Category: Pension

  • 25 states, FCT enact Contributory Pension Scheme law

    25 states, FCT enact Contributory Pension Scheme law

    No fewer than 25 states and the Federal Capital Territory (FCT) have enacted laws on the implementation of the Contributory Pension Scheme (CPS) as at last month, the Director-General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has said.

    The DG, who made this known in a report obtained by The Nation, said the development further affirmed the progress made by the commission.

    She described the enacted laws, which are in  tandem with the provisions of the Pension Reform Act (PRA) 2014, as the first significant step towards the domestication of the CPS at the sub-national level.

    Specifically she said, Section 2(1) of the PRA 2014 provides that the CPS applies to any employment in the Public Service of the Federation, the FCT, states, and local governments, as well as the private sector.

    She maintained that by the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended), state governments could legislate on pension matters; consequently, state governments have to domesticate the CPS within their various jurisdictions by enacting a state pension law.

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    She said while six states were at the bill stage, six already have laws on the Contributory Defined Benefits Scheme (CDBS).

    Commendably, she said, 16 states have established Pension Bureaux/Boards, and 11 are remitting employer and employee pension contributions in line with the CPS.

    She added that seven states have, however, started paying pensions to retirees under the CPS.

    She pointed out that PenCom, as the apex regulator of the pension industry in Nigeria, has, however, intensified the drive to implement the CPS by states and local governments. PenCom remains committed to the effective regulation and supervision of the pension industry.

    She said: “The transition from the Defined Benefits Scheme (DBS) to the CPS or even the CDBS at the state and local government levels is significant in several ways and inevitable eventually, even for the states yet to do away with the DBS. The CPS is structured to ensure that  retired employees receive their benefits as and when due. The benefits of the CPS are enormous. The CPS is the best solution for pension liabilities, which many states are grappling with.

    “States that fail to offset pension arrears are creating a financial burden on future generations as these pension benefits will continue to grow. States can avoid this trap by adopting the CPS. The CPS will stem further growth of pension liabilities and provide fiscal discipline in the budgetary process because pension obligations would be accurately determined and settled systematically. Importantly, assets are available at the exit of a retiree for payment of pension benefits promptly. Thus, no accumulation of pension arrears.

    “The CPS provides safeguards to enable states to combat corruption in the pension sector. The pension contributions are received and held by custodians in the name of the Retirement Savings Account (RSA) holder.

    “The RSA holder can only access the funds at retirement or under specific conditions. Licensed Pension Fund Administrators (PFAs) invest the funds to ensure safety and earn fair returns for the contributors. Pension assets cannot be used to meet the claims of creditors of pension operators. They cannot be seized or subject to execution of judgment debt or sold, granted as a loan or used as collateral.”

    Mrs. Aisha-Dahir said due to the contributory nature of the CPS, employers no longer needed to bear the burden of making provisions for retirement benefits for their employees.

    Unlike the DB scheme, she continued, employees under the CPS are also responsible for contributing towards their retirement benefits, thus reducing the financial burden on the employer.

    “In addition, the scheme has provisions for employers to pay monthly pension contributions. This provision alleviates the burden on employers to make bulk payments to settle pension liabilities. The CPS is a more efficient avenue for financing state governments’ long-term borrowing needs via investible instruments such as infrastructural bonds.

    “States that implement the CPS derive the benefits of generating long-term savings, which can promote the growth of their real sector as PFAs invest in bonds issued by such states. PFAs are not allowed to invest in the bonds of states yet to implement the CPS.

    “Meanwhile, PenCom’s regulatory oversight of states and local governments’ pension schemes is guided by the provisions of the enabling laws in the states. Section 23(i) of the PRA 2014 clearly emphasised that PenCom’s role regarding the CPS at the sub-national levels shall be to promote and offer technical assistance to states in line with the scheme’s objectives.  

    “Despite the enormous benefits of the CPS, it would be contrary to constitutional provisions for PenCom to enforce the requirements of the PRA 2014 on the states without recourse to state laws and prevailing economic limitations at every material point.

    “PenCom has continued to adopt the persuasive approach to drive full implementation of the CPS at the states and local governments.

    “A key objective of the Pension Reform Act (PRA) is to establish a uniform set of rules, regulations, and standards for administering and paying retirement benefits for the public and private sectors at the national and sub-national levels.

    “The National Council of State in its meeting of August 2006 adopted the CPS for states and local governments. Following the scheme’s adoption, a Model State Pension Law was developed for the state governments to adopt and modify based on their peculiarities.

    “The National Pension Commission (PenCom) reviews draft state Pension Laws and supports states in implementation,” she noted.

  • Premium Pension gets new chairman, directors

    Premium Pension gets new chairman, directors

    The Board of Directors of Premium Pension Limited has appointed General Bitrus Kwaji (rtd) as its new Chairman.

    He replaced Mr. Ibrahim Alhassan Babayo, who retired.

    In a statement, the Head, Corporate Communications, Premium Pension, Aliyu Mohammed Ali, said Senator Nenadi Esther Usman, DCG Garba Bala Makarfi (rtd) and Dr. Mansur Aleiro have also joined the Board as Non-Executive Directors.

    It said Gen. Kwaji (rtd), an Army chief and chartered accountant, is an alumnus of Ahmadu Bello University, Zaria and Strayer University Washington DC, Unitd States, among others.

     Gen. Kwaji occupied sensitive positions during his 30 years’ sojourn in the Nigerian Army before he retired in 2014. They included the Group Managing Director, Nigerian Army Welfare Limitedd/Gte.

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     Others were Deputy Defence Attaché Finance, Washington DC, General Manager (Investments), Nigerian Army Welfare Scheme, Director of Finance, Defence Intelligence Agency; Commandant, Nigerian Army School of Finance and Administration as well as Chairman, Military Pensions Board.

    “Until his appointment as Chairman, Gen. Kwaji (rtd) chaired the Board Audit Committee as well as Finance and General Purposes Committee that had oversight over the development of the company’s Strategic Plan and periodic review and monitoring of its the implementation,’’ Ali added

    Dr. Usman is an accomplished leader and public personality.

    She holds a doctorate in Geography from the Ahmadu Bello University, Zaria and a Master’s in Strategy and Security Management.

    She is an expert in administration and taxation.

    Makarfi holds a Diploma in Library Science and a Bachelor of Science (BSc) degree in Library and Information Science from Ahmadu Bello University, Zaria.  Makarfi’s career is marked by notable achievements that have enhanced his expertise and leadership.

    Aliero is a consummate academic and an entrepreneur.

    He attended Usman Danfodio University Sokoto. He completed his Msc degrees and  PhD and 2018 and 2012 at University Putra, Malaysia.

  • Abia to clear pension arrears

    Abia to clear pension arrears

    Abia State Government has reassured pensioners of its commitment to clear pension arrears before the end of the year.

    Commissioner for Information and Culture, Mr Okey Kanu said the decision was informed by the promise made by Governor Alex Otti during his campaign to improve the welfare of pensioners.

    He said a verification was being conducted to ascertain genuine pensioners. He stated that as soon as the exercise was completed, payment would commence.

    He said: “Let me reiterate the government’s position to pay off outstanding pensions once the verification is done. It is a promise that was made during the campaigns, and since this government came on board, it is a promise that will be kept.

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    “Before the end of the year, all outstanding pensions will be paid as soon as the verification is concluded,” he added.

    Kanu said he was delighted with the efficient manner in which the exercise was being conducted.

    He expressed optimism that the smooth operation of the verification would lead to its timely completion by next week.

    Kanu further said the exercise had garnered commendation throughout the state for its execution.

    He said the verification team visited elderly pensioners, who could not travel, in their homes, while those who were unable to attend in person were guided to use the Sub-Treasury and those residing far from the verification centres were provided with online codes to participate.

  • What you should know about Defined Benefits Scheme: Part 6

    What you should know about Defined Benefits Scheme: Part 6

    What are the cut-off dates for pure federal pensioners and state with Federal Share pensioners?

    The cut-off date for the pure federal pensioners under the Defined Benefit Scheme is June 30, 2007 while the cut-off date for the state pensioners with Federal Share is March 31, 2011.

    Also, the state pensioners with Federal Share must have started work on or before  March 31, 1976.

    How do I correct an error in my verification slip after I have been verified?

    Send a notification to PTAD attaching a photocopy of the verification print-out and the supporting document(s) for the change to be effected.

    Why are monthly pension sometimes delayed?

    A number of reasons may cause delays in receiving monthly pension, such as non–availability of funds; change in bank records or account numbering system; Failed payments due to technical glitches on the government’s e-payment platform; operational delays by banks (PTAD ensures follow up)

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    Is change of date of birth possible?

    Yes. Only the date of birth recorded at the time of entry into the service is acceptable for processing pension.There is no room for change of information on date of birth as such change does not translate to any possible pension benefit. Requests for change of name should be done in line with the answers under Question Number 47 below.

    What are the procedures for change of account or bank by a pensioner?

    The pensioner should forward an application letter addressed to the Executive Secretary explaining the reason for the change of account. He should attach statement of account of the old account; statement of account of the new account; BVN slip, and letter of non-indebtedness from the old bank.

    Thereafter, he will be required to complete a certificate of indemnity in a prescribed form to indemnify the Directorate from any form of liability that may arise from the change of Account or Bank.

    What are the procedures for change of name?

    The pensioner should forward a for an application letter to the Executive Secretary explaining the reason for the change of name. The application should be accompanied documents such as birth certificate or an affidavit of declaration of age; National Identity Card issued by National Identity Management Commission (NIMC); Identity card; newspaper publication; BVN slip; statement of account; marriage certificate for married women; certificate of indemnity in a prescribed form to indemnify the directorate from any liability arising from the change of name.

    What are the likely reasons for change of name by a pensioner?

    The main reasons why people change their name are reflecting change in-marital status such as marriage, divorce, etc; and change of family name.

    What are the features of a valid letter of administration?

    Letters of Administration are usually granted by a probate registry of a High Court to appoint appropriate person(s) or institution to administer the estate of a deceased person in line with applicable laws and regulation such as the Administration of Estate Laws, 2005.

    A valid Letters of Administration must contain name of the court (High Court); name of deceased; date granted; place of death; name and addresses of the beneficiaries; value of property; seal of the court; and registration number of the letters.

    Which of the courts are saddled with issuing Letters of Administration?

    The High Court of a state or FCT High Court. Letters of Administration purportedly issued by magistrates or customary courts are not admissible.

  • Leadway Assurance is Company of the Year

    Leadway Assurance is Company of the Year

    Leadway Assurance has been named the “Company of the Year” at the Insurance Meets Tech (IMT) Conference.

    The award recognised Leadway’s remarkable achievement of being the first Nigerian insurer to cross the N100 billion Gross Premium Income mark last year, demonstrating its commitment to excellence, innovation, and market leadership in the insurance sector.

    IMT’s Convener, Odion Aleobua, expressed his admiration for Leadway Assurance’s accomplishment, stating: “Leadway Assurance has consistently shown dedication to the advancement of the insurance industry in Nigeria.

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    “Crossing the N100 billion Gross premium mark is a testament to their commitment to excellence and their ability to adapt to the evolving landscape of the industry. We are pleased to recognise Leadway Assurance as the Company of the Year at the IMT Conference 2023.”

     Leadway’s Chief Marketing Officer (CMO), Olusakin Labeodan, added: “We are truly honoured to receive the Company of the Year award. This recognition reaffirms our commitment to providing innovative insurance solutions that meet the evolving needs of our customers. It is also on record that we  maintain a six-year industry leading streak of being the industry’s largest claims payer. These milestones motivate us daily to continue delivering exceptional value and service to our stakeholders and customers, leveraging tech and exceptional customer service delivery.”

  • PTAD: Resolving pensioners’ issues

    PTAD: Resolving pensioners’ issues

    KIRIKI: Hello, my name is Kiriki. My MDA is TESCOM, Akure, Ondo State. My federal pension has not been paid since February 2022. When I put my pension number into the computer system, it showed that it does not exist.

      I believe that my name has been omitted from the PTAD payroll. Kindly help me.

    INNOCENT: Good day, I am Innocent. I worked with Akwa Ibom State Internal Revenue Service.

    My date of first appointment was February 15, 1971 and I retired on February 15, 2006. The federal share of my gratuity has not been paid since my retirement in 2006.

    TEKENA: Dear Omobola, I am Tekena, the next-of-kin to the late Mrs Martha, my mother.

     She died in active service while working at the University of Port HarcourtTeaching Hospital (UPTH) in 2005.

    Because I was not up to 25 years, and by our customs, I couldn’t access her benefit, it lingered to this point.

    I am now over 25. I started processing her benefits in 2020 at UPTH and have presented the documentation required.

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    But till date, her benefits have not been paid. The UPTH said the delay is caused by PTAD.

    Please I seek help.

    DUROJAYE: My name is Durojaye. Thank you for publishing my complaint on the short payment of my federal pension of N4,261.17 and N12,867.24, since 2015.

    However, September 6, 2023, it was stated that I didn’t reply to the demand of providing bank statements. Untrue. I didn’t receive any information on that.

    Please note that I have sent my  bank statements since May 17, 2023 through an email to PTAD and they acknowledged receipt on June 13.

    FAWEHINMI: I worked with RBNL, UAC Division from  1975 to 1978 before I left, thinking I would go back to England but I did not.

    My enquiry is to find out when I am due to start earning pension for my 13 years’service. Please advise me.

    OJEDIRAN: Good day, my name is Ojediran. I retired in 1994. I learnt that PTAD has harmonised the pension allowance of Inspector-General of Police (IGP), Deputy Inspector General of Police (DIG) and Assistant Inspector General Police (AIG). But left the position of Commissioner of Police to rank and file.

    Please, what is the correct position on this? Thanks.

    ADEDZWA: My name is Adedzwa, a retired Professor from Ahmadu Bello University (ABU),  Zaria. I did verification in Jos and was given a pension number.

    Last week, I received an SMS to validate “I am alive ” with the same pension number.

    When I logged in, I was directed to use my finger print which I did. But each time, a message is displayed that my pension number should not be more than 15 characters. But what I was given is 28 characters. Please help me.

    PTAD: Pensioner not responding to our call.

    GABRIEL: Our dear Omobola. I thank you and the Authority for the help. I am appealing to you to help me solve my problem on the mistake done on the payment of my monthly pension from July 30, 2021 till now.

    My pension was increased from N25,817.54 to N36,722,37. The increase was paid two months only, May and June 2021, after which the increase of N10,904.85 was reduced by N5,237.250 from N36,722.37 to N31,485. 14. The N31,485.14 is paid from August 2021 till now.

    The deduction is 17 months. Total amount is N89,033.25.

    Please, help me.

    PTAD: Pensioner is being paid correctly; his monthly pension was recomputed using the approved salary structure

    OLAWUNMI: I am Olawunmi. I retired from News Agency of Nigeria (NAN) as Assistant Editor-in-Chief, Grade L 14, Step 10 on January 1, 1997. My complaint is on the stoppage of my pension since August 2020.

    I did verification in Lagos on July 26, 2023. Please, when can I expect my pension payment to be reinstated? Thank you.

    PTAD: The Pension Department is working on the complaint.

    OLORUNMAIYE: Hello, my name is Olorunmaiye and my complaint is on the ‘I AM ALIVE’ programme of PTAD.

    The problem is that my verification failed because they said my account number is different. I have attached the checkleaf and credit alert of the July salary of my account number.

    Please expedite action and ensure my verification is successful soonest.

    PTAD: Pensioner to provide his verification slip for further investigation

    EMMANUEL: My name is Adeniyi, a Federal Radio Corporation of Nigeria (FRCN) pensioner. Why has my July 2023 pension  not been paid? I need money to buy food and pay electricity bills.

    Thank you in advance for prompt attention.

    PTAD: Pension payment was delayed for some pensioners but has been paid.

     JULIANAH: I am Mrs Julianah. I retired at the Neuro Psychiatric Hospital Abeokuta on September  1, 1999.

    While filling the “I’m alive”, on getting to ‘Name of Bank and Account number’, what shows is: ‘Value cannot be null, parameter name in array’.

    This has been happening since last Wednesday. Kindly help me.

    PTAD: Pensioner contacted and advised to go to nearest PTAD office for recapturing

  • 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 Nigeria Police Force. 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 (NoK) 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 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, 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 screening and verification 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 to no avail.

    In 2020, I was called from PTAD to submit some documents, including bank account details, which I did.

    From your publication of my case, PTAD is asking for is verification number, which I scanned and sent since to them.

    Please, assist me.

    PTAD: NoK should provide the deceased’s name and bank statement.

    IDOWU: Good day, my name is Idowu. This is a reminder to the newspaper that I have sent my scanned verification details to PTAD as directed since July 22, 2021, but I have not received any response from them.

    I retired from the Lagos State Post-Primary Teaching Service Commission on April 30, 2004. The date of my first appointment at Epe Division Grammar School, Lagos State is June 1,1969. I spent my 35 service years in Lagos State.

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    My complaints are: I have not been paid the Federal Share of my gratuity (1969-1976). Secondly, my pension from May 1, 2004 to February 2008 was not paid.

    Instead, I was paid from March 1, 2008 to date. I thank you for the effort of your organisation to help us. God bless you.

    PTAD: The Directorate would require your bank statement from retirement to date.

    ONOH: My name is Onoh. I retired from the Ministry of Public Utility on May 6, 2004. This is a reminder on my call for help on the non-payment of my gratuity and monthly pension. Help me solve this problem of non-payment of my gratuity and 75 months’ pension allowance, which has lingered for years, despite my complaints at several pension verification.

    I am from Cross River State. My gratuity is N244,336.32 and monthly pension is N6,244.14. I was placed on pension payroll in September 2010, leaving 75 months behind. This amounts to N468,310.513. Total money owed, including gratuity, is N712,646.82. Thanks in anticipation of your kind support.

    PTAD: Bank statement is required from May 5, 2004 to date

    OPADEJI: Good day, my name is Opadeji. I retired from NITEL on January 21, 2001 on Grade Level 14 as a senior manager. I participated in the NITEL verification in 2001 and PTAD verification exercise in 2005.

    In 2005, when I was going for pensioners’ verification, my documents got missing. I swore to an affidavit on the loss.

    As a result, PTAD placed me on Grade Level 9. I sent complaint emails to PTAD several times, but no action was taken on my complaints.

    I had to travel to the PTAD headquarters in Abuja. Later, the original copy of the letter of promotion was delivered to me by a good Samaritan.

    My salary was subsequently readjusted to Grade Level 14 but less than my salary before the verification and also far less than the pension being paid to my colleagues on the same GL 14.

    Based on this, I sent complaint emails but returned, perhaps my emails had been blocked. Since then, I have accepted my fate.

    Now that I have the opportunity to forward my complaint through you to PTAD, I shall be grateful if my complaint can be treated with utmost concern. Thank you.

    PTAD: Pensioner is on Payroll. Pensioner’s grade level readjusted from grade level 9 to 14 steps 10. He should provide Bank Statement from January 2018 to date for reconciliation.

    DUROJAYE:  Hello, my name is Durojaye.  Thank you for the publications of my complaint of short payment of my pension federal share since 2015, on August 24 and 31 August 2022. Please reactivate my current federal share of pension. Please I expect a positive action.

    PTAD: Pensioner was called severally but no response. Pensioner should provide Bank Statements from 2015 to Date to authenticate his complaint.

    ANONYMOUS:  Good day, I will like to know if my father is eligible for pension under Defined Benefit Scheme (DBS). He was appointed on July 3, 1989 and was removed on April 27, 1999.

    PTAD: No Name and Details Provided.

  • Retirees can get 50 % lumpsum, says PenCom

    Retirees can get 50 % lumpsum, says PenCom

    The National Pension Commission (PenCom) has affirmed that retirees under the Contributory Pension Scheme (CPS) can receive up to 50 per cent lumpsum from their pension pot at retirement.

    The Commission describes those who are eligible for 50 per cent as retirees with Retirement Savings Account (RSA) balance that is sufficient to apply for mode of payment of either Programme Withdrawal or Life Annuity Insurance for at least 50 per cent of the final salary based on the Annual Total Emolument (ATE) as at the date of his retirement.

    This was made known during the National Pension Commission (PenCom)/Nigeria Employers’ Consultative Association (NECA) Interactive Session on the Contributory Pension Scheme (CPS) for the Organised Private Sector organized by PenCom and held in Lagos.

    Presenting a paper on “Retirement Benefits Administration under the CPS”, the Head, Benefits and Insurance Department, PenCom,  Mr. Obiora Ibeziako said the two modes of accessing RSA are: Programmed Withdrawal plus Lump Sum and Annuity plus Lump Sum.

    He explained that to process payment, the Pension Fund Administration (PFA) should compute the monthly or quarterly pension on annuity and lumpsum from the retiree’s RSA balance using the Standard Retirement Benefits Computation (SRBC) Template issued by the Commission, which will guide the RSA holder on the choice of his or her preferred mode of payment.

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    He said: “Where the RSA balance is sufficient for PW/Annuity option, the monthly or quarterly pension/annuity shall be at least 50 per cent of the final salary based on the ATE as at the date of his retirement.

    “Where the RSA balance cannot provide 50% of the retiree’s ATE as a monthly/quarterly pension, such retiree shall be entitled to a concessionary Regulatory Lumpsum of 25% of the RSA balance.

    “Also, where the RSA balance cannot provide a monthly/quarterly pension or annuity of at least one-third of the prevailing minimum wage, the retiree shall be allowed to take the entire balance in the RSA en bloc.

    “Additional remittances shall first be applied to augment pension up to 50% of the retiree’s final salary, and the balance may be paid out as a lump sum. Where the retiree’s pension is already up to 50% of the final salary, the retiree may collect the additional remittances as a lump sum.

    “There shall be a periodic pension enhancement for retirees on PW based on the Return on Investment of funds in the RSA.’’

  • Our plight under CPS, NUP, by pensioner

    Our plight under CPS, NUP, by pensioner

    The Nigerian Union of Pensioners (NUP) only attends to the needs of those in the old pension scheme under the management of Pension Transitional Directorate Department (PTAD).

     It has thus left pensioners of the new pension scheme under the management of the National Pension Commission (PenCom) in the cold.

    A pensioner, Gbadebo Olatokunbo, stated this in  article entitled: “NUP crocodile tears”.

    According to him, the abandonment has led to the exodus of many Federal Government’s agencies from the Contributory Pension Scheme (CPS).

    Olatokunbo, also a co-founder, the Nigerian Shareholders Solidarity Association (NSSA), said some of those who left the CPS are pensioners of the civil service, Military, Police, Custom and, recently, National Assembly.

    He stated that since NUP catered only for her members in the old scheme under PTAD, contributory pensioners became an orphan.

    He however, expressed satisfaction with President Bola Tinubu, who recently announced the implementation of the recent fuel subsidy removal palliatives to pensioners.

    He recalled: “The challenges of CPS pensioners started when the scheme was introduced in 2007. The Federal Government did not include many benefits enjoyed then till date by pensioners under PTAD for pensioners under PenCom.

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    “While the constitution says that Federal Government’s pensioners must enjoy the same privileges on welfare and salary adjustment, NUP that represented pensioners didn’t see CPS pensioners as their subject matter and, therefore, failed to carry us along.

    “This has mostly contributed to the oversights and lapses of the Federal Government at the inception of the new scheme.

    “We have written to government agencies on our issues, yet no solution despite that we  served the same government. Because while old scheme pensioners were enjoying some benefits, the new scheme pensioners were left in the desert.

    “The NUP member is on the Board of PenCom, but is only representing the interest of old pensioners under pretending that we do not exist. In the same vein, we wish to make it known that PenCom is aware of our challenges but seems reluctant to act because the PenCom Act does not empower it to do so.”

    Noting the challenges, Olatokunbo said the issue of progression in the benefits of pensioners every five years as stated in the constitution (Section 173 (3)) has not been implemented since July 1, 2007, while pensioners with PTAD have been enjoying same benefit almost eight times till date.

    Another issue, he said, is: “The contributory pensioners that choose the option of life annuity are being treated like an outcast. This started following a policy direction by PenCom that created fears in contributory pensioners and they had to look for cover under annuity in the insurance companies.

    “Now that the issue of palliative to vulnerable contributory pensioners has suddenly woken up the NUP from its slumber, we hope that the government will not be deceived with the current activities of NUP as representatives of all pensioners in the country. We believe they are only interested in the palliative.

    “Also, now that we have a listening government, contributory pensioners should appreciate them.’’

     while l appeal further that there were several anomalies in the new pension scheme of contributory pensioners that could not be left with PenCom without the Acts of the National Assembly to make it workable in the interest of the vulnerable contributory pensioners; while the helping hands of the NUP; despite their selfishness and other government agencies could should not be overlooked in achieving the objective.’’

    Another pensioner, Elder Ladipo David, lamented that the removal of fuel subsidy and inflation have eroded their pension income, rendering them helpless.

    He, however, commended President Tinubu, for being sympathetic to their plight.

    “We, pensioners, appreciate the efforts of President Tinubu, particularly on salary increases that guarantees increased pension.

    “President Tinubu has, in addition, said minimum wage must reflect reality. We are hopeful for the best under the administration.”

    He charged PenCom Director-General, Mrs. Dahir-Umar, to continue to work on the shortcomings of the CPS to make it more attractive.

  • ‘Pension fund soared to N18tr in last month

    ‘Pension fund soared to N18tr in last month

    From deficit of N2 trillion prior to inception of the Contributory Pension Scheme (CPS) in June 2004, pension fund assets have risen to a surplus of Assets Under Management (AUM) of about N18 trillion as at September 2023, the Director-General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has said.

    She broke the news at a forum with workers in Lagos.

    The PenCom boss,  who spoke on: “Current developments in the Nigerian pension industry”, highlighted the impact of Inflation on value of pension assets, currency devaluation and exchange rate fluctuation as part of the development of pension assets.

    She stated that before the Pension Reform Act (PRA) 2014, the Commission had commenced the issuance of guidelines to allow foreign investment of pension funds to hedge against inflation and exchange rate fluctuation, noting that the guidelines had not been finalised.

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    She stressed that Section 89(2) of PRA 2014 allows for the application of pension funds in Retirement Saving Account (RSA) to the payment of Equity Contributions for Residential Mortgage to enable RSA holders own homes to improve their standard of living; give incentives to contributors under CPS and provide sustainable source of long-term finance to the mortgage and housing sector for development; and provide innovation to safeguard and sustain the CPS.

    On the investment of pension in infrastructure, she said the Federal Government has deployed pension assets in its bonds for that purpose.

    She further said the challenge on the clamour for direct investment of infrastructure by many interested investors had been the ability of the market to package bankable projects that satisfy pension fund investment appetite.

    She revealed that the Infrastructure Fund was proposed to be floated by the Central Bank of Nigeria (CBN), which, among others, targets pension funds investment.