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Tag: PENCOM DG

  • PenCom DG inaugurates advisory committee to oversee non-interest pension products

    PenCom DG inaugurates advisory committee to oversee non-interest pension products

    …charge members on transparency 

    The Director-General of the National Pension Commission (PenCom), Omolara Oloworaran, has inaugurated the Pension Industry Non-Interest Advisory Committee (PINAC), tasking it with ensuring that non-interest pension products remain transparent, secure, and aligned with global best practices.

    Speaking at the inauguration in Abuja, Oloworaran reaffirmed PenCom’s commitment to fostering innovation, inclusivity, and sustainability in pension administration. 

    She emphasized that the establishment of PINAC underscores the commission’s dedication to ensuring the Contributory Pension Scheme (CPS) serves all segments of society, including individuals seeking financial solutions that align with their ethical and religious beliefs.

    Read Also: Reps extends deadline for submission of memoranda on state, LG creation

    She further highlighted that the initiative would enhance financial inclusion and expand the reach of non-interest pension products within Nigeria’s pension industry.

    She said, “The introduction of Non-Interest Pension Funds (Fund VI) was a groundbreaking step in this direction, as it provides an investment option that is free from interest-based instruments while still ensuring competitive returns for contributors. The Rationale for the Non-Interest Advisory Committee is clear, In recent years, the commission has witnessed increasing demand for non-interest financial products, driven by a growing awareness of ethical finance principles and the need for alternative investment avenues. 

    “However, the development of this segment requires structured guidance, expert insights, and collaborative strategies to navigate regulatory, operational, and market challenges. This is precisely why we have established this Advisory Committee—to serve as a think tank, providing recommendations on best practices, governance structures, product development, and compliance with non-interest finance principles”.

    The Chairman of the committee, Prof. Adam Abubakar highlights the importance of shariah compliance monitoring system in Islamic financial institutions, stating that it cannot be overrated, it plays a vital role in ensuring compliance, building trust and enhancing credibility and reputation in the overall operations. 

  • Reps summon PenCom DG, PFAs over alleged N8tr fund misuse

    The Acting Director-General (DG), National Pension Commission (PenCom), Aisha Dahir-Umar is to appear before the House of Representatives tomorrow.

    Dahir-Umar, who is to appear with the management team of the Commission is expected to provide the lawmakers with information on alleged unwholesome practices in the Commission.  All the 21 recognised Pension Fund Administrators (PFAs) managing the fund are also expected to appear before the House adhoc committee chaired by Ehiozuwa Agbonayinma (APC, Edo), who said the vital information on the allegations levelled against the fund managers needed to be cleared.

    Read also: More cash found in CJN Onnoghen’s accounts

    The House is requesting for the net assets of the contributory funds; details of supervisors and regulations of PFAs and their key instructions and performances; compliances and defaults; details of payment into Treasury Single Account (TSA) and bank accounts operated by the Commission.

    Agbonayinma said the  appearance of the PFAs was key to the investigation, added:  “Yes we have invited the top management of PenCom and PFAs to an interactive session before the investigative public hearing. The 21 recognised PFAs are expected to be part of the session with members of our committee.”

     

  • Reps summon PenCom DG, PFAs over alleged N8 trillion pension fund misuse

    The acting Director General (DG) of the National Pension Commission ( PenCom ) Aisha Dahir-Umar is to appear before the House of Representatives on Wednesday.

    Dahir-Umar, who would appear with the management team of the Commission, is expected to provide the lawmakers with information on alleged unwholesome practice by Pension Fund Administrators (PFAs).

    21 recognised PFAs that manage the over N8 trillion pension fund were also invited to appear before a House ad committee chaired by Ehiozuwa Agbonayinma (APC, Edo).

    The lawmaker said the vital information on the allegations levelled against the fund managers needed to be.

    As a result, the House is requesting for the net assets of the contributory funds; details of supervisors and regulations of pension funds administrators and their key instructions and performances; compliances and defaults; details of payment into Treasury Single Account (TSA); and bank accounts operated by the Commission.

    Read Also: PenCom to workers, retirees: provide NINs, BVN to PFAs

    Stating the invitation and appearance of the PFAs is critical to the investigation, Agbonayinma added: “Yes we have invited the top management of PenCom and PFAs to an interactive session before the investigative public hearing.

    “The 21 recognised PFAs are expected to be part of the session with Members of our committee,” he added.

  • Ex- police officers warn PenCom DG

    The Association of Retired Police Officers (RPO) in Taraba State has backed the bill before the House of Representatives seeking to exclude members of the Nigerian Police Force and other paramilitary agencies such as Civil Defence Corps, customs service, immigration service and the Economic and Financial Crimes Commission (EFCC) from the Contributory Pension Scheme.

    They warn the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar to stop kicking against the bill.

    The bill, sponsored by Hon. Oluwole Oke, which has passed second reading, will amend the Pension Reform Act of 2014. When passed into law, the Police Pension Limited, which has accumulated total assets of N283.9billion, and paramilitary personnel, would withdraw their money from the N6.4 trillion pension funds under the CPS.

    Briefing newsmen in Jalingo yesterday, Chairman of the Taraba Retired Police Officers, Retired DSP Samuel Owinah, urged the House of Representatives members to expedite action on the bill and pass it into law.

    Owinah was reacting to reports that the Acting Director-General of the National Pension Commission (PenCom) Mrs. Aisha Dahir-Umar was kicking against the bill. He accused PenCom’s Director of Research Aminu Farouk of sponsoring the reports in the media.

    Dahir-Umar had said “the proposed law would impact negatively on the nation’s economy.”

    But Owinah said the PenCom Director-General does not mean well for them because she and her commission have been feeding fat at their expense. He asked the PenCom Director-General to desist from kicking against the bill.

    “The contributory system of pension is a borrowed scheme from Chile, and it is harmful to Nigerians. You don’t expect somebody who has served for 35 years in government, to retire and start taking home what cannot sustain his family.

    “Today, pensioners under PenCom cannot sponsor their children in government schools, not to talk of private schools; they are drop-outs.

    “Nigerians should note that those causing trouble in the country are people who have nothing doing. The pride of any country is having good citizens, not vagabonds. Today, we have become a nuisance, as beggars in the society. Today, a pensioner under PenCom cannot afford a bill of N2000; it is telling on every pensioner.

    “Thus, I want to advise the PenCom director to desist from these publications kicking against the bill. Money meant for pensioners is not meant for maintaining the federal government economy. We shall make sure we all pull out of the new scheme,” he said.

    Owinah explained further that in the contributory pension scheme, a retiree is forced to put in his money, but he is entitled to pension for only 18 years, even if he is not dead.

    He added: “As a DSP, I am collecting only N39,000 as pension in the contributory pension scheme, whereas those with the same rank (DSP) under the old scheme are collecting N130,000 and until they die before their pension will stop coming.”

     

  • PenCom DG’s name, others yet to be sent to National  Assembly 

    PenCom DG’s name, others yet to be sent to National  Assembly 

    Acting President Yemi Osinbajo is yet to send the name of the newly appointed Director-General of the National Pension Commission (PenCom), Funso Doherty, and members of the board to the National Assembly for confirmation, The Nation has learnt.

    This means that the most crucial organ of the Federal Government that supervises the country’s N6.5 trillion pension fund will not have a substantive Director-General and Board  soon. This is so because of the rift between the Presidency and the lawmakers that suspended confirmation of all nominees of the Executive until last week when it lifted the hammer.

    It was also learnt that the names of 22 other appointees to new boards of Federal Government agencies appointed by President Muhammadu Buhari  to replace sacked boards are also yet to be forwarded to the National Assembly for confirmation.

    Sources toldThe Nation  that the delay in sending the names of the directors to the National Assembly might not be unconnected with the resentment that greeted the appointment of Doherty by the Acting President to replace Dikko who was rejected by some people.

    Dikko replaced the former DG of the Commission, Mrs. Chinelo Anohu-Amazu.

    However, the implications of not having a board and a substantial DG on the industry are enormous bearing in mind its peculiarity.

    Another source said though the Commission is functioning with the Acting DG, Mrs. Aisha Dahir-Umar, it is not able to formulate policies where needed and as such is not functioning in its full capacity.

    Section 25 (1) of the PRA 2014 states that the Board shall formulate and provide general policy guidelines for the discharge of the functions of the Commission, monitor and ensure the implementation of the policies and programmes and shall also carry out such other functions as are necessary or expedient to ensure the efficient performance of the functions of the Commission under this Bill.

    Section 2 further reads: “The Board shall have power to approve rules and regulations relating to the appointment, promotion and disciplinary measures for the employees of the Commission and fix renumeration, allowances and benefits of the Commission.

    “It shall also regulate its proceedings and make standing orders with respect to the holding of its meetings, notices to be given, the keeping of minutes of its proceedings and such other matters as the Board may, from time to time determine.”

    The Managing Director of one of the leading Pension Fund Administrators (PFA), who spoke under condition of anonymity, said things are working and the pension fund remains safe.

    He however noted that there were some  areas that warrant critical decision.He listed such area to include getting approval for the multi-bond function, noting that the Presidency was yet to approved that because of the absence of a substantive board.

    He added that only the Presidency has the power to carry out the multi-bond function, adding that in such areas, there is need to have a board and substantive DG.

    He called on the Presidency and the National Assembly to ensure that a board was put in place.

    He said appointing a DG, who cannot assume duties, was affecting  activities at the Commission and the industry at large.

    A source at the PenCom said aside  hearing the announcement of Doherty in the news, officials at the Commission do not know anything else.

    According to the source, what they learnt, however, was that the name of the new DG and board members have not been sent to the National Assembly.

    Another source at the Commission affirmed that promotions and other projects that needed the approval of the Board could not be carried out, adding that some DGs, including that of PenCom’s, under the civil service rules, could not approve projects more than N2.5 million.

    Asource at the Presidency said he could not affirm, nor deny whether the name of PenCom board, or any of the other 22 appointed Boards have been sent to the National Assembly, saying that the procedure after announcement of such appointments, is for the National Assembly to pronounce that the Executive has written to it seeking confirmation of the  appointees.

     

  • Govt yet to implement 18% pension contribution, says PenCom DG

    Govt yet to implement 18% pension contribution, says PenCom DG

    •N10b increase sought for accrued rights

    The Federal Government is yet to implement the 18 per cent pension contributions as revised by the Pension Reform Act (PRA) 2014, National Pension Commission (PenCom) Director General (DG), Mrs. Chinelo Anohu-Amazu, has said.

    She spoke while defending the Commission’s 2017 budget before the National Assembly Joint Committee on Appropriations.

    According to her, N79.1 billion was needed for payment of pension increase for the 79,961 pensioners, who retired under the contributory pension scheme (CPS) from 2004 to 2014.

    On the implementation of the new rate of pension contributions, she said under the defunct PRA 2004, the rate of pension contribution for Federal Government employees was a minimum of 15 per cent of monthly pay. This, she said, is shared into two – 7.5 per cent each to be paid by the employer and the employee.

    These, she said had been reviewed upward by Section 4(1) of the PRA 2014, to a minimum of 10 per cent for the employer and minimum of eight per cent for the employee, thereby making it 18 per cent of an employee’s monthly emolument.

    The DG appealed to the Joint Committee on Appropriations to ensure adequate appropriation under the Federal Government’s recurrent expenditure in order to facilitate the implementation of the new 18 per  cent pension contribution rate.

    On the N79.1 billion required for payment of pension increase, she noted that it was constitutional that there should be periodic review of pensions.

    Mrs Anohu-Amazu said: “I wish to note that under the provisions of Section 173(3) of the Constitution 1999 (as amended) employees of Federal Government treasury-funded ministry, department, agencies (MDAs) have the right to periodic pension review. Following the Federal Government’s approval and payment of 15 per cent upward review of pension to pensioners under the defunct Defined Benefit (DB) Scheme, retirees under the CPS are also agitating for the implementation of same in line with their rights under the 1999 Constitution.

    “In compliance with Section 39(3) of the PRA 2014, the Commission engaged the firm of Alexander Forbes Consulting Actuaries Limited to determine the financial implication of the 15 per cent salary review in 2007 on the pension components of the defined benefits rights also referred to as accrued rights.

    “Consequently, the sum of N79.1 billion was determined as pension increase for the 79,961 employees, who retired under the DB Scheme from 2004 to 2014. The computation for the pension increases of FGN employees who retired in 2015, 2016 and those that were scheduled to retire in 2017 would be forwarded for inclusion in subsequent appropriations after due actuarial valuation is concluded.”

  • PenCom DG gets The Sun Public Service Award

    PenCom DG gets The Sun Public Service Award

    For achieving growth in the pension industry, the Director- General of the National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu has bagged The Sun Award in the Public Service category for 2015.

    The award plaque was presented to her alongside other winners, including the Leader of the All Progressives Congress (APC), Asiwaju Bola Ahmed Tinubu and the Governor of Anambra State, Mr. Willy Obiano at a ceremony in Lagos at the weekend.

    Presenting the award on behalf of the management of The Sun Newspapers, Tinubu commended Anohu-Amazu for her commitment to ensuring success for the Contributory Pension Scheme (CPS).

    Giving reasons for the award, the Managing Director/Editor-in-Chief of The Sun Publishing Limited, Mr. Eric Osagie said the Public Service Awards goes to top public servants, who in the spirit of national transformation, have demonstrated an uncommon character, passion, innovation and unalloyed commitment in service delivery and thereby rendering maximum benefit to the country.

    He said Mrs. Anohu-Amazu was chosen as winner of The Sun Public Service Award 2015 after a two-day debate by members of the newspapers’ Board of Editors, saying her emergence was in recognition of her remarkable achievements in ensuring a healthy pension scheme in the country.

    He said: “On assumption of office as DG, Pencom, you have successfully completed the process of a major review of pension reform 2014, which culminated in an executive bill, which has since been passed into law by the National Assembly. Pension fund has also experienced a steady growth under your leadership.”

    Accepting the award, Anohu-Amazu expressed delight for the award saying the honour came most unexpectedly, and it is an honour she cherishes.

    Mrs. Anohu-Amazu holds LL.B. from the University of Nigeria, Enugu. She also holds a Masters in Telecommunication & Information Technology Law from the London School of Economics.

  • 23,000 ghost workers: Minister summons bank MD, PENCOM DG

    23,000 ghost workers: Minister summons bank MD, PENCOM DG

    •Releases evidence to ACSN leaders

    Finance Minister Kemi Adeosun yesterday summoned the Managing Director of a first generation bank on alleged complicity of the bank in the payment of salaries to 23,000 ghost workers on the payroll of the Federal Government.

    Also summoned by the minister is the Director General of the Pension Commission (PENCOM), Ms Chinelo Anohu-Amazu, who is expected to answer questions from a probe panel in her ministry on how Pension Funds Administrators (PFAs) allegedly generated fake PFA numbers for the “ghost workers”.

    All suspects in the ghost workers saga may be handed over to the Economic and Financial Crimes Commission (EFCC).

    The minister has already stopped the salary of the ghost workers and pledged to conduct the ongoing probe in a manner that innocent workers will not suffer.

    Sources said that the affected bank was used by civil servants to perpetrate the crime. “The managing director of a first generation bank was summoned to Abuja today (yesterday) Friday in connection with the salary scam,” one source said.

    Details of the discussion with officials of the Ministry of Finance were not made public.

    However, sources said the MD pledged to cooperate with the probe panel on the salary scam.

    The source added: ”Some of the startling discoveries so far indicate that salary accounts were opened for non-existing workers in some ministries where curious payments were made.

    “The ghost workers syndicate is virtually in all ministries.”

    Ms Anohu-Amazu was  at the Finance Ministry on Thursday following a summon by the minister, it was gathered yesterday.

    The summon was a result of the alleged involvement of Pension Funds Administrators (PFAs) in generating fake pension remittance numbers for the ghost workers.

    A top source added: “The DG of PENCOM was invited by the minister  to  a meeting with the probe panel where she was shown proof that some pension fund administrators may have colluded with some civil servants to perpetrate the crime.

    “The PFAs allegedly generated fake PFA numbers for the ‘ghost workers’. The DG promised to launch a high-powered probe into the activities of PFAs and bring to book those found wanting.”

    It was also gathered that the minister on Thursday gave an insight into salary fraud when the representatives of the Association of Senior Civil Servants of Nigeria (ASCSN) visited her.

    At the session, the minister made some documents from the salary probe panel available to the union leaders.

    The documents included letters written to some ministries and parastatals for information on personnel cost.

    One source said: “The revelations generated by these letters are mind-boggling, as evidence showed that most of the names of some individuals which featured on government’s payroll on a monthly basis do not exist in the nominal register of those ministries and departments.

    “For instance, out of 24 of such workers being investigated in the Federal Ministry of Works, whose names appeared on the payroll, only the name of one staff corresponded with file and nominal roll. The names of 11 other staff are not on the nominal roll but are on the ministry’s payroll, while the names of 12 staff are on the ministry’s payroll and on nominal roll with file numbers not corresponding with their names. This is an indication that the other 23 workers are either ghost workers or have incomplete Bank Verification Number registration.

    “A similar exercise was carried out in the Office of the Accountant-General of the Federation where seven staff were investigated. According to the report forwarded to the Minister of Finance, only one of those investigated has his name both in the nominal roll and pay roll. The other six have their names on the pay roll but the names are not in the nominal roll.”

    The Secretary of the Association of Senior Civil Servants of Nigeria, Mr Isaac Ojemhenke, who led the union delegation, praised the minister for the painstaking effort to ensure fairness in the ongoing purge.

    He said if previous administrations had been sensitive to consult the labour unions before any fundamental issues like the current one were tackled, the nation wouldn’t have suffered untold economic problems as in the past.

    Ojemhenke said the union would not in any way make case for any workers proved to have been involved in the fraud.

    He, however, appealed to the minister to ensure that modalities for the planned dismissal of indicted staff be made available to the workers’ union.

    However, his plea that the names of such staff be forwarded to Labour was turned down by the minister.

    She said it would be “unfair to expose them, especially since they haven’t been found guilty yet”.

    On the fate of the innocent workers, the top source said the “Minister told the labour that a careful arrangement to ensure that innocent ones among those being investigated are not unjustly punished has been put in place.

    “The minister said the first step being taken is to stop the salary of those in this category. She promised to dispatch letters to the various agencies to explain why salary will be stopped. She said arrangements have been made to clear any of the affected workers who is able to come up with relevant documents including letters of their last promotion, details of their Retirement Savings Account (RSA) and BVN, among others within a period of 30 days.

    “She told us the exercise would be done in batches. The minister said arrangements have been made to allow the affected staff defend themselves at the Federal Pay Office in their respective states.”

    Contacted, the Special Adviser to the Minister of Finance on Media Matters, Mr Festus Akanbi, said investigations on the potential 23,000 ghost workers in the federal civil service is ongoing.

    He said some investigative agencies, including the Economic and Financial Crimes Commission (EFCC) had been briefed on the matter.

    He declined to speak on the outcome of the meeting with Labour and the status of the ongoing probe.

    During a budget defence session with the Senate Committee on Finance last week, the minister said the Bank Verification Number (BVN), and Integrated Payroll Personnel Information System had led to the discovery of 23,000 ghost workers in the civil service.

    She said: “As we speak now, we have about 23,000 that we need to investigate. Those whom either the BVN is linked to multiple payments or the name on the BVN account are not consistent with the name on our own payroll.

    “If we are able to get everybody onto the BVN platform, we will be able to save a considerable amount of personnel cost.

    “My job is to get them off our payroll, what happens from there on goes to the investigative agencies; we will pass our files onto them and they will take a decision as to what sanctions they will take.

    “Not only will we remove those people from our payroll, but we will also be going after the banks involved to collect our money.”