The Nation Newspaper

Tag: Contributory Pension Scheme

  • Operators invest N5.7tr pension cash in Fed Govt’s bonds

    FOURTEEN years after Contributory Pension Scheme (CPS) was inaugurated, pension fund assets have grown to N8.33 trillion.

    From the total sum, N5.77 trillion has been invested in Federal Government Securities as at August.

    The National Pension Commission (PenCom) and Pension Fund Administrators (PFAs) made these known at a maiden retreat organised for Senate and House of Representatives Committee on Pensions by Pension Fund Operators Association of Nigeria (PenOp) at the weekend in Calabar.

    In a paper, Managing Director, AXA Mansad Pension Limited Dapo Akisanya, said the pension fund operators’ investment in FGN Securities ranks first.

    According to him, the operators invested N967.78 billion in the Money Market, representing 11.61 per cent and ranking second in their investment chart as at August.

    Akinsanya said they invested N630.25 billion in local equities at the Nigerian Stock Exchange (NSE), representing 7.56 per cent.

    The industry operator added that investment in local equities ranked third on the investment chart.

    The operators, he added, invested N407.78 billion in Corporate Debt Securities – 4.89 per cent and fourth on the chart.

    Other investment, the AXA Mansad Pension Limited Managing Director noted, showed that N226.63 billion was invested in real estate, N154.42 billion in state government securities, N79.2 billion in private equity, infrastructure and cash; N63.95 billion in foreign equities; N21.28 billion in mutual funds and N6.67 billion in supra-national bonds.

    Akinsanya said the total investment of the fund in the economy stands at N8.33 trillion.

    Part of the investments, he added, has led to dualisation of Abuja-Abaji-Lokoja Road; International Airport link road Junction, Sheda Village Junction by Dantata and Sawoe Construction Company Ltd; Dualisation of Suleja-Minna Road in Niger State Phase 11 by Salini Nigeria Limited; building of Kaduna Eastern By-Pass in Kaduna State by Eksiogullari Construction Company Limited, among others

    He said the total pension fund is owned by Retirement Savings Account (RSA) holders.

    Akinsanya said since the fund is being managed on behalf of the owners, profits made or gained, growth in fund, interest or returns belong to the holders and are duly credited to their account.

    PenCom Acting Director-General Mrs. Aisha Dahir-Umar, in her presentation, said the pension industry membership (owners of the pension fund) has grown to 8.31 million participants as at August.

    She noted that the number of retirees receiving benefits under the CPS as at August 2018 was 245,657.

    Of the number, 89,308 retirees are on programmed withdrawal and 56,349 opted for life annuity.

    According to her, death benefits had been paid to 52,468 beneficiaries, she added.

    PenOp President Mrs. Aderonke Adedeji, on her part, said Nigeria can now, for first time, boast of a long term funding base and the impact to date included the funding of government and government’s projects, development of the capital market as well as increased foreign development inflows.

    She said: “While this is positive, a note of caution must be raised in view of recent agitations to access the funds for infrastructure. In principle, the industry has no objections to funding infrastructure. In fact, there are benefits to doing so. However, it must be understood that such investments must be in well-structured and credit worthy instruments.”

  • Edo warns against sponsored Pensioners’ Protests

    Edo warns against sponsored Pensioners’ Protests

    The Edo State Government has warned that it would no longer fold its arms while mischief makers instigate pensioners into embarking on needless and stage-managed protests, in order to put the state government in bad light and undermine efforts at resolving the pension issue.

    In a statement signed by the Head of Service Mrs Gladys Idahor, the state government said it is not only committed to clearing the backlog of pension arrears but also instituting a new regime where retiree’s entitlements are not delayed.

    According to Idahor, not less than N6.2 billion has so far been paid to retirees between January to September 2017, and explained that the protest on Monday, October 16, was an orchestration by some disgruntled elements and their political allies designed to undermine the effort of the state government to sustainably resolve the pension issue once and for all.

    She added that “the state government would henceforth prevent miscreants who under the guise of agitating for pension payment, disrupt law and order in the society, particularly when there is sufficient evidence showing that they are being sponsored by some anti-development agents and mischievous members of the opposition who have refused to accept the verdict of the people.”

    Mrs. Idahor emphasised that: “Governor Obaseki, who is extremely vast in pension matters having served as a member of the Presidential Taskforce which established the new pension order currently in operation in Nigeria, has always been very empathetic to the plight of pensioners, hence he made a commitment during the presentation of the 2017 budget to resolve the problems of pensioners in Edo State in a sustainable manner.”

    She further added that despite resistance, Mr Obaseki saw through the implementation of the Contributory Pension Scheme which has now ensured that future generations of workers never again suffer the plight which pensioners are currently facing.

    “Since January this year despite dwindling revenues, government has paid the sum of ₦6,202,346,624.31 to pensioners of both the state and local governments,” she said. Idahor added that the government can no longer watch with disappointment the continued attempts to undermine institutional arrangements that have been put in place to sustainably deal with all pension-related arrears, as well as maturing obligations, hence the need to make clarifications.

    Details of the structured payment since January, show that the state government between January and September paid out N6, 202, 346,624,31 to retirees.

  • Reps seek reprieve for pensioners

    Reps seek reprieve for pensioners

    House of Representatives has set in motion machinery to ensure that workers on contributory pension scheme can access a minimum of 50 percent of the credit balance on their Retirement Savings Accounts (RSA), irrespective of the age at which they retire, or are disengaged.

    A bill seeking amendment to the Pension Reform Act, 2014 successfully scaled second reading yesterday after the lawmakers noted that attainment of 50 years of age before access to the funds as contained in the extant law was no longer a realistic idea.

    The extant Act provides that a disengaged employee can only access 25 percent of the credit on his or her RSA, while the balance of 75 percent and accrued interests can only be accessed on the attainment of 50 years of age, with an amount expected to be retained to secure a projected lifetime annuity for the person.

    According to the sponsor of the bill, Denis Amadi, the amendment was mainly about procedures and amounts receivable as benefit to persons who resigned their employment, or have been disengaged before attaining 50 years, as presently provided for in the PENCOM Act.

    He said: “The proposed amendment strongly advocates for immediate and unrestricted 50 percent bulk withdrawal of the amount standing to the credit on such person’s RSA.

    “Presently, thousands of young persons between the ages of 30 to 40 years have been disengaged from various employments with millions standing to their credits, but yet living in abject poverty because they could not access their funds.

    “With the proposed amendment, the over 300,000 of such retirees or disengaged workers will have the opportunity to raise owner equity for micro and small enterprises, as such facilities were not easily accessible through the banks and related institutions.

    “At 50 years, most of these disengaged employees would have died due to long economic helplessness and hopelessness. Those who would not die could hardly be active enough to start new ventures and nurture same into stability”.

    The bill was referred to Committee on Pension Matters for further legislative action after it was put to a voice vote by Speaker Yakubu Dogara.

  • FG’s N54bn pension liabilities release not enough – Pensioners  

    FG’s N54bn pension liabilities release not enough – Pensioners  

    The Nigerian Union of Pensioners (NUP) has said that the N54 billion released by the Federal Government to cleared pension liabilities to the Contributory Pension Scheme (CPS) was not enough to cleared pension arrears.

    Dr Abel Afolayan, NUP President said this in a statement made available to newsmen on Thursday in Abuja.

    He said that the NUP felt the compelling need to put the facts straight as the Federal Government indebtedness to the CPS was over N280 billion.

    He said the release of N54 billion could not be said to have cleared the backlog of pension liability, adding the Federal Government had consistently under-appropriated for the CPS over the past few years.

    “NUP has it on verified record that whereas the sum N93 billion was needed to service Federal Government’s statutory obligations to the CPS in 2014, only N30.6 billion was approved, resulting in N62.4 billion deficit.

    “Whereas N98.7 billion was needed for the year 2015, the budget office only proposed the sum of N60.2 billion to the National Assembly that alone was a shortfall of N38.5billion.

    According to him, the year 2016 was worse as N91.9 billion was required, but the budget office proposed only N50 billion to the National Assembly, which also approved it, leaving a deficit of N41.9 billion.

    He said that of the N50 billion approved in the 2016 budget, only the sum N18.8 billion or mandates for four months was released and cash-backed.

    He added that N31.3 billion or mandate for seven and half months was never cash-backed and released.

    According to him, the truth is that approval of payment is not the same as payment.

    “It will be good for the minister to tell us when the fund was transferred to the National Pension Commission, and when it will hit pensioners’ accounts.

    “Importantly, we are saddened that the Federal Government is claiming to have cleared pension arrears when the Minister did not say a word regarding the over N174 billion owed pensioners who retired under the Defined Benefit Scheme (DBS).”

    According to him, does it mean that pensioners under this scheme have finally been condemned to life of eternal hardship, sickness, and untimely death, President Muhammadu Buhari is not only a retiree, but also a kind leader.

    “NUP recalls that he bent backwards to release bailout to State governments, which could not pay salaries.

    “We call on the President to also extend the same kindness to the federal pensioners among us, whose pension benefits are his primary responsibility.

    “ There is no doubt that the way retirees are treated would decide whether those in service and the younger generation would cue behind government’s anti-graft war or engage in looting to prepare for life after service,” he said.

    Mrs Kemi Adeosun, the Minister of Finance had said in a statement that the Federal Government released the sum of N54 billion to clear liabilities to the CPS from 2014 till date.

     

  • Civil servants to FG: Review contributory pension scheme

    A cross section of the Federal and State civil servants in Yobe, have called on the Federal Government to make the contributory pension scheme more workable in order to curb corruption.

    A survey conducted by the News Agency of Nigeria (NAN) on Friday in Damaturu, revealed that both the Federal and State Governments’ civil servants were not comfortable with the present contributory pension scheme.

    Mr Musa Mohammed, a staff of the Federal Ministry of Education, said the contributory pension scheme was working against the interest and welfare of retirees.

    “The general arrangements and the accessibility of retirees to their savings, have been made cumbersome, thereby making the system to work against the interest of the retirees,’’ he said.

    Aliyu Mustapha, a retiree, said the new pension scheme had created more fears of uncertainty of life after service than it ought to address and it could encourage corruption in the service.

    “The experience of every pensioner has not been palatable; the scheme does not guarantee a good life to civil servants after retirement.

    “This gives rise to workers engaging in corruption to acquire property and investments by whatever means including fraudulent practices for life after service,’’ he said.

    A female federal worker, who preferred anonymity, urged the Federal Government to look into the pension scheme to make life easier for retirees.

    “It is very unfortunate that people in the army, police and civil service spend their useful lives serving the nation only to live a dejected life of beggars after service.

    “The review in military pension scheme, which showed appreciable improvement, should be extended to the civil service to improve the lives of the retirees’’.

    She said the poor pension scheme could encourage people to steal while in the service.

    “This is because of the fear of the delay or non-payment of their entitlements after retirement,” she said.

    Similarly, civil servants in the Yobe Government service, expressed fears in the delay of payment of entitlements by the State Government.

    Bukar Ali, a civil servant, said the Yobe Government had before now been trying to pay pension and gratuity of retirees but the situation had changed, perhaps due to the recession.

    “I implore Gov. Ibrahim Gaidam of Yobe to give special attention to the payment of entitlements of retirees in order to improve on their welfare,’’ Ali said.

    Hassan Isa, another civil servant, said some civil servants in the federal and state services might not want to engage in fraudulent and corrupt practices but they did so for fear of the unknown.

    The respondents said that the war against corruption could only be successful with a workable pension scheme that would guarantee the future of retirees.

  • Lagos remits N64 Billion as CPS into workers accounts

    Lagos remits N64 Billion as CPS into workers accounts

    Lagos State Government has said it has remitted N64 billion as Contributory Pension Scheme, (CPS) into workers retirement savings account since the inception of the scheme.

    State Commissioner for Establishments Training and Pensions, Dr. Akintola Oke, who disclosed this Thursday while addressing journalists in Alausa, said government regularly deducted 7.5% from the salaries of staff and corresponding 7.5% by the State Government into the Retirement Savings Accounts maintained by them with their appointed Pension Fund Administrators (PFAs).

    According to him, “as at March, 2016, these deductions have cumulatively risen to N64 billion approximately since the inception of the scheme in 2007. Also, since the commencement of the Retirement Benefit Bond Certificate Presentation in 2010 to over 10,000 retirees/ deceased/withdrawn staff, the State Government has paid accrued pension rights of about N48.08 billion.”

    Oke also explained the government had reduced drastically the backlog of terminal entitlements of retirees, saying that between August 2015 and April 2016, the government, through the Lagos State Pension Commission, LASPEC paid the sum of N13.701 billion into the Retirement Savings Account (RSA) of 3,069 retirees.

    He said 1,294 of the retirees were from the Local Government and while the State Universal Basic Education Board, SUBEB had745; Teachers Establishment Pension Office, TEPO, 731 while the mainstream service had 299 retirees.

    The commissioner said the state Governor, Mr.  Akinwunmi Ambode, had directed that outstanding pension payment of three years arrears on the 142% pension increase as approved by the administration of former Governor Bola Tinubu be paid with immediate effect, adding that the 6% and 15% pension increments over the years were paid.

    According to him, the sum of N2.03 billion was paid as pensions between May 2015 and April 2016, adding that in November 2015, Civil Service Pensions Office facilitated and completed the payment of severance, pensions and gratuity to 73 disengaged staff of the defunct Eko Today which amounted to N37.17 billion.

    Oke further revealed that Ambode had approved the release of the sum of N1.5 billion intervention fund for the payment of outstanding gratuities and pension arrears to Local Government retirees, including the balance of 142% pension arrears amounting to N 1.77 billion, saying that the payments would be effected as soon as the verification exercise was conducted.

     

  • Lagos to pay 305 CPS retirees N1.41b

    Lagos to pay 305 CPS retirees N1.41b

    The Lagos State Government is set to pay another set of 305 workers who retired from the State Public Service N1.411 billion being their benefit before the commencement of the Contributory Pension Scheme (CPS) in 2007, Director-General, Lagos State Pension Commission, Rotimi Adekunle Hussain has said.

    In a statement, the Commission’s Press & Public Relations Officer, Taofeek Lawal Hussain, said the retirees would be receiving their retirement benefits during the 16th Retirement Bond Certificates presentation ceremony that will hold on 24th of February, 2015 at the Nigeria Employers’ Consultative Association (NECA) auditorium in Lagos.

    He said the presentation ceremony is in fulfillment of the commitment of Governor Babatunde Raji Fashola, SAN, to making life worthy of living for his workers whilst still in service and after retirement adding that the administration has not relented in its resolve at ensuring that the retirement benefits of every retiree is paid as and when due.

    He said during the 15th bond presentation, the state government paid a total sum of N30.47 billion to 5,773 retirees.