The Nation Newspaper

Category: Pension

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    GOSHWE: Good day sir. I am Inspector Goshwe, a retiree. My phone has been bad for over eight weeks. I repaired it in November 2023 and discovered that I should have completed the second phase of “I’M ALIVE” process before November 10, 2023.

      I rushed to a computer friend to do the process but when trying to take my photo, it showed ‘no network’.

     Please, what can I do to complete the process? Will my pension be paid as usual? I am deaf.

      Kindly help me.

    PTAD: Mr Goshwe is advised to visit any of our State Liaison Office close to him.

    OLUSOLA: My name is Olusola, a retired Sergeant. I retired in 1994. I learn that PTAD has harmonised the pension allowance of IGP, DIGs, and AIGs and left CPs to rank and file. Please, what is the correct position on this? Thank you.

    PTAD: The Directorate is yet to receive any directive on the harmonisation from the relevant authority.

    ADEWALE: Good day. My name is Adewale, a Cyber Cafe operator in Ado Ekiti. Many retirees come to my business centre for ‘I AM Alive‘ verification. Many are successful but some were not after about five attempts to take their picture before it locked up.

    The finger verification is also not working.

    Kindly help me to know how to go about the finger verification. Thank you.

    PTAD: We have contacted Mr. Adewale directly.

    AKPAN: Good day. My name is Akpan. I am one of the retired officers of Customs in 2007. We were under Customs, Immigration and Prison Pension Office (CIPPO) before PTAD took over.

    Before the takeover, I had CIPPO arrears of pension from 2007 to 2009, even though my colleagues of equivalent ranks of level 09 step 13 were paid.

    But, my CONPASS arrears of gratuity amounting to N 1,582,182.36 were not paid to me, yet my colleagues were paid. 

    The arrears were prepared along with others and sent to AGF office (Deputy Director, Special Duties), whose duty it is to pay to our bank accounts.

    I have sent my complaint and the relevant documents to PTAD through their email since in July, 2023, yet no reply until now.

    Please, I need your help. Thank you.

    PTAD: Mr. Akpan has been contacted directly. He is to send his bank statement for the period for resolution of the complaint.

    ADESIYAN: My name is Adesiyan. I did my Pensioner Identity Verification on January 12, 2024, and the outcome was successful as I got a verification number.

    But to my surprise I got another message instructing me to process my ‘I’M ALIVE’ again yesterday, which I did immediately.  The Verification outcome onJanuary 31, 2024 is successful too with another verification number. Please note for your actions. The above  verifications were on fingerprint. Thank you.

    PTAD: Please, disregard any text message asking you to verify that you are still alive before the six-month period expires.

    ABUHl Good day. I was still being short paid up as at January 2024. Please, help me as you have been helping me.

    PTAD: Pensioner is not reachable via phone.

    OLUJAFADE: My name is Olujafade. I retired 1986 on grade level 9 promoted to level 10 and advanced to level 12 because of my grade one academic and diploma university which I did successfully. Promotion from level 9 to level 12 was not implemented before retirement.

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    Kindly correct my arrears and pensions pay.

    PTAD: Pensioner is not reachable via phone.

    Retired Assistant Superintendent of Police Paul:  It is pertinent to note that the retired police officers in the PTAD were notified of ‘I AM ALIVE’ programme through website in 2023.

    I was among those PTAD has sent text messages to do ‘I am Alive’ confirmation in October 2024. To this end, I was mandated to do it on October 20, 2024.

    I got a text message again to do my ‘I’m Alive’ confirmation before February 10, 2024.

    When I contacted some of my colleagues to know whether PTAD had sent such information to them, they said no.

    With this, I became worried. I revisited the last ‘I’m ALIVE’ confirmation website I did and I was informed that the last one was done on October 20, 2023 would expire on April 20, 2024.

    So, I want to know from PTAD the time limit for the confirmation. Should it be done instead of someone or a member of the staff calling indiscriminately and sending text messages?

    PTAD: Please disregard any text message asking you to verify that you are still alive before the six-month period expires. AKINMUSAYO: Good day. My complaint is on my father who retired 19 years ago. He is yet to be paid gratuity. His name is Akinmusayo and he retired in May 2004 from the Ministry Defence.  PTAD: Computed and audited

    MABINUORI: Good day, my name is Mabinuori. I received the sum of N181,000.50k on December 16, 1987 which is the part payment for my pension and since then I haven’t received the remaining benefit. Kindly treat this matter with urgency.

    PTAD: To provide verification slip

  • What has PTAD achieved in nine years?

    What has PTAD achieved in nine years?

    Prior to the establishment of the Pension Transitional Arrangement Directorate (PTAD) and the commencement of operations in August 2013, the DBS administration under the old pension offices faced challenges.

    These were an accumulation of negative incidents and inactions on the part of the old pension offices that resulted in the absence of a comprehensive database of pensioners, reports of ghost beneficiaries, allegations of pervasive fraud, administrative bottlenecks in accessing pension services, poor funding of pension liabilities, as well as poor delivery of service to pensioners.

     Executive Secretary, PTAD, Dr. Chioma Ejikeme made this known while accessing what the Directorate has achieved in about nine years.

    For many years, she said, these challenges led to huge losses in government funds and, ultimately, denied many pensioners their pension benefits for decades.

    Also, for some unfortunate pensioners, the pursuit of the payment of their entitlements cost them their lives.

    To this end, she said PTAD’s operations and service delivery model was designed to reform the marred history of pension administration, and improve the provision of pension services to pensioners; some of whom are among the oldest retired government workers.

    She said: “Accordingly, in the last decade of operation, PTAD has reformed and revolutionised pension administration using technology. It has embarked on service innovations that have been pro-active and intentional – automating and streamlining its core operational processes of verification, digitisation of pensioners employment records, computation of pension benefits, pension payments and complaints resolution.

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    “This has included Biometric Verification of pensioners through field verification across the geo-political zones between 2015 and 2019; Building from scratch the first digitised, centralised, comprehensive and credible database of pensioners and their pension records under the Defined Benefit Scheme in Nigeria; Automated Computation (Calculation) of Pension Benefits; and Payroll due diligence and automated payment processes using the Government Integrated Financial Management Information System to preserve the sanctity of pension funds.

    “Others are creation of a complaints resolution and management portal to support the client service management; set-up of an anti-corruption and transparency unit to prevent pension fraud; and deployment of mobile verification teams to ensure no qualified pensioner was left uncaptured. The mobile teams have visited over 80 different cities, towns and villages and countless hospitals across the entire nation in sometimes hazardous circumstances”, she noted.

    Furthermore, Ejikeme said they launched a Service Charter – detailing PTAD’s service contract with pensioners and complaints resolution timelines.

    “We also introduced the “I Am Alive” Confirmation solution to verify pensioners’ status of aliveness at regular intervals. PTAD has a dedicated, professional and highly motivated staff and a work culture that drives reform successes.’’

  • Linkage Assurance records 26% growth

    Linkage Assurance records 26% growth

    • Gross premium hits N16.3b
    • Total Asset rises to N50.2b

    Linkage Assurance Plc in the financial year ended December  31, 2023 recorded gross premium written (GPW) of N16.33 billion, from N12.98 billion the previous year, a 26 per cent growth.

    This was contained in the Company’s Unaudited Financial Statements for 2023 filed with NGX Limited for shareholders and the i public.

     The breakdown of the result shows that Linkage Assurance Plc came out strong in the year undr review, posting a Profit before Tax (PBT) of N4.51 billion, a 67 per cent increase from N2.70 billion in 2022. This is as Profit after Tax (PAT) rises to N4.22 billion, from N2.57 billion, a 64 per cent increase.  The result also shows that the underwriter’s risk management drive was upbeat, despite meeting its claims obligation to clients.  The company recorded underwriting profit of N705.71 million from N506.12 million in 2022, indicating a 39 per cent growth.

     It also paid out claims to clients for various losses incurred in the review year, which amounted to N4.49 billion, from N3.09 billion paid out in 2022.

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     Linkage Assurance also saw outstanding growth in investment income, which rose from N4.87 billion in 2022 to N9.02 billion in 2023. The investment and other operating incomes, according to the company was buoyed by dividend income received from investment in pension business, sundry income from share subscription and foreign exchange gains. Linkage Assurance’s balance sheet was further strengthened with total assets rising to N50.52 billion, a 26 per cent increase from N39.99 billion in 2022.

    Managing Director/Chief Executive Officer of the company, Mr. Daniel Braie, said Linkage has continued to deploy strategies in line with its growth plans, remaining on top of its core areas from stronger market share, expanding market size, enhancing customer experience, and ensuring that there is value creation for its investors and other stakeholders alike.

  • Pension complaints and solutions

    Pension complaints and solutions

    CHRISTIAN: I retired from the Federal Ministry of Works HQ, Mabushi, Abuja  in August 2016 after 35 years.

    Before then, l was promoted to the rank of Chief Executive Officer GL 14 with effect from January 1, 2015. Variation to reflect this rank was raised accordingly by the IPPIS Section of the FMW. HQ, Mabushi, Abuja, about six years ago but no payment was made to me.

    I made several enquiries about the payment of the promotion arrears but no response from the IPPIS. I even resent the promotion letter and other relevant documents to enable them to revisit it if they have not taken any action but no response and no payment.

    One of the staff informed me that our names were sent to the Accountant General of the Federation Office for the payment but till now no payment was made. l would be very much happy if you would use your good office to help me out of this matter. I have health challenges and l need money to treat myself. My name is Christian.

    PENCOM: Dear Mr. Igwemezie, kindly go to the Office of the Accountant-General of the Federation as the IPPIS falls under the office’s purview.

    AMINU: My name is Aminu. I submitted my application of transfer for Annuity to ARM Pension Limited over two weeks ago. But, they have not attended to me. Kindly assist me.

    PENCOM: Dear Mr. Aminu, your Pension Fund Administrator had already submitted your request for Retiree Life Annuity approval and the Commission has granted approval since December 6, 2023.

    AKINGBOLA: Good day, my name is Akingbola. I retired from the Ogun State Universal Basic Education Board on March 16, 2023. I have applied for a refund of my pension benefit from Tangerine/Apt Pension since April 25, 2023 and I haven’t got it.

    Meanwhile, those who retired months after my retirement have been paid. Kindly use your good offices to look into this matter. Thank you very much.

    PENCOM: Dear Mr. Akingbola, the process is under review by the Benefit and Insurance Department.

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

    PENCOM: Dear Sir/Madam, kindly approach the Pension Fund Administrator 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. At present, I want to transfer my contributions to Stanbic. I was told to write to PenCom. Kindly guide me.

    PENCOM: Dear Mr. Adeyemi,  kindly approach Standbic IBTC for data recapture to facilitate the merging of the two PINS. Standbic IBTC would guide him with the process.                             

    ANNONYMOUS: Good afternoon, I’m a staff member of the Nigerian Television authority (NTA). Please, how can I get my outstanding contributions from June 2013 to December 2018, which is 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.                       

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

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

    EGBE: I am Egbe, a teacher at FGGC, Keana, Nasarawa State. I want my date of birth to be corrected, which has been corrected by NIMC but not effected by PenCom.

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

    SALIU: My name is Saliu, I understand it takes five working days for approval to come from you when a PFA forwards application. I want to find out why it’s not so with my application. It has been 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 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 it take for merging?

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

    ANNONYMOUS: Madam, I strongly need your help. We are leaving the country 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 (RSA), the PIN and the PFA to enable the Commission process the complaint.

  • 500,000 retirees, workers, others get N3tr in 20 years

    500,000 retirees, workers, others get N3tr in 20 years

    • ’Scheme actualising retirement dreams’

    Over N3trillion was paid to  500,000 workers, retirees and Next of Kin (NoK) in 20 years under  the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom) has said.

    From inception in 2004 till date, the modes of payment, which include the Programmed Withdrawal, Retiree Life Annuity, En-bloc Payment, Death Benefits, Temporary Job Loss, Voluntary Contributions and Equity Contribution for Residential Mortgage, have given the stakeholders the opportunity to receive the huge cash.

    Director-General, PenCom, Mrs. Aisha Dahir-Umar said accessing retirement and terminal benefits within the CPS is regulated by commission.

    She stated that in tandem with the Pension Reform Act 2014 (PRA 2014), PenCom established procedures for Retirement Savings Account (RSA) holders to access their benefits.

    She said: “Section 7(1) of the Pension Reform Act (PRA 2014) provides that Retirement Savings Account (RSA) holders are entitled to access their benefits upon retirement or upon reaching the age of 50, whichever comes later.

    “Contributors have the option to withdraw a lump sum from their total RSA balances, provided that the remaining balance is adequate to secure either a Programmed Withdrawal (PW) or a Retiree Life Annuity (RLA) for lifetime pension benefits. The PW offers a regular pension payment through a Pension Fund Administrator (PFA), while the RLA, purchased from a Life Insurance Company, provides a steady income for life.

    Programmed Withdrawal

    The PenCom DG explained that Programmed Withdrawal is a benefit payment by which the employee collects his retirement benefits in periodic sums (monthly or quarterly) spread throughout an estimated life span.

    “From inception to January 31, 2024, PenCom has approved 346,296 requests from retirees to draw pension through PW mode. The retirees received a total lump sum of N1.04 trillion, while their monthly pensions amounted to N15.89 billion.’’

    Retiree life annuity

    “RLA, on the other hand, is a contract for regular income purchased from an approved Life Insurance Company, which provides monthly or quarterly income to retirees during their lifetime. From the beginning of the CPS to January 31, 2024, 121,125 retirees chose the annuity mode of pension payment. A lump sum of N264.26 billion was approved for payment to the retirees. In contrast, N739.04 billion was approved for payment to RLA providers as premiums in return for monthly annuities of N7.72 billion.

    En-bloc Payment

    “PenCom allows en-bloc payment to retirees whose RSA balances cannot procure Programmed Withdrawal or RLA that is equivalent to one-third of the prevailing national minimum wage. From the start of the CPS to January 31, 2024, PenCom approved the en-bloc payment of retirement benefits to 161,817 retirees, totalling N49.07 billion.

    Death benefits

    “Death Benefits are paid to a beneficiary under a will or the spouse and children of an RSA holder who dies in service. In the absence of a wife and child, the benefits are paid to the recorded next-of-kin or any person designated by the deceased. From inception to January 31, 2024, PenCom granted approvals for payment of death benefits amounting to N396.75 billion to the legal beneficiaries/administrator of 97,834 deceased employees and retirees.

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    Temporary job loss

    “The PRA 2014 permits an employee who loses his job to withdraw an amount not exceeding 25 per cent of the total amount credited to his RSA. However, such withdrawals can only be made after four months of cessation of employment, and the employee does not secure another job. From inception to January 31, 2024, PenCom approved N228.10 billion (25 per cent of RSA balances) to 496,833 RSA holders under 50 years who were disengaged from employment and could not secure another job within the stipulated time of four months.

    Voluntary contributions

    “Section 4(3) of the PRA, 2014 allows RSA holders to make Voluntary Contributions (VC) in addition to the mandatory contributions to augment their pension at retirement. The VC can be withdrawn periodically based on the Guidelines. From inception to 31 January, 2024, PenCom approved withdrawals from voluntary contributions amounting to N42.46 billion by 50,772 contributors.

    Equity contribution for residential mortgage

    “Eligible RSA holders have the opportunity to utilise their RSA balance to pay equity contributions for residential mortgages, in accordance with Section 89(2) of the PRA 2014. This provision enables RSA holders to allocate a portion of their pension savings towards the equity component of a residential mortgage.

    “This initiative has proven instrumental in helping numerous individuals achieve their aspirations of homeownership since its inception. As at 31 January, 2024, PenCom has authorised disbursements totalling N21.81 billion to 2,104 RSA holders, facilitating their equity contributions for residential mortgages,” she said.

    Overall, she pointed out that accessing retirement benefits under the CPS is seamless, adding that PFAs must guide RSA holders who want to access their retirement benefits on the documentation requirements for each benefit payment type.

  • Premium Pension launches PRIMA to enhance clients’ engagements

    Premium Pension launches PRIMA to enhance clients’ engagements

    Premium Pension Limited has announced the deployment of the Premium Interactive Member Assistant (PRIMA) on WhatsApp, Telegram and other social media platforms to enhance its interactions with customers.

    In a statement by the firm’s Head, Corporate Communications, Aliyu Mohammed Ali, the Managing Director/Chief Executive Officer, Premium Pension Limited, Umar Sanda Mairami, said: “The launch of PRIMA is driven by our never-ending desire to meet the aspirations of or present and future customers who are increasingly embracing technology to position themselves for lesser visits to our brick-and-mortar outlets.’’

    He added that PRIMA provides an additional secured channel of communication with our members to deepen seamless interaction and provide premium experience.

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    He also said PRIMA provides a platform for seamless engagement on pension-related matters as well as empowers customers to carryout many pensions-related tasks without relying on personnel of the PFA – this is self-service at its peak.

    According to him, PRIMA gives members real-time Premium Experience from their mobile phones.

    They would be able to enrol by simply adding the company’s verified WhatsApp mobile number, agree to the legal terms of use and then initiate a conversation on their mobile devices, he said.

    He also said it could be used to check RSA balances, request statements of accounts, get welcome certificate, check data recapture status, request letters to select embassies, open RSA account and others.

  • PTAD to remove 51,705 fake civil service pensioners from payroll

    PTAD to remove 51,705 fake civil service pensioners from payroll

    • Stakeholders reject plan to scrap Directorate

    No fewer than 51,705 illegal pensioners  have been earmaked for deleting from the payroll with effect from April 1, The Nation has learnt.

    The affected, according to the Pension Transitional Arrangement Directorate (PTAD), failed to use the “I Am Alive” confirmation platform, indicating that there were fake.

    Findings show that of the fake pensioners, a whopping 43,010 were Civil Service.

    While a total of 6,049 fake pensioners were detected among Police pensioners, 2646 came from the Customs, Immigration and Prison.

    The Directorate categorised pensioners in the old scheme under Parastatals Pension Department (PaPD), Police Pension Department (PPD), Civil Service Pension Department (CSPD) and Customs Immigration and Prisons Pension Department (CIPPD).

    Prior to plans by PTAD to remove the fake pensioners from payroll, the Directorate had said over 30,000 qualified pensioners were not on payroll while more than 50,000 ghost pensioners were on it.

    PTAD said it inherited 268,897 pensioners.

    As at December 2022, the figure  came down to 226,693 after a lot of cleansing, elimination of ghost pensioners and addition of eligible pensioners who were not on the payroll with a total of N754 billion in monthly pensions paid from January 2015 to December 2022.

    Overall, the directorate said it had saved billions of naira from the exercise.

    In a notice, the Directorate called on genuine pensioners who may still be among those listed to immediately verify their aliveness and genuineness on the “I Am Alive” confirmation platform.

    The notice read: “PTAD wishes to inform pensioners under the DBS who are yet to confirm their aliveness using the “I Am Alive” confirmation to immediately do so. Pensioners are required to reconfirm aliveness every six months to continue to receive their monthly pension directly into their bank account.

    “To make sure pensioners effectively participate in this exercise, the Executive Secretary, Dr Chioma Ejikeme, had initially approved a 1-month extension for all pensioners. However, by this announcement, any pensioner who does not confirm their aliveness before the end of March 2024 will be dropped from the April 2024 pension payroll. Dropped pensioners will automatically be restored to the payroll once they confirm aliveness.

    “PTAD has forwarded the names of yet to confirm pensioners to the pension unions, associations, and institutions while SMS notifications have been sent to the affected pensioners. We urge pensioners to visit our website, www.ptad.gov.ng for the list of pensioners yet to confirm aliveness. If your name is on the list, click on this link https://iamalive.ptad.gov.ng/ to complete your “I Am Alive” confirmation.’’

    Meanwhile, stakeholders have been reacting to the proposal by the Federal Government to scrap PTAD, among other agencies and parastatals listed by the Federal Executive Council (FEC), after the council adopted the Oronsoye’s report last week.

    PTAD was listed to be scrap and all activities returned to the Ministry of Finance.

    A stakeholder in the industry, who spoke on condition of anonymity, believes some fraudulent personnel in the civil service were behind the enlistment of PTAD.

    “When I saw PTAD in the list of agencies to be scrapped, some pensioners and I were not surprised because we know that those who survive on looting pension funds in the ministry and civil service have been frustrated and shut down by PTAD.

    “But, we appealing to President Bola Tinubu not to let these bad people win and send us back to the days of sorrow. Many of those charged with the responsibility of paying pensions then fed fat with pension funds and starved the pensioners. We don’t want a repeat”, he said.

    The National President, Nigerian Union of Pensioners (NUP), Comrade Godwin Abumisi, said: “If there is anything worse than hell, that was what Defined Benefit Scheme pensioners went through in the hands of the ministry before PTAD was established and mandated to handle our issues. We slept at the Federal Secretariat and under bridges in Abuja, died while queuing for long verification lines and dehumanised.

    “But since PTAD came, you have not heard the voice of pensioners complaining about maltreatment in the management of pension. Before PTAD, pensioners experienced the worst treatment ever. We were dehumanised and being kicked around anyhow.

    “I remember how I travelled several times from Enugu in night buses to come to Abuja for what the then Office of the Head of Service of the Federation called verification.

    Read Also: PTAD: Resolving pensioners’ issues

    “Like other pensioners of our category, I travelled countless times by night buses  to Abuja to settle pension issues. Then, if you had issues on anything at all, you had to come to Abuja and you had to take night buses. Many of us lost our lives while coming to Abuja to settle pension issues.

    We usually arrive very early, around 4am or 5am and we would sleep on the corridors of the Federal Secretariat. When they decided that the pensioners were messing up the place, they ejected us and we began to sleep under the bridges.That was our experience before PTAD.”

    Citing Abdulrasheed Maina, Comrade Abumisi said it was the handling of pensions in the ministry that created the likes of Maina, who is in prison as a result of embezzlement of pension funds.

    “This is what we fear on hearing that we will be sent back to the ministry. As a matter of fact, no pensioner wants to go back to the ministry because pension problem is not a small problem. It needs a separate entity like PTAD to deal with it. I want to say that we are impressed and we are very happy with the performance and functions of PTAD in dealing with pension issues. We don’t want to go back to Egypt.

    “We are not saying that merging of ministries and some parastatals by the government to reduce cost is not good. But we are saying that on area where they ought not to merge one of those agencies is PTAD, due to the essential nature of its duties. That is why we are crying.

    “I have a letter here from the Nigerian Union of Pensioners South-west calling on us the national headquarters to organise a protest against the scrapping of PTAD. But, instead of street protests, we will engage President Tinubu’s government peacefully. And that is why we are saying please give us PTAD back. If there is anything in PTAD that the government does not want, it should be removed, but please leave PTAD alone to cater to pensioners. With the amount of work PTAD has done so far, the pensioners are happy, though it still has not been possible to completely take care of all the issues of pensioners. You can imagine what will happen when government sends us back to the ministry or merges us with another agency that has other responsibilities other than pension issues. So, we say again, we don’t want to go back to the ministry”, he added.

  • CPS is sustainable, transparent, says PenCom

    CPS is sustainable, transparent, says PenCom

    Few reforms have held as much promise and significance as the transition from the old Defined Benefits Scheme (DBS) to the Contributory Pension Scheme (CPS), the Director-General (DG), National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has said.

    Mrs. Dahir-Umar, who made this known in a statement, said it has introduced sustainability and accumulation of funds, savings’ culture, individual retirement savings account, transparency, among others.

    According to her, the shift from the DBS to the CPS has been transformational in the country’s pension system.

    She maintained that the CPS is inevitable, given the issues in the old DBS.

    The DG noted that the CPS has reformed pension administration in Nigeria so that workers are assured of getting retirement benefits.

    The CPS has brought innovations that transformed the pension system, she added.

    Sustainability and accumulation of long-term funds

    Mrs. Dahir-Umar stated that sustainability is a major concern globally in terms of pension and retirement benefits for retirees.

    She said: “The DBS, fraught with inefficiencies and fiscal burdens, has proven unsustainable as the burdensome nature of funding pensions from the government coffers has led to arrears, delayed payments, and even pension crises.

    “Prior to 2004, when the CPS was introduced, Nigeria grappled with a pension deficit of over N2 trillion.

    “However, under the CPS, Nigeria has accumulated N18.36 trillion pension assets as at December 31, 2023, which is a clear testament to the scheme’s sustainability.Thus, the CPS has directly fulfilled the objective of transferring resources and pooling funds efficiently and effectively. The pooling of funds for long-term investments significantly impacts capital formation and investments.

    “The introduction of the CPS was in realisation that Nigeria could not afford to continue down the path of unsustainable pension arrangements, which the DBS embodied and represents in states that are yet to implement the CPS.”

    Individual retirement savings account

    One of the benefits of the CPS, she said, is that employees open individual Retirement Savings Accounts (RSA), where contributions are accumulated till retirement.

    “Consequently, once an employee retires from active service, funds are available for payment of their retirement benefits.The CPS permits employees to make voluntary contributions from their salaries to boost their RSA balance.The mandatory requirement that PFAs provide regular/periodic statements of accounts to contributors ensures that RSA holders are informed on the progress of their RSAs, especially when their employers pay pension contributions.”

    Transparency

    She continued: “The CPS offers a more resilient framework, where pension funds are managed prudently, invested wisely, and insulated from the vagaries of political and economic instability. Evidently, the CPS offers numerous advantages over the old scheme. It fosters transparency, accountability, and individual ownership of retirement savings. RSA holders receive contribution alerts and periodic statements detailing contributions and returns on investments.”

    Shared responsibility

    “The CPS clearly shares responsibilities between employers and employees, and contributions are made by all parties, with employers required to pay a higher percentage of contributions than employees. Additionally, PenCom provides oversight and regulatory frameworks to safeguard pension funds, ensuring their prudential management and investment.

    Inclusivity and equity

    “The CPS promotes inclusivity and equity, catering to the needs of  formal and informal sector workers. By extending coverage to previously excluded groups, such as the self-employed and casual workers, the scheme fosters social cohesion and economic empowerment across all segments of society. Unlike the exclusive nature of the DBS, which primarily benefits public sector employees.The CPS extends coverage to workers across all sectors, including the informal economy. Through the Micro Pension Plan (MPP), which caters specifically for players in the informal sector, the scheme ensures that no one is left behind in the journey towards financial security in retirement and old age.

    Read Also: CPS: How PenCom is growing pension assets

    Mobility of labour

    “The CPS facilitates labour mobility across sectors and different tiers of government. Once an RSA is opened and a Personal Identification Number (PIN) is issued to an employee, the PIN is tied to the employee for life.Thus, when an employee moves from one employer to another, it suffices for him only to provide the new employer with his PIN and PFA.

    Savings culture

    “The CPS promotes a culture of savings, investment, and long-term financial planning—a paradigm shift from the dependency mentality perpetuated by the DBS. By empowering individuals to take control of their retirement savings and make informed investment decisions, the scheme not only secures their future but also stimulates capital formation and economic growth. This virtuous cycle of savings and investment creates a ripple effect across the economy, spurring entrepreneurship, innovation, and wealth creation.

    Contributors’ rights

    “Firstly, the CPS allows participants to select any PFA of their choice to open their RSA.

    “Secondly, the right of RSA holders to transfer their RSA from one PFA to another once a year is guaranteed by the Pension Reform Act 2014.

    “Thirdly, participants retiring under the CPS can decide on their retirement benefit payment mode—the Programmed Withdrawal (PW) or Retiree Life Annuity (RLA).

    “Furthermore, employees in service before 2004 are assured of their pensions earned under the DBS, through the payment of Accrued Pension Rights.

    “This represents an employee’s benefits for the past years of service up to June 2004, when the CPS commenced. Finally, RSA holders under 50, who lose their jobs and cannot secure another employment within four months, can access 25 per cent of their RSA balance,” she submitted.

  • Pension complaints and solutions

    Pension complaints and solutions

    MWALIMA: Good day. I am Mwalima. I am serving with the Nigeria Police Force.

    I did a transfer from Premium Pension to NPF Pension since September 2023 but up till now, my funds have not been transferred to NPF Pension. My ETD is December 2023. NPF has not alerted me on any development or  information about how to get my certificate.

     I am appealing for help to facilitae my transfer.

    PENCOM: Dear Mr. Mwalima, please contact the NPF Pension. Your RSA was moved to the PFA in December 2023.

    ROLUYI: Dear Omobola, I am Roluyi. Please, I have retired from the Ministry of Petroleum Resources since February 2023. My PFA is Stanbic IBTC Pension.

    However, I have not heard any message about my pension payment. Do help find out what the problem is.

    PENCOM: Dear Mr Adeleke, please note that January 2023 retirees’ payment is being processed. The payment for February will commence shortly.

    OLABISI: Hello, you requested for my PEN number, name and PFA and I have provided it. I have also submitted my application. But ,I am yet to be paid 25 per cent for the loss of my job.

    PENCOM: Dear Mr Olabisi, please contact your PFA to direct you on the next steps as your application is incomplete.

    ANIEMA: Hello, my late mum’s pension has not been paid since she passed away in 2019. Her name is Aniema.

    Until her untimely death she worked at Federal Science and Technical College (FSTC), Uyo, Akwa Ibom State. Her daughter, who is the next of kin, is Favour. I have submitted the necessary documents to Stanbic IBTC Pension.

    Kindly assist us so that Favour and her younger siblings can go to the university.

    PENCOM: Dear Sir, the death benefit has been processed/paid since July 2023. The named beneficiary is advised to contact PFA.

    ABUBAKAR: Dear Sir, my name is Abubakar from Ilorin. I worked at the Nigerian branch of the Danish Yoghout Company, FANMILK PLC, for 31 years. It was the illness brought on  me through an accident at my workplace  that made them to lay me off, painfully without compensation.

    I want to use this forum to appeal to the CSR conscience of FANMILK PLC and the Embassy of Denmark  to look into my case. Thank you.

    PENCOM: Not under our purview, NSITF.

    EYIMOGA: Dear Omobola, my name is Eyimoga. I write to complain about the delay in the processing of my provisional agreement, which I submitted to Premium Pension on November 24, 2023 – to purchase annuity for life.

    I am much aware of my right to choose between programme withdrawal and annuity for life and I have decided to go for the latter.

    I, therefore ,appeal to you to use  your good offices to compel Premium Pension to process and transfer my RSA balance to Leadway Assurance without further delay.

    PENCOM: Please, note that the RSA holder was paid via Programmed Withdrawal Approval on Deecember 7, 2023.

    FOLORUNSO: My name is Folorunso. I worked at Vanguard Newspaper and later joined The Nigerian Tribune.

    On joining Tribune, Stanbic IBTC Pension opened a new RSA account for me; same Stanbic with Vanguard.

    I have now double PEN registration and I am having difficulties in accessing my funds.

    For over a year, I have kept writing both Stanbic and the DG of PenCom but to no avail. After much pressure, Stanbic claimed to have harmonised the two PEN account numbers and it is left for PenCom in Abuja to give approval for me to access my funds.

    My findings show that it will take another one year to get PenCom’s approval.

    Please, what can I do to get the urgent attention of the PenCom’s DG to resolve my issue?

    PENCOM: Send the PIN numbers.

    DJOGRI: Hello, my name is Adjogri. I retired on July 31, 2016 from Delta State SUBEB, and got my accrued right to process my lump sum and pension.

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    I went to Oak Pension Limited on November 8, 2023 to process it after eight years. But, I have not heard from them for over two months.

    l am yet receive my lump sum neither has my annuity sum been released.

    Meanwhile, my contemporaries that choose programme withdrawal with the same Oak Pension have received their payments. Is it a sin to choose annuity, which is what warrant this unholy treatment from Oak Pension? Pension Act provides us the freedom to choose any form of payment and I have opted for Annuity but Oak Pension is punishing me because I didn’t choose their Programme Withdrawal. I plead with PenCom to intervene and not allow the situation degenerate into litigation. Thanks.

    PENCOM: Please, note that the evidence of Annuity Request is yet to reach the Commission. The RSA holder should contact the PFA to submit the request.

    SANI: My name is Sani. I worked at West African Postgraduate Medical College, Yaba, Lagos.

    We chose Leadway Pensure Pfa Limited at Number 121/123 Funsho Williams Avenue, Surulere, Lagos. My pension contributions’ employer/employee has been fully remitted to the Leadway.

    Also, my Legacy has been fully remitted to the Leadway. I retired since March 31, 2023 and have submitted  the documents for RSA and Legacy to be paid to me since May 2023. Leadway told me that my documents were rejected because I did not put my pay slip. I sent the pay slip to them immediately. Since then no payment has been made to me. Leadway’s response is that PENCOM has not approved my documents for to pay me. Please, I want you to intervene so that my money can be paid to me. It is six months that I am at home without earning Salary. Thank you.         

    PENCOM: Dear Sir, please carry out the Enrolment exercise, and submit the Enrolment slip, you may wish to visit www.pencom.gov.ng for guidance on how to get enrolled.

    ANNONYMOUS: Ma, I strongly 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.

  • Pension complaints and solutions

    Pension complaints and solutions

    BALOGUN: Hello, my name is Balogun. My employer’s name is Amazuma Services Limited. I don’t know my pension company. Kindly help me.

    PENCOM: Dear Mr. Balogun, you are advised to approach your Pension Fund Administrator (PFA) for enquries.

    ASP. RTD. BOLARINWA: Dear Omobola, my name is ASP Bolarinwa (rtd). I retired in September 2023. However, I was unable to get my discharge certificate due to my inability to offset my bank loan because I am expected to present a non-indebted letter to process it. I don’t know if I can withdraw from my savings to offset it.

    PENCOM: Dear Mr. Bolarinwa, you are advised to approach your Pension Fund Administrator (PFA) for further directive.

    ANNONYMOUS: Good day, I am from Maritime Academy of Nigeria (MAN), Oron.

    I can’t enrol and verify 2024 retirees on PenCom’s Porter. What do I do?

    PENCOM: Dear Sir/Madam, kindly approach the Pension Fund Administrator of your employees for assistance with the Online Enrolment Application.

    CHRISTIAN: My name is Christian. I retired from the Federal Ministry of Works HQ, Mabushi, Abuja in August 2016 after 35 years in service.

    Before then, l was promoted to the rank of Chief Executive Officer GL 14 with effect from January 1, 2015. Variation to reflect this rank was raised accordingly by the IPPIS Section of the FMW HQ, Mabushi, Abuja about six years ago but no payment was made to me.

    I made several enquiries about the payment of the promotion arrears but no response from the IPPIS. I even resent the promotion letter and other relevant documents to enable them to revisit it if they have not taken any action but no response and no payment.

    One of the staff members informed me that our names were sent to the Accountant-General of the Federation Office for the payment but till date no payment was made.

    l would be very much happy if you would use your good offices to help me out of this matter. I have health challenges and l need money to treat myself.

    PENCOM: Dear Mr. Igwemezie, kindly go the the office of the Accountant-General of the Federation as the IPPIS falls under the office’s purview.

    AMINU: My name is Aminu. I have submitted my application for the transfer for Annuity to ARM Pension Limited for over two weeks.

    But I have not been attended to. Kindly assist me.

    PENCOM: Dear Mr. Aminu, your Pension Fund Administrator has a submitted your request for Retiree Life Annuity’s approval and the Commission granted approval since December 6, 2023.

    YUSUF: Good day, my is Yusuf.

    I am soliciting PenCom’s intervention to enable me access additional 25 per cent of my pension contribution.

    I worked with GTBank between 2006 and 2017. I accessed 25 per cent of my contribution in 2017 which was paid into my salary account that was in debit owing to my outstanding car loan. (I can present my bank account statement if need be). I contacted my PFA, Stanbic IBTC, but they said such a request doesn’t normally get approved. Kindly assist me.

    PENCOM: Dear Mr.Yusuf, please be advised that the 25 per cent temporary access is a one-off payment. However, the RSA holder can access the balance in the year upon the attainment of 50 in line with Section 7 of the Pension Reform Act 2014.

    AKINGBOLA: Good day, my name is Akingbola. I retired from  the service of Ogun State Government (under Ogun State Universal Basic Education Board) on March 16, 2023.

    I have applied for a refund of my pension benefit from Tangerine/Apt Pension since April 25, 2023 but I haven’t got it.

    Meanwhile, those that retired months after my retirement have been paid.

    Kindly use your good offices to look into this matter. Thank you very much.

    PENCOM: Dear Mr. Akingbola, the process is under review by the Benefit and Insurance Department.       

    ADEYEMI: I am Adeyemi. I retired in December 2022. I was with ARM before I joined Stanbic IBTC. A present, I want to transfer my contribution to Stanbic. I was told to write to PenCom. Kindly guide me. 

    PENCOM: Kindly approach Standbic IBTC for data recapture to facilitate the merging the two PINS. Standbic IBTC will guide him with the process.                              

    ANNONYMOUS: Good afternoon, I’m a staff member of Nigerian Television Authority (NTA). Please, how can I get my outstanding contributions from June 2013 to December 2018, which is 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 am unable to do verification due to data capture issue. I have NIN.

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

    EGBE: I am Egbe, a teacher at FGGC, Keana, Nasarawa     State. I want my date of birth to be corrected, which has been corrected by NIMC but not effected by PenCom.

    PENCOM: You are advised to approach your Pension Fund Administrator for submission of documents to initiate the updating of your date of birth.         

    SALIU: My name is Saliu. I understand it takes five working days for approval to come from you when a PFA forward application. I want to find out why it’s not so with my application.

    This is two weeks, according to Leadway Pension that my application has been sent to you. What is holding my application?

    PENCOM: Kindly provide the name of your Pension Fund Administrator (PFA) to enable the Commission attend to 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 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: Ma, I strongly 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, we are the administrator of our late father Mohammed. He worked with immigration service from 1987 and was down size during the presidential task force in 2006. Since then, we have not collected Kobo from National Pension Commission or Nigeria Immigration Service. We don’t know where to go or what to do sir. Help us out. Yours faithfully. Bawa

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

    ANNONYMOUS: I am Oforlea, I retired on September 14, 2022. My date of birth is November 23, 1964 but it 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 of the company refused to attend to me. He said my date of birth is different from the date of birth in PENCOM record. Meanwhile, I have November 23, 1964 in all my records. What should I do?

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