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Tag: CPS

  • Restoring gratuity to CPS must be backed by law, says expert

    Restoring gratuity to CPS must be backed by law, says expert

    Any decision to reinstate the gratuity scheme into the Contributory Pension Scheme (CPS) must be backed by law, an actuarial scientist and chartered insurer, Dr Pius Apere, has said.However, this will require an amendment to the PRA 2014, particularly Section 7(1) (a) of the Act to avoid duplication of payment of lump sum benefits,

    Apere, who is the Chairman/CEO, Achor Actuarial Services Limited, made this known in a report titled: “Rationale behind Review of Retirement Benefits for CPS under PRA 2014”.

    This is coming after the proposed introduction of gratuity for Federal Government’s public servants under the CPS by the Director-General (DG) of PenCom, Ms Omolola Oloworaran, in partnership with the Head of the Civil Service of the Federation (HCSF).

    Apere pointed out that state governments were likely to introduce similar schemes for their workers.

    The only constraint, according to him, will be the Federal and state governments’ ability to fund their liabilities, which would include the cost of actuarial valuation whether as a scheme or embedded in CPS.

    He stated that the latter would result in a Hybrid “Middle-way” scheme – a scheme, which offers defined benefit (GS) and defined contribution (CPS) sections.

    He defined gratuity as a defined benefit, a one-time lump sum payment, paid to an employee upon retirement or when he leaves the organisation after completing a specific number of years of service.

    He also said Gratuity Scheme (GS) is usually non-contributory as only the employer contributes to the scheme, which varies depending on the yearly actuarial valuation of the gratuity liabilities in accordance with International Accounting Standard (IAS) 19 Employee Benefits.

    He, however, noted that Section 7(1) (a) of PRA 2014 allows a lump sum benefit (determined by PENCOM) to be withdrawn from a RSA holder’s total RSA upon his retirement or attaining age of 50, whichever is later.

    Read Also:Workers’, retirees’ complaints trail CPS

    He further stated that Section 4(4) (a) of the Act explicitly allows employers to offer “additional benefits to the employee upon retirement”, which can include gratuity, severance benefit among others that existed prior to 2004 and yet the federal and state governments, alongside a number of private sector employers, ceased the payment of gratuities to their employees with the commencement of the CPS in 2004.

    He said many private sector employers in recent times have established standalone gratuity schemes to improve their employees’ standard of living in retirement but in compliance with PenCom’s Guidelines for the Administration of Gratuity Benefits in April 2017 to ensure that full funding of gratuity liabilities is guaranteed.

    In the same vein, Apere said the framers of the PRA 2004 (as amended) did not consider the importance of pension increases when designing the two pension products in the CPS, namely Programmed Withdrawal (PW) and Retiree Life Annuity (RLA), to provide retirement benefits for the Retirement Savings Account (RSA) holders at retirement.

    He said: “Alternatively, the framers made provision for Guaranteed Minimum Pension (GMP) in section 84(1) of PRA 2014 to protect the RSA holders against some of the risks of low investment returns and the erosion of pensioners’ incomes by inflation.

    “However, the economic hardships facing the retirees have called for review of some aspects of retirement benefits design in CPS as explained below.

    On PW product design, he noted that the delay in the implementation of GMP could be considered to be the main reason for PenCom’s approval for redesigning the product with Enhanced Pension (EP) feature for only PW retirees effective from December 2017 which is akin to allowing for pension increases.

    “EP is aimed at providing sustainable standard of living for the PW pensioners which in turn cushioning the effect of the non-implementation of GMP for only PW retirees at the detriment of RLA retirees as they were not considered in the review.

    “In an event held at Eko Hotel in Lagos on 26th June 2025, PenCom had expressed worries about “the impacts of inflation on [CPS] savings [and proposed] to ensure that pension fund operators generate inflation plus returns for retirees and RSA holders”.

    “The inflation-proof investment returns will be achieved by encouraging pension fund operators to invest in alternative assets thereby diversifying their portfolios. The resultant effect of targeting inflation-proof investment returns is to enhance a significant growth in the pension pot (RSA) at retirement and to cushion the effect of inflation on retirees’ regular incomes.  The inflation-proof investment returns will be quite appropriate for PW retirees since their RSA balances after retirement are invested solely for their benefits.

    Also on RLA product design, he posited that the current RLA product design provides a regular fixed income for life as long as the RLA retiree is alive. In practice, the fixed regular income has been eroded by inflation over time leading to RLA retirees living in abject poverty relative to PW retirees who are receiving EP.

    “The CPS-Pack-2020 (A Guide for Retirees under CPS), jointly signed by both regulators (PENCOM and NAICOM) on 1st September 2020 stated that the periodic pension enhancement [for RLA retirees] may be applicable depending on the type of [RLA product] purchased”. Section 4.3 of Revised Regulation on Retiree Life Annuity Pursuant to the Pension Reform Act 2014 dated 1st September 2020 stated that “a retiree shall be at liberty to have increasing annuity features as an option subject to the RLA product being approved by NAICOM”.

    “Thus, NAICOM has the regulatory backing to approve a separate RLA product design with increasing annuity feature (or periodic pension increase) for retirees to cushion the effect of inflation, thereby making RLA product competitive”.

    Apere submitted that the review of retirement benefits by PenCom was a welcome and commendable initiative to improve the retirees’ welfare.

  • CPS retirees to get reprieve after 20 years

    CPS retirees to get reprieve after 20 years

    • To get N253b, N387b, N107b in batches

    The National Pension Commission (PenCom) has pledged to clear the 20-year debt owed retirees under the Contributory Pension Scheme (CPS).

    The Director-General, PenCom, Ms Omolola Oloworaran, made the pledge during a breakdown of how the bonds taken by the Federal Government would be spent.

    She explained that of the N758 billion bond approved by President Bola Ahmed Tinubu to clear outstanding pension liabilities, N253 billion would be dedicated to clearing accrued rights.

    Also, she said N387 billion would be committed to pension increases owed in the past 20 years of the CPS while N107billion has been committed to the Pension Protection Fund to augment pensions for low-income earners.

    She explained that accrued rights are entitlements due to workers who were working with the Federal Government before the inception of the CPS in 2004 and, of course, workers who have three years or more to their retirement date.

    She said: “We have been hearing a lot about delays in pension payments in the last few months that I took over as the DG. What this has done is that it will enable us to clear the backlog of accrued right payments. With the intervention of N758billion, those delays will no longer happen. It will be a thing of the past once the bond is issued. So, first of all, N253 billion has been dedicated to that.

    “Secondly, we also have N387 billion, which have been committed to pension increases meant to have been done since 2007, almost two decades ago where some pension increases have been pending without the government paying for them. So, yes, it’s almost two decades ago that pension increases have been done without payment. But President Tinubu has taken these issues seriously and will be paying all outstanding pension increases from 2007 till date.

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    “The third category, which I am very passionate about, is the Pension Protection Fund.’’ 

    A total of N107 billion has been committed to it. Pension Protection Fund is expected to augment pensions for low income earners to enable them earn a living. Since the enactment of the law in 2014, this is the first time that the government is contributing to this fund. So, once the bonds have been issued and funds disbursed, retirees who are earning low pension will have the joy of their pensions being augmented through these funds that have been approved.’’

    Speaking on steps taken to ensure the funds reach the beneficiaries promptly, she said what they were doing was to ensure that they worked with relevant agencies to ensure that the processes that would lead to the issuance of the bonds were concluded in record time.

    She assured that once this was done, the Pension Fund Administrators (PFAs) would begin crediting the Retirement Savings Accounts (RSA) of retirees who would then go to the PFAs to claim their entitlements.

    Incidentally, she said, the commission held a forum with the PFAs where they committed to ensuring that the payments are made to retirees immediately the bond issuance is concluded and funds disbursed to the RSA account.

    So, the PFAs will monitor this, PenCom will have oversight and ensure that they are paying benefits as retirees come to make claims for their entitlements, she added.

  • Upholding responsibility: Roles of employers in CPS

    Upholding responsibility: Roles of employers in CPS

    In a world where financial security during retirement is paramount, the Contributory Pension Scheme (CPS) is a vital pillar for providing a dignified post-work life for employees. The Pension Reform Act (PRA 2014) clearly defines the roles and responsibilities of the employer and the employee under the CPS.

    The CPS is a contributory scheme under which the employer and the employee contribute to paying the employee’s retirement benefits.

    The National Pension Commission (PenCom) has been focusing on the key obligations of employers under the CPS, emphasising their crucial role in safeguarding the retirement aspirations of their workforce.

    Obtaining an Employer Code

    To ensure seamless integration into the CPS, employers must prioritise the first step, which is to obtain an employer code from the PenCom. The employer code is a unique identifier that enables organisations to remit pension contributions. Employers who do not have an employer code cannot remit pension contributions for their employees. To obtain an employer code from PenCom, the employer must fulfil the following requirements: A company registration certificate issued by the Corporate Affairs Commission (CAC), tax identification number (TIN), and an application letter on the company’s official letterhead.

    Opening nominal RSAs

    Employees are responsible for opening Retirement Savings Accounts (RSAs) for their monthly pension contributions. RSAs are personalised accounts that enable individuals to accumulate their pension contributions over their working lives. An employee has the exclusive right to select a PFA with which to open an RSA.

    However, where an employee has yet to open an RSA six months after employment, the employer must open a Nominal RSA for the employee. This proactive step ensures the employee’s pension contributions are not neglected and paves the way for a smoother transition once the employee establishes his RSAs.

    Deduct and remit pension contributions for employees

    One of the fundamental obligations of employers under the CPS is the timely payment of pension contributions on behalf of their employees. The employer is required to deduct the monthly contributions of the employee, not later than seven working days from the day salary is paid and remit an amount comprising at least 8 percent in respect of the employee and 10 percent employer contribution to the Pension Fund Custodian (PFC) specified by the Pension Fund Administrator (PFA) of the employee.

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    To maintain the integrity of the CPS, employers must remit pension contributions promptly. Timely remittance not only ensures the smooth functioning of the pension system but also safeguards employees’ trust in their employers. By fulfilling this obligation diligently, employers contribute to the stability and growth of the pension fund, ultimately benefiting all participants.

    The Pension Reform Act 2014 (PRA 2014) states that an employer who fails to deduct or remit the contributions within the stipulated time frame of seven working days from the day salaries are paid shall, in addition to making the remittances already due, be liable to a penalty, which shall not be less than two per cent of the total contributions that remain unpaid for each month or part of each month the default continues. The penalty amount shall be recovered as a debt owed and paid into the employee’s RSA.

    It should be noted, however, that the 18 percent monthly pension contribution is a prescribed minimum, as the employer may elect to increase the rate or bear the whole burden on behalf of the employee. Employers must deduct the specified percentage from employees’ salaries, demonstrating their commitment to fostering a culture of personal financial planning among their workforce. This deduction strengthens employees’ retirement prospects and instils financial discipline when made consistently.

    Procurement of Group Life Insurance Policy for employees

    Employers must also procure a group life insurance policy (GLP) for their employees. This policy serves as a safety net, providing financial protection to employees’ named beneficiaries in the event of death while in active service.

    The insurance policy pays the ‘sum assured’ benefit to the next of kin or dependents of an employee who dies in active service. Specifically, the provisions of the GLP affect employers in the public and private sectors covered under the CPS. Employers must maintain a GLP in favour of each employee covered by the CPS for at least three times their annual total emolument.

    The premium in respect of the GLP shall be paid not later than the date of commencement of the cover. Where the employer fails or refuses to make payment as and when due, the employer shall arrange to settle claims arising from the death of any staff during such a period.

    In conclusion, as the backbone of the nation’s workforce, employers play a pivotal role in upholding the integrity and success of the CPS. Robust and responsible employer participation in the CPS ensures a retirement landscape built on trust, transparency, and a shared vision for a dignified future for all employees.

    • Culled from PenCom
  • Separation of roles major guard to CPS

    Separation of roles major guard to CPS

    The successes attained since the inception of the Contributory Pension Scheme (CPS) are often ascribed to the fundamental structures upon which the system was built.

    A vital feature of the scheme is the separation of management and custody of pension funds.

    The Director-General,  National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, made this known in a document obtained by The Nation.

    She stated that while Pension Fund Administrators (PFAs) are saddled with managing pension funds, Pension Fund Custodians (PFCs) are responsible for the custody of the funds.

    She said these pension fund operators are licensed,                   supervised and regulated by the Commission.

    She noted that stakeholders need to understand the role of PFAs to have further insight into the workings of the CPS. 

    Mrs. Dahir-Umar maintained that PFAs are licensed by PenCom after satisfying rigorous licensing criteria.        While stating that there are 19 PFAs managing pension fund assets on behalf of RSA holders currently, she reiterated the commission’s commitment to effectively regulate and     supervise PFAs in Nigeria.

    Registration of Contributors

    The DG explained that the PFA is responsible for opening a Retirement Savings Account (RSA) for any employee.

    She said: “Upon opening the RSA, the PFA issues an employee with a Personal Identification Number (PIN), who then forwards the PIN to the employer for the purpose of remitting monthly pension contributions.

    “To open an RSA, the employee has to complete the RSA registration forms and also provide required documentation. It is noteworthy to state that selecting a PFA is an employee’s exclusive right”.

    Crediting of individual RSAs

    She further stated that PFAs are responsible for crediting RSAs with monthly pension contributions. The employer deducts the monthly pension contributions and remits them to the PFC with an accompanying schedule containing the employees’ names, RSA PINs and other details. The PFC, in turn, advises the PFA upon receiving the contributions and schedules, she noted.

    Taking investment decisions

    Speaking on how the PFAs take investment decisions, she said: “The PFA pools the pension contributions in individual RSAs into a fund that invests in various allowable asset classes. The PFA is responsible for making investment decisions to ensure safety and fair returns for the benefit of contributors. These investment decisions must be in accordance with the   “Investment Regulations issued by PenCom. All incomes earned are exclusively for the benefit of contributors. Consequently, the PFA exercises investment decisions on trust as a fiduciary duty on behalf of contributors.”

    Payment of Retirement Benefits

    “The main objective of the CPS is to ensure the payment of retirement benefits as and when due. The PFA is, therefore, responsible for processing the retirement benefits of a retiree under the CPS. Benefits payments include ensuring the retiree provides required documentation at least six months             before retirement. The PFA is also responsible for obtaining necessary                       approvals from PenCom and issuance of instructions to the PFC to disburse retirement benefits.

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    Provide Customer Support to RSA holders

    “The PFAs provide various customer support services to the RSA holders,                   including issuing RSA statements at least once every quarter. In carrying out this function, PenCom ensures that PFAs have sufficient branches to serve                            locations with a significant number of registered RSAs under their management. In addition, PFAs must have the requisite technology that facilitates access to their services for RSA holders.”

    Render Returns to PenCom

    “PFAs maintain proper books of account and render off-site returns to PenCom. The off-site returns assist PenCom in supervising the PFAs adequately. The returns include the daily valuation reports on investment and monthly and            quarterly returns on various aspects of PFAs’ operations. In addition to the           off-site reviews, PenCom conducts routine on-site examinations annually and special investigations whenever necessary”.

    Appointment of Pension Fund Custodian

    “As noted earlier, the PFA and PFC carry out the management and custody of pension funds. Therefore, the PFA is responsible for appointing a licensed PFC to provide custody and safekeeping for the pension funds under its management. The PFC is responsible for executing all transactions as  instructed by the PFA, provided that such instructions are in accordance with the Investment Regulations issued by PenCom,” she added.

  • CPS: What to do for a rewarding retirement

    CPS: What to do for a rewarding retirement

    As the Nigerian workforce continues its growth and transformation, the imperative of robust retirement planning becomes increasingly pronounced. For those enrolled in the Contributory Pension Scheme (CPS), the key to a secure and rewarding retirement lies in making informed financial decisions sooner rather than later.

    In the light of this, the National Pension Commission has been seeking to empower workers with knowledge on navigating Nigeria’s CPS, ensuring not just a prosperous but a worry-free retirement.

    The CPS, established by the Pension Reform Act 2004 (PRA 2004) and subsequently repealed and re-enacted as PRA 2014, was designed to offer a sustainable and efficient retirement savings framework for both public and private sector workers in Nigeria. Encouraging active participation from both employers and employees, this system ensures the accumulation of a substantial retirement fund for workers.

    In an era where economic uncertainties cast a long shadow, Nigerian workers must adopt a proactive stance in their preparation for retirement. The CPS provides a working framework for Nigerian workers to build savings for their retirement, ensuring financial security in the twilight years.

    While enrolling in the CPS marks a significant stride towards a contented retirement, adopting a proactive approach is significant to securing a comfortable and financially stable future.

    Essential steps to consider when preparing for retirement under CPS

       Start Early, and Benefit More

        The essential rule of retirement planning is to commence early. Early enrollment in the CPS allows for the compounding of interest on pension savings over time, even with modest monthly contributions, resulting in a substantial nest egg for retirement. It is important that, without delay, all employees are compulsorily made to open Retirement Savings Accounts (RSAs), into which all pension contributions are remitted and invested for the purpose of paying retirement and terminal benefits. Workers in the informal sector, who are not covered under the mandatory CPS, are advised to enrol without delay in the Micro Pension Plan to derive the benefit of compounded returns on investment.

        Determine Retirement Goals

    Workers should envision their retirement needs and set clear goals for pension savings. Understanding how they wish to spend their golden years shapes savings targets and investment strategies. The PRA 2014 permits additional contributions beyond the eight per cent minimum contribution from the employee’s emolument. This allows workers to tailor their savings towards a more robust pension. Employers are also allowed to contribute more on behalf of their employees than the statutory minimum of 10%.

        Understanding the CPS

    Thoroughly understanding pension plans, including minimum contribution rates, the Multi-Fund Structure utilised by Pension Fund Administrators (PFAs), and returns on investments by PFAs, is crucial. Seeking assistance from your PFA or the National Pension Commission can clarify uncertainties and enable informed decisions about retirement savings.

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    Stay Informed on Pension Policies

    Given the periodic reviews and updates by the National Pension Commission (PenCom) on pension regulations, workers must stay abreast of changes that could impact their retirement savings. Keeping informed about pension-related news and consulting financial experts ensures compliance with the latest developments. For instance, it is advised that all RSA holders participate in the on-going data recapture exercise by their PFAs.

    Resist the Temptation to Withdraw Early

    While emergencies may arise, early withdrawals from RSAs should be avoided to maintain the potential growth of retirement savings. To maximise compounding, workers should refrain from dipping into pension funds before retirement, except under critical circumstances such as permanent incapacitation.

    Seek Professional Advice

    Retirement planning, especially concerning investment opportunities, can be intricate. Consulting with PFAs or qualified financial advisors provides personalised guidance, aligning decisions with retirement goals, be it through Programmed Withdrawal or Retiree Life Annuity.

    Consider Supplementary Retirement Savings

    While the CPS is pivotal, exploring additional savings options such as savings accounts, real estate investments, and mutual funds enhances financial security. Diversifying income sources beyond pensions is desirable for retirees.

    Therefore, preparing for retirement under the CPS demands proactivity, financial literacy, and discipline. Embracing these principles will not only benefit individuals but also contribute to a more resilient and financially robust Nigerian society.

    PenCom remains committed to the effective regulation and supervision of the pension industry to ensure that retirement benefits are paid as and when due.

    •                 Culled from PenCom

  • 24 states enact CPS

    State governments made considerable progress in the level of implementation of the Contributory Pension Scheme (CPS) in the third quarter of 2018, as 24 states enacted relevant laws affecting  workers pension, a report has shown.

    The report is titled: Draft Third Quarter Report: Update on Implementation by the State Governments” by the National Pension Commission (PenCom).

    The commission stated that out of the 24 states of the Federation that had enacted laws on the CPS, six were at the bill stage.

    It further noted that five states had, however, decided to adopt a pension scheme other than the CPS.

    In this regard, two states had already drafted pension reform bills that were undergoing legislative processes, while one state had not commenced reforming its pension system.

    Apart from enacting laws on the CPS, 12 out of the 36 states had began remittance of contributions into the Retirement Savings Account (RSAs) of their employees.

    Similarly, eight states had commenced the funding of their Retirement Benefit Bond Redemption Fund Accounts (RBBRFAs), the commission said.

    To monitor the implementation of the CPS by state governments, a road map covering a period of 12 to 18 months was developed for the engagement of labour unions, state employees, state governments and other stakeholders, to positively influence state compliance.

    In this regard also, the commission conducted a routine inspection of the Delta State and Local Government Pension Bureau.

    The report read: “The purpose of the inspection was to ascertain the level of implementation of the CPS as well as the administration of the Defined Benefits Scheme (DBS) for the state and local government employees.

    “Similarly, the commission conducted an inspection of the Lagos State Pension Commission (LASPEC) to determine the level of compliance of the state with its Pension Law. In addition, the draft reports of the routine inspections carried out on both the Jigawa State and local governments Contributory Pension Scheme Board and the Kaduna State Pension Bureau were forwarded to the Board and the Bureau for review before the official presentation to the State Governors.

    “The Commission also conducted a training workshop on the workings of the CPS for the Joint Union of Plateau State owned Tertiary Institutions (JUPTI). The Union had earlier, at a public hearing conducted by the Plateau State House of Assembly on the draft Bill on the CPS, vehemently opposed the adoption of the scheme. At the end of the workshop, JUPTI expressed appreciation to the commission for the exposure on the scheme, while promising to forward its areas of concern on the Plateau State.

    The Commission had presented a paper on the workings of the CPS at an interactive session for the Federal Capital Territory Directorate Cadre staff. The session was aimed at enlightening the staff on recent developments in pension administration in Nigeria. Sensitisation workshops were also conducted for Managed Healthcare Services Limited (MHSL) and the Association for Senior Civil Servants of Nigeria (ASCSN) at Lagos and Osun States, respectively.

     

  • CPS best for Nigeria’s pension system, say legislators

    •Refute cutting pension budget

    The National Assembly joint Committee on Establishment and Public Services of the Senate and House of Representatives Committee on Pensions has described the Contributory Pension Scheme (CPS) as best for the country’s pension system.

    Rising from the just-concluded retreat organised by Pension Fund Operators Association of Nigeria (PenOp) in Calabar, Cross River state, the Chairman, Senate Committee on Establishment on Public Service, Senator Emmanuel Paulker said the scheme is better than the old pension scheme- the Defined Benefits Scheme (DBS).

    According to him, based on the information gathered at the retreat,  there can be no going back to the old ways of pension administration in the country, assurng  that the legislators will on their part ensure that they put pressure on the Executive to release money for all accrued rights to be paid to pensioners.

    He denied that legislators cut pension budget submitted to the National Assembly, and urged the executive arm of government to  make enough budgetary provision that can meet pension needs.

    “The National Assembly never cut a kobo from pension budget. It was what was presented to the National Assembly that was passed by the National Assembly. As a committee we even defended extra fund that was not provided in the budget, we went to the appropriation committee and made a case and defended that extra funds should be made available to both PTAD and PenCom that were not provided in the budget,” he explained.

    The committee chairman said concerns were raised before the enactment of the Pension Reform Act (PRA) 2004 as amended in 2014 about how accrued pensions of all pensioners will be paid. Presently, he further said, while the Federal Government has not been able to address the issue fully, he assured that the legislators will try as much as possible as a committee overseeing the National Pension Commission (PenCom) and the Pension Transitional Arrangement Directorate (PTAD) to put pressure on the Executive.

    He further revealed that so far, the CPS established by the PRA 2004 as amend by PRA 2014 is a fantastic scheme. maintaining that there has been lots of benefits to workers and retirees under the scheme when compared to the old scheme. He said the Committee has been able to understand some of workings and challenges of the scheme at this retreat.

    “We have appraised ourselves with some of the difficulties of the pension fund operators, which if we have sat down in chambers we couldn’t have the privilege of knowing. We however think that the interactionn between us, PENCOM, PenOp and the Executives should be more frequent so that issues relating to pension problems can quickly be resolved,” Paulker said.

    On non participation by some State Governments in the CPS, the Senator said the States would have to join the CPS for the good of their workers and pensioners.

     

  • Fayemi appoints SSG, Chief of Staff, CPS

    Ekiti State Governor Dr Kayode Fayemi has announced his first set of appointments.

    In a statement last night, the governor named Mr Abiodun Oyebanji as Secretary to the State Government (SSG).

    He also named Mr Biodun Omoleye as his Chief of Staff and Mr Yinka Oyebode as Chief Press Secretary (CPS).

    Oyebanji, a former university lecturer, previously served as Chief of Staff during the administration of Otunba Niyi Adebayo and was Commissioner for Budget and Economic Planning during Fayemi’s first term.

    Omoleye, a former university administrator and former Chairman of Ijero Local Government Area, had also served as Special Adviser in the Governor’s Office.

    Oyebode, a seasoned journalist, served was the CPS to the governor during Fayemi’s first term. He later served as Special Adviser on Media to him when he was Minister of Mines and Steel Development.

    The appointments are with immediate effect.

     

  • CPS: Obaseki presents N7.3m cheques to four next-of- kins

    Edo State Governor, Godwin Obaseki, has disbursed N7.32 million to four next-of-kins (NoK) of two deceased enrollees in the state’s Contributory Pension Scheme (CPS).

    The beneficiaries are Oriomon Morrison, Oriomon Emuata, Osahenrunmwen Iyawe and Patience Iyawe, who received the sum as benefits under the Group Life Assurance Scheme.

    Presenting the cheques at the Government House, Benin City, Obaseki said the presentation of cheques to the NoK to deceased civil servants with the State Civil Service Commission is history being recorded during his administration.

    He said the payments demonstrated the benefits of pension reforms in the state.

    He stated that when the government came to power, he promised that he would not leave the pension scheme the way he met it.

    He said: “When we came into office, we assured Edo people that all issues relating to pension are going to be resolved.

    “Those who do not believe that our government is working will now know that we mean well for our people and those who served the state.”

    Obaseki assured workers who are in active service that they have nothing to worry about regarding their pension, noting that his government has put measures in place to settle pension benefits after service.

    The Head of Service, Mrs Gladys Idahor, expressed appreciation to the governor for initiating the CPS, adding that with the scheme in place, pensioners will have no reason to protest and demand for pension.

    Idahor said a provision under the scheme requires that aside NoK receiving pension, they are also entitled to three times the annual salary prior to death.

    Speaking on behalf of the beneficiaries, Mr Osahenrunmwen Iyawe expressed appreciation to the governor for the scheme.

  • ‘Employers better informed on CPS’

    Employers under Trustfund Pension Plc are getting more knowledgeable and compliant with the Pension Reform Act (PRA) 2014 laws.

    Trustfund Compliance Officer, Miss Tosin Adebayo, who made this known during a sentitisation programme organised for employers under the company in Lagos, said Trustfund has been sensitising employers on the modalities for remittance of contributions and other pension issues relating to the individual contributions of the employer.

    She explained that the forum was organised to educate employers on regulatory requirements in accordance with the PRA 2014 and other extant guidelines.

    Adebayo revealed that there has been a drastic improvement in the level of compliance from their clients as challenges experienced by them have reduced.

    She said: “We have seen positive changes in the administration of pension by employers under the firm’s management. Where we have issues mostly are with date of birth and remittance. But we see that those issues are not as much as they used to be.

    “When we organise forums to sensitise the employers, we make sure we invite people that have one challenge or the other in complying with the scheme. We don’t invite people that are already okay with the scheme. The people that are present at this forum are not so many. The challenges have drastically reduced. So, this tells us that a lot of their problems are being solved.

    “We have always ensured that our clients comply with the CPS by educating them at various forums. Our employer’s forum is organised to make our employers understand our guidelines, codes and conduct. We also ensure that they are aware of the developments and changes in the pension industry.”

    She further stated that part of the new developments in the industry is the Multi Fund Structure and based on this, they have structured a multi fund asset for clients.