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Tag: National Pension Commission

  • Buhari launches Micro Pension Plan for informal sector

    President Muhammadu Buhari yesterday at Asso Villa, Abuja,  formally launched the Micro Pension Plan (MPP).

    It is part of Federal Government’s initiative to achieve financial inclusion, a diversified and inclusive economy.

    The MPP, an initiative of the National Pension Commission (PenCom), which is expected to significantly expand pension coverage to informal sector players including self-employed persons and employees of organisations with less than three staff.

    Buhari, who explained that the plan is designed specifically to capture those in the informal sector, said: “Today, millions of traders, farmers and other entrepreneurs in various industries are completely excluded from the different pension programmes in existence.

    “If you recall, one of the three core pledge of this government is the creation of a diversified and inclusive economy. This can only be achieved by creating an enabling environment for farmers, entrepreneurs and people in other professions.

    “In the past three years we provided grants, concessionary loans and technical support through the Small and Medium Enterprises (SMEs) clinics to farmers, traders and SMEs.

    “The Micro Pension Plan guarantees that when these hardworking citizens retire, they can do it in dignity and comfort.”

    Buhari encouraged trade associations, unions, non-governmental organisations and other stakeholders in the informal sector to join hands with the government and the pension industry to enlighten their members and the general populace of the benefits of the plan.

    Buhari said: “We are working tirelessly to sanitise some of the rot within the pension system we inherited.

    “This government remains committed in resolving all pension issues and payments, despite the lean resources of the government. We will ensure that every hardworking Nigerians in the private sector, formal and informal can retire without fear.”

    The Acting Director-General, National Pension Commission (PenCom), Aisha Dahir-Umar, said the micro pension plan targets the significant majority of  Nigeria’s working population who, incidentally, operate in the informal sector.

    She said: “Participants are expected from various informal sector workers including market women, members of the National Union of Road Transport Workers (NURTW), members of Textile, Garment and Tailoring Associations, Keke Napep and Okada Riders Associations, Butchers Associations, workers in the Movie and Performing Art industry, mechanics and other workers in the automotive industry and single professionals like lawyers, accountants and many others.

    “Micro Pension Plan is designed to fit the peculiarities of these informal sector groups.

    Read also: 248,000 retirees earn N9.36b monthly pensions under CPS, says PenCom

    “The National Pension Commission had extensively engaged all relevant stakeholders and obtained their inputs before the product was developed to suit their requirements.”

    She explained that the product is flexible with respect to contribution amount and the channel of remittance of contributions to the respective pension accounts. Also, access to accumulated contributions is also flexible, seamless and facilitated by technology through varied payment system platforms.

    “A prospective Micro Pension contributor is required to open a Retirement Savings Account (RSA) by completing a physical or electronic registration form with a Pension Funds Administrator (PFA) of his/her choice.

    “The contributors may make contributions daily, weekly, monthly or as may be convenient to them. Every contribution shall be split into two, comprising 40% for contingent withdrawal and 60% for retirement benefits.

     

     

  • NECA to FG: Inaugurate boards of NSITF, PENCOM now

    The Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to immediately inaugurate the boards of NSITF, PenCom and other Federal Government’s agencies, stressing that the current situation of non-functional boards is a violation of the laws setting up the agencies, and could erode the confidence of Nigerians in those agencies.

    Speaking in Lagos as a follow up to the recent investigative activity of the National Assembly on the National Pension Commission (PenCom), the Director-General of NECA, Mr. Timothy Olawale said Section 19 of the Pension Reform Act 2014 provides for a Governing Board of PenCom, which is saddled with responsibilities.

    He said it is saddening to note that the board of the PenCom has not been constituted, adding that this raises a fundamental governance issue, as Contributors’ Funds are involved, being contributions from Employers and Workers in Nigeria.”

    He said: “The implication of the non-governance framework, which is to regulate the activities of these Agencies, three and half years down the line, is unfortunate especially for a government that prides itself in the rule of law. There is, therefore, no reason why boards of various government agencies should, not be urgently constituted and inaugurated to avoid eroding the confidence that had been built over the years by Nigerians, especially where contributors’ funds are involved and should be protected.”

    Olawale noted that the Acts establishing the various agencies had provided for the composition of the board members and in some instance “Institutional Representatives” to the boards are mentioned.

  • Four PFAs commit infractions

    Four Pension Fund Administrators (PFAS) committed major infractions on investment of pension fund assets in 2017 and were made to refund the projected lost income, amounting to N418 million, a report by the National Pension Commission has shown.

    The infractions were made in the respective Retirement Savings Account (RSA) Fund. RSA is a dedicated account opened with a Pension Fund Administrator as specified under Section 11 of the Pension Reform Act of 2014. PENCOM made this known in its 2017 annual report.

    According to the commission, there were however two noted cases of infractions during the year.

    In the same vein, the commission said its review of corporate governance reports revealed that some key issues were observed, which include inadequate Board composition, absence of Independent Directors on the Board, attendance and frequency of Board meetings and that of the Board Committees, as well as non-submission of annual performance evaluation report of the Directors and Board of some of the operators.

    The commission stated that it carried out analysis of Investment Valuation Reports and it continued its analysis of the daily investment valuation reports submitted by pension operators in the pension industry in the year under review.

    The report read: “The Commission said the supervision of investment of pension assets, leading to the valuation reports enables it to monitor compliance by the PFAs with the regulations on Investment, Valuation and Fees Structure. The analysis revealed that PFAs substantially complied with the provisions of the investment regulation. However, there were two noted cases of infractions during the year.

    “Three PFAs were sanctioned for sub-optimal annual return on investment on their respective RSA Funds in 2017 while a PFA was sanctioned for sub-optimal investment in Federal Government Bonds.The Commission had applied the appropriate monetary penalties in accordance with the sanctions regime and the PFAs were made to refund the projected lost income, amounting to N418 million to the various RSA Funds.”

    On surveillance of the industry, the commission said in a bid to drive the achievement of a sound and sustainable industry, it conducted on-site and off-site examinations of the pension operators.

    “In compliance with Section 92(1) of the Pension Reform Act (PRA) 2014, routine examinations were conducted on all the 32 licensed operators, comprising of 21 Pension Fund Administrators (PFAs), seven Closed Pension Fund Administrators (CPFAs) and four Pension Fund Custodians (PFCs).

    “On off-site activities, all the 32 licensed pension operators successfully rendered returns on the funds under their management and custody as well as on the company assets and liabilities to the commission via the Risk Management & Analysis System (RMAS) during the year under review.

    “Similarly, the commission received Compliance Reports from all operators in 2017. The major issues observed from the reports were un-credited pension contributions, delay in the payment of retirement benefits to the retirees and outstanding commitments from the previous routine examination. The commission had taken all appropriate measures to ensure that these issues were effectively resolved”, the commission added.

  • PenCom issues guidelines on Voluntary Contributions

    •Commences radio programme

    The National Pension Commission (PENCOM) has issued new guidelines to regulate the operation of voluntary pension contributions (VPC) under the Contributory Pension Scheme (CPS).

    VPC simply allows Retirement Savings Account (RSA) holders to make additional contributions beyond the statutory employee and employer monthly contributions.

    A statement by the Commission, signed by its Head, Corporate Communications, Peter Aghahowa, sad the release of the guideline is in furtherance to carrying out its mandate of regulating the pension industry.

    The Commission said part of the objective of the new guidelines is to establish a uniform set of rules for the operation of voluntary contributions and eligibility criteria for participation in the contributions.

    The statement reads: “It is pertinent to note that the Pension Reform Act (PRA) 2014 allows employees to make Voluntary Contributions into their RSA in addition to their mandatory pension contributions, with the sole aim of enhancing their retirement benefits.

    “According to the issued guidelines, voluntary contributions shall be non-obligatory contributions made by any employee in the formal sector through the employer.

    “The objectives of the released guidelines are to establish uniform set of rules for the operation of voluntary contributions and eligibility criteria for participation in the contributions and to provide the procedure for making voluntary contributions as well as necessary safeguards and modalities for its withdrawals.

    “The guideline will enable contributors to utilise voluntary contributions for the purpose of enhancing future retirement benefits for active or mandatory contributors, will encourage retirees under CPS to utilise part or all of the Voluntary Contributions to augment their existing pension, will assist retirees under defunct Defined Benefit Scheme (DBS), exempted persons from the CPS and foreigners to save in order to cater for their livelihood during old age.”

    The commission, however, urged contributors to be guided by the guidelines and encouraged them to direct all their enquiries concerning  voluntary contributions to their respective Pension Fund Administrators (PFAs).

    Meanwhile, the commission in a bid to further enlighten the public on the operation of the CPS, has begun radio programme titled: “Retirement Mata”.

    The programme, which made its debute on October 26, 2018, is a weekly 30-minute pidgin programme, which will be on air every Friday on NAIJA 102.7FM, Lagos, at 5:00pm.

    The Commission called on workers and retirees under the CPS to listen to the programme, noting that it will be interesting and educative.

    The programme is designed to enlighten and address so many issues pertaining to CPS, the statement added.

  • Fed Govt approves micro pension

    After about five years of roller coaster strategy by the National Pension Commission (PenCom) to capture the informal sector through a micro pension plan, the Commission now has January, 2019 date to kick start the plan.

    This is coming on the heels of approval secured and communicated to the Commission last week by the Secretary to the Government of the Federation (SGF).

    The micro pension plan is expected to attract N3 trillion into the country’s N8.5 trillion pension assets.

    Speaking at the just-concluded 2018 Media Retreat organised by Pension Fund Operators Association of Nigeria (PenOp) for pension correspondents in Lagos, the Head, Research & Corporate Strategy, PenCom, Dr. Farouk Aminu, said the new development could enhance the growth of pension assets in the country.

    He stressed that the micro pension plan is a scheme meant to capture people in the informal sector of the economy and expand the outreach of the new pension scheme.

    The Executive Secretary, PenOp, Ms. Susan Oranye, said though the pension funds has grown to N8.5 trillion and the number of contributors has risen to about 8 million, the huge population of 160 million shows a lot of potentials exist in the pension industry.

    She stated that the pension fund operators will explore the potentials in the industry by persuading players in the informal sector to join the Contributory Pension Scheme (CPS) through the micro pension plan.

    When more people subscribe to the plan, she said, it will increase the pension assets, hence allowing the operators to invest more funds for economic growth and development.

    However, the Head, Corporate Communications, PenCom, Peter Aghahowa, said the micro pension scheme is made flexible for people to easily join.

    He said: “The method of contribution is decided by the contributors who are to choose whether to contribute daily, weekly, monthly, quarterly, and so on and anybody who is 16 years and above is eligible to join this scheme.

    “The regulator and operators are jointly working on the I.T infrastructure to ensure a seamless operation of the plan”, he noted.

  • PenCom okays 6, 851 applications for annuity retirement plan

    The National Pension Commission (PenCom) approved 6,851 applications for annuity retirement plan in the fourth quarter of 2017.

    According to the commission, this brings to 48,539 the number of retirees receiving their retirement benefits via annuity.

    The commission, in its 2017 fourth quarter report, said the 6, 851 retirees received N6.32 billion as lump sum payment. Their annuity premium of N35.77 billion was paid to insurance companies

    PenCom said the amount was N60.29 billion and N241.62 billion as lump sum payments and annuity premium.

    PenCom said the retirees were receiving average monthly annuity of N2.53 billion as at last December.

    On retirees on Programmed Withdrawal (PW), it said the number of retirees receiving their pensions under  PW  increased from 165,740 in the previous quarter to 174,512 in the fourth quarter of last year.

    “This represents 5.29 per cent (8,772) increase from the total retirement recorded via the PW,” it noted

    The report said the breakdown of retirees under the PW during the  period under review showed the public sector having 68.91 per cent (6,045) of the retirees and private sector, 31.09 per cent (2,727).

    It showed that  8,772 retirees were paid N21.74 billion as lump sum and N0.28 billion as monthly programmed withdrawals.

    According to the report, 174,512 retirees have been paid 448.90 billion as lump sum and N5.91 billion as monthly programmed withdrawals from inception of CPS to the quarter under review.

    On withdrawal of 25 per cent of Retirement Saving Account (RSA), the commission said approval was granted for payment of N6.54 billion to 17,828 RSA holders.

    According to the report, RSA holders are under 50, disengaged and unable to secure another job within four months.

    It said the number of disengaged RSA holders who were paid 25 per cent was 250,293; they got N82.57 billion from inception to the period under review.

    According to the report, further analysis shows that the private sector accounted for 95.40 per cent (238,786) while the public sector accounts for 4.60 per cent (11,507).

    On approval of death benefits, the commission said it approved payments of N9.20 billion to  the families of 2,028 deceased employees during the fourth quarter under review.

    This figure, PenCom said, moved the cumulative death benefit payments to N138.90 billion, including life insurance of 44,879 dead employees in private and public sectors.

  • PenCom begins verification exercise

    The National Pension Commission (PenCom) has commenced its pre-retirement verification and enrolment exercise across the country.

    The commission said that the exercise is primarily designed for employees in the service of the Federal Government Treasury Funded Ministries, Departments and Agencies (MDAs), who are due to retire from service between January and December 2019 by virtue of attaining the applicable maximum age or length of service, whichever is earlier.

    The commission in a statement by Mr Peter Aghahowa, the Head, Corporate Communications, said that the exercise started on the 25th of June in Benin city, the Edo state capital and is expected to end on the 7th of August.

    Read Also: PenCom educates prospective retirees

    According to the statement, affected employees are required to personally come along with the original of the under-listed documents for sighting while photocopies of same would be submitted for verification and enrolment: Letter of First Appointment, Evidence of Transfer of Service and Acceptance (where applicable), Birth Certificate or Declaration of Age, Letter/Evidence of promotion to the Grade Level as at June 2004, Letter/Evidence of all promotions obtained from 2004 to date, Letter of Introduction from the MDA, Staff Identity Card.

    The statement urged the Pension Desk Officers (PDOs) of each MDAs to be available at the designated centres to authenticate the documents and endorse the Retirement Bond Registration Form of each potential retiree from his/her MDA.

    It also explained that medically unfit employees are exempted from the physical enrolment.

    The statement however stressed the need for the Pension Desk Officers of the medically unfit employees to come along with a letter from a suitably qualified physician or medical board certifying that the employee is no longer physically or mentally capable of carrying out the functions of his/her office in addition to documents.

    It further explained that for ease of access of participant, the exercise is scheduled to hold at fifteen centres throughout the Federation.

    The commission advised participants to adhere strictly to dates assigned to each service sector.

     

  • PenCom educates prospective retirees

    The National Pension Commission (PenCom) has sensitised prospective retirees (due to retire in 2019) on steps, procedures and documentations required for a stress-free retirement.

    The prospective retirees comprised staff of Ministries, Departments and Agencies (MDAs) of the Federal Government.

    The workshop was to educate participants on how to transit seamlessly from active employment to retirement under the Contributory Pension Scheme (CPS).

    The regulatory agency released the time table for the 2018 verification and enrolment of employees of the Federal Government Treasury Funded MDAs retiring in 2019.

    The verification will take place in 15 centres across the six geo-political zones, including the Federal Capital Territory, from June 25 to August 17.

    According to PenCom Acting Director-General, Mrs. Aisha Dahir-Umar, “one of the salient objectives of the Pension Reform Act (PRA 2014) is to make pension administration transparent and seamless”.

    Hence, the commission has established a uniform set of rules, regulations and standards for all aspects of pension administration, including payment of retirement benefits to retirees.

    “This was achieved in the case of the latter, through issuance of the Regulation on Administration of Retirement and Terminal Benefits; Regulation on Retire Life Annuity; the Frameworks on Pension Enhancement & Programmed Withdrawals; and the Circular on Voluntary Contributions amongst others.

    “As part of our annual regulatory activities, the Commission has finalised arrangements to commence the verification of prospective retirees, who will be retiring in 2019 from the public service.

    “The verification is scheduled to be undertaken from June 25 to August 17, 2018 in 15 centres across the country. The impending exercise, therefore, necessitated the need to undertake adequate sensitisation and public enlightenment to prepare prospective retirees on the steps to take towards a hitch free retirement life,” she said.

    They were also sensitised on the consolidation of benefits on retirement, are modes of withdrawal of benefits on retirement, rights of retirees and roles of the Pension Fund Administrators (PFAs) and PenCom in the retirement process.

    They were also advised to enrol for retirement during the ongoing enrolment of prospective retirees by the commission, as enrollment by proxy will not be entertained except on proven cases of medical incapacitation.

    According to the Commission, participants, having been armed with the requisite information at the workshop, should be in a better position to make informed decisions that will make their retirement from active service stress-free.

  • PenCom chief: Micro-pension scheme to hit 30m by 2024

    The micro-pension scheme is expected to help raise pension contributors to 20 million by next year and 30 million by 2024.

    The Acting Director-General, National  Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, who spoke in Lagos, also stated that micro-pension scheme is expected to generate about N3 trillion to the pension assets, while mobilising about 12 million contributors within five years.

    She said: “Micro pension scheme is targeted at self-employed people, especially those with irregular income, usually in the informal sector and are largely financially uninformed, with limited or no access to financial services, especially pension plan.

    “This segment, which is estimated to be 70 per cent of the country’s population, largely exists in Nigeria as artisans and self-employed persons.”

    She said PenCom  recovered pension contributions and interests totalling N1.34 billion from defaulting employers during the third quarter of 2017, adding that affected employers were issued appropriate notice to remit the outstanding pension contributions.

    “During the quarter, N1.34 billion was recovered,  bringing the total recoveries made since inception of the recovery agents’ activities in 2012 to N13.58 billion, “ she said.

    On pension contributions within the period, she said the total monthly pension contribution by contributors from the public and private sectors into their Retirement Savings Accounts (RSA) was N4.38 trillion.

    This, she said, showed an increase of N135.22 billion, representing 3.18 per cent of total contributions as at the end of the previous quarter.

    She added that about  N39.83 million was refunded to the contributors, while the sum of N127.13 million, representing contributions made by the Federal Government on their behalf was returned to the contributory pension account.

    She commended President Muhammudu Buhari for attending to retirees’ well-being by settling accrued pension rights for that period.

  • Pensioners to smile soon, says PenCom Ag DG

    National Pension Commission (PenCom) Acting Director-General, Mrs Aisha Dahir-Umar has said pensioners will soon smile as the Federal Government is set to pay the next batch of retirees.

    Speaking with The Nation, Dahir-Umar said PenCom had been working on modalities for payment to enable it to release substantial funds for the retirees, adding that retirees that perfected their documentation and verification would be captured for the payments in the next batch.

    The PenCom chief commended President Muhammudu Buhari for attending to retirees’well-being by settling accrued pension rights for that period.

    “Despite conflicting demands for available cash, President Buhari had always expressed concern about the plight of workers and pensioners.

    “It has brought relief to thousands of our elders who have served and deserve to be paid their entitlements promptly and fully,” she said.

    She further said some pensioners in the last batch that did not receive their pension must have been caused by errors in documentation and verification process.

    “Such also may be caused by late documentation.’’

    She denied allegations that the commission and Pension Fund Administrators (PFAs) delayed payments and misappropriated pensions funds.

    She said the commission and the PFAs were being watched by the Federal Government and guarded by core principles that could not be truncated.

    She said the PFAs paid the pensioners that registered under them without delay, once the Federal Government released the fund through PenCom.

    Dahir-Umar said the micro-pension scheme was expected to help raise the number of pension contributors to 20 million by next year and 30 million by 2024. It was also expected to generate about N3 trillion to the pension assets, while mobilising about 12 million contributors within five years.

    “Micro pensions is a scheme tar-geted at self-employed people, especially those with irregular income, usually in the informal sector and are largely financially uninformed with limited or no access to financial services, especially pension plan.

    “This segment, which is estimated to be 70 percent of the country’s population, largely exists in Nigeria as artisans and self-employed persons,” she said.