The Nation Newspaper

Tag: CPS

  • ‘CPS ’ll soon get a boost’

    Despite economic realities, the  Contributory Scheme (CPS) will soon witness a growth, Managing Director, Premium Pension, Wilson Ideva, has said.

    Speaking with reporters in Abuja, he said there was increased awareness and credibility around the scheme and that that was more important than anything.

    He said despite the phenomenal growth in overall pension assets of over N5.8 trillion, there was still  the sentiment that the economic downturn occasioned by dipping of commodity prices was leading to a decline in pension contributions and a squeeze in pension assets.

    He pointed out that the management of pension funds was a long-term endeavour which well-being could not be measured by short-term macro-economic calculations.

    Ideva explained that what is important today is how to profit from the rising importance of savings to grow the pension industry.

    He said: “It is also necessary to capitalise on the extension of the coverage of CPS to the informal sector to promote micro-pension and further grow pension assets. The economic circumstances and infrastructure deficit can only increase the importance of the scheme and the assets under management.

    “The scheme has been a resounding success and has come to stay as part and parcel of our socio-economic reality. Globally, there has been a shift from the defined benefit pension scheme to the defined contribution or the Contributory Pension Scheme, which, has in turn, led to the amassment of huge pension funds relative to the sizes of economies.”

  • ‘Less than half of CPS potentials explored’

    ‘Less than half of CPS potentials explored’

    Less than half of the pension market is  currently explored with the Contributory Pension Scheme increasing its market share, Managing Director, IEI-Anchor Pension Managers Limited, Glory Etaduovie, has said.

    He said under the CPS, pension, operators derive strong satisfaction supporting the aged with good service, as well as preparing them for graceful retirement, adding that the pension industry is quite interesting and exciting, despite its challenges.

    He said: “Regulation is strong while market is less than half explored. It is also a form of social service. For us at IEI Pension, we derive strong satisfaction for supporting the aged with good service, as well as prepare them for graceful retirement.

    “The industry is not over-populated, which is good for control and sanity. If there is ease of entry and exit, it would create grave danger for the contributory pension. The scheme is relatively new, but it presents its own challenges. But the collaborative style of the industry makes responses better put together and that is why it is getting stronger by the day.

    “It is going to be a critical tool for development shortly. The government is aware of this and seeing it as a partner in progress and thus cautiously positioning for collaborative activities. The government intends to use it to bridge the gap in infrastructure and this will affect other growths and developments.”

    He, however, listed the challenges of the industry as acceptability, transition, harnessing the informal sector and the economy.

    He said some persons on the old scheme were yet to come to terms with the contributory scheme.

    “Such ones, if in good position stand in the way of implementation,” he added.

    He stressed that there are transition challenges for states because of the old scheme and backlogs. In other instances, the bureaucracy of domesticating the PRA in the states.

    “The poor business environment is also affecting private section adoption and implementation. Some who do, do not remit the staff deductions nor theirs as well. This is immoral and they risk penalty from the regulatory body.

    “All of these challenges and others are constantly being reviewed by the industry. The Director General and her team are keeping close eyes on details, as the industry matures”, he said.

  • Kwara to begin CPS with N145m monthly contribution

    Kwara to begin CPS with N145m monthly contribution

    Kwara State servants employed after 1987 will soon be migrated into the Contributory Pension Scheme (CPS) with about N145 million remitted monthly.

    The Senior Special Assistant on Media and Communication to Kwara State Governor, Dr Muyideen Oluwakorede told journalists that workers employed before 1987 will continue in the Defined Benefit Scheme (DBS).

    The state pays pensioners under the old scheme monthly pension of about N443 million. The government has “tentatively” estimated about N1.6 billion to be paid as contribution into the CPS for all pension arrears.

    According to Oluwakorede, Governor Abdulfatah Ahmed believes that allowing workers from 1987 to migrate to the CPS will ensure they have enough pension contribution remitted into their Retirement Savings Account (RSA).

    Ahmed said the state would have joined the CPS before now but it met a lot of resistance from the Nigeria Labour Congress (NLC).

    He said: “What we plan to do is that anybody who was employed after 1987 will be migrated into the CPS. Anybody who was employed before that time will continue in the normal scheme. This is because if you take them earlier, their contributions will not be enough and that is why we are going back to 1987.

    “Presently, our current monthly pension under the DBS is about N443 million, which will continue on the side and then the monthly commitment that we will have to now do when we go into the CPS will be about N145 million. The state government is currently looking at all the figures that we have to pay altogether and be sure that the state can afford it.

    “We are looking at the cost implications on our finances, not forgetting that the state allocations dropped considerably in the past. Although the state allocation is starting to rise, it has not risen to what it used to be. Migrating the pensioners needs a lot of planning because they have already retired. We have calculated it and the state is trying to correct some paper works but it is certain that we will join the new scheme.”

    He said that pensioners and the workers refused to join the CPS.

    “We couldn’t compel them to join the scheme but we gradually made them understand reasons why the workers should join the new scheme. We made them understand that there are benefits for workers and the state as a whole to enjoy under the scheme like the pension fund, which the Federal Government has pulled resources from for infrastructure. We explained to them that states that are not under the scheme are not eligible to pull resources or borrow from the fund for infrastructure development. We have also started sensitising workers to let them know why we have to take this step now,” Ahmed added.

  • ‘Lack of funding threatening CPS’

    ‘Lack of funding threatening CPS’

    Funding pitfalls that affected the Defined Benefit Scheme (DBS) may threaten the Contributory Pension Scheme (CPS) if the Federal Government does not pay accrued pension rights, experts have said.

    They spoke at the 2015 Nigerian Insurance and Pension Awards organised by Inspenonline in Lagos.

    The experts condemned a situation where  state governments and the private sector do not remit or contribute to the Scheme as expected.

    According to the National Pension Commission (PenCom), from 2014 to date, there has been a decline in budgetary provision in funding the Retirement Benefit Bonds Redemption Fund (RBBF) account and the remittance of monthly contribution. The sum of N20.07 billion is required to pay outstanding accrued benefits to deceased and mandatory retirees of the Federal Government for October to December, last year, and N79.16 billion has been computed as the arrears of 15 per cent pension increase owed to 79,961 Federal Government retirees under the CPS as at December 2014.

    PenCom noted that N50.20 billion was provided for this year’s FGN Budgetary Appropriation for the Retirement Benefits Bond Redemption Fund (RBBRF) Account presented to the National Assembly, compared to the Commission’s projection of N91.91 billion,  a shortfall of N41.71 billion.

    A former Pencom director, Ivor Takor, asked the Federal Government to show will to implement the Pension Reform Act (PRA) 2014.

    He said that the government’s inability to fund pension accrued rights was seriously affecting the payment of pensions as at when due.

    He however urged the government to increase the monthly pension remittances from 15 per cent of the workers’ total emolument to 18 per cent as stipulated in the Act.

    He said it was important for the state governments to pay the salaries of their workers regularly because if it was not consistent, it would not be possible for them to remit the workers’contributions to the pension fund.

    He said: “The Federal Government should show moral and political will in complying with the provisions of the Pension Reforms Act 2014. They should commence the implementation of the increase in pension contribution from 15 per cent to 18 per cent.

    “It is saddening that some states have failed to embrace the CPS aside the Lagos State that is faithfully remitting employees’ contributions as stipulated by law. The greatest problem lies with the state.

    “PenCom said only 10 states have keyed into the CPS, but if you look critically, it is only Lagos State that is somehow implementing the new pension scheme. Yes, the states have commissions, bureaus and laws, but are they contributing as and when due?

    “The situation is that majority of the states don’t have laws. This means the workers have no form of pensions. If they can’t set out fund, they can’t pay salaries, how will they pay pensioners? That is the situation that needs to be addressed holistically and it’s unfortunate that some of these governors left office and made some segmented pension laws that only cover them and their office holders, some of them drawing massively in the name of pension to build houses and cars and did not make laws for the state workers. This is very bad, it’s immoral and it should be addressed by governors,” he said.

    Director-General, Ondo  State Pension Commission, Jaiyeola Olowosuko, said the funding challenge was affecting the success of the Scheme.

    He is worried that just like the DBS, the CPS is also witnessing funding problems.

  • Dankwambo to lead CPS’ implementation

    GOMBE State will to lead the implementation of  Contributory Pension Scheme (CPS) in the Northeast, its Governor  Alhaji Ibrahim Hassan Dankwambo, has said.

    He made this known during the opening of the North-east Zonal Office of the National Pension Commission (PenCom) in Gombe.

    The Governor said as a first step, he would take the lead by making the CPS operational in the state  as soon as possible.

    He stressed that efforts were in top gear to advance the implementation of the CPS in the state, in spite of enormous economic and political challenges.

    He urged other governors to follow suit, noting that Gombe has been in the forefront of advancing the welfare of its senior citizens who have served the nation diligently in various capacities, during their working lives.

    He said pension administration has experienced and continues to experience challenges, especially in the public sector.

    The most compelling of these challenges, he said, was the inability of successive administrations to pay retirees their benefits promptly.

    He said: “The commitment of Gombe State in providing a comprehensive solution to the problems of pension administration was best exhibited with the enactment of the Gombe State Contributory Pension Scheme Law 2014. Reflecting on this feat, the state remains elated at having legislated in the right direction towards bringing joy to people at retirement. Efforts are in top gear to further advance the implementation of the CPS in the state, in spite of enormous economic and political challenges.

  • Gombe, 25 others join CPS

    Twenty-six 26 states, including Gombe, have adopted the Contributory Pension Scheme (CPS), according to the National Pension Commission (PenCom). They are at various stages of its implementation.

    Its Director-General, Mrs. Chinelo Anohu-Amazu, made this known at the inauguration of the Northeast Zonal Office of the Commission in Gombe.

    The event also had a session on stakeholders’ sensitisation conference on the Pension Reform Act 2014 titled: Innovations and improvements to Nigeria’s pension sector.

    The PenCom chief said three states in the Northeast, including Gombe, have adopted the CPS by enacting their pension laws, adding that the Commission found it expedient to establish a zonal office in state.

    She stressed that the efficiency in managing finances has never been greater than now, given the lean resources of the federation occasioned by the drop in global oil prices and the attendant revenue decline.

    She said the adoption of CPS by state governments was one effective tools of managing finances through regular monthly pension contributions into employees’ Retirement Savings Account (RSAs) as opposed to the arrangement under the Defined Benefits Scheme.

    Noting that the implementation was yet to take off in the three states, she appealed to the states and local governments in the Northeast that were yet to adopt or implement the CPS, to do so to avail their employees of the numerous benefits of the scheme.

  • 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.

     

  • ‘CPS is safest pension scheme’

    ‘CPS is safest pension scheme’

    The Contributory Pension Scheme (CPS) remains the safest pension scheme with no record of fraud since its inception in 2004, the Director-General,  National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, has said.

    Mrs. Anohu-Amazu, who gave this assurance while speaking to reporters in Lagos, said the feat was made possible by the pension law, the Pension Reform Act 2004 as repealed by the Pension Reform Act 2014.

    She stated that the commission has been able to address the myriad of challenges which beleaguered pension administration in Nigeria, both in the public and private sectors.

    According to her, prominent among those challenges were lack of transparency in pension administration, un-sustainability due to the accumulation of huge pension liabilities and insufficiency or absence of retirement benefits coverage in the private sector.

    She said: “It is heartwarming to note that within a decade of the pension reform and the implementation of the CPS, modest achievements have been recorded by PenCom.

    “Payment of pension under the CPS is now both prompt and consistent since 2007. From a story of about N2 trillion pension deficits under the defunct Defined Benefit Scheme (DBS) as at 2004, the CPS has accumulated a large pool of investible fund of over N5.3 trillion pension assets as at February 2014.”

  • CPS: Lagos pays N904m to 243 retirees

    CPS: Lagos pays N904m to 243 retirees

    About  N904 million has been paid to retirees of Lagos State  Civil Service, Local Governments, State Universal Basic Education, Teachers, Establishment and Pension Office and other Parastatals, under the Contributory pension Scheme (CPS) as pension entitlements last month.

    Director-General, Lagos State Pension Commission, Mrs. Folashade Onanuga, who made this known in a statement said the retirees numbering 243 received their bond certificates during the presentation of the 24th Retirement Benefit Bond Certificates held in Lagos.

    According to her, the payment has brought the number of retirees paid between August last year to February, this year, to 2,652 with the total accrued rights paid from the aforementioned month to date standing at N11. 556 bn.

    She urged the retirees to be cautious of unscrupulous elements, who might want to deprive them of their entitlements through lofty business ideas.

    She also appealed to them to be wary of fraudsters, who put calls through to retirees, informing them of alleged short payments in their entitlements.

    The fraudsters, she dsiclosed, request for tokens into specified bank accounts so that a short fall amount can be paid by the National Pension Commission (PenCom) in Abuja.

    She reiterated that no retiree in the State Service has accrued rights to collect from the Federal Government and anyone requesting to help them process an entitlement that is non-existent is a scammer.

    She said: “The Office has taken step to sensitise the state’s employees on the activities of the pension fraudsters. Government is presently investigating the reports received from some retirees on the matter.

    “In Lagos State Pension Commission, terminal entitlements are processed strictly on merit based on time and nature of exit. Anyone who offers inducement to any of the Commission’s staff for quick processing of entitlements is just wasting the resources available to him or he.”

  • Dickson dissolves cabinet, reappoints CPS

    Dickson dissolves cabinet, reappoints CPS

    The Governor of Bayelsa State, Mr. Seriake Dickson, has dissolved his cabinet following the end of his first tenure.

    The governor, however, immediately retained Mr. Daniel Iworiso-Markson, as his Chief Press Secretary (CPS).

    Dickson in a statement signed by Iworiso-Markson said the dissolution of his cabinet was part of activities marking his transition to a second term in office.

    The statement said: “The Governor wishes to thank all political appointees, who served in the first tenure for their commitment and dedicated services to the Government and people of the state.

    “According to a Government House statement, Governor Dickson wishes them well in all their future endeavours.

    “It, however, points out that, those whose services may be needed will be reappointed to serve the state in the future.”