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Tag: Pension Scheme

  • Five things to know about old pension scheme

    Five things to know about old pension scheme

    What does PTAD stand for?

    PTAD is an acronym for Pension Transitional Arrangement Directorate. PTAD is a wholly treasury funded extra-ministerial agency under Federal Ministry of Finance, responsible for the management of pensions under the old pension scheme (Defined Benefit Scheme-DBS) for pensioners who did not transit to the new Contributory Pension Scheme (CPS) which is currently in effect in Nigeria.

    What is the difference between Defined Benefit Scheme (DBS) and Contributory Pension Scheme (CPS)?

    The Defined Benefit Scheme (DBS) is the pension scheme that was in effect in Nigeria until 2007 when it was replaced with the Contributory Pension Scheme (CPD) as stipulated in the Pension Reform Act (PFA) 2004 and 2014.

    Under the DBS, the total pension obligation is borne by government as against the CPS where the accumulated pension at retirement is based on a pension plan in which an employer/employee contribute in varying percentages to build a retirement fund for an individual.

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    Under the CPS, the pension fund exists from the onset and payments can be made as at when due unlike the DBS which is wholly dependent on government treasury for funding.

    Who are pensioners under PTAD DBS?

    Any federal public sector employee entitled to retirement benefits that retired on or before the June 30, 2007 and has worked in any of the pension groups below falls under PTAD management. The Pension Groups (Departments) under PTAD (in accordance with Section 43 (3) of the Pension Reform Act) include Civil Service Pension Department (CSPD); Police Pension Department (PPD); Customs, Immigration and Prisons Pension Department (CIPPD); Treasury Funded Parastatals Pension Department (PaPD); and Pension Support Services Department (PSSD).

    What of state pensioners?

    There are also some state pensioners who are entitled to federal share. To be a state pensioner with federal share, a retiree must have been in employment for one of the regions of Nigeria before 31st day of March 1976 and retired before the 31st day of March 2011.

     Public sector employees irrespective of when they retired are however NOT under PTAD’S jurisdiction. The categories of persons mentioned in Section 291 of the Constitution of the Federal Republic of Nigeria (as amended) are Judicial officers of the Supreme Court & Court of Appeal; Members of the Armed Forces; and The intelligence and secret services of the Federation.

    What is approved retirement age?

    The Federal Government approved the 35 years of pensionable service or 60 years of age for retirement whichever that comes earlier. Public sector employees irrespective of when they retired are however not under PTAD’s jurisdiction. They are Judicial Officers of the Supreme Court and Court of Appeal; Military; and The Intelligence and Secret Services of the Federation.

  • Lagos sensitises council workers on contributory pension scheme

    Lagos sensitises council workers on contributory pension scheme

    The Lagos State government has sensitised employees of local government areas on the importance of the Contributory Pension Scheme (CPS).

    Director-General of the Lagos State Pension Commission (LASPEC) Babalola Obilana said the sensitization was important to ‘discuss essential updates and improvements to the CPS, as well as emphasize its crucial role in ensuring a secure and sustainable future for all public servants’.

    According to him, the CPS was established to guarantee that every employee has a reliable and sustainable source of income upon retirement.

    “The scheme is based on a straightforward principle – both employees and employers contribute a portion of the employee’s salary into a pension fund, which is then managed by a designated authority’, Obilana noted.

    He added: “Over the years, the administration of the CPS in Lagos State has evolved, with several key updates aimed at improving efficiency, transparency, and accessibility. These changes reflect our ongoing commitment to safeguarding pension funds and ensuring that your benefits are both protected and accessible when you need them most.

    “A significant recent development has been the strengthened collaboration between LASPEC, the Pension Fund Administrators (PFAs), and the Annuity Service Providers (ASPs). LASPEC is working tirelessly to streamline processes, ensuring that your pension benefits are easily accessible upon retirement. This collaboration is essential to ensuring that your retirement savings are properly managed and continue to grow over time.

    “However, it has come to our attention that several Public Servants have yet to open their Retirement Savings Accounts (RSAs). This oversight has serious implications for your future financial security. Without an RSA, your pension contributions remain in an Escrow Account, rather than being invested and managed to generate growth. This situation not only limits the potential of your retirement savings but also complicates the pension payment process when you retire.

    Read Also: PTAD: Resolving pensioners’ issues

    “I cannot stress enough the importance of opening your RSA without delay. If you have not done so already, I strongly urge you to take action today. The team at LASPEC is available to guide you through the registration process, assist with the required documentation, and provide information about the various PFAs available to you.

    “Furthermore, it is crucial for all public servants to regularly review their RSA statements to ensure that contributions are being debited and remitted correctly. While this may seem like a small task, it plays a vital role in safeguarding your long-term financial security. By checking these statements regularly, we can confirm that contributions are being accurately reflected and deposited on time. This proactive approach helps prevent errors, delays, or potential discrepancies that could impact your retirement plans, and fosters a culture of transparency and accountability.”

    Obilana also admonished the workers to update their records and participate in the Data Recapture Initiative which would ensure accurate and up-to-date information for workers.

    He added: “Today’s event also provides an opportunity for you to update your records and participate in a Data Recapture Initiative with our PFAs, ensuring that we have accurate and up-to-date information for every Public Servant. Accurate data is critical for tracking contributions and ensuring that benefits are calculated and disbursed correctly.

    “Effective communication, proper documentation, and timely submission of contributions are all essential elements in ensuring that employees experience a seamless pension process. I urge all stakeholders, including Local Government administrators, pension desk officers, and employees, to take full advantage of the resources available and follow best practices in pension administration.”

  • Corporate Governance in Contributory Pension Scheme: New paradigm of sustainability

    Corporate Governance in Contributory Pension Scheme: New paradigm of sustainability

    The Contributory Pension Scheme (CPS) has flourished in Nigeria in the last 20 years largely due to responsible corporate practices, engagement, and long-term value creation.

    Pension Fund Operators must continue to adopt sustainability-focused governance to thrive in the Nigerian pension industry.

    These were the submissions of the Acting Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, during the 2024 Annual Corporate Governance Conference organised by the Society for Corporate Governance Nigeria (SCGN) held in Lagos.

    In an address titled “Corporate Survival and Sustainability: The New Face of Governance,” Ms. Oloworaran shared insights on the evolving landscape of corporate governance in the Nigerian pension industry.

    She was represented at the Conference by the Commission Secretary/Legal Adviser, Muhammad Sani Muhammad.

    Corporate Governance in Pension Industry

    The Acting PenCom DG contextualized how corporate governance has moved beyond a narrow focus on profitability to encompass Environmental, Social, and Governance (ESG) criteria.

    She said this evolution has significant implications for the Nigerian pension industry, which has grown rapidly since the CPS was introduced in 2004.

    She stated that as of August 2024, pension assets have surged to N21.25 trillion, establishing pension funds as influential players in the Nigerian capital market, particularly through their investments in fixed-income securities and equities.

    She said: “The NGX Pension Broad Index, launched in collaboration with PenCom in 2023, embodies this shift. Designed to encourage diversification, the index seeks to measure the performance of pension fund equity portfolios more comprehensively, moving away from heavy concentrations in Banking, Consumer Goods, and Industrial Goods.

    “This initiative signals a broader objective: to position pension funds as active stewards of corporate governance, shaping Nigeria’s business landscape through responsible investment”.

    Ms. Oloworaran noted that Pension Fund Administrators (PFAs) must advocate for sound corporate governance in their companies.

    “Pension funds must take up their role as custodians of governance,” she stated, stressing that pension fund managers carry the responsibility of influencing companies towards ethical, transparent, and sustainable practices.

    “Active stewardship means more than attending annual shareholder meetings; it requires engaging with corporate boards, voting on critical issues, submitting shareholder proposals, and promoting ESG standards. By integrating these stewardship responsibilities within their investment strategies, PFAs can actively shape corporate governance, pushing for practices that ensure companies are resilient and aligned with long-term value creation”.

    Role of ESG in Pension Governance

    Ms. Oloworaran highlighted that ESG considerations are now fundamental to corporate governance, influencing decision-making and guiding investments.

    “ESG frameworks provide a structured approach to assessing a company’s financial health and sustainability, encouraging pension funds to prioritise organisations committed to responsible business practices. This shift is aligned with global trends, where pension funds are increasingly scrutinising how companies manage environmental risks, treat employees, engage with communities, and protect shareholders’ interests.

    “By emphasising ESG factors, Nigerian pension funds can reduce long-term risks, enhance reputational standing, and ensure financial performance. As the PenCom Acting DG explained, “ESG isn’t just a trend; it’s an imperative for pension funds committed to securing value for retirees and supporting a sustainable economy.”

    Read Also: Things to know about old pension scheme (3)

    Sustainable Investment Practices

    Incorporating sustainability is about creating a pension industry capable of withstanding economic, social, and environmental shocks.

    Ms. Oloworaran advocates for diversified investments, particularly in renewable energy and innovative tech sectors, to support both fund stability and national economic growth.

    “To uphold strong governance, PFAs are urged to proactively meet evolving regulatory standards, seeing compliance as a strategic necessity rather than a formality. Active engagement with stakeholders—employees, communities, and regulators—is deemed essential for transparency, trust, and accountability.

    “In order to consolidate governance efforts in the pension industry, Oloworaran proposed several key initiatives: development of a Stewardship Code to serve as a guideline for PFAs on actively engaging with investee companies, advocating for governance standards aligned with long-term value creation; establishment of a Pension Leadership Council, which will provide a platform for pension funds to consolidate their influence, engage with regulators, and offer oversight on governance matters within investee companies; and implementation of the Nigerian Sustainable Pension Principles to guide PFAs in incorporating ESG criteria into risk management and investment decisions, ensuring that pension funds contribute to sustainable economic growth”.

    Oloworaran’s presentation illuminated a path towards a more responsible and sustainable Nigerian pension industry, one that leverages ESG principles, engages stakeholders, and leads by example in a rapidly evolving market.

  • Things to know about old pension scheme (4)

    Things to know about old pension scheme (4)

    Why monthly pensions are sometimes delayed A number of reasons may cause delay in receipt of monthly pension. They include non- availability of funds, change in bank records or account numbering system; technical glitches on the e-payment platform; and operational delays by banks

    Can I still be verified if I missed verification in my zone?

    The Pension Transitional Arrangement Directorate has suspended walk-in verification at its headquarters and state liaison offices of pensioners captured under the Defined Benefit Scheme (DBS) until further notice. The suspension will affect pensioners under the Civil Service Pension Department (CSPD), the Police Pensions Department (PPD) and the Customs, Immigration and Prisons Pension Department (CIPPD).

    This is to allow PTAD conclude computation exercise for monthly pension payment due to pensioners whose data was collated and verified from across Nigeria. Normally, if you missed the verification in your zone, you could still be verified at our Abuja HQ.

    Read Also: CBN reassures stability of banking system

    To enable PTAD to schedule you for verification, kindly scan and email the necessary documents to complaints@ptad.gov.ng. They are: Letter or gazette of first appointment, Letter or gazette of confirmation of appointment; Letter or gazette of last promotion; Letter of retirement; Evidence of BNV; Computation sheet (If you worked with the state government and you have Federal share).

     What is the status of the 33% arrears?

    In 2014, the Federal Government approved an increment in pensions, effective July 2010, and PTAD commenced payment of the 33 per cent pension payment increase in October 2014, and all arrears for 2014 were paid in December 2014.

    Payments continued in 2016 and additional payments were made in November 2017 to all agencies that have arrears. As at April 2019, PTAD has been able to offset some of the arrears from all the pension departments. For instance, PTAD has paid 42 months arrears to pensioners of Civil Service Pension Department (CSPD) with no outstanding; same applies to Customs, Immigration and Prisons Pension Department (CIPPD), Police Pension Department (PPD) and Treasury Funded Parastatals Pension Department (PaPD)

    I am a diaspora pensioner. How do I get verified?

    In partnership with Nigeria missions and embassies abroad, PTAD is in the process of working out a verification process for all diaspora pensioners. In the meantime, any pensioner on a visit home can come to PTAD Headquarters in Abuja any day to be verified. Please ensure you come along with documents required for verification as listed above.

  • What you need to know about old pension scheme (Part 2)

    What you need to know about old pension scheme (Part 2)

    The old pension scheme, Pay-As-You-Go named Defined Benefit Scheme (DBS), is a pension administration that existed before June 30, 2007.  Consequently,  workers who retired before this period are being managed under the DBS.

    Here are more facts to know about the Defined Benefit Scheme (DBS):

    What documents are needed for verification under the DBS?

    Documents required for verification may vary from one pension group to another. For Parastatal pensioners, they would need a Letter of First Appointment; Letter of Confirmation; Letter of Last Promotion; Approved Letter of Retirement; Evidence of Change of Name (where applicable); Evidence of Transfer of Service where applicable; BVN Registration Slip stamped and signed by the bank; Original and Stamped Bank Statement for the last one month; Valid means of Identification like Driving License, Int’l Passport, National ID Card or Voters Registration Card; Due Pensioners – Birth Certificate/Sworn Affidavit of Age; and Disengaged Retirees –Evidence of Payment of Gratuity/ Severance Pay Slip.

    For Civil Service pensioners, they would need Letter/Gazette of first appointment; Letter/Gazette of confirmation of appointment; Letter/Gazette of last Promotion; Letter/Notice of retirement approved by a competent Authority; Severance Pay slip for disengaged retirees only; and Evidence of change of name where applicable.

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    Others are Duly stamped and signed NUBAN Bank statement on the Bank letterhead from period of retirement or date from which complaint was made till date; Computation Sheet duly stamped and signed by the state Auditor (State Pensioners with Federal Share); Birth Certificate/Age Declaration (Due Pensioners only); one coloured Passport Photograph; and Approval Letter of Merger/Condonation from Head of service OHCF (For those who merged their service).

    In the case of Customs, Immigration and Prisons pensioners, documents required are Letter/Gazette of first appointment; Letter/Gazette of confirmation of appointment; Letter/Gazette of last Promotion; Original Stamped and Signed Bank; Approval Letter of Merger/Condonation of service (Where Applicable); and Evidence of Change of Name where applicable.

    They will also need a Birth Certificate/Age Declaration (Due Pensioners only); Letter/Acceptance of Retirement; Severance Pay Slip(For Downsized Officers); and Identity Card.

    Police Pensioners on the other hand would need to provide Letter of Enlistmentp; Letter of Approval of Retirement; Pension Advice; Letter of Merger of service (for demoted officers); Current Bank Statement; Letter of Identification/Introduction; Letter/Gazette of confirmation; and Letter/Gazette of last Promotion; and Identity Card.

    What is the period of bank statement needed for verification?

    Duly stamped and signed NUBAN Bank statement on the Bank letterhead from period of retirement or date from which complaint was made till date. Where there is no complaint, bank statement for the last six months should be provided.

  • Textile workers knock governors for abandoning pension scheme

    • Hail Buhari on Micro Pension Plan

    THE National Union of Textile Garment and Tailoring Workers of Nigeria has condemned  governors yet to implement the Contributory Pension Scheme (CPS), saying they have no excuse 15 years after the scheme kicked off.

    Speaking with reporters in Abuja, the union’s Secretary-General, Comrade Issa Aremu, lamented that 19 governors were yet to domesticate the scheme. He said this was against the Pension Reform Act of 2014.

    He lamented that while some governors were finding it difficult to sign their workers onto the scheme, they  had devised ways of making political offices pensionable.

    Aremu faulted the practice where governors after serving for two terms of eight years become entitled to pension.

    This, he noted, is against the International Labour Law, which prescribed 10 years for a worker to be entitled to a pension.

    He said: “We are excited that we are having an inclusive pension scheme. What will make the scheme sustainable depends on the success we have recorded from those who have really been in the scheme.

    “Even for the formal sector, there is still so much work to be done. We  have about seven million workers covered and for the formal sector, that is not enough and I see some private sector employers that are not part of the scheme.

    “The one that is not acceptable is that some state government have not subscribed to the scheme. As at the last count, only 17 states had signed to the Contributory Pension Scheme.

    “This is a compulsory scheme and it should go round. I think the organised labour has to do more because if we are concerned about life at work through wages. We should also be concerned with life after work using pension.”

    He added that civil servants in many states were not covered, noting that this implied that when they left work, they would not have much to fall back on.

    He added: “This is unacceptable because these are governors who decided to make a non-pensionable job of two terms to be pensionable and this is a scandal that must be interrogated.

    “They all copy these laws to make two-term governors collect pensions to death. This is against the labour law, which states that one must work for a minimum of ten years to be able to get a pension. Two terms for governors are eight years.”

    He called on the National Pension Commission to intensify its enforcement mechanism so that many workers would be captured in the  scheme.

    “The pension scheme has guaranteed regular payment for our members. We, in the NLC, are not only advocating minimum wage for those who are working but we want a minimum pension for pensioners.

    “The large army of workers are in the informal sector and they have been excluded from the scheme. They need to think of life after work because this micro pension is vital for the workers.

    “This scheme should be able to cover 80 million people in the workforce and the informal sector covers about 70 per cent of the organised private sector.”

    Aremu, however, commended President Muhammadu Buhari for the Micro Pension Plan, which extends retirement benefits to informal sector workers.

    According to him, the President’s stamp would legitimise the CPS for informal and informal sectors.

    “If implemented, pension coverage will be more inclusive to include millions of self-employed who for now are not assured of life after work no less they are assured of life during work due to income inadequacy.

    “There will be sustainable investable funds for socio-economic development. So far, with as many as 8.5 million formal sector workers covered, as much as N8.7 trillion pension assets have been accumulated.

    “With potential 80 million workforce, the potential for accumulated workers’capital is better imagined. Micro pension is certainly a sustainable measure against mass income poverty that has pushed workers in both formal and informal sectors into the abyss of poverty.

    “With the micro pension launch and expected attendant increase in pension assets, there is no doubt that the nation is also assured of investable funds for poverty alleviation as well as wealth generation,” he said.

  • A pension scheme for informal sector operators

    The National Pension Commission (PenCom) is set to unveil the micro pension scheme for the self-employed and workers in the informal sector to join the Contributory Pension Scheme (CPS). The guidelines are being fine-tuned, writes Omobola Tolu-Kusimo.

    ARE you an architect, lawyer, actor, musician, business-man, trader, caterer, electrician, carpenter, cab driver, or a commercial motor cyclist? If yes, you will soon have an opportunity to save for your future under the Contributory Pension Scheme (CPS), courtesy of the Federal Government.

    How? The government through the National Pension Commission is planning to release a micro pension scheme that will enable self-employed persons and the informal sector to join the CPS. At present, the guidelines for the new scheme are being finalised preparatory to the take off of the micro scheme.

    The CPS, designed for the public and private sectors, was established under the Pension Reform Act 2004, which was repealed and replaced with the Pension Reform Act 2014, in 2014. Section 4 of the Act provides for a mandatory minimum contribution of eight and 10 per cent of employee’s monthly emolument by the employer and employee. Each employee is expected to open a Retirement Savings Account (RSAs) into which the contributions are to be paid, with a Pension Fund Administrator (PFA) licensed by the National Pension Commission (PenCom), established under section 17 of the Act, to regulate and supervise pension schemes in the country. The PFA is to manage and invest the fund in the RSA, from where a contributor will draw benefits on retirement in line with the provisions of the Act.

    Experts have described the scheme as the best thing to ever has happened to workers in the country and the economy, as it has given many who never knew they could have savings,  the opportunity to save for their future.

    Savings can be termed as money set aside through banks, or any other financial institution  for the rainy day.

    A legal practitioner and Executive Director, Centre for Pension Right Advocacy, Ivor Takor praised the scheme, saying  the CPS, being a mandatory scheme, has compelled employees and employers in the public and private sectors to save a minimum of 18 per cent of an employee’s monthly emolument into the employee RSA, from where employees will be paid retirement benefits. This, he said, has increased savings nationally.

    PenCom Acting Director-General, Mrs. Aisha Dahir-Umar, while apprising reporters of some positive developments in the CPS, said the net assets value of the pension assets of the contributory pension fund, was N7.779 trillion as at February 28.

    She said this represents an increase of N270 billion up from the value of N7.52 trillion as at last December 31. She ttributed the increase to new contributions received, interest/coupon from fixed income securities and net realised gains on equities and mutual fund investments.

    She said the number of contributors has grown by 390,000, as it increased from 7.50 million as at March 31, last year, to 7.89 million as at December 31, last year and then to 7.90 million as at last February 28.

    She said the Commission is intensifying efforts at ensuring the provision of the necessary infrastructure for the launching of the micro pension scheme, in line with the commission’s strategic objective of expanding coverage of the CPS to the under-served sectors, pointing out that it is a major part of the strategy for expanding CPS coverage.

    Mrs Dahir-Umar, who said guidelines for the micro pension scheme, were being finalised for the take off of the scheme, called on the public to send their suggestions to the commission.

    She said: “Micro pension refers to a financial arrangement for the provision of pension services to self-employed persons and informal sector workers in various trades and professions in Nigeria.

    “The Draft Framework and Draft Guidelines on the Micro Pension Plan, are available on PenCom’s website: www.pencom.gov.ng. The public is invited to send their comments and observations tomppguidelines @pencom.gov.ng.”

    Pension Fund Operators Association of Nigeria (PenOp) President, Mrs. Aderonke Adedeji, said the micro pension scheme was one of the best things that has ever happened to workers.

    She believes that the introduction of micro pension will enable the self-employed and those in the informal sector who, before now are not captured under the CPS, to be part of it.

    She said as, pension operators,, she and her team were waiting on PenCom to release the guideline for the the micro pension scheme to start, ststing that the CPS has provided a platform for workers to be part of the over N7.7 trillion pension fund assets.

    She said people who didn’t think they would have savings, now would have it it through the scheme.

    Mrs. Adedeji said the country can also boost of long-term funds, even as the pension industry has proved itself that it is here to stay. With good regulatory functions, pension fund managers have been able to build a solid foundation over the years.The scheme has made a lot of difference in people’s lives.

    “Sometimes, I think it is underestimated because today, you have people who didn’t think they would have savings. Now they would have it. Nigeria is now a country that has a pool of long-term funds. These are some of the benefits of the scheme and we are happy about it.’’

     

     Excerpts from Draft Guidelines

     for Micro Pension

    Section 2(3) of the Pension Reform Act, 2014 (PRA 2014) provides that employees with less than three employees as well as the self-employed persons shall be entitled to participate in the CPS in accordance with guidelines issued by the Commission.

    These persons mainly in the informal sector constitute the majority of the working population and are not covered by any retirement benefit scheme. Accordingly, the commission considers it necessary to develop the guidelines for the implementation of the provisions of section 2(3) through a “Micro Pension Plan”.

    The plan refers to an arrangement for the provision of pension to the self-employed and persons in the informal sector.

     

    Eligibility for participation

    The following persons not below 18 with legitimate source of income shall be eligible for participation in the Micro Pension Plan under Section 2 (3) of the PRA 2014:

    • Self-employed persons that belong to a trade, profession or Business association
    • Self-employed persons with a business registration as a company, partnership or enterprise.
    • Employees in the informal sector who work with or without formal written employment contract.
    • Other self-employed individuals

    Notwithstanding the provisions of above, persons from 15 and below 18 may also participate subject to the approval/consent of their guardians.

    Micro pension contributors shall be resident in Nigeria. A prospective Micro pension contributor shall be required to open a RSA by completing a registration form with a PFA of his/her choice.

    • Electronic registration through the internet or mobile phone should be made available by all PFAs.
    • PFAs shall electronically capture the applicant’s ten fingerprints and must pass the AFIS quality requirements specified in the guidelines for the registration of contributors/members issued by the commission.
    • Where the quality of the ten finger prints does not meet the required AFIS specification due to physical impairment, the PFA shall treat such prospective micro pension contributor as physically/partially challenged and shall register such in line with the guidelines for registration of contributors/members issued by the commission.
    1. The registration information shall be transmitted to the commission electronically by the PFA to enable PIN generation.
    • A maximum administration fee of N50 shall be charged on each RSA by the PFAs only in the months where the total contributions remitted into the RSA is above N4,000.
    • Where the nature of engagement of the contributor is not continuous, contributions could be made intermittently.
    • The narration of the standing order shall include the contributor’s PIN.
    • In all cases the narration of the transfer shall include the contributor’s PIN.

     

    Investment of Micro Pension Fund/Assets

    • Contributions under the Micro Pension Plan shall be managed as two separate funds, namely: Micro Pension Contingent Fund (MPCF) for the 25 per cent contingent contributions and Micro Pension Retirement Benefits Fund (MPRBF) for the 75 per cent retirement benefits contributions.
    • The investment of both Funds shall be in line with the Regulation on Investment of Pension Fund Assets issued by the Commission.
    • Management fees shall be in accordance with the Regulation on Fees Structure issued by the Commission.
    • PFAs shall render statements of accounts and other similar services enjoyed by Contributory Pension Scheme RSA holders/contributors.

     

    Benefit Administration

    • The participation of the informal sector in the CPS as provided by Section 2(3) of the PRA 2014 is primarily to provide for retirement benefits. Withdrawals/accessing benefits shall be two types reflecting the flexibility incorporated in the treatment of the contributions.

     

    Contingent withdrawal

    • The Micro Pension contributor shall be eligible to access the portion of his/her contribution available for withdrawal one month after making the initial contribution.
    • Subsequently, the Micro Pension Contributor shall be eligible to make contingent withdrawals at any time.
    • The Micro Pension contributor may withdraw the total balance of the contingent portion of his/her RSA including all accrued investment income thereto.
    • The timeframe for processing and payment of contingent withdrawals shall not exceed two working days.
    • Payment shall be made only to the Micro Pension Contributor’s designated bank account.
    • The PFA shall process all requests for contingent withdrawals.
    • The PFA shall notify the Commission of all payments made weekly.
    • The Micro Pension Contributor has the option of transferring part of his outstanding balance on the contingent portion to his retirement benefits portion.

    * Contingent withdrawals shall be subject to applicable tax laws.

     

    Retirement Benefits

    Withdrawal

    The Micro Pension Contributor shall qualify to access pensions upon attaining 50 or on health grounds in accordance with the Regulation for the Administration of

     

    Retirement and terminal benefits

    The Micro Pension contributor shall be required to fill a Micro Pension Retirement Notification Form at retirement. The PFA shall inform the Micro Pension retiree on the various options of accessing retirement benefits. The Micro Pension retiree shall decide on the mode of accessing retirement benefits either through the Programmed Withdrawal or the Life Annuity.

    The Commission shall approve all Programmed Withdrawals, Life Annuity and exit payouts under the Micro Pension Plan.

  • ‘Women to earn less in pension scheme’

    WOMEN stand to earn 37 per cent less in pension income due to pay gaps and shorter careers, a report from the European Commission has shown.

    The Pension Adequacy Report 2018 stated that 20.7 per cent of women were at risk of “poverty or social exclusion” in retirement, compared to 15.1 per cent of men.

    Across both genders, more than 17million people aged 65 and over in the the European Union (EU) were at risk of poverty or social exclusion, the Commission’s report said – a figure that had remained “nearly unchanged since 2013”. The risk increases with age, the report said, as incomes fall and needs increase.

    With 45.4 per cent, the Netherlands recorded the second-largest difference of all EU countries in average pensions between men and women.

    Out of 28 EU member states, the difference is only greater in Cyprus (48.7 per cent), with Germany following after the Netherlands at 42 per cent, the UK at 35 p[er cent, France at 33 per cent and Belgium at 27 per cent.

    Estonia recorded the smallest gap in average pension income between men and women (1.8 per cent), followed by Denmark, with a gender difference of 7.8 per cent. Other eastern European nations also fell below the 20 per cent mark, including the Czech Republic and Hungary.

    The Commission said that the relatively large pension gap in the Netherlands could be attributed to the lower total income from paid labour by women during their lifetime. This was reflected in their pension, due to the large share of work-related accrual in second-pillar pensions.

    Other factors affecting the total income, according to the Commission, were the popularity of part-time work among Dutch women and their relatively late entry into the labour market compared to other EU member states.

    The Netherlands’ female population also accrued an average of five years’ less employment history, in addition to 16 per cent lower hourly wages on average in comparison to the male workforce. These Dutch figures are on a par with the European average.

    The UK’s figures were broadly in line with the EU average. However, the report noted that pension coverage in the country was on the rise since the introduction of auto-enrolment in 2012.

    Overall, the difference in income over a lifetime accounted for two-thirds of the pensions gap between men and women in Europe, the Commission wrote.

    The link, however, cannot be made equally as strongly for all systems. Denmark and the Czech Republic, for example, had substantial differences in income between men and women, yet their pension gaps between men and women are relatively small, the report noted.

    Elements in pension systems that contributed to a smaller difference in pension accrual between men and woman included risk-sharing with minimum and maximum levels and the provision of pension cover when women did not work due to care responsibilities.

    In Estonia, income had virtually no influence on pensions, the Commission found, making the pension gap between men and women small. At the same time, however, the Estonian system had many pensioners living close to the poverty line.

    The Commission reported that countries with lower absolute levels of pension income had smaller gaps between male and female income.

    The pension difference between men and women has decreased somewhat in Europe: from 41 per cent in 2009 to 37 per cent in 2016, due to the arrival of new cohorts of women with a higher employment rate.

     

     

  • NASS workers poised for showdown over pension scheme

    Anxious over alleged multibillion naira manipulations in salary and pension payments, National Assembly employees are  bracing up for a showdown with the management this week.

    Although a much deferred visit by representatives of all Pension Fund Administrators ( PFAs ) has been scheduled for tomorrow, it was gathered that some NASS staff who are aggrieved  by the non-remittance of their pension contributions are now mobilizing to blow open the details of long-running pension racketeering involving billions of Naira between 2007 and now.

    Motivated by anxiety about the likelihood of suffering the same fate as current retirees who now receive less than N10, 000 because of non-remittance of their past pension deductions, some of the staff are said to be pressuring leaders of the National Assembly’s wing of the Parliamentary Staff Association of Nigeria (PASAN) to take a decisive action.

    The Nation gathered that some of the angry staff hope to use Wednesday’s congress of PASAN at the National Assembly in Abuja to mobilize and fix a date for picketing that may cripple work at the complex.

    On May 7, 2013, a similar situation had led PASAN to lead a massive protest over N11 billion salaries and allowances arrears but assurances by the then Senate President  David Mark and erstwhile Speaker of the House of Representatives, Aminu Tambuwal helped douse tensions.

    Although PASAN leader at NASS, Mr. Bature Isa refused to make any comment about the anxieties building up over suspicions about a pension racket and the under-payment of Consolidated Legislative Salary Structure (CONLESS), sources within the union confirmed a readiness to take up issues with management this time.

    “Aside from the CONLESS issue, a lot has been going on in the National Assembly’s pension records since 2007 till date and some top retired officials and a few serving ones may be complicit.

    “Last August, a Level 09 officer from Sokoto who was using a N13 million car was picked up and quietly released by NASS authorities over allegations that N720 million was traced to him and he is still working in the same unit today; nobody probed how much really developed wings through people like him but we only heard that he had paid back some money.

    “There is a general feeling of anxiety and restlessness because many of us now feel that our pension deductions and our future are not safe; how can one retire at Level 12 and be living on only N12, 000 pension merely because he is only getting what the PFA is bringing and nothing from his former place of work?

    “We want PASAN leaders to live up to expectations and also mobilize our retired members to start coming to NASS, to demand for statement of their pension deductions,” the source stated.

    According to another member of PASAN who requested anonymity for fear of serious sanctions by NASS management, two committees that includes some directors at NASS and representatives of workers is working on the issues but workers anxiety remains high because there is a determined ploy to scuttle the committees’ work.

    “We must make effort to ensure that at least 50% of pension deductions is recovered or fully accounted for, under-remittance and non-remittance of pension deductions have been going on since around 2006 and majority of retirees now face a serious situation a most vulnerable period in their lives.

    “The CONLESS arrears that were  approved is supposed to be on a bi-annual graduating basis but they have not been paying such from the National Assembly’s N115 billion allocation.

    “PASAN’ s decision to inaugurate a committee on these issues three weeks ago has compelled the NASS Pension Unit to now produce individual statements from which we now discovered that majority of people had their pensions deducted without remittances being made; you see deduction on pay slips but it is not reflecting on the pension deduction statement that you obtain from the NASS Pension Office.

    “It simply means that they made deductions, pushed it into an account somewhere, in fact, we now understand that they have an escrow account where they put ‘dead’ money; nobody knows how the top directors at the national assembly operate the escrow account.

    “The PASAN congress slated for next Wednesday is primarily to call on union members who are members of the National Assembly’s two committees on pension and CONLESS salary issues to come and brief PASAN members on their discoveries and developments thus far but vested interests at NASS do not want that congress to take place.

    “Each committee comprises three persons from our union and the NASS management has two very senior officials representing them; there are two directors from salary committee and two directors from pension committee.

    “We are hearing that management wants to scuttle next Wednesday’s congress or find an excuse to sack the PASAN Exco out of fear that our any persistence in our ongoing scrutiny could bring headaches for some past and current top officials,” he explained.

    Anxieties over the CONLESS issue and suspicions over the management of staff pensions had been building up for years but on Tuesday, May 7, 2013, hundreds of workers under the aegis of Parliamentary Association of Nigeria, PASAN, National Assembly chapter stormed the complex in protest· over N 11 billion salaries and allowances arrears.

    Assurances by former Senate President, David Mark and erstwhile Speaker of the House of Representatives, Aminu Tambuwal had helped end protests.

    Also, the Senate sitting of Wednesday, May 26, 2010, approved over N 11 billion for the payment of the Consolidated Legislative Salary Structure (CONLESS) in concurrence with the 100 per cent increase in salaries and allowances passed by the House of Representatives on Tuesday, May 25, 2010 for National Assembly workers, including the legislative aides and the staff of the National Assembly Service Commission.

    When contacted, the National Assembly’s Director of Information, Mr. Rawlings Agada said the matter was being unduly blown out of proportion, adding that much of the issues surrounding pensions and CONLESS payments pre-dated his appointment as well as that of the Clerk of the National Assembly.

    He further emphasized that the National Assembly’s management is working seriously with some committees towards resolving all outstanding issues.

  • Niger confirms N5.7bn pension fund missing

    Niger confirms N5.7bn pension fund missing

    Niger State government on Tuesday confirmed that a pension fund totaling N5.77 billion is missing.

    The money is 7.5 per cent employer/employee Contributory Pension Scheme deduction made on behalf of the Niger State Universal Basic Education Board (SUBEB) and local government councils in the state from 2007 to 2015.

    However, the state government has put in place a committee to ensure that the stolen funds are recovered and returned to government coffers.

    The Niger State Acting Governor, Alhaji Mohammed Ketso, disclosed these in Minna at the opening of a sensitization workshop on Effective Pension Management and Administration in Niger State.

    According to him, N5.779 billion and not N6.2 billion was the funds not remitted to the Pension Board during the period.

    Ketso added that the discovery followed the forensic audit of the pension scheme transactions carried out by the state government.

    He said the government has set up a committee to ensure that the stolen funds are recovered and returned to the government’s coffers.

    He said: “Let me reassure our pension contributors and all Nigerlites that we will ensure that every amount of money deducted as employers/employees contributions since the introduction of the contributory pension scheme in 2007 till date will be accounted for and applied judiciously in accordance with the law for the benefit of the workers who have worked hard and saved for their retirement.”