in enabling individuals to plan effectively for retirement.

    She reiterated that the pension reform of 2004 was aimed at establishing a sustainable system that ensures a stable, predictable, and adequate source of retirement income for every employee and to achieve this goal, the commission introduced the concept of VC, providing workers with the opportunity to increase their retirement income.

    She added that the VC represents a proactive approach towards enhancing retirement planning and financial security for workers by offering flexibility and boosting retirement income, VC plays a crucial role in realising the vision of a sustainable and prosperous retirement future for employees.

    ‘Some benefits of VC’

    Enhanced accumulation of pension savings

    “Voluntary Contributions enable individuals to rapidly build up their pension savings during their working years, helping them meet their retirement income goals. Employees can determine the level of contributions required to reach their target income at retirement. Those with specific income targets can seek advice from their Pension Fund Administrators (PFAs). 

    Furthermore, the “pension calculator”, which is available on most PFAs’websites, can be utilised to make projections of amounts required to be saved to attain specified retirement income targets.

    “Through VC, employees can significantly boost their retirement income. By making additional contributions, which enables them to benefit from, individuals can harness the power of compounding interest over time, thereby enhancing the size of their retirement benefits when they exit active service.”

    Flexibility in making contributions

    “Voluntary Contributions offer contributors the flexibility to decide the amount and frequency of their contributions. Contributions may be made monthly, quarterly, bi-yearly, or yearly. Contributors can start and stop their contributions at their convenience and increase or reduce the amount as needed.

    Inclusivity

    “Voluntary Contributions are available to workers, including retirees under the defunct Defined Benefit Scheme (DBS) and those under the CPS who rejoin service on contract. Also, workers in the private sector belonging to Closed Schemes or Approved Existing Schemes can also make Voluntary Contributions.

    Fixed and Contingent Portions

    “VC remitted into the RSA are segregated into two segments, i.e. contingent and fixed portions. The contingent portion, which constitutes 50 per cent of the VC, is available for withdrawal by the contributors provided the contributions have remained in the RSA for a minimum of two years.

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    “On the other hand, the fixed portion, also comprising 50 per cent of voluntary contributions, can only be accessed by the RSA holder an RSA holder at retirement. This fixed portion significantly bolsters an employee’s pension and lump sum upon retirement. Since the inception of the CPS to February 2024, a total of 51,443 RSA holders have withdrawn N43.34 billion from their Voluntary Contributions.’’

    Tax incentives

    “All income accrued to the VC investment is not taxable if the withdrawal is made five years later. Additionally, if individuals withdraw their VC after five years, no tax will be applied to the amount withdrawn.This provision further enhances the RSA balances towards higher retirement incomes.’’

    How to make Voluntary Contributions

    “Eligible individuals should notify their employers in writing about their intention to make Voluntary Contributions, specifying the desired amount to be deducted. However, the amount cannot exceed one-third of the employee’s monthly salary, in accordance with the Labour Act of 1990. “Employers are responsible for remitting the Voluntary Contributions to the employee’s RSA. Failure to remit the contributions after deductions will result in penalties, as outlined in Section 11 (7) of the Pension Reform Act (PRA) 2014.

    “All Voluntary Contributions, along with the mandatory contributions, are managed by PFAs and held in custody by Pension Fund Custodians (PFC).The PFAs invest and manage the Voluntary Contributions in compliance with the regulations of PenCom.

    “Furthermore, in compliance with the Money Laundering Act (MLA) 2011 and requirements from the Nigerian Drug Law Enforcement Agency (NDLEA), any single Voluntary Contribution lodgement of N5 million and above must be reported by the PFC.’’

  • Leadway Group unveils Hersurred for women

    Leadway Group unveils Hersurred for women

    Leadway Group has launched Hersurred, an initiative that empowers women to develop, learn, and excel.

    The Hersurred platform offers women a space to learn, exchange experiences, and tap into resources that facilitate their growth, helping them fulfil their academic, financial, mental, and social aspirations.

    Through this, women can benefit from impactful mentorship programmes, skill-building workshops, and networking opportunities, enabling their development in various aspects of life.

    Chief People Experience Officer, Leadway Group, Mrs. Kunbi Adeoti, said: “As one of Nigeria’s leading inclusive brands, we have created a platform that celebrates, promotes, and fosters greater financial inclusion and leadership opportunities for women.

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    “At Leadway Group, we believe in the power of diversity and the importance of creating inclusive spaces where everyone can thrive.’’

    Also, Chief Marketing Officer,Leadway Group, Olusakin Labeodan, emphasised the significance of Hersurred.

    The launch of Hersurred is a testament to Leadway Group’s dedication to championing inclusive social, personal and professional development, he said.

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    JIMAH: Good day, my name is Jimah. I retired from the University of Benin in September 1996 on EUSS G.L. 7.

     As at January 2015, my monthly pension was N32,914.65 and rose to N49,586.57 2018 due to the minimum wage increase. 

     But, surprisingly by October 2023, my pension was reduced to N32,728.08 less than that of 2015 or N32,914.65 without explanation. The difference is N16,858.49. I appeal to PTAD to pay me the difference from October 2023 till date. Thank you.

    CHUWUEKE: Good day, I want to remain anonymous. My complaint is about Chuwueke’s pension arrears. He retired during the staff ratification at NSITF since April 29, 2005. He has not received his pension arrears till date. Please, help him.

    ANONYMOUS: Hello, I would like to know how I can do verification for one of our members who has not done it before. How do I carry out the process? Thank you.

    MRS EMILIA: Dear Omobola, my complaint is about the deduction of N15,000 from my monthly pension effective October 2023 till date. I retired from the Centre for Management Development (CMD). I participated in the “I Am Alive” Confirmation and I have my verification number.

    Please, assist me to get refunds and stop further deductions.

    DUROJAYE: Hello, my name is Durojaye. My complaint is on the short-payment of my federal pension.

    With reference to PTAD’s message on October 24, 2023, demanding that I send my bank statements from  2015 till date, the bank has agreed to do so and I have sent them to PTAD through your email address.

    Upon receiving them, please, expedite action without further delay.

    ONIPEDE: Hello, I am Onipede, a NIPOST retiree. I was surprised to see the deduction made by PTAD from October 2023, as I was not put on the correct payment schedule for parastatals.

    In 2019, we attended a verification, which had no effect on our monthly pension till date.

    Also, in 2019, the Federal Government released a circular on new Table of Consequential Adjustment in pension arising from the implementation of the national minimum wage, 2019 effective date April 18, 2019.

    But, it has not be effected till this moment.

    Meanwhile, NIPOST retirees are having a peculiar issue which  affects what we received as gratuity and monthly pension – this was grievous on us.

    In conclusion, I want to know, first of all, what PTAD has done on the short-payment, since it was confirmed that we retired in February 2007 with payslips as a proof.

    Secondly, why has PTAD refused to implement the correct monthly pension for parastatal retirees.

    Thirdly, what was the cause of the recent deduction from October 2023, which was done indiscriminately because it made my junior receive more than me.There is also disparity on same grade level officers.

    ANIMASAUN: My name is Animasaun. This is to thank The Nation management for the good job you have been doing in solving pensioners complaints.

    I retired from the Centre for Management Development (CMD) in December 1996 on Grade Level 14 (USS13).

    Since then, CMD has been paying my pension until 2017 when PTAD took it over and added other CMD retirees.

    In October 2023, PTAD reduced my pension by almost 40 per cent without any explanation.

    I complained to my former organisation about this. Its Pension Desk Officer contacted PTAD about this. She was told to tell the affected pensioners to contact Mr Yusuff of PTAD on telephone number 08025011634 for assistance.

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    I contacted Mr Yusuff. He told me to wait for a letter that explains the reasons and breakdown of the pension computation, leading to pension reduction before I make any complaint. I waited till almost the end of November, but there was no letter from PTAD.

    Later, I learnt that PTAD has asked the affected pensioners to visit any PTAD office in their state to collect the letter.

    I went to PTAD office at Tafawa Balewa Square, Lagos for my  letter. Unfortunately, the officer in-charge told me that he was not aware of such a letter.

    However, he called Mr Kabiru in PTAD Abuja about the letter.

    To my surprise, Mr Yusuff replied that PTAD had not written any letter to the affected pensioners on why their pensions were reduced.

    This is contrary to what the Executive Secretary of PTAD said when he addressed members of one pension union

    He had said most of the letters dispatched to the affected pensioners were returned.

    My request is that I want The Nation to help me, so that PTAD can send the letter that gives a breakdown of the pension computation that led to my  pension being reduced by almost 40 per cent.

    The letter can be sent to PTAD’s office in Lagos for me to collect it or to my address. THE NATION: The newspaper will send the complaints of JIMAH, CHUWUEKE, MRS EMILIA, ONIPEDE, and ANIMASHAUN to PTAD. Watch out for its response to you on the Pension page on Wednesdays.  

  • Fed Govt promises support for brokers

    Fed Govt promises support for brokers

    The Federal Government has expressed its readiness to partner some professional bodies to entrench economic policies that would boost the economy and guarantee the nation’s development.

    Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, stated this when the delegation of the Nigerian Council of Registered Insurance Brokers (NCRIB) visited him in Abuja.

    According to Edun, the Bola Tinubu administration was giving primacy to getting the economy out of the woods through pragmatic reforms by getting hold of government revenue and monitoring effective outcomes of government policies.

    The Minister said the government realised the need to collaborate with reputable professional institutions which are believed to bring value to the government’s policy direction. As a result, he said, the government was stretching its hands of fellowship to notable bodies like the NCRIB, to put them, especially in its economic task force team.

    Earlier, the President of NCRIB, Prince Babatunde Oguntade, applauded the ministry for anchoring the reforms of the administration, adding that it was already putting the country on the path of sustainable recovery.

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    He stated that the government needed to place greater emphasis on insurance as one of the economic reforms’ strategies, bearing in mind  the risks in every endeavour of the government, coupled with the need to preserve its huge resources against unforeseen circumstances.

    Specifically, Oguntade advocated  more commitment of the government to the enforcement of the laws on compulsory insurances. He noted it would buoy the solvency of the industry as well as guarantee the required peace of mind of the people and, more importantly, inflate the economy.

    Advocating the involvement of registered brokers in government insurance accounts, Oguntade frowned at the practice of virement in yearly budgeted expenditure for insurances by the government, saying that the accounting practice had deprived the industry of its revenue. The NCRIB chief called for the removal of the National Insurance Commission (NAICOM) from the revenue-generating agencies of government, which led to the government deducting 50 per cent upfront of its revenue or income and that this could affect the effective legislative oversight of the regulatory body.

  • PTAD removes over 5,000 ‘fake pensioners’ from NPF payroll

    PTAD removes over 5,000 ‘fake pensioners’ from NPF payroll

    No fewer than 5,000 ‘fake  pensioners’ under the Defined Benefit Scheme (DBS), who refused to embrace the “I Am Alive” confirmation platform of the Pension Transitional Arrangement Directorate (PTAD), have been removed from the payroll of the Nigeria Police Force, The Nation has learnt.

    This followed the refusal of the  affected pensioners to go for verification.

    PTAD stopped the payment of their pension at end of last month.

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    Also, the agency has stopped paying 2,649 fake pensioners at the Customs, Nigeria Immigration Service and Prisons.

    However, the PTAD is yet to remove the 43,000 fake civil servant pensioners that were also uncovered.

    This is because the executives of the Nigeria Union of Pensioners (NUP) intervened and asked for more time. PTAD graciously granted the union one month before taking action.

    Sources said the agency has saved over N100 billion from the discovery of the ‘fake pensioners’.

  • Crytocurrency train hits Abuja, others

    Crytocurrency train hits Abuja, others

    AS part of its expansion, the message on a book on cryptocurrency, the Alpha Omega Coin (AOC), has been taken to Ilorin, Abuja and Kano.

    The Ilorin seminar was well-attended by core leaders from Kwara, Kogi and Niger states in Kano State, the participants were equally many while the Abuja seminar was attended by leaders who came from the federal capital as well as Nasarawa State.

     They were enjoined to take AOC to the grassroots to alleviate to empower the people. Recently,  the Mirror Book Version 1/ Primitive Version was presented in Lagos. The AOC Aggressive Marketing Campaign Initiative Phase Two, tagged, Ye Na Wa (‘They Will Surely Come Back By The Grace of God’) promised to bring the goodness of life back to the subscribers that keyed into the project.

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    The organisers planned to go to Port Harcourt, Owerri, Enugu, Onitsha, Warri, and Benin, among other cities.

     It would be recalled that the AOC had been launched in Port Novo in Benin Republic, where the CEO of Alpha Omega Coin, Abraham Mankponse Samuel, described the AOC project as a faith-based cryptocurrency established to glorify God, raise the cause of humanity and, specifically, designed to liberate the people from poverty.

    Leader of the Nigerian team, Solange Minka, affirmed that the AOC is a game-changer, adding that through it, poverty would be kicked out.

  • 1,455 Lagos retirees get N4b

    1,455 Lagos retirees get N4b

    No fewer than 1,455 Lagos State government retirees have received over N4 billion accrued pension rights as their benefits.

    They were presented their Retirement Bond Presentation at a ceremony organised by the Lagos State Pension Commission (LASPEC) in Lagos.

    Speaking on behalf of the Governor Babajide Olusola Sanwo-Olu, the Director-General of LASPEC, Mr. Babalola Obilana, said the event marked a significant milestone in the lives of the state retirees to honour their service

    Appreciating the governor for his commitment to the welfare of the people, Obilana stated that he has prioritised the needs of pensioners and approved policies to ease the financial burden on retirees.

    He said the governor has also promised to clear out the backlogs and that by the middle of the year, the retirees would receive their benefits on a ‘Pay As You Go’ basis.

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    He lauded Pension Fund Administrators (PFAs) and insurance companies for their efforts to the success of the CPS.

    “Life after retirement is a transition from the hustle and bustle of a professional life to the serene embrace of well-earned leisure. Remember that your contributions will always be cherished, and your impact will endure in the Lagos State Public Service.

    “Be wary of fraudsters who prey on vulnerable pensioners. Make sure you pay attention to the talk on pension investment and choose the plan that works for you and your family. You can reach out to us after this event for any pension-related information or further clarifications.

    “Lagos State is thankful for your accomplishments and the enduring contributions you have made throughout your distinguished careers.You have exemplified the values that define Lagos State – integrity, commitment, and excellence.Your dedication and hard work has contributed to the dream of a ‘Greater Lagos’.You are a source of inspiration for us all, and your legacy will, undoubtedly, continue to resonate within the Public Service,’’ Obilana advised them.

  • ‘Ghost pensioners behind PTAD scrap plot’

    ‘Ghost pensioners behind PTAD scrap plot’

    • Agency detects 43,010 fake pensioners in federal civil service

    The plan by PTAD to remove 43,000 alleged fake pensioners from the Federal Civil Service by the end of last month has pitched the Directorate against corrupt civil servants who moved for its scrapping.

    Over 51,000 ghost pensioners are to be eliminated from the Defined Benefit Scheme (DBS). The pensioners are listed from the Civil Service, Police, Custom, Immigration and Prison.

    Top sources in the industry and Civil Service, who spoke with The Nation under condition of anonymity, affirmed that the Directorate stepped on toes of some unscrupulous civil servants when it eliminated many fake pensioners from its payroll.

    One of the sources said the threat by PTAD to remove the core civil service pensioners was the biggest hit for them.

    He said many civil servants, both the ones that have retired and those still in service, have hundreds of fictitious names imposed on the payroll and have been collecting huge sums of monthly pensions in various accounts listed on the payroll.

    Another top source said many corrupt government workers had been looking for how to stop PTAD from carrying out its threat to drop fake pensioners and the plan by President Bola Tinubu to cut down on ministries, agencies and parastatals was just a good opportunity to get PTAD listed on agencies to be scrapped.

    The bad elements, he said, have padded the pension payroll with fake identities even as some put in names of the family members including girlfriends and boyfriends.

    It was so bad that some just used it to pay their girlfriend’s monthly stipend.

    “These people have been hit with various pension reforms embarked upon by PTAD and the National Pension Commission (PenCom).

    “They have been trying to pull PenCom down but this has been tough for them. That is why you see PenCom DG being attacked for one thing or the other.

    “I think PTAD has to stand strong and defend genuine pensioners who are going to suffer should they be returned to the Ministry of Finance.”

    He urged PTAD to seek the attention of President Bola Tinubu to defend its existence.

    Read Also: PTAD: Resolving pensioners’ issues

    Another source called on Tinubu not to allow his administration to be used to destroy the gains achieved on pension since the birth of Pension Reform Act 2004, which established PTAD in August 2013.

    A source from the Federal Ministry of Finance said prior to the enactment of the PRA, government pensions were managed as disparate offices under the treasury-funded Defined Benefits Scheme.

    He pointed out that PTAD empowered by Section 42 (1) of the PRA 2014 took over the management of the old pension offices.

    He stated that these were the Civil Service Pension Office (CSPO) under the Head of the Civil Service of the Federation, the Police Pension Office (PPO), the Customs, Immigration and Prisons Pension Office (CIPPO) as well as the pensions of over 200 Treasury Funded Parastatals.

    He also said these were pensioners who served the Federal Government and retired on/or before June 30, 2007 and who did not transit to the Contributory Pension Scheme (CPS).

    He said since the establishment of PTAD, the Directorate, under various Executive Secretaries, had been doing a lot of cleansing.

    This has not gone down well with many who have been wrongfully benefitting from the system, he noted.

    He also said: “The scrap of PTAD will lead to sending the country backwards on pension administration.The Directorate should be allowed to continue on the trajectory it has been moving on for the benefit of the country.

    “A lot of money has been saved for the Federal Government which can be channelled towards other needs instead of allowing it to be stolen by these corrupt elements in the system.’’

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    JOHN:  I have been receiving low pension. They still pay me the same amount. Please, help me.

    PTAD: The pensioner is on his correct monthly pension.

    Folagbade: My name is Folagbade Christopher. I am a State pensioner with Federal share. I  received my Federal monthly pension up to November 2023.

    But, I have not been paid December 2023 while my collegues got theirs on December 25. Please help me. 

    PTAD: The pensioner has received his last December pension. He should check with his bank.

    ADAMU: Dear Omobola, my name is Adamu from C. R. S. I have not been paid since last October. I am a police pensioner.  Please, help me.

    PTAD: Adamu is back on payroll since December 2023. His arrears will be paid.

    GIWA: My name is Giwa. I work at the Federal Ministry of Works and Housing from June 30, 1989 to September 30, 2002. I was verified by PTAD on December 2021 but up to date I have not received my gratuity and pension.

    I earlier sent a complaint letters through my email dated July 10 and 13, 2023 to the Executive Secretary of PTAD.

    On July 18, 2023, a reply was sent to me that my complaint had been forwarded to the Complaint Unit but up till date, I have not received any payment.

    It is two years after verification with PTAD and 21 years after leaving service.

    I am still struggling to receive my entitlement.

    Kindly use your good offices to intercede for me to ensure that my gratuity and pension benefits are paid promptly. Thank you.

    PTAD: The pensioner should forward his verification slip or come for verification as the system keeps saying that he is not biometrically enrolled.

    MAXWELL: Dear Executive Secretary PTAD, I will like to inform you that I wrote a complaint letter to you for the stoppage of my monthly pension since January 2021.

    Up till now, I have not received anything. I was paid my gratuity and pension arrears in December 2020. I have been waiting for it since I retired in January 2006. I will like to know the problem..

    Please, pay my arrears and pension from 2021 till date. The monthly pay is N16,000 and I am a State Federal pension share.

    PTAD: The pensioner is on an over-payment and until recovery is complete, he will not be put back on payroll.

    Read Also: PTAD: Resolving pensioners’ issues

    AYOOLA: Hello, my complaint is about the stoppage of monthly pension.               .

    PTAD: Pensioner was in the employ of Local Government before March 31, 1976, and he was not eligible for Federal share of pension under the Directorate.

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

    PTAD: There was incomplete documentation at the time of 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 Certification; and NoK’s BVN.

    ABDULLAHI: I am Abdullahi from Jos, Plateau State. 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 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 by PTAD to submit some documents, including bank accounts, which I did.

     From your publication of my case, PTAD is asking for is verification number which I scanned and sent since then. I hope Omobola will assist me.

  • How strong corporate governance safeguards funds in CPS

    How strong corporate governance safeguards funds in CPS

    Safeguarding the N19.5 trillion pension fund assets has remained an enormous task for the National Pension Commission (PenCom). Omobola Tolu-Kusimo writes that emphasis on sound corporate governance practices in the industry is one of the fundamental aspects that underpin the success of the Contributory Pension Scheme (CPS).

    Do you know that a Pension Fund Administrator (PFA) cannot keep any fund in its portfolio with a Pension Fund Custodian (PFC) in which it has any business interest, shares, or relationship?

    Reason: The strong corporate governance in the sector which safeguards funds in the Contributory Pension Scheme (CPS).

    Findings by The Nation show that no PFA or group of companies that has a PFA as its subsidiary own a PFC.

    This is accordance with PRA 2014 under the stringent regulation of the National Pension Commission (PenCom).

    To ensure that no individual, entity or group can have unlawful access to your pension fund, the PFA and PFC have various roles to play in the management of the fund.

    Simply put, a PFA functions as an administrator, strictly concerned with paper works and operations of Retirement Savings Account (RSA) while a PFC functions like a bank that receives the money, safekeep it, invest it for good return to RSAs account and subsequently pay at retirement.

    Pension Fund Administrators (PFA)

    The CPS requires pension funds to be privately managed exclusively by licensed Pension Fund Administrators (PFA). The main functions of the PFA are to open Retirement Savings Account (RSA) for employees, invest and manage pension fund assets, payment of retirement benefits and accounting for transactions in the pension funds under their management.

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    At present, there are 19 PFAs in the country. They are Access Pensions Limited, ARM Pension Managers Limited, Crusader Sterling Pensions Limited, FCMB Pensions Limited, Fidelity Pension Managers Limited, Leadway Pensure PFA limited, NLPC Pension Fund Administrators Limited, Norrenberger Pensions Limited, Tangerine APT Pension Limited (formerly APT Pension), and Nigerian University Pension Management Company (NUPEMCO).

    Others are NLPC Pension Fund Administrators Limited, NPF Pensions Limited, OAK Pensions Limited, Pensions Alliance Limited, Premium Pension Limited, Radix Pension Managers Limited, Stanbic IBTC Pension Managers Limited,Trustfund Pensions Plc, and Veritas Glanvills Pensions Limited.

    There are also other fund administrators – Closed Pension Fund Administrators (CPFAs). These are pension schemes in the private sector existing prior to the introduction of the CPS in June 2004.

    They were allowed to continue as CPFAs, subject to guidelines issued by PenCom.The companies are required to have operated a funded pension scheme with assets worth N500 million.

    There are five CPFAs, namely, Nestle Nigeria Trust Limited, Nigerian Agip CPFA Limited, Progress Trust CPFA Limited, Shell Nigeria Closed Pension Fund Administrator Limited and Total (E&P) Nigeria CPFA Limited.

    Pension Fund Custodians (PFCs)

    Pension Fund Custodians (PFCs) are responsible for keeping pension assets on trust for contributors. The main functions of PFCs are to receive pension contributions on behalf of PFAs; settle transactions and undertake activities relating to the administration of pension fund investments on behalf of PFAs and to notify the PFA within 24 hours of the receipt of pension contributions from employers.

    The Commission considers applications for licence to operate as a PFC from entities that fulfil the requirements as enshrined in Section 62 of the PRA 2014.

    The applicant company must be owned by a licensed financial institution with specified networth as may be determined by the Commission from time to time. In addition, the parent company must issue a guarantee to the full value of pension assets held by the PFC.

    There are only three PFCs. They are First Pension Custodian Nigeria Limited, UBA Pensions Custodian Limited and Zenith Pensions Custodian Limited.

    Regulatory oversight

    According to the Director-General of PenCom, Mrs. Aisha Dahir-Umar, the pension landscape has undergone a remarkable transformation since the advent of the CPS.

    For her, one of the fundamental aspects that underpin the success of the CPS is the emphasis on sound corporate governance practices in the pension industry.

    She stated that PenCom has issued Guidelines on Corporate Governance for Pension Fund Operators (PFOs).

    She explained that the guidelines, issued pursuant to the Nigerian Code of Corporate Governance 2018 are a set of principles based on best practices, which were intended to guide PFOs on the structures and processes for achieving optimal governance practices.

    She maintained that corporate governance under the Scheme is a cornerstone of trust, transparency, and accountability, adding that PenCom’s robust regulatory framework ensures that only qualified entities manage pension funds and assets, safeguarding the interests of contributors and retirees.