Category: Pension

•As PenCom recovers N959m contributions, drag others to court

Twenty-nine errant employers paid two per cent penalty on unremitted pension contributions of their employees to their Retirement Savings Account (RSA) in Third Quarter of last year, The Nation has learnt.

The penalty totalling N205.9 million was surcharge by the regulatory authority, the National Pension Commission (PenCom) for not remitting N959.05 million deducted from their employees’salaries.

Meanwhile, 19 defaulting employers have been recommended for appropriate legal action.

The commission made this known in its “Update on Recovery of Outstanding Pension Contributions and Penalties from Defaulting Employers Third Quarter Report 2022”.

According to the report, the total amount paid by the employers is N1.16 billion during the period under reveiw.

The report read: “Following the issuance of demand notices to defaulting employers whose pension liabilities were established by the Recovery Agents (RAs), N1.164 billion representing principal contribution N959.05 and penalty N205.90 was recovered from 29 defaulting employers during the quarter under review.

“Meanwhile, 19 defaulting employers have been recommended for appropriate legal action, after  administrative steps taken to make them comply failed. From the commencement of the recovery in June 2012 to 30 September 2022, a total of N23.29 billion, comprising principal contributions N12.39 billion and penalties of N10.89 billion was recovered from defaulting employers.”

Section 11 (5) (b) of the Pension Reform Act (PRA 2004) provides that the employer shall not later than seven days from the day the employee is paid his or her salary, remit an amount comprising the employee’s and employer’s pension contributions to the custodian specified by the Pension Fund Administrator (PFA) of the employee.

Furthermore, Section 11 (7) of the PRA 2004 provides that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission provided that the penalty shall not be less than 2 percent of the total contributions that remains unpaid for each month the default continues.

NNONYMOUS: I have a problem with my pension. I am a police officer. My pension has not been paid into my pension account since 2017. I have been on this for the past three years by moving from one office to another but all my efforts prove abortive. Kindly help me.

PENCOM: Kindly provide your name and PIN.

DENNIS: Dear Sir, my name is Dennis and my Pension Fund Administrator is FGPL. I retired from the Nigerian Police Force on June 1, 2008 and my monthly pension is N26,451.84. I have been receiving this amount for 14 years and six months and I have not been enhanced. Please can you tell me why? Thank you.

PENCOM: The pension enhancement is only for Retirement Savings Account holders that have received significant growth due to return on investments over the years.

AKPUDOGWU: My name is Akpudogwu and my Pension Fund Administrator is Veritas Glanvill Pension. My compliant is that I have been running around for my 25 percent benefits since my appointment was terminated in April. I have concluded everything and submitted my documents.

Accoding to my PFA, my documents have been sent to PenCom but they haven’t approved the payment.

Emails have been sent to them as a reminder yet no payment.     

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

AJAYI: Hello. My name is Ajayi, born ON July 14, 1985. I worked with Prudential Guards and was posted as to Adeola Odeku Ecobank, Lagos, between January 2014 and April 2015.

 I was later posted to Civic Centre, Victoria Island, Lagos, between April 2017 to November 2018, but none of my pension was remitted to my Leadway Pensure account.

Please persuade the company to remit my pension for the aforementioned years. Thank you.

PENCOM: Send the complaint to the Commission and attch the following documents: Letter of Appointment, payslips for all or some of the concerned periods and Letter of Termination/Resignation.

ADISA: Good day, sir. I am Adisa. I retired from a primary school on August 2016 as a headmaster on level 14, 11.

My RSA is First Guarantee Pension Limited. I have been paid but my complaint is my pension was calculated with 13, 11 instead of 14,11. The lump sum given to me was less than what was paid to my colleagues despite getting appointment at the same period.

 Justice to one should be a justice to all. I will like PENCOM to look into my case. Hope to hear from you soon.

PENCOM: Request received, and processed. For further complaints, you are advised to approach Lagos State Pension Board.

OMOBULEJO: Good Day, I am Omobulejo. I retired on August 15, 2020 at the Vintage Press Limited in Lagos. I regularised my documents with my PFA, Stanbic IBTC confirmed in November 2021 and they confirmed it as okay.

Since then, they send me messages to be patient. For how long will I be patient? I have no job at hand. Thank you.

PENCOM: Please visit your PFA to resubmit your application.

ABUBAKAR: Hello, my name is Abubakar, a next-of-kin. The president’s approval of outstanding pension said something about 2014 retirees. But my father died in 2013. Will his death benefit also be paid? How long does it take? Thank you.

PENCOM: Please note that for your late father’s death benefits to be paid, you must submit some documents to his Pension Fund Administrator (PFA) for processing. If you have done this, please forward to the commission the following: his RSA PIN, full name, name of PFA as well as other vital information to enable the commission investigate further. Thank you.

MICAH: Good day. My name is Micah. I worked with the Federal Radio Corporation of Nigeria (FRCN) as a Principal Marketing Officer where I retired in April 2019.

I was promoted to  the position of Controller, Marketing in January same year. Up till today, my level 13 arrears and promotions have not been implemented with my PFA, Premium Pension.

Kindly help look into my problem. Thank you.

PENCOM: Please provide your PIN

JERRY: Good day, I am calling to seek your help concerning my late dad pension. He worked with the Federal Ministry of Defence.

PENCOM: Please provide your PIN and PFA.

ADEOSUN: I am Adeosun. I retired in February 2018 and my documents were duly submitted to LASPEC towards the end of 2021 and re-submitted again in July, this year. My PFA is Leadway Pension. My repeated calls to LASPEC are not yielding any results. Could you please help me find out the cause of the delay in payment?

PENCOM: Please provide your PIN.

ZUBAIRU: My name is Zubairu, My employer is Ministry of Police Affairs (Police Children School Owerri), Imo State. My PFA is First Guarantee Pension Limited.

PENCOM: Please provide your PIN.

The Pension Transitional Arrangement Directorate (PTAD) has reminded pensioners under the Defined Benefit Scheme (DBS) living in the United States that the Directorate’s Diaspora Pensioners’ Survey for pensioners is still open.

The Executive Secretary, Dr. Chioma Ejikeme, who made this known, however, said the survey was only for the U.S.

She called on them to log on to PTAD website to participate.

She said: “USA Residents who are pensioners under the Defined Benefit Scheme managed by PTAD are enjoined to log on to PTAD website to complete the survey form. This is for both verified and un-verified pensioners, even if they participated in the I Am Alive Confirmation Pilot.

“The survey will provide PTAD with a comprehensive database of the contact information and other related information of Diaspora Pensioners residing in the U.S. It will also assist the Directorate plan for the verification and biometric capture of those that are yet to be verified. They are to click on the link to participate now on https://www.ptad.gov.ng/

“Pensioners who face challenges filling out the survey form can send an email to complaints@ptad.gov.ng or info@ptad.gov.ng for assistance.’’

She stressed that PTAD is responsible for the pension administration of the DBS. PTAD was established to address the pensioners’ complaints that bother on issues such as non-payment of monthly pension, short payment of pension and gratuity, removal of name on pension payment voucher, non-payment of harmonised pension arrears, and irregular payment of federal pensions and non-receipt of pension after retirement, etc.

“Empowered by Section 30, Sub- Section (2a) of the Amended Pension Reform Act, 2004, and it will take over the management of three of the offices running the old pension scheme.

“These are the Civil Service Pension Department, the Police Pension Office and the Customs, Immigration and Prisons Pension Office (CIPPO),” she added.

ADEREMI: Hello Omobola, I thank The Nation for the special coverage on pensioners. l retired from NITEL. l did my verification since January 20I8.  But l am yet to get my pension from PTAD.

  My date of first appointment is July 2, I979 and that of retirement November I4, I99I.

PTAD: In line with Circular B63304 X111/879 of June 29, 1992, any pensioner who served for less than 10 years as at March 31, 1977 or less than 15 years from April 1, 1977 to June 1, 1992 and less than 10 years with effect from June 1, 1992 does not qualify for pension. Therefore, the complainant is not qualified for pension as he served for less than 15 years (July 2, I979 to November I4, I99I).

ANNOBYMOUS: My father was under the Defined Benefit Scheme (DBS).

He was appointed on 3/7/89 and was removed on 27/4/1999.

I would like to know if he is my eligible for pension.

PTAD: Your father is not qualified for pension as he did not serve up to 10 years from 3/7/89 to 27/4/1999, in line with Circular B63304 X111/879 of June 29, 1992. He was short of being eligible by three months.

IRIOGBE: Dear Omobola, once again, I wish to express my gratitude to you for the good work you are doing for pensioners. Please keep it up.

My matter was published in The Nation. PTAD said my complaint and that of others were being attended to. We hope the government will make funds available to PTAD to do the needful as payment of the arrears is long overdue. Many thanks –  Iriogbe.

PTAD: Pensioner has an existing complaint and PAPD is working on it.

GEORGE: Dear Omobola, I retired from the Uiversity of Port Harcourt, Rivers State. l have not been paid my pension allowances for two years, although I have done my validation. Please help.

PTAD: Pensioner paid two years’ arrears from October 2020 to December 2022 and on payroll from January 2023.

GOFWEN: Good day, my name is Gofwen. I was a staff member of the defunct NITEL/MTEL. Kindly assist me to find out the reason for the delay of our gratuity.

PTAD: Pensioner to provide verification details to enable resolve his complaint

MABAWONKU: My name is Mabawonku. This is a reminder to the newspaper that I have sent my bank statement from retirement to date to PTAD as directed since July 6 , 2022. but I have not received any response from them.

 I retired from Nigeria Educational Research and Development Center (NERDC) in 1993 after serving for 11 years. I complained that my federal share of my gratuity from 1982 to 1993 had not been paid.

Secondly, my pension from January to July 1993 was not paid too.

I did  verification at the PTAD’s office in Lagos in 2019, submitted bank statements from 2008 to date as requested by the PTAD, including the one showing the gratuity paid in 2017.

My original pension file has been retrieved from NERDC by PTAD since November 2017. With the conditions met since 2019, the gratuity and pension arrears have not been paid.

Please help.

PTAD: Resolution ongoing. Pensioner will be contacted soon.

BASSEY: My name is Bassey and my complaint is the non-payment of my long overdue monthly pension and arrears.

Since I retired from the Federal Ministry of Works and Housing in 2006, letters/bank statement and verification slip were sent to PTAD but nothing has been done.

PTAD keeps on promising to pay but nothing has been paid till today.

They have refused to pay my money for 17 years.

PTAD: Kindly provide bank statement showing severance payment.

SURAJU: Dear Omobola, I saw your response to my request in the paper of today Wednesday July 6, 2022 where you wrote that PTAD said they are recomputing my matter. Why? Well, thanks for your efforts and please help me keep it in view.

PTAD: Kindly provide bank statement from march 2003 to January 2011

Sunday: Good day, my name is Sunday from Cross River State. My father died since July 10, 2005 while in police service. He is late inspector Okimba. His last place of service is 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: Please provide documents comprising of Enlistment Letter; Letter of Administration; Emolument record or deceased’s Bank statement showing salary before death; Next-of- kin bank statement from July 2005 to date; BVN slip; Valid ID card.

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 with nonpayment of gratuity and monthly pension. Sir, I humbly beg you to help me solve this problem of nonpayment of my gratuity and 75 months pension allowance, which has lingered for years back, despite my complaints at several pension verification exercises. 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 5th May, 2004 to date.

Stanbic IBTC Pension Managers Limited  has denied giving  incentives to Retirement Savings Account (RSA) holders to woo them.

It would be recalled that some media organisations (not this newspaper) reported that some Pension Fund Administrators (PFA)  were giving out gift vouchers worth millions of naira to some clients against the directive of the National Pension Commission (PenCom) which aims to end “unhealthy competition” in the industry.

In a statement, Stanbic IBTC Pension states: “We would like to clarify that this news is false and does not represent our ethos and values as an institution. Further to PenCom’s directive in October 2022, our clients were notified of the directive and its subsequent implications leading to the discontinuation of our Loyalty Programme on November 5, 2022 as approved by PenCom.

“To further reinforce our commitment and alignment with PenCom’s directives, we partnered PenCom’s representatives to sensitise clients on this development at our annual clients’ engagement fora held in Lagos, Abuja and Port Harcourt, late 2022.

“As a major stakeholder and the largest PFA in Nigeria managing over 1.9 million retirement savings accounts and over N4.5 trillion in assets under management, our organisation has a responsibility to uphold the highest operational and ethical standards for operators in the industry.

“Stanbic IBTC remains resolute in its position and would like to reiterate that it conducts its business with integrity in compliance with extant laws of the operating environment and international best practices. We will continue to do business the right way.”

The National Pension Commission (PenCom) is providing global best practices in pension regulation and supervision, the Director-General, Mrs. Aisha Dahir-Umar, has said.

Mrs. Dahir-Umar said the commission has been steadfast in its administration, with the staff and management shunning malpractices.

She said the Pension Fund Assets under Management (AuM), which stood at about N15trillion as at last December, increased by N156.74 billion in Q3.

She said the operators, which include Pension Fund Administrators (PFAs), Pension Fund Custodian (PFCs) and Closed Pension Fund Admistrators (CPFA), have also been complying with the Pension Reform Act (PRA) 2004.

She said they were doing their best to keep the pension fund  under the Contributory Pension Scheme (CPS).

She maintained that while it had not been easy keeping off elements that think the fund is another national cake to be shared, she and the staff members of the commission would ensure that they were eradicated.

She assured workers of safety of the fund and promised that retirees  would continue to receive their pension promptly.

She noted that pension administration before 2004 was bedeviled by many problems.

She said: “Prior to the enactment of the Pension Reform Act 2004, pension schemes had been bedevilled by many problems.The Public Service operated an unfunded Defined Benefits Scheme (DBS) and the payment of retirement benefits were budgeted annually.

“The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in the light of resource constraints. In many cases, even where budgetary provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of payment of pension rights. It was obvious, therefore, that the DBS could not be sustained.”

The DG continued: “In the private sector on the other hand, many employees were not covered by the pension schemes put in place by their employers and many of these schemes were not funded. Besides, where the schemes were funded, the management of the pension funds was full of malpractices between the fund managers and the Trustees of the pension funds.

“This scenario necessitated a re-think of pension administration by the administration of President Olusegun Obasanjo.

“Accordingly, the administration initiated a pension reform to eliminate the problems associated with pension schemes. The outcome was the enactment into law of the Pension Reform Act 2004,” she noted.

The PenCom chief added that the Third Quarter 2022 Report provides  stakeholders and the public with details of strategic activities that focused on ensuring the prompt payment of retirement benefits, as well as efforts aimed at promoting a vibrant and sustainable pension industry that positively impacts the  economy.

“I would like to commend the sustained efforts of the staff and management of the commission, which ensured the achievement of the commission’s medium and long-term objectives. I am also delighted to mention that despite the overwhelming head-winds in the global economic climate and the country’s challenging macroeconomic environment, the Pension Fund Assets under Management (AuM) increased by N156.74 billion from ?14.27 trillion as 30 June 2020 to N14.42 trillion as at 30 September 2022. This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy.

“During the period under review, the Commission steadily pursued increased diversification of pension fund portfolios by ramping up efforts aimed at ensuring sustained investment of Pension Fund in alter- native Asset classes and structured infrastructure projects that meet the stringent requirements as enshrined in the Regulation for the In- vestment of Pension Fund Assets. Although the Commission’s efforts at diversifying investments of pension funds and hedging against inflation has gradually begun to yield results, it is, however, worthy to note that efforts are ongoing to ensure that the annualized average rates of return of pension funds across RSA and Legacy Funds are above headline inflation rates.”

She continued: “Perhaps, the most significant achievement recorded in the third quarter of 2022 was the successful issuance of Guidelines on Accessing RSA Balance towards payment of Equity Contribution for Residential Mort- gage. The Guidelines give effect to Section 89(2) of the Pension Re- form Act (PRA) 2014, which allows eligible RSA holders to apply a per- centage of the balances in their Retirement Savings Accounts for payment of equity contribution towards residential mortgage for employees of the Public, Private and the Informal Sectors.

“This significant achievement in the Nigerian Pension Industry could not have been possible without the right people, strategy, culture and governance structures that support the delivery of consistent and sustained value for all our stakeholders. We have, once again, demonstrated our firm assurance to serving the needs of our stakeholders and providing global best practices in pension regulation and supervision”, she added.

Ogun State Government has increased quarterly payment for pensioners from N500 million to N600 million, the Governor, Dapo Abiodun has said.

The governor, who also said his administration has paid over N70 billion as gratuity and pension to retirees in the last three and a half years, made this known during a town hall meeting in the State.

Abiodun stated that previous government had failed to pay the retirees, thereby making the debt to rise.

He promised that his administration would ensure that the retirees enjoy the fruits of their hardwork.

He assured workers that their entitlements – leave bonuses and others – would be paid as the finances of the state improve.