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Tag: PenCom

  • Reps, PenCom tango over N33bn Remittances

    What happened to six months remittance from Pencom amounting to N33billion?

    This was the subject of contention on Tuesday at the continued sitting of the House of Representatives’ Ad Hoc Committee Investigating activities of the National Pension Commission and violation of the PenCom Act.

    Pencom stated it has no outstanding in terms of remittances to Pension Fund Custodians, PFCs and Pension Fund Administrators (PFAs).

    But the lawmakers were not happy with PenCom and accused the body of reluctance to avail the House Committee of the statement of its accounts with the Apex Bank.

    Chairman of the committee Hon. Johnson Agbonayinma, said: “We have written several letters…’submit your bank statement and all transactions with CBN.’ Up till now, no response. Every request that we have made, they are just manoeuvring.

    “Is there anything else you want us to do to get your attention to submit it?

    “Look at the CBN, everything we requested they have submitted. Also the Accountant-General’s office, everything we requested for have been submitted.

    “Office of the SGF, they have submitted. Head of Service, they have submitted. Even the Nigerian Labour Congress has brought their submission. The Trade Union Congress has brought their submission.”

    Another sticky issue was the number of accounts the organisation has.

    The issue was becoming a mystery as the CBN and PenCom were at variance on how many accounts the pension regulator has.

    Agbonayinma noted that there were inconsistencies between the information provided by PenCom and the statement of account of the commission provided by the CBN.

    CBN said the organisation has five accounts with it.

    Head, Contributory Bond and Redemption Department of PenCom Mr. Lana Loyinmi, who stood in for the the Acting Director-General, Aisha Dahir-Umar said: “I think it is about three.”

    However under further questioning Loyinmi said, “I don’t know the exact number.”

    The information, according to him, could be provided by Director of Finance of PenCom, who unfortunately, was not at the hearing.

    The Rep members said the presentations and defences filed by other stakeholders were satisfying but the statement of account provided by the CBN had contradicted the earlier submission by the commission on its remittances.

    Read also: Make details of NASS budget open, Saraki orders

    “The PFAs came at the last hearing. When they came, this is what they said: ‘PFAs confirm that for over six months – to the end of last year, they did not get remittance from CBN.’

    “There are so much issues: when we ask them (PenCom) for this, they will say something else.”

    The members accused PenCom of failing to provide series of documents demanded.

    On the accounts, Loyinmi said what PenCom presented to the panel was a remittance schedule and not account statement.

     “I am not aware that we submitted a specific account, what we submitted is a schedule.

    “If your letter had asked for bank statement, he would probably have reproduced this from CBN for you,” he said.

    But Agbonayinma was not happy with the inconsistencies and said: “We have the CBN here. We asked them and they told us the number.

    “During the last public hearing, the Acting DG also specified it. In her submission, she told us they had one.

    “But the CBN came and told us that you have five accounts. You (Loyinmi) said they are three;

    “If you don’t know, you don’t know. Don’t assume. If you are here to represent the Acting DG and you don’t know how many accounts PenCom operates with CBN, there is a problem.”

    Speaking on whether or not Pencom owes outstanding remittances the panel chair said: “The CBN statement also shows that there were no disbursements to PFCs and PFAs.

    ‘’That means there is evidence that the Accountant-General’s office remitted to CBN. Why was there no remittance to PFAs for over six months?”

    Loyinmi however insisted that the organisation has no outstanding.

    “As to the document relating to the bank account, we will submit it to the committee.

    ‘’Concerning the comment that people did not receive disbursements for six months, it depends on what we were asking people for.

    “The monthly pension contribution have been up to date, no money is missing. Let me add that, to date, contributions into the Retirement Savings Account of employees have been up to date; up to February. No month is missing in their Retirement Savings Account.

    “In specific reference to the N33bn you were talking about, the transactions had started since March 2017 even with the approval of the last management. But before it hit the account of CBN as debit, it was April because of the processes.”

  • ‘Lawmaker’s daughter worked in PenCom with fake degrees’

    A federal lawmaker and Pension Ad Hoc Committee Chairman’s daughter, Deborah Ighiwiyisi Agbonayinma has been working with the National Pension Commission (PenCom) with fake foreign and local university degree certificates, The Nation has learnt.

    Deborah’s father is Ehionzuwa Johnson Agbonayinma, the member representing Egor/Ikpoba-Okha of Edo State in the  House of Representatives.

    A source at the National Assembly, who pleaded anonymity, said Deborah Agbonayinma was sacked about four weeks ago. She worked at the commission for three years.

    The source said Miss Agbonayinma worked in other government agency with the fake certificates before joining PenCom.

    PenCom confirmed that she was sacked on February 27.

    In a telephone conversation with The Nation,  Agbonayinma who spoke on his Committee’s probe of Pension Fund Administrators, declined comment on the allegations against his daughter.

    Miss Agbonayinma’s curriculum vitae with which she was employed in PenCom stated that she obtained a B.Sc degree in Accountancy with certificate number 12129 on August 8, 2012 from Irish University Business School located on 219 Bow Road, London E3 2SJ.

    A verification committee at PenCom, however, found that no such university existed as a valid UK degree-awarding institution.

    Read also: Pension assets stand at N8.906 trn – PenCom

    Having learnt that her foreign degree was ‘fake’, Miss Agbonayinma brought another degree in Accountancy to the Commission as a replacement from Olabisi Onabanjo University, which the university also disclaimed as fake.

    A probe of the documents showed that the Accountancy degree with 09083854 as a matriculation number was not listed as part of her academic qualifications in the original curriculum vitae submitted to PenCom, when she was employed.

    The Olabisi Olabanjo University (OOU), in Ogun State, in a letter dated February 6, 2019 and signed by the University’s Principal Assistant Registrar in charge of Exams and Records, Mrs O. L. Kaka, told PenCom that Miss Agbonayinma’s academic records and transcripts were fake.

    Her CV showed she was mobilised for the National Youth Service Corps (NYSC) from 2014 to 2015, but details are still sketchy on the certificate she presented to the NYSC for the mobilisation.

    The CV also showed that she served as an Accountant in the Ministry of Finance, Budget and Economic Development in Edo State during her Student’s Industrial Work Experience Scheme (Scheme) from June 2008 to November 2008 one year after she was enrolled to study Accountancy in London in 2007.

    PenCom said: ’’We confirmed through the UK government’s site that the university is not recognised as a valid degree-awarding body.”

  • Pension assets stand at N8.906 trn – PenCom

    The National Pension Commission ( PenCom ), says the country’s total pension assets stand at N8.906 trillion as at February ending as against N9 trillion reported in the media.

    Mr Peter Aghahowa, PenCom’s Head of Corporate Communications Department, made this known in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos.

    Aghahowa was reacting to the April 4 media reports that the pension assets had hit N9 trillion.

    He said, “The country’s Pension Assets stood at N8.906 trillion and yet to reach N9 trillion as stipulated.”

    “It would be recalled that sometime in February, the House of Representatives mandated the committee to commence investigations into the activities of PenCom.

    “This is since April 2017, over an allegation of violation of the Act establishing the commission and N9trn pension fund.

    Read Also: Pension scam: Reps summons Emefiele over N33bn deductions

    “In the April 4 reports, Johnson Agbonayinma, the Chairman of House of Representatives Ad-hoc Committee investigating the activities of the nation’s Pension Administrators, threatened to issue a bench warrant on the administrators should they fail to appear before it.

    “But unfortunately, the administrators and other stakeholders deliberately did not appear at the Public hearing which was meant to elicit the needed information for the investigation.”

    Aghahowa further confirmed that the house had called the commission for public hearing in February and that it responded.

    He however, said the commission was deeply concerned about the recent media reports,” Aghahowa said.

  • ‘Lawmaker’s daughter worked in PenCom with fake degrees’

    A federal lawmaker and Pension Ad Hoc Committee Chairman’s daughter, Deborah Ighiwiyisi Agbonayinma has been working with the National Pension Commission (PenCom) with fake foreign and local university degree certificates, The Nation has learnt.

    Deborah’s father is Ehionzuwa Johnson Agbonayinma, the member representing Egor/Ikpoba-Okha of Edo State in the  House of Representatives.

    A source at the National Assembly, who pleaded anonymity, said Deborah Agbonayinma was sacked about four weeks ago. She worked at the commission for three years.

    The source said Miss Agbonayinma worked in other government agency with the fake certificates before joining PenCom.

    PenCom confirmed that she was sacked on February 27.

    In a telephone conversation with The Nation,  Agbonayinma who spoke on his Committee’s probe of Pension Fund Administrators, declined comment on the allegations against his daughter.

    Miss Agbonayinma’s curriculum vitae with which she was employed in PenCom stated that she obtained a B.Sc degree in Accountancy with certificate number 12129 on August 8, 2012 from Irish University Business School located on 219 Bow Road, London E3 2SJ.

    A verification committee at PenCom, however, found that no such university existed as a valid UK degree-awarding institution.

    Having learnt that her foreign degree was ‘fake’, Miss Agbonayinma brought another degree in Accountancy to the Commission as a replacement from Olabisi Onabanjo University, which the university also disclaimed as fake.

    A probe of the documents showed that the Accountancy degree with 09083854 as a matriculation number was not listed as part of her academic qualifications in the original curriculum vitae submitted to PenCom, when she was employed.

    The Olabisi Olabanjo University (OOU), in Ogun State, in a letter dated February 6, 2019 and signed by the University’s Principal Assistant Registrar in charge of Exams and Records, Mrs O. L. Kaka, told PenCom that Miss Agbonayinma’s academic records and transcripts were fake.

    Her CV showed she was mobilised for the National Youth Service Corps (NYSC) from 2014 to 2015, but details are still sketchy on the certificate she presented to the NYSC for the mobilisation.

    The CV also showed that she served as an Accountant in the Ministry of Finance, Budget and Economic Development in Edo State during her Student’s Industrial Work Experience Scheme (Scheme) from June 2008 to November 2008 one year after she was enrolled to study Accountancy in London in 2007.

    PenCom said: ’’We confirmed through the UK government’s site that the university is not recognised as a valid degree-awarding body.”

  • Pension scam: Reps summons Emefiele over N33bn deductions

    The House of Representatives, on Thursday, asked the Gov. of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, to appear before it over alleged discrepancies in the remittance of N33 billion pension deductions by National Pension Commission (PenCom).

    The House also invited the Accountant-General of the Federation (AGF), Ahmed Idris, to appear alongside Emefiele before its Ad hoc Committee to Investigate the Activities of (PenCom) and its Administrators on Tuesday, April 9.

    Johnson Agbonayinma (APC-Edo), the Chairman of the committee, gave the directive at a public hearing in Abuja.

    He said the invitation was necessary to clarify noticeable discrepancies in the pension deductions claimed to have remitted by Aisha Dahir-Umar, Acting Director-General of PenCom.

    He added that submissions by the apex bank governor and the AGF would guide the committee in wrapping up the investigative hearing.

    According to him, the outcome of the investigation is in the interest of Nigerian pensioners and the public.

    ”This ad hoc committee invites the Governor of the Central Bank of Nigeria (CBN) and the Accountant-General of the Federation (AGF) to appear before it on Tuesday, April 9, to clarify issues surrounding the money claimed to have been remitted by PenCom,” he said.

    Meanwhile, the Nigerian Union of Contributory Pensioners (NUCP) has said that “the new pension scheme has compounded, rather than alleviating problems faced by retirees under the Contributory Pension Scheme.”

    In a memorandum submitted to the ad -hoc committee by the union and signed by its leaders, Messrs U.C. Ekpo and Emezuru Eugene, NUCP attributed the problems faced by contributory pensioners to some of the faulty provisions of the 2014 Pension Act (as amended).

    Read also: PenCom launches micro pension tomorrow

    ”From the look of things, the whole essence of the new pension scheme is to create capital for the Pension Fund Administrators (PFA) to maximise profits and enrich themselves.

    ”Worse still, PenCom, which is empowered to strictly enforce the Pension Reform Act in regulating the activities of PFAs and Pension Custodians, has become a violator of the same Act in many ways,” they said.

    The union identified alleged unwholesome practices by PenCom to include lack of review of contributors’ pension every five years as provided in Section 173 (3) of the 1999 Constitution (as amended).

    Others include persistent delays in payment of retirees’ benefits to over 2 years; lack of standardised template and transparency in computation of lump sums paid after retirement; and gender inequality in the payment of lump sums, which they argued, contravenes the Pension Reform Act.

    The NUCP further noted that the sum total of anomalies and injustices perpetrated by PenCom in its implementation of the Contributory Pension Scheme led to suffering, pain and premature death of pensioners in Nigeria.

    They, however, called on PenCom to confine itself to its functions as a regulator rather than meddling in the union’s activities. (NAN)

  • PenCom launches micro pension tomorrow

    After more than five years of trying to capture the informal sector under the Contributory Pension Scheme (CPS) with the Micro Pension Plan, the National Pension Commission seems to have gotten it right.

    This is because President, Muhammadu Buhari will be launching the plan tomorrow, Thursday, March 28.

    Micro pension is set to include the self-employed and persons working in organisations with less than three employees, in line with the provisions of Section 2 (3) of the Pension Reform Act (PRA) 2014.

    It is also expected that the plan would expand the coverage of pension contributors by an estimated 30 million people by the year 2024. This category of workers constitutes a large percentage of the working population in the country. Under this initiative, the Commission categorised the informal sector into three including, the low-income earners, the high-income earners and the Small & Medium Scale Enterprises (SMEs).

    Besides, the plan aims at ensuring that the informal sector participants save towards their old age.

    The Acting Director-General, PenCom, Mrs Aisha Dahir-Umar, in an interview with reporters, said the introduction of the scheme aims to provide pensions for Nigerians in the informal sector, not covered under the CPS.

    She said: “It will expand the scope of coverage of the CPS, increase financial inclusion, create additional membership/contributor in the CPS and increase the pool of pension funds, available for investment and economic development.

    “It is worth noting that the micro pension initiative of the Commission started in accordance with Section 2(3) of the Pension Reform Act, 2014, which provides that employees of organisations with less than three employees as well as self-employed persons shall be entitled to participate under the scheme in accordance with the guidelines issued by the Commission.

    “This gave rise to the creation of the MPP with the attendant formulation and development of the Framework and Guidelines for the plan. The guidelines have been approved by the Federal Government and issued to the Operators. The guidelines have also been hosted on the Commission’s website for public use. The department has been involved in reaching out to prospective stakeholders as well as collaborating with relevant institutions to create awareness about the plan. Enlightenment materials on the plan are being put together by the Commission, and both the Commission and the operators are working on payment platform for flexible contributions and withdrawals on the plan.

    “Due to the peculiarities of the informal sector, the Micro Pension Plan would be flexible, safe, convenient and simple. Over time, old age poverty will decrease with the introduction of the Micro Pension Plan because the informal sector worker would have saved for retirement while active. The additional savings from Micro Pension Plan would aid economic development and macro-economic stability through investment in infrastructure and financial markets. It will enhance pension coverage and improve Gross Domestic Product, and ensure financial security for the family as contributions will pass to the next of kin in case of contributor’s death.

    “Despite the benefits of the plan, there are a few envisaged challenges that may hinder the smooth implementation of the Micro Pension Plan in Nigeria. For instance, some of the low-income earners, who constitute the third segment of the informal sector are mostly illiterate and thus, inexperienced with formal financial transactions and institutions. Unlike the high-income earners that can deposit in a lump sum, lower-income earners are daily wage workers and as such are unable to deposit large amounts.

    “The Commission expects that the implementation of the Micro Pension Plan will yield positive results for Nigerians and the Nigerian Pension Industry. There is, however, the need to create more awareness about the plan. The implementation of the Micro Pension Plan, is expected to improve the standard of living of the informal sector participants at retirement and reduce dependence on extended family for support at retirement.”

    The Head of Corporate Communications, Peter Aghahowa, on his part explained that the commission conceived the micro pension idea since 2010.

    He noted that the commission carried out several studies, while there were also delegations outside the country among others.

    This, he said, gave the commission the justification to include it in the repealed pension law in 2014.

    He stressed that it was after it was included in 2014, that the intensity of work began.

  • 248,000 retirees earn N9.36b monthly pensions under CPS, says PenCom

    Over 248,000 retirees have  begun reaping the benefits of the Contributory Pension Scheme (CPS), taking home over N9.360 billion pensions monthly, just as the pension industry has accumulated over N8.73 trillion worth of assets as at December 31, 2018.

    While 194,000 retirees earn an average pension of N6.56 billion under Programmed Withdrawal, 54,000 of them have received an average of N2.8 billion under life annuity monthly pension as at December 31, 2018.

    This was disclosed by the Acting Director General, National Pension Commission (PenCom) Mrs Aisha Dahir-Umar,  in a chat with journalists in Lagos.

    “Indeed, about 194,000 have retired and were receiving an average pension of N6.56 billion under the Programmed Withdrawal Arrangement while 54,000 retirees were currently receiving an average pension of N2.8 billion on monthly basis under life annuity as at 31 December 2018.”

    “To date, total pension contribution received from both the public and private sector employers for 8.3 million employees is about N5 trillion.  Accordingly, the CPS has opened the window for Nigeria to generate a sizable pool of investible funds. For the first time, the pension industry had accumulated over N8.73 trillion worth of assets as at 31 December 2018,” she said.

    According to her, the life annuity and the group life insurance programmes introduced by the CPS have facilitated economic growth through improved businesses in the insurance industry, particularly, as insurance is one of the focus sectors under the economic recovery and growth plan of the Federal Government.

    “Both PRA 2004 and 2014 mandated employers to maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employee. This provides another means of averting vulnerability to poverty and other levels of risk exposures to families of deceased employees,” she explained.

    She further noted that the provision of Guaranteed Minimum Pension under the PRA 2014 is quite a remarkable means of averting old age poverty through its strong redistributive impact and that it has provided a minimum income to all eligible persons, as an incentive to participate in the CPS, regardless of labour status in line with social assistance programmes in which citizens pool old age income risk.

    The guidelines and framework for implementing the minimum guaranteed pension, she disclosed, are still being worked out by the Commission.

    “The establishment of a uniform set of rules, regulations, and standards for the administration and payments of retirement benefits under the sole regulatory control of the Commission would also help to avert the credibility crisis that characterised the old pension scheme and some social security programmes.”

  • 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.

  • ‘PenCom working to keep pension funds safe, profitable’

    The pension fund has hit N8.5 trillion and it keeps rising. What should be done with this huge cash reserve? National Pension Commission (NPC) Acting Director-General Mrs Aisha Dahir-Umar urges caution in investing the fund, as she speaks on its status, backlogs of pension payments, Retirement Savings Account and access to residential mortgage. OMOBOLA TOLU-KUSIMO met her.

    Contrary to the provisions of the Pension Reform Act 2004, retirees have not received their pensions for over five years. What caused this and what are you doing to clear the backlog?

    Section 39 (2) of the Pension Reform Act (PRA) 2014 mandates the Federal Government to pay into the Retirement Benefits Bond Redemption Fund Account, not less than five per cent of the monthly wage bill paid to employees in the Public Service of the Federation to redeem the accrued pension right of Federal Government of Nigeria (FGN) retirees. However, in the last five years, budgetary funding and releases have not been regular and adequate for the payment of outstanding accrued pension rights over this period as a result of the decline in government revenue.

    Also, in 2017, only 44.4 per cent of the total amount requested by the Commission was approved and released by the Federal Government for paying accrued pension. This shortfall has been responsible for the accumulation of several months and backlog of unpaid accrued pension rights. However, with the full release of the total amount approved in the 2018 FGN budget by the Federal Ministry of Finance, the Commission has paid Federal Government employees who retired up to last February as at January 23, 2019. We are also processing the payment of employees who retired up to last May and 1,079 employees who retired but missed the previous general enrolment. In essence, by the end of last month, retirement benefits of the Federal Government employees who retired between June 2018 and January 2019 will be outstanding due to shortfall in budgetary provisions in 2017 by the Federal Government.The Commission has been engaging the relevant authorities to ensure funding of the outstanding accrued right liabilities, especially the shortfall in 2017 budget. A submission has been made to the Federal Government during the Inter-Ministerial Committee meeting in 2017 to consider the issuance of Bond through the Debt Management Office (DMO) to fund these arrears as aa alternative to budgetary allocations.

    The commission started the Multi-Fund Structure last July. How successful is it?

    The Retirement Savings Account (RSA) Multi-Fund Structure was conceived by the commission to align with contributors’risk appetite with their investment horizon, at each stage of their life cycle. The main objectives of the RSA Multi-Fund Structure are to achieve optimum returns for contributors by aligning their pension savings with their individual risk/return profiles, provide investment portfolio choices to Contributors, and enhance safety of pension assets through adequate portfolio diversification, through increased investment in equities and alternative assets, such as infrastructure and private equity. We have recorded some successes so far. As at December 31, 2018, the RSA Fund had been successfully split into four funds, while the sensitisation of RSA contributors is still ongoing to create awareness on the features of the RSA Multi-Fund Structure. At present, RSA contributors  now have the opportunity to choose a Fund that best suits their risk-return profile. I would say the challenges so far have been low public education and awareness. There is low public awareness of the workings and benefits of the  Contributory Pension Scheme (CPS). There are also limited Investible Securities. The Bond Market is dominated by FGN Bonds, which offer relatively high yields, and thus crowding out non-government bonds.

    Similarly, there is a dearth of alternative assets, such as infrastructure funds, private equity and real estate that meet the investment requirements of pension funds. However, the RSA Multi-Fund Structure is still at the very early stage of implementation,with just six months of commencement.

    Investment of pension fund seems to be going more into FGN securities, by about 70 per cent. Why? Why has it not been  put into other projects?

    The regulation on investment of pension fund assets prescribes allowable asset classes and investment limits for pension fund assets. Accordingly, pension funds may be invested in securities, such as Quoted Ordinary Shares; FGN Securities (FGN Bonds, Treasury Bills, Agency Bonds, Sukuk Bonds, Green Bonds); State Government Securities; Corporate Debt Securities (Corporate Bonds, Corporate Infrastructure Bonds); Money Market Securities (Commercial Papers, Bank Deposit/Placements etc.); Mutual Funds (Open-Close End Funds, REITs, etc.); Private Equity Funds; and Infrastructure Funds. Meanwhile, the major objectives of pension fund investment are “safety” and “fair returns”. FGN Securities are viewed as “risk-free” securities, and over the last couple of years, the fixed income market had been dominated by FGN Securities, which offer relatively high yields. The high yields and low risks offered by FGN Securities, as well as the volatility of the stock market in recent years, influenced the “flight-to-safety” approach adopted by pension fund managers to safeguard the value of pension assets and minimise losses to contributors.

    What are the trends in the market that will make good impact in the next five years?

    The commission recently embarked on a number of initiatives, which would impact positively on the financial market and economic development in the mid- to long-term. These initiatives include the introduction of micro pension and non-interest funds and access to RSA for residential mortgage. The Commission is in the final stages of preparation for the launch of the micro pension scheme, which aims to provide pensions for Nigerians in the informal sector not covered under the CPS. Similarly, the introduction of the non-interest fund is aimed at enhancing financial inclusion by targeting pension contributors who would prefer access to non-interest financial services. These initiatives are expected to impact the workers and the economy as follows: expand the coverage of the CPS; increase financial inclusion; additional membership/contributor in the Contributory Pension Scheme; increase the pool of pension funds, available for investment and economic development; and increased financial market development, for non-interest products.

    Also, the commission is working assiduously to ensure that contributors can have access to their RSA for residential mortgage.The main objective of Section 89 (2) of the Pension Reform Act (PRA) 2014 is to facilitate access by RSA holders to residential mortgages as well as stimulate the housing and mortgage finance sector. The Commission is working with the Central Bank of Nigeria (CBN) and stakeholders in the mortgage sector to develop appropriate “Guidelines on Accessing Retirement Savings Accounts towards Payment of Equity Contribution for Residential Mortgage by Holders of Retirement Savings Accounts”. The guidelines are expected to be issued in the year.

    Many firms are not remitting pension after deducting from their employee’s salaries. What are you doing about this?

    The commission, in line with the provision of the PRA 2014, has developed a Framework for Recovery of Outstanding Pension Contributions with penalty for defaulting employers.  Based on the Framework, the commission has engaged recovery agents for continuous enrolment into the CPS and recovery of unremitted pension contributions plus penalty from defaulting employers. The recovery, which has been largely successful,has boosted the confidence of contributors and by extension encouraged non-participating employees and employers to embrace the Scheme. Through the initiative of recovery agent,  N15.31 billion representing a principal contribution of N7.85 billion and penalty of N7.46 billion have been recovered from defaulting employers. Both the principal contributions and penalty have been credited into the workers’ RSA accounts. The penalty is meant to compensate for the income that would have been earned if the contributions were remitted as and when due. The commission is also prosecuting recalcitrant employers who fail to remit their employees’ pension contributions into their RSAs.  As at today, the commission has instituted legal actions against 167 recalcitrant employers. Of that number, 78 have opted to settle out of court, 34 judgments have been obtained and 23 are at different stages in the courts.

    Meanwhile, the commission has a fully functional Complaints Monitoring and Resolution Team, which attends to complaints on non/late/under-remittance of pension contributions into employees RSAs.

    Your commission has been trying to capture the informal sector through the Micro Pension Scheme. Please give us an update on the scheme?

    The Micro Pension Plan is fallout of the Commission’s corporate strategy of inclusive and expanded coverage of the CPS. The micro pension initiative started in accordance with Section 2(3) of the PRA 2014, which provides that employees of organisations with less than three employees as well as self-employed persons shall be entitled to participate under the scheme in accordance with the guidelines issued by the commission. This gave rise to the creation of the Micro Pension Plan with the attendant formulation and development of the framework and guidelines for the plan. The guidelines have been approved by the Federal Government and issued to the operators. The guidelines have also been hosted on the commission’s website for public use. The department has been involved in reaching out to prospective stakeholders as well as collaborating with relevant institutions to create awareness about Micro Pension Plan. Enlightenment materials on the plan are being put together by the commission and both the commission and the operators are working on payment platform for flexible contributions and withdrawals on the plan. The guidelines on the investment of micro pension fund will soon be issued. Also, structures are being put in place to ensure effective monitoring and regulation of the plan. PenCom and operators are collaborating to come up with modalities for a hitch-free launch and eventual implementation of the Micro Pension Plan. It is expected that the launch of the Micro Pension plan will take place in the first quarter of the year.

    Does the commission have adequate capacity to monitor fund operators?

    The Commission has sufficient capacity to monitor the activities of all licensed pension fund operators as its key objective is to ensure that every person who worked in the public service of the federation, state government or the private sector receives his/her retirement benefits as and when due. In that regard, the commission issued a regulation for the administration of retirement and terminal benefits, which clearly specified period within which operators are to contact intending retirees and notify them on documentation needed, mode of retirement and time frame for the processing and crediting of the RSA of the beneficiaries. In addition, operators are mandated to render monthly pension payment returns to the commission as well as benefit payments made within the period, which include the details of the retiree, RSA number, date of payment and amount paid, among others. Furthermore, the commission conducts on-site routine examination of licensed operators to review the benefits administration of the PFAs, including timeliness for benefit payments. However, sometimes the delay in payment of benefits by some operators could be attributed to incomplete documentation from retirees, incorrect bank details; and delayed payments or remittance of accrued rights for employees of Treasury Funded Ministries Departments and Agencies (MDAs) of FGN prior to 2004.

    What assurances do you have for retirees awaiting their pension?

    We thank them for their patience and assure them that everything is been done to settle all arrears. The government is also putting structures in place to ensure it remains in payments moving forward. In other words, paying in arrears will soon be a thing of the past.

  • PenCom grants new PFA licence

    The National Pension Commission (PenCom) has issued license to a new Pension Fund Administrator (PFA).

    The PFA is named the Nigerian University Pension Management Company Limited (NUPEMCO).

    NUPEMCO, according to PenCom, will operate like a Pension Fund Administrator (PFA).

    A statement made available to newsmen read: “PenCom has approved the issuance of a licence to Nigerian University Pension Management Company Limited (NUPEMCO) to carry out the business of a Pension Fund Administrator (PFA).

    “This approval is consequent upon a detailed evaluation of NUPEMCO’s compliance with the requirements, terms and conditions stipulated by the Commission.”