Category: Pension

The outgoing year will be recorded as one of the most eventful in Nigeria’s pension regulation and administration history.

The National Pension Commission (PenCom), which is the apex regulator of the industry in the country, accomplished some significant initiatives that positively impacted the pension landscape in Nigeria.

In executing its mandate, PenCom is responsible for effectively regulating and supervising Licensed Pension Fund Operators (LPFOs) and developing guidelines that facilitate achieving the objectives of the Pension Reform Act 2014.

Some of the initiatives include an upward review of the Minimum Regulatory Capital (Shareholders’ Fund) of Pension Fund Administrators (PFAs) from N1 billion to N5 billion, the issuance of the Revised Regulation on Retirement and Terminal Benefits and the release of the Guidelines on Accessing Retirement Savings Account (RSA) Balance towards Payment of Equity Contribution for Residential Mortgage by RSA Holders.

In addition, PenCom issued the Operational Framework for Co-Investment of Pension Funds by PFAs.

Below are highlights of the important achievements of PenCom in 2022:

N5 billion PFAs’ Minimum Share Capital

All PFAs increased their Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion as of April 27, 2022.

PenCom had approved the recapitalisation for the PFAs with a 12-month transition period from April 27, 2021 to April 27, 2022.

PenCom Director-General, Mrs. Aisha Dahir-Umar said the exercise became expedient as the value of pension fund assets under management and custody had grown by 244 per cent, from N3 trillion in 2012, when the previous recapitalisation was done to N12.29 trillion as of December 31, 2020.

She stated that the sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs. The urgent need to ramp up PFAs’ ability to manage the increasing number of registered contributors and the value of pension fund assets under management led to the recapitalisation exercise.

Mergers and acquisitions

In 2022, PenCom approved the acquisition of Investment One Pension Managers, First Guarantee Pension Limited, Sigma Pension Limited, IEI-Anchor Pension Managers Limited and AIICO Pension Managers Limited. The merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and the subsequent change of name of the merged entity to Tangerine APT Pensions Limited was also approved.

Revised Regulation on Retirement and Terminal Benefits

To improve benefits payouts, PenCom issued the Revised Regulation on Retirement and Terminal Benefits to PFAs for immediate implementation by PFAs. The Revised Regulation was the maiden comprehensive review of the regulation since its initial issuance in 2007. The regulation guides the process of accessing retirement and terminal benefits by pension contributors and retirees under the CPS.

PenCom boss explained that in line with its consultative approach, PenCom obtained input from critical stakeholders to ensure a more efficient retirement benefits administration.

She said: “The Revised Regulation contains several new provisions on Pension Enhancement; Voluntary Contributions; Temporary Access to RSA due to loss of job; Payment under the Micro Pension Plan; and Administrative Sanctions for violations by PFAs, among others.

“Furthermore, the regulation introduces salient amendments to several provisions while providing clarity on others.”

Operational Framework on Co-Investment of Pension Funds

The commission issued the Framework on co-Investment to PFAs to further enhance the diversification of pension fund assets and to improve returns on pension fund investments.

Nigeria’s pension fund assets have remained concentrated in Federal Government Securities as the rapid growth of pension funds has not been matched by a corresponding increase in domestic investment outlets.

Mrs. Dahir-Umar noted that the concentration of pension assets in government securities could lead to distortions in asset prices within the domestic market as Pension Funds continue to chase the same limited asset classes available within the domestic market.

“One of the asset classes with the lowest asset allocation by pension funds is Private Equity (PE). Consequently, PenCom identified investing in specific transactions under a Co-Investment arrangement as a viable option to improve pension funds’ allocation to this asset class.

“Co-investing alongside the general partner of a PE Fund is expected to provide PFAs flexibility and greater choice in the type of projects and companies to invest in, further enhancing returns and increasing exposure to PE,” she said.

Guidelines for the use of pension savings for residential mortgage

The Guidelines on Accessing Retirement Savings Account (RSA) Balance towards Payment of Equity Contribution for Residential Mortgage by RSA Holders actualised the provisions of Section 89 (2) of the Pension Reform Act 2014 (PRA 2014).

Section 89 (2) allows Retirement Savings Account (RSA) holders to apply a percentage of their pension savings towards payment of equity contribution for a residential mortgage. The Guidelines set eligibility criteria for RSA holders’ documentation standards and implementation modalities for PFAs.

Online enrolment/registration

Like the previous year, PenCom conducted the 2022 online Verification and Enrolment Exercise for retirees and prospective retirees of treasury-funded Ministries, Departments and Agencies (MDAs).

The nationwide exercise started on June 20 and ended on August 31, 2022. To ease the process for prospective retirees and retirees, PenCom provided two registration options for the enrolment: the Self-Assisted option and the Pension Desk Officer (PDO)/PFA-Assisted option.

Pension clearance certificates

The Public Procurement Act requires the Pension Clearance Certificate (PCC) to be submitted as evidence of compliance with the PRA 2014 by suppliers, contractors or consultants soliciting any contract or business from Federal Government Ministries, Departments and Agencies (MDAs). Consequently, from January to December 2022, PenCom issued 559 Pension Clearance Certificates (PCCs) to private organisations that applied complied with the set requirements.

Conclusion

As the pension industry continues to evolve to meet the needs of stakeholders, Mrs. Dahir-Umar assured stakeholders of its commitment to the effective regulation and supervision of the industry to ensure that retirement benefits were paid promptly.

LAURENCE: I sincerely express my joy to The Nation and the National Pension Commission. I call on the commission to rescue me from the dual PINs that I have suffered for long.

Special thanks is for Mr Laurence Ogungbemi of Stanbic IBTC Pension office Abakalike, Ebonyi State. I travelled to Makurdi, Benue State to process my pension payment. But I was frustrated because they attend to one person per day. The Makurdi branch of Stanbic IBTC Pension should close down since they only attend to one person daily.

PENCOM: Go and carry out the Data Recapture Exercise with your preferred PFA to resolve the issue of double PIN.

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

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

OGUNDE: My name is Ogunde. I was born in 1944. I started contributing to the National Provident Fund in 1963 but stopped in 1996. I clocked 70 years in 2014. I was at the Federal Government Secretariat in Abeokuta to find out how to collect my contribution. Alas, I was told the NPF has been abolished by the Federal Government. Certificate of membership was given to me in March 1990. Kindly help me.

PENCOM: Complainant should visit Trustfund PFA with the following: NSITF/NPF membership certificate, Account details, include BVN, Affidavit for name reconciliation (if applicable), Application form, Birth certificate/Declaration of Age, Letter of retirement/Affidavit, and Police Report.

EMENI: Good day, I have not heard from Stanbic IBTC or PENCOM on my late brother’s RSA benefits. Thank you.

PENCOM: Please go back to the PFA and resubmit application.

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 a Controller Marketing position, 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’s pension graduating, he works with the Federal Ministry of Defence.am Jerry from Jo’s.

PENCOM: Please provide your PIN and PFA.

OJEBOLA:  I retired on November 13, 2013. My documents duly submitted to LASPEC on September 23, 2021. My PFA is Stanbic IBTC Pension. I am tired of repeated calls and this hotline never goes through for the public to use. My pension benefits are long overdue since November 13, 2013. My repeated calls at LASPEC Alausa are not yielding any result. Kindly find out the cause of the delay. I am elated at your prompt response.

PENCOM:  Provide details- Full name, PFA, PIN

ADEKUNLE: Good day, I was given your number to seek your assistance on my late dad benefits being processed by Leadway Pensure. He worked at Federal Polytechnic Offa and died in service. I have submitted all the necessary documents since 2018 but up till date I have not been able to get his entitlement. This is why I need your assistance.

PENCOM: Payment was made in August 2021

ANNONYMOUS: Good Morning, I work with the NPF and was enlisted in 2016. Ever since then, I haven’t received my pension. I have made several complaints but to no avail. I transferred to NPF Pension Limited from Trustfund Pensions Limited and my balance in the later has been transferred to the former. My employer has also not remitted my pension contributions to my PFA. Kindly assist me.

PENCOM: Already being processed for payment

ANNONYMOUS: Good day, can you help us intervene in retirees’ affairs with Premium Pension. Their desk officers seem not to be updated with the new regulations on retirement benefits. I was told the regulations haven’t been sent to them from PENCOM. They said they are yet to be given the go-ahead to verify 2022 retirees. They are also not advising the retirees on current documents to present as specified in the new regulation. Does it mean 2022 retirees cannot do verification?

PENCOM: Please visit your PFA to carry out verification. The exercise commenced in June 2022. The revised regulation on retirement and terminal benefits is available on www.pencom.gov.ng

ANATE: Good day, my name is Anate, I requested for 25 per cent of my pension benefit from IEI-Anchor Pension. My employer and I have submitted the needed documents and information to them since May 2022. Their reason for the delay is that they needed approval from PENCOM to deduct the excess payment from my account before I can be paid. Please I need your kind support to facilitate the process because it is taking too long. Thank you

PENCOM: Your application is being processed

The Conference of Civil Society of Nigeria (CCSN) has listed the National Pension Commission (PenCom) as one of the top performing Ministries, Departments and Agencies (MDAs).

In a letter to President Muhammadu Buhari dated December 19,  2022, they stated that PenCom, since 2019, has recorded reforms.

The CCSN, a coalition of Civil Society Organisations (CSOs) for good governance, said PenCom “stands out as one of the most ambitious financial inclusion programmes targeted at the Civil Society and the informal sector of any developing economy in the world”.

The letter, signed by the CCSN’s Chairperson, Comrade Adams Otakwu, and two other members of the coalition, John Ogar and Acheme Arumona, stated: PenCom has become synonymous with positive, transparent and goal-oriented pension administration in Nigeria. PenCom embodies a welcome departure from the humongous corruption and inhumane treatment of our pensioners that was the stock in trade prior to the current dispensation.

 “Since 2019, PenCom has recorded phenomenal reforms of global reference. These include the extraordinary rise of pension assets and Retirement Savings Accounts (RSAs), enhanced contributory registration system, payment of outstanding pension liabilities, recovery of outstanding pension contributions, increase in Minimum Share Capital for Pension Fund Administrators, and effective implementation of the Micro Pension Plan, which co opted the Civil Society into the pension scheme and has greatly enhanced our productivity and well-bring.”

Other top performing MDAs listed by the CSOs include the Department of State Services (DSS), National Drug Law Enforcement Agency (NDLEA), and Central Bank of Nigeria (CBN).

The Head of the Corporate Communications Department of PenCom, said the development is an attestation to the reformed pension sector spearheaded by PenCom.

He said the vote of confidence on PenCom by the CSOs would spur the management and staff to double their efforts towards continued effective regulation and supervision of the Contributory Pension Scheme (CPS).

The Pension Transitional Arrangement Directorate (PTAD) has renewed calls on pensioners and Next of Kins to be wary of fraudsters.

The Executive Secretary, Sharon Ikeazor, made the call at a forum with pensioners in Calabar.

She said fraudsters target pensioners to grab their life earnings by texting or calling them, soliciting money to facilitate payments.

She stressed that PTAD staff would never demand bribes from any pensioner or Next of Kin before their work was done.

She said there were no intermediaries in the payments, noting that pensioners were paid through GIFMIS platform into individual pensioner’s accounts.

She advised pensioners to be aware of fraudsters who sometimes pose as PTAD staff to defraud them.

She said: “No staff of PTAD will call or send any message to you requesting for payment or ask you to call a certain phone number before your arrears or gratuity will be paid.

“Once you get such messages, you should know that PTAD did not send them and will never do so. Kindly disseminate this important information to your members so they do not fall victim to these fraudsters.”

She said the Directorate embarked on the campaigns to proactively protect the pensioners and to expose pranks employed by the fraudsters to swindle uninformed pensioners.

She added that the Directorate has been sensitising the pensioners through SMS to pensioners, newspaper adverts and radio jingle on radio stations across the six geo- political zonehs.

Sunday: Good day, my name is Sunday from Cross River State. My father died on July 10, 2005 while in police service. He is the late inspector Okimba. His last place of service 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 my pensioner number. But, up till date, I have not been paid. Kindly help me.

PTAD: Please provide documents consisting 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, and Valid ID card.

ONOH: My name is Onoh, I retired from the Ministry of Public Utility on May 6, 2004. This is a reminder of my call for help with non-payment of gratuity and monthly pension.

  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, despite my complaints at several pension verifications.

 I am from Cross River State. My gratuity is N244,336.32 and my 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.

FLORA: Please help. I am a retiree from UPTH. My pension allowance was stopped in October 2020 due to my absence during verification. I have done the verification after then, yet no payment.

PTAD: Complaint is being attended to.

OMOSINI: I Am Alive confirmation. Many thanks for your cautionary SMS of June 27. I intend to carry out the exercise this week. We greatly appreciate your care for us pensioners. Prof.Omosini.

PTAD: We are pleased to say that his case has been resolved

OFOEGBU: My name Ofoegbu, I enlisted into the Nigeria Police Force in 1988 as a CPL. I retired in 2002 and was paid gratuity in 2003. But for over 20 years, I have not been paid pension. Please help investigate why IGP and Linus at PTAD refuse to pay my monthly pensions.

PTAD: The department has drafted a letter, informing the solicitor to advise the pensioner to forward all the required documents for validation to enable us schedule him for verification.

BEST: My name is Best, SOP retired. I retired in 2006. My complaint is on short payment of gratuity and pension. Table “B”268 per cent was used to compute my money instead of 420 per cent for 31 years’ service. Gratuity paid was N1,665,569.08.

PTAD: Pensioner is on overpayment recovery.

WILLIAMS: This is to inform the officer concerned that I have not been receiving my monthly pension allowance since October 2021. I was paid last on September 29, 2021 and was paid N11,514.39. I will be very grateful if this issue is corrected and the arrears are paid up to date.

PTAD: Local government employees, not qualified for pension under PTAD.

ESIE: My name is Esie. Two years of consecutive arrears of pension were paid in four instalments. First instalment of nine months was paid to me. Second instalment of another nine months was also paid. The third instalment of three months was not paid. The fourth instalment of three months was paid in June 2022. I therefore ask that the omitted three months arrears be paid to me.

PTAD: Complaint is being attended to.

UMARU: My name is Umaru, I wish to inform you that my June 2022 pension has not been paid to me. Kindly help me.

PTAD: Complaint is being attended to.

NDAMA: My name is Ndama. I have not received my June pension while others have got theirs.

PTAD: Complaint is being attended to.

ABDULLAHI: I am Abdullahi from Jos Plateau State. My father was a staff with the Ministry of Defence, civilian units for 16 years before he died in 1995. I have attended various screenings and verifications and the last one was in Jos in 2017. I have submitted all the required documents for the payment of gratuity and pension benefits as a Next of Kin (NOK), but up to no avail. In 2020 I was called from PTAD to submit some documents including bank account details which I did. From your publication of my case, PTAD is asking for my verification number which I scanned and sent since then. I hope Omobola will assist me.

PTAD: NOK should provide deceased 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 service years in Lagos State (35 years). My complaints are that 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.

Old age poverty has remained a problem successive governments in Nigeria have being battling through several initiatives and programmes.

These include the Contributory Pension Scheme (CPS) and Micro Pension Plan (MPP).

They were designed to ensure that people have regular sources of income at old age, having saved some funds during their active days.

Though some gains have been made since the commencements of these initiatives, especially aggregating over N14.5 trillion, with less than 10 million contributors amid over 100 million individuals engaged in productive works.

To ensure more people embrace these initiatives, the National Pension Commission (PenCom) has been engaging different bodies, this time the turn of Civil Society Groups through a sensitisation conference with the theme: ‘Enhancing Informal Sector Participation in the Contributory Pension Scheme: The Roles of Civil Society Groups’.

PenCom stated that the aim of the conference was to enlighten and interact with relevant Civil Society Groups to elicit better understanding of the CPS and the Commission’s activities.

The Director-General of PenCom, Mrs Aisha Dahir-Umar, stressed that the conference, which was the second in the series, has become quite imperative due to the critical roles of the groups as the bridge between government agencies and the public, thus, the need to constantly interact and inform them of recent developments in the pension industry and some of the other laudable transformational initiatives by the Commission.

She submitted that the micro pension plan was conceptualised to expand pension coverage to the informal sector, including small-scale businesses, entertainers, professionals, petty traders, artisans, and entrepreneurs, adding that she is pleased to inform them that members of the Civil Society Groups are also welcome to participate and save for their old age.

She said: “The MPP aims to curb old-age poverty by assisting the participants to contribute while working and building long-term savings to fall back on when they are no longer in active working life. Given the peculiarities of the target participants, the commission is facilitating efforts by the Pension Fund Administrators (PFAs) to provide incentives for the MPP.

“One key incentive that is being worked upon is the provision of health insurance to the micro pension contributors. This recognises the need for the MPP to provide more access to health care services, which is often lacking in critical times of need.’’

She further stated that the strategic efforts to drive the MPP remained one of the important areas of focus of the commission and that it is the commission’s expectation that the learning points from the conference would be disseminated to target audience of participants and the larger society, in addition to creating awareness and deepening the understanding of members of the CSGs, the conference should also elicit their participation in the MPP.

She noted that the commission’s leadership is focused on transforming the pension sector, adding that some of the recent significant accomplishments by the Commission include the issuance of the Guidelines on Accessing 25 per cent of RSA Balance towards payment of Equity Contribution for Residential Mortgage by RSA holders.

This innovative development, she said provides equity finance for RSA holders, facilitates their ownership of residential homes during their working life and ultimately improves their living standards.

“The Guideline effectively implements the provisions of Section 89(2) of the Pension Reform Act (PRA), 2014 which aligns with one of the Commission’s core value of responsiveness, based on the need to improve the standard of living of active employees and retirees under the CPS,” she said.

She maintained that the commission had also concluded the increase of the Minimum Regulatory Capital (Shareholders’ Fund) requirements of PFAs from N1 billion to N5 billion, stressing that the recapitalisation, which spanned a 12-month period, was concluded on April 27, 2022 and that by the deadline, PFAs had complied with the Commission’s directive to increase the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion.

The recapitalisation, she said, was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors and pension fund assets, the value of which she is pleased to state stands at about N14.42 trillion as at September 30, 2022.

She maintained that the exercise was expected to bring about increased effectiveness and efficiency as well as improved service delivery in the industry.

“Further to its regulatory and supervisory functions, the Commission has continued to issue new Guidelines, Frameworks, and Regulations while strengthening existing ones, to make for the smooth implementation of the CPS and the welfare of active employees and pensioners under the Scheme,’’ she added.

•11,145 to benefit from payment

 

THE Pension Transitional Arrangement Directorate (PTAD) has paid over N12.39 billion, representing a 15-month settlement of inherited  liabilities to 11,145 Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Nigeria (Mtel) pensioners.

The PTAD Executive Secretary, Dr Chioma Ejikeme, made this known in a statement.

According to her, this was part of the outstanding 63 months’ liabilities to the pensioners, leaving a balance of 48 months.

She explained that in 2018, after 12 years of privatisation, PTAD worked former workers of NITEL/Mtel to the monthly pension payroll in fulfillment of President Muhammadu Buhari’s commitment to ensuring that eligible pensioners get their entitlements.

At the onset, she said, the inherited unfunded pension liability for NITEL/MTEL stood at 84  months.

She noted that so far,  the Buhari-led government, through PTAD, has cleared 36 months.

She said this includes one month in 2019; six months in 2020; 14 months last year and 15 months this year.

Ejikeme assured that the backlog would be cleared.

OKUNOLA: Dear Omobola, thanking you and your good office The Nation newspaper for the wonderful job you are doing for pensioners of this country. l am a NITEL retiree. l did my verification since January 2OI8 but l am yet to get my pension from PTAD. My date of first appointment is July 2, I979 and date of Retirement is November I4, I99I. Kindly help me.

 ANONYMOUS:  Good day, I would 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.

 IRIOGBE: Dear Omobola, my name is Iriogbe. Your efforts to ensure retirees are not subjected to untold hardships on retirement, is very much appreciated. By virtue of Decree 42 of 1992, NIPOST is a Federal Government’s parastatal which I highlighted in my text messages to your office and that of the Executive Secretary, PTAD. I equally sent petitions and relevant documents to both offices so that we can be paid all the accrued arrears. We are yet to hear from PTAD. This complaint is not new to your office as you once published the same in The Nation, where I was asked by PTAD to write to its office which I have done.  Similarly, I will like to inform the Executive Secretary that I have gone through a newspaper, not The Nation where the OAGF ask officers from ministries, departments, agencies and parastatals including NIPOST who were disengaged from service in 2006 to 2007 to appear for verification at various centres between November 7 and December 2, 2022.  Some of NIPOST staff said to have been disengaged on December 31, 2006 were still in service up to February 27, 2007 hence PMG\CEO’S letter. This issue has been resolved but arrears are not paid yet. Are we to go for the exercise?

 OYIBO: Good morning, Madam, I am Mr. Peter Oyibo, I retired from NYSC. I received your response from The Nation newspaper dated Wednesday, July 30, 2022 , which says that my pension arrears are being computed. Please I am still waiting for the payment of eight years arrears and for me to be on the monthly payroll. Thank you.

 OPADEJI: Good day, I thank you for the humanitarian job you are doing to correct anomalies arising from pension payment to pensioners. Please help me out of my predicament.

My name is Opadeji. I retired from NITEL on January 21, 2001 on grade level 14 as senior manager. I participated in the NITEL verification exercise in 2001 and PTAD verification exercise in 2005 respectively. In 2005, when I was going for a pensioners verification, my documents were missing and I swore an affidavit on the loss of the documents. On the basis of the loss, PTAD placed me on grade level 9 and I sent complaint emails to PTAD several times but no action was taken on my complaint email. I therefore took the risk of traveling to the Abuja PTAD office when 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 exercise and also far less than the pension being paid to my colleagues on the same GL 14. Therefore, I sent many complaint emails but returned undelivered. Perhaps my emails have 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.

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 positive action.

 ANONYMOUS: I want to remain anonymous. My complaint is on non-payment for arrears of my monthly pension from April 2007 to September 2010. I retired on March 30, 2007. My arrears are pending for these years. I retired from the Code of Conduct Bureau, Cross River State. Kindly help me.

 BASSEY: My name is Bassey and my complaint is nonpayment of my long overdue monthly pension and arrears. Since I retired from the Federal Ministry of Works and Housing in 2006, a series of letters/bank statements and verification slips have been sent to PTAD but nothing has been done. PTAD kept on promising to pay but nothing has been paid till today. They have refused to pay my money for 17years.

 THE NATION: The newspaper will intervene. Do look out for the newspaper next week for responses from PTAD.

In this concluding part, the National Pension Commission (PenCom) writes on how pension funds are invested under the Multi-Fund Structure.

THE increase in demand by RSA holders for the opportunity to invest their retirement savings in Non-interest instruments led to a series of engagements with other financial regulators and stakeholders towards creating a Non-Interest Fund based on Islamic Sharia Principles, said the National Pension Commission (PenCom).

Consequently, last year, the Commission approved the implementation of Fund VI in line with Section 7.3 of the Regulation on Investment of Pension Fund Assets issued by PenCom. The regulation aims to promote financial inclusion within the Nigerian Financial System, establish standards and procedures for managing the Fund VI by licensed PFAs. In addition, it sought to increase the investment portfolio for better returns on pension funds and assist in expanding the coverage of the Contributory Pension Scheme (CPS) by attracting employees with reservations about investments in Non-interest instruments.

The Non-Interest Fund (Fund VI)

The Non-Interest Fund VI is a Fund type whose assets are invested in instruments that are both ethical and Non-interest as approved by the Financial Regulation Advisory Council of Experts (FRACE). The fund is designed for contributors and retirees who are interested in investments that comply with non-interest and ethical principles. The Fund is, therefore, divided into two, Active for RSA Holders and Retirees respectively. The Active RSA fund VI comprises contributors that are 50 and below while the Retiree Fund VI is strictly for retirees.

 

Transfer from other Fund types to Fund VI

RSA holders in Funds I, II, III, and retirees in Fund IV are eligible to move their RSA contributions to Fund VI.  Likewise, RSA holders in Fund VI seeking to move back to any of the Active RSA Funds i.e. Funds I, II and III, are allowed to do so. However, Retirees in Fund VI are only qualified to move back to Fund IV which is the default Retiree Fund.

To transfer from Fund VI to other Fund types, RSA holders are required to visit their PFAs to request the transfer of their pension savings from their existing fund to the Non-Interest Fund by completing and signing a consent form issued by the PFA. The transfer is allowed once yearly and the RSA holder is not required to pay any fee.

 

Investment of pension assets in Fund VI

The investment portfolio for Fund VI is made up of Sharia-compliant instruments. The permissible instruments for the Investment of Fund VI assets include Corporate/ Supranational Sukuks; Government Sukuk (including Islamic Treasury Bills and Euro Sukuk) issued by the Federal Government of Nigeria, CBN or FGN agencies, and Infrastructure Sukuk backed by FGN/CBN guarantee. Other instruments are Shari’a-compliant Money Market instruments, ordinary shares, private equity funds, and real Estate funds.

In line with Section 7.3 (a) of the investment regulation, the active RSA fund VI is invested in variable income instruments as the RSA holders are young and can bear the risk compared to Retirees. Therefore, Retiree Fund VI, are invested in fixed-income instruments to preserve the funds against market volatility considering their ages and risk appetite.

Consequently, investment of Fund VI assets is not in the production or trading of alcohol, pornography, weaponry, gambling/betting, speculation, interest-earning ventures, and other ventures of similar nature contrary to Non-interest finance principles.

 

Benefits to RSA holders

The implementation of Fund VI contributed to boosting the confidence of the public in the CPS, as it offers the opportunity for RSA holders to invest their retirement savings in non-interest instruments. In addition, RSA holders are offered a viable alternative to the conventional interest-based pension investment system.

The creation of the Non-Interest Fund will complement the efforts of other regulators in the financial sector in promoting the issuance of structured products that comply with the applicable principles of Non-interest finance to further provide viable investment outlets for pension funds. Pension contributors and retirees that require more information on  the Non-interest fund may enquire from their PFAs and study the Operational Framework for Non-Interest Funds on the Commission’s website www.pencom.gov.ng.

This is the concluding part of our articles on the Multi-Fund investment structure for RSA funds. As earlier explained, the Multi-Fund investment structure would address the varying risk appetite of contributors, as the different funds are tailored to fit the ages and risk profiles of contributors. The multi-fund structure would also benefit the economy as a whole, as pension assets would be channelled into key areas of the economy such as infrastructure and housing.

MOKAOGWU: I applied for 25 er cent payment but my pension administrator said no because I have sometimes received it and it is a one-off payment. My position is that I have made further contributions when I became gainfully employed and as such should be entitled to another 25 per cent based on the new contribution I made when I became employed. I believe it should be so every time one is in or out of employment.  Kindly assist on this subject.

 PENCOM: Please note that you can access 25 per cent for loss of job only once. You can however still access a maximum of 25 per cent towards equity contribution for residential mortgage.

ANNONYMOUS: Dear Omobola, I have a complaint. I requested for my pension from Stanbic IBTC for almost three months. Anytime I request an update they tell me it’s awaiting approval from PENCOM. I need your kind assistance.

 PENCOM: Please contact your PFA, your application has not been submitted to the Commission.

ANNONYMOUS: l recently retired from one of the MDA’s. What do I do to get my benefits?

 PENCOM: Please visit your PFA and ensure that you have all the required documents, have undergone the enrolment exercise and data recapture exercise (if applicable). Your PFA will provide more information to you and guide you through the process.

 DAUDA: Good day, my name is Dauda. I applied for payment on November 22, 2022. I have done all the necessary requirements at Stanbic IBTC Pension office in Abuja but up till now no information about it. I would like the commission to assist me to know the position. Thank you.

 PENCOM: The RSA holder should please visit his PFA for an update as the application has not been submitted to the Commission.

DOGARA: Good day, my name is Dogara. I salute PenCom for attending promptly to complaints from retirees. My problems are that my PFA invited me to recapture information on September 26, 2019. I went to their office and the recapture exercise was successful. Since then, my monthly pension stopped for about four years. l was not given any information for the nonpayment. Before the recapture exercise, my PFA IEI Anchor Pensions gave me an Enhancement of Monthly Pension Consent Form to fill which l consciously declared and signed on December 18, 201. Kindly help as l see you with meek manners.

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

ASOROSE: My name is Asorose, I submitted my application for payment of my Lump Sum with Stanbic IBTC pension on July 28, 2022. But up till date, I have not been paid.  I have been moving from Gwagwalada to Area 11. Please assist me.

PENCOM: Annuity application has been processed on November 1, 2022. Visit your PFA for more details on payments.

LADIPO: Dear Omobola, thank you for not allowing the voiceless Nigerian pensioners to die in penury while those who wickedly trampled upon our rights are enjoying a relationship between Dubai and Niger Republic. Please, with the deplorable state of the naira; remind PENCOM of the pension enhancement promised. Also, my RSA Balance was messaged to me last month. Does it mean that if I am still alive after exhausting the Balance in my account, there will be no more money for me.

 PENCOM: Please provide your PIN and PFA

ISAH: I am Rtd Inspector Isah under NPF Pensions. I retired on January 15, 2020 under Niger State Police Command at the age ground of 60. But I was paid only 25 per cent lump sum of N1,665,000 on February 2021 out of my total amount of N5.1million. I was also put on a monthly pension of N31,758 from March 2021 to date. My complaint is that I deserve to be paid at least 50 or 40 percent of my total amount of N5,100,000. I am really aggrieved.

 PENCOM: You are entitled to 25 percent lumpsum

SARAFA: Good day, my name is Sarafa. Can you explain Pension Enhancement?

PENCOM: Pension Enhancement is periodic pension enhancement for retirees on Programmed Withdrawal under Contribution Pension Scheme by using the surpluses generated from Return on investments. Visit www.pencom.gov.ng for more information.

 POPOOLA: My name is Popoola, I retired from the Federal Ministry of Agriculture in 2016. I have not been paid 2.5 per cent approved by Mr President since 2021. My PFA is First Guarantee. Kindly investigate.

PENCOM: Work in progress. Please exercise patience.

MOHAMMED: Dear sir, we are the administrator of our late father Mohammed. He worked with immigration service from 1987 and was downsized during the presidential task force in 2006. Since then, we have not collected Kobo from the 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 to investigate your complaint.

AJALA: My name is Ajala, greetings to PENCOM and The Nation staff. I retired from Nigeria Custom Service in June 2009. My complaint is on the increment approved by President Muhammadu Buhari for pensioners last year. My Pension Fund Administrator is Sigma Pension. I visited my PFA on September 19 but was told that there is no remittance from PenCom yet. Based on the edition of October 19 of the newspaper published where I was asked to provide my pin by PENCOM. I visited the PENCOM office on October 24 and I met a female staff member who I believe is the boss in the complaint office. I showed her a copy of the newspaper and she said okay. She then told me that they have not started paying and she made a photocopy of my pin.

PENCOM: Work in progress. Please exercise some patience.