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Tag: pension

  • Pension fund hits N7.094tr

    Despite the adverse effects of recession  on businesses in the country last year, Pension fund assets under the  Contributory Pension Scheme (CPS) hit N7..094 trillion as at August 31, 2017 from the N5.904 trillion recorded in the same period of 2016.

    This represents a remarkable growth when compared with the amount recorded in August, 2016.

    This was made known in the Summary of Pension Fund Assets Report released by the National Pension Commission (PenCom).

    The report showed that as at January 2017, the fund grew from N6.255 trillion and increased to N7.094 in August.

    The investment of the pension fund in the report further showed that Federal Government Bonds took the larger chunk of the fund in August 2017 with N3.792 trillion investment representing 53.46 per cent.

    Treasury bill received  the second largest chunk of the fund with 18.59 per cent resulting to N1.318 trillion in the period under review.

    State government bonds however got 2.24 per cent or N159.178 billion, Agency Bonds (NMRC and FMBN) got 0.04 per cent or N3.058 billion, Corporate Debt Securities got 3.70 per cent or N262.659 billion and Supra-National Bonds got 0.16 per cent or N11.029.

    In all, Federal Government Securities has received 78.19 per cent of the total pension as at August, 2017.

    The pattern of investment shows that Pension Fund Administrators (PFAs) have great confidence in FGN Securities.

    Only 21.8 per cent was invested in other areas which include Domestic Ordinary Shares, Foreign Ordinary Shares, Local Money Markets, Mutual Funds and Real Estate Properties.

    Domestic debt securities is the third largest area where the fund was invested with N632.46 billion, representing 8.91 per cent in August 2017. Foreign Ordinary Shares on the other hand received only 1.37 per cent.

    The sum of N501.43 billion representing 7.06 per cent of the fund was invested in Local Money Market Securities. The fund was invested in banks as fixed deposit and commercial papers. The percentage invested this year in this area dropped from 7.5 per cent to 7.06 per cent between August 2016 and August 2017.

    Real estate properties received 3.6 per cent of the  fund  which is N212.915 billion.

    Recall that the Federal Government has been clamouring that the amount invested in this area should be increased so that there may be housing for all Nigerians.

    Investigation by The Nation shows that although the fund is not growing as projected by the commission owing to recession, the pension fund may in few years reach N10 trillion mark going by the projected average growth of N30 billion.

    Acting Director General PenCom, Mrs Aishat  Dahiru-Umar  in a paper presentation in Abuja said the number of registered contributors grew to 7.4 million as at March, 2017.

    This, she stated, represents about 7.45 per cent of total labour force in Nigeria and 3.95 per cent of total population.

    She said: “The total pension fund assets grew to N6.42 trillion as at  March, 2017 with an average monthly contributions about N30 billion. The total pension assets were equivalent to about six per cent of the Nigerian rebased GDP. The pool of pension fund generated by the Contributory Pension Scheme has aided the deepening of Nigeria’s financial sector and provided a platform for attaining strategic programmes of government in the areas of infrastructure, housing and the development of the real sector of the economy.

    “The CPS has simplified the process of payment of retirement benefits through the issuance of effective regulations and guidelines for accessing such benefits. Over 184,979 had retired under the Scheme as at March 2017 and are currently receiving pensions as and when due with an average monthly pension payment of N6.7 billion as at the same period.

    “The pension reform has gained public confidence and acceptability within the short period of its implementation. The private sector, which hitherto was apprehensive of the CPS as a ploy by the public sector to raise funds to address its huge pension liabilities, has come to accept and is religiously implementing the reform. To date, about 200,000 private sector employers of labour are implementing the CPS and have contributed about 60 per cent of the total pension fund assets.

    “The Contributory Pension Scheme has also introduced transparency and integrity in the pension administration system in Nigeria. From inception of the reform to date, there had not been a single incidence of fraud or mismanagement of the pension funds and assets under the Scheme”, she added..

  • Retirees urge govt to pay 33% pension arrears

    Retirees urge govt to pay 33% pension arrears

    The Nigeria Union of Pensioners (NUP) has appealed to the Federal Government to expedite action on the payment of 33 per cent arrears of pension increase to pensioners, who retired from the Nigeria Police and other arms of the public service, to make life better and comfortable for them.

    Its President, Dr. Abel Afolayan, who made the appeal in an interview with The Nation in Abuja, urged the government to make provision for the payment of gratuity to pensioners, who retired from service under the Contributory Pension Scheme (CPS) similar to what was obtainable under the Defined Benefit  Scheme (DBS).

    Expressing optimism that the ongoing verification by the Pension Transitional Arrangement Directorate (PTAD) will put an end to incessant verification of pensioners, Afolayan said the government owed 18 months arrears of the 33 per cent to civil service pensioners and 30 months to police and parastatal pensioners.

    He said: “With all the verification exercises, we don’t envisage a situation where there will be incessant verification again once they have a data base of pensioners.

    “We are pleading with the government to expedite action in the payment of 33 per cent arrears of pension increase of 18 months to civil service pensioners and 30 months to police and parastatal pensioners so that the pensioners from there can be comfortable.”

    On pensioners under the CPS, Afolayan said “those who retired under the Contributory Pension Scheme are in two categories. Those who served partly under the DBS and partly under the CPS. The years they served under the DBS is supposed to be taken care of by the federal government.

    Afolayan said: “But that money is not being made available and so, it is creating a lot of problem. That money is running into several billions and so, the Federal Government has agreed to be paying five per cent of monthly salary bill to the Central Bank that offset that pension benefit.

    “The second category are those who spend their entire service years under the CPS. Those one are not supposed to have problem because the employers are supposed to deduct certain percentages from their monthly salary and match it with their contribution.

    “It is eight per cent from your salary and ten per cent from the employer. Once there is no problem with that payment, once you retire,you will start getting your entitlement.

    “Under the DBS, you are paid a bulk sum as gratuity. We are pleading that those under the CPS should also be paid a bulk sum as gratuity by their employers.”

  • Aremu opposes proposed Pension Reform Act amendment

    Nigeria Labour Congress (NLC) chieftain Issa Aremu  has advised stakeholders to reject the proposed controversial bill seeking to exclude the Police, Customs, Civil Defenders, Immigration and Economic and Financial Crimes Commission (EFCC) from the Contributory Pension Scheme.

    The bill, being sponsored by a House of Represtatives member,  Oluwole Oke, has passed second reading.

    In a statement in Kaduna, Aremu, also the chairman of the Interim Management Committee of First Guarantee Pension Fund Administrator, said Pension Reform Acts of 2004 and 2014, were outcomes of executive bills, which addressed the delicate interests of pensioners, government and the economy.

    He added that a private-member bill informed by “narrow and vested interest consideration” could not do justice to all.

    The labour leader also said any private-member bill, which seeks to erode the gains of the 13-year-old N7 trillion contributory pension scheme, in terms of coverage and resource pools, is “counterproductive” and should not be encouraged.

    He said pensions of the workers in security services were better secured in a national contributory scheme than the old “unfunded and unsustainable, discredited  Defined Benefits Scheme (DBS).”

    According to Aremu, until the recent contributory pension reform, all stakeholders bore witness to ugly features of corruption, inefficiency and share looting, which he claimed characterised  the old DBS.

    He added that to return to the old era means “bringing back corruption to pension administration through the National Assembly”.

    He advised the National Assembly  against what he called  ”the pitfalls  of frequent  self-serving out sourced amendments” of the Pension Act.

    He observed that the pension Act has just been amended through executive/all inclusive review two years ago, adding that with all it’s globally acknowledged successes the contributory pension covers only seven million workers. He added that to  further ask for exclusion of the security agencies only undermines the scheme with all the attendant negative implications for Nigerian economy just coming out of recession.

    Aremu, therefore, called all National Assembly members to reject the bill, saying it would not do any one any good.

  • Ortom: NLC blackmailing my government

    Ortom: NLC blackmailing my government

    • Says we inherited N69 billion salaries, Pension arrears

    Benue state governor, Samuel Ortom has said that his state inherited arrears of salaries, pensions and gratuity of about N69 billion which the bailout fund and the Paris Club refund has not been able to clear, accusing the Nigeria Labour Congress (NLC) at the national level of blackmailing his government and inciting workers in the state to embark on strike.

    Ortom who spoke at a book launch in Abuja said his state was paying the highest salary to its workers in the country and challenge the leadership of labour to contradict his claim by coming out with superior facts.

    He also challenge the leaders of Labour to drag his government to the anti-corruption agencies in the country is they feel that he was not fair to Benue workers in the appropriation of the federal government bailout fund to drag his government to the anti-corruption agencies.

    He insisted that the leadership of Labour should do a comparative analysis of remuneration of Benue workers with other states, insisting that he is paying higher than any other state in the country.

    Governor Ortom said his government was open to dialogue, urging anybody with superior programs to tackle the issue to bring it on the dialogue table.

    “I believe that the discussion is still ongoing. We will still talk even though I feel that we should not be discussing our problems in the media. I have told them to bring the issues on the table because government is ready to put all the figures on the table to anyone to see.

    “It is part of our transparency and accountability. One thing I can assure you is that we have formed a process of working towards it. It is not enough for the leadership of the labour union to incite the workers to go on strike at the National level and Benue state.

    “For me, it is not the best way of unionism and taking care of workers. Benue State has a peculiar problem. We inherited a debt arrears of N69 billion of pension, gratuity and salaries.

    “Now, the intervention from the federal government called Paris Club or bailout as they call even though it is a loan all together could not clear the N69 billion debt arrears. So, the challenge is still there and everybody knows about it.

    “The figures are on the table for everyone to see. For us, Benue is one of the States in the country paying the highest salary as at today I am talking to you. I challenge you to compare your note.

    “In other states where Permanent Secretaries are collecting N230, 000, we are paying N500, 000 because that is what we inherited. We believe in dialogue and discussion and if you have superior programs that can make things better for Benue people bring them on the table for discussion.

    “It is not just enough to go and incite people to go on strike to prove that that government is not paying. They should ask what has been the history. I challenge them to do analysis of what has been on ground.

    “The good thing is that none of the anti-corruption agency can indict us for misappropriation of bailout fund because we have been very transparent. That is where we are now,” he said.

  • Don’t interfere in pension contributions, PENGASSAN warns

    Don’t interfere in pension contributions, PENGASSAN warns

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Joint Tax Board ((JTB) and some state boards of internal revenue against interfering in the voluntary Contributory Pension Scheme as entrenched in the Pension Reform Act of 2014  and the 2015 amendment.

    PENGASSAN said such steps by the JTB and some state boards of internal revenue could jeopardise the relative industrial peace in the country.

    Reacting to the advertisements  by the tax bodies in some national dailies, threatening to impose taxes on withdrawals by workers from their voluntary contributions, the senior staff association in the oil and gas industry stated that this was contrary to the Pension Reform Law.

    In a statement signed by the National Public Relations Officer of PENGASSAN, Comrade Fortune Obi, the union said it was the responsibility of the National Assembly to amend any section of the Act as deemed fit, and that of the Judiciary to provide interpretations where necessary.

    “Hence it will be provocative for the JTB or state tax boards to unilaterally usurp the powers of the legislature and the judiciary by its planned and illegal move to tax such withdrawals. The tax authorities should be reminded that tax avoidance is the arrangement of one’s financial affairs to minimise tax liability within the scope allowed by law and is distinct from tax evasion which implies the illegal non-payment or underpayment of tax due,” he stated.

    Obi cited Section 4(3) of the PRA 2014, which provides: “Any employee to whom this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account”.

    “Section 10(4) of the Act further provides that “… Any Income earned on any voluntary contribution made under Section 4(3) of this Act shall be subject to tax at the point of withdrawal where the withdrawal is made before the end of five years from the date the voluntary contribution was made”.

    He noted that with these clear provisions, it is obvious that the tax authorities are over-stepping their bounds by attempting to place restrictions on withdrawals against the express provisions of the law.

    The PENGASSAN spokesperson said the association had concerns with some aspects of the law, but it has not taken the law into its hands by resorting to self-help as the tax authorities are attempting to do.

    “As a law-abiding association, we are waiting for a time when the National Assembly will initiate an amendment process so that we can make our inputs into the process and we hope that all stakeholders will toe the part of peace and honour.  On the other hand, if they cannot wait for such a time, then the appropriate thing is to approach the law courts to determine the legality or otherwise of the current provisions.

    He restated the PENGASSAN’s commitment to defend workers should the tax authorities go ahead with their threats to deprive workers from accessing fully their voluntary contributions as and at when needed.

    He added:  “However, we remain committed to dialogue to resolving whatever differences may exist between our association and other stakeholders.”

  • Lagos disburses N742m pension rights for August

    Lagos disburses N742m pension rights for August

    The Lagos State Government has disbursed N742 million pension payments for August.

    A statement issued by the Head of the Lagos State Pension Commission (LASPEC), Mrs. Basirat Lawal, said on Monday the money was released for the payment of 255 retirees.

    “Lagos cares and that is why it is committed by being up-to-date in pension payments. This administration advised the retirees not to live extravagantly.

    “In two years, from August 2015 to August 2017, the administration of Governor Akinwunmi Ambode through LASPEC has paid over N30 billion to retirees in form of accrued pension rights.

    “The Accrued rights were paid into the Retired Savings Accounts (RSA) of 7,232 retirees.

    “This is an achievement no other state has attained,” she said.

    Lawal said the beneficiaries were also urged to counsel relatives and friends still in service to embrace the Additional Voluntary Contribution (AVC) into their RSA.

    “The deduction field for AVC is now on the State Government’s Oracle HR application.

    “The AVC will guarantee more comfortable life for retirees as the funds are invested and can be accessed immediately by a retiree on retirement.

    “It can also be used to boost pension received in retirement,” she added.

  • ‘75% lump sum payment may destroy essence of pension’

    ‘75% lump sum payment may destroy essence of pension’

    The 75 per cent lump sum proposal sponsored by Senator Oluwole Oke at the National Assembly, if passed into law, may destroy the very essence of pension, the Managing Director, IEI-Anchor Pension Limited, Glory Etaduovie, has said.

    Etaduov, who spoke with journalists on the theme: ‘Industry Challenge and Ignorance on the Pension Industry Activities’ in Lagos, said the essence of pension is to ensure steady income at retirement.

    He said the Contributory Pension Scheme (CPS) is a social service that is ‘’pro-government, pro-people and they simply cannot play politics with it’’.

    He described what he called the ignorance of the activities of the industry is disturbing, stating that many of the leaders in the country show this symptom. He urged the leaders to cherish and grow it rather than deploying ways to kill it, stressing that Pension is a social service.

    He said: “Pension funds is not a pool of funds that can be accessed easily, as thought by many. They are individual accounts just like your personal accounts. No one can access more than he can. It took a lot of planning, discipline and diligence to assemble the funds.

    “The 75 per cent proposal sounds exciting but it is not futuristic. Steady pension payment is to both re-settle a retiree into a new life without creating a radical difference. It also retains income consistency considering the length of time one may live, up to 30 years of life after retirement. Many who may agitate for the 75 per cent lump sum in the name of business investment or building a house, may lose their money for not being skilled in business.

    Noting that managing pension fund requires a special skill,Etaduov said: ‘’Some may be duped of it. Managing bulk sum is not an easy skill, especially if it looks like your last chance for income at old age.We will all get there.We must not forget that aging is the alternative to dying and building a house should really not be with pension. It must be emphasised that the common complaints of delayed payments are not from the Pension Fund Administrators (PFAs) but the effects of transition from the old scheme to the new one.

    “The government is making efforts to pay up the accumulation of the old scheme to update the individual retiree accounts, hence, a lot of emphasis on using the Paris Club fund for pensions and salaries arrears. Pension business takes care of an important part of life when everything is looking down. It is a social service. It must be protected not destroyed. All of us will get there some day’’.

     

  • Why Saraki must return pension, Abuja house – Falana

    Why Saraki must return pension, Abuja house – Falana

    Beyond his directive to the Kwara State government to stop paying him pensions, Senate President Bukola Saraki should refund the pension he received since 2007, Lagos lawyer Femi Falana counselled yesterday.

    Falana, a Senior Advocate of Nigeria (SAN), said it will still be immoral for the formal Kwara governor to admit collecting double salaries without returning what he had illegally earned after leaving office.

    In a statement, the activist lawyer, however, lauded the senator for admitting the error, urging other ex-governors, now serving as lawmakers and members of the Federal Executive Council (FEC) to take a cue from Saraki.

    He also said it was wrong of the former governor to hold on to the house built for him in the Federal Capital City (FCT), Abuja, at a time he was allegedly collecting housing allowance as the Senate President.

    Falana said: “Since Dr. Saraki has come to the conclusion that the collection of the pension is immoral he is advised to refund the pension he had collected from the Kwara State government since he became a Senator in June 2007.

    “He should also relinquish the house bought for him in Abuja by the Kwara State government since he is said to receive housing allowance as President of the Senate.”

    Falana’s statement entitled: “All ex-governors should emulate Dr. Bukola Saraki”, reads: “The Senate President, Dr. Bukola Saraki announced last week that he had stopped collecting pension as a former governor of Kwara State following the protest by the Socio-Economic and Accountability Project (SERAP).

    “According to the Senate leader, the moment his attention was drawn to the allegation of the payment of double salaries he wrote to the Kwara State government to stop the payment of his pension. In like manner, three serving ministers in the Buhari administration who are former governors have disclosed that they are not being paid pension from any the state government.

    “Other ministers and legislators who are former governors and deputy governors should speak out so that Nigerians can know the public officers who are involved in the illegal collection of pension from stste governments and salaries from the Federal Government pat the same time.

    “Apart from writing to the Kwara State government to stop further payment of the pension due to him under the former governors’ pension law of Kwara State,  Dr. Saraki decided to contribute to the debate on double payment of salaries by some ex-governors.

    “In condemning such payment, Dr. Saraki stated that ‘morally, if you have got another job, you should give it up until when you are truly a pensioner. Some of these oversights are not addressing the issues. What the states should do is to go and amend their laws to say that if you have another appointment then you are not entitled to that benefit. With this, we will just simplify the matter’.

    “With respect, the proposed amendment of the obnoxious laws will not ‘simplify the matter’.

    “However, while Dr. Saraki is commended for demonstrating leadership by example with respect to the illegal collection of the ex-governors’ pension he should proceed to use his position as the President of the Senate to prevail on the 20 other senators who are former governors and deputy-governors to stop further collecting pension from their state governments since they are currently receiving jumbo salaries and allowances from t National Assembly.

    However, Dr. Saraki’s call on the houses of assembly of the states to amend the laws to stop the payment of pension to ex-governors who are receiving salaries from the federal government either as senators or ministers has not addressed the immorality and illegality of the payment.

    “In fact, the popular demand of the Nigerian people is that the scandalous pension laws be repealed in toto as there is no legal or moral basis for  paying the salaries of a sitting governor to  former governors and then provide them with vehicles and two houses, one in the state capital and another one in the FCT, more so, that majority of the states are owing workers arrears of salaries.

    Finally, the members of the Lagos State House of Assembly are alleged to have concluded plans to amend the ex-Governors’ Pension Law with a view to extending the largesse to the principal officers of the legislative body.

    “The legislators should jettison the dangerous plan. Since majority of the legislators claim to be Awoists it is pertinent to remind them that while he was the Premier of the Western region the late Chief Obafemi Awolowo lived in his personal house at Okebola Ibadan.

    “The tradition of personal sacrifice by political leaders in Nigeria continued up to the second republic. Hence, Alhaji Lateef Jakande lived in his Ilupeju residence and rode his private car while he was governor of Lagos State for four years. What then is the justification for buying two houses for former governors in the same state?”

  • PTAD pays July pension

    PTAD pays July pension

    The Pension Transitional Arrangement Directorate (PTAD) has paid out N7,389,954,164.03 as July pensions to about 237,306 pensioners in federal government agencies under the Defined Benefit Scheme.

    PTAD also announced that it will transfer payment of pensions of retired Heads of Service and Permanent secretaries who fall under the Contributory Pension Scheme to the National Pension Commission from January 2018. 

    A statement from the management of PTAD made available to The Nation on Saturday said 98,362 Pensioners who retired from the Parastatals Pension Department (PPD), 16,111 Pensioners under Police Pension Department (PPD), 110,753 Pensioners under Civil Service Pension Department (CSPD) and 12,080 Pensioners under Customs, Immigration and Prisons Pension Department (CIPPD) where paid.

    The statement said the Directorate is committed to keeping its promise of making prompt payment to Pensioners as at when due, stressing that PTAD was a Treasury Funded Agency and rely on financial releases from government to pay the workers.

    In a separate statement, PTAD said the payment of retired Federal Heads of Service and Permanent Secretaries who fall under the Contributory Pension Scheme will now be done by PENCOM with effect from January, 2018.

    It said  while there are 217 retired Federal Heads of Service and Permanent Secretaries, 137 fall under the Defined Benefit Scheme (DBS) while 80 are of the Contributory Pension Scheme (CPS), adding by law, while PTAD administers all pension matters under the Defined Benefit Scheme and PENCOM handle retirees under the Contributory Pension Scheme.

    It said further that “Under two Memoranda of Understanding (MoU) signed in 2016 and 2017 between both Pension agencies, an agreement was reached for PTAD to pay the monthly pensions of retired Federal Heads of Service and as such, budgetary provisions were made in the 2017 Budget for payment of all 80 retired Federal Heads of Service and Permanent Secretaries under the Contributory Pension Scheme. 

    “Thus far, PTAD has been able to ensure that these senior citizens have received their pension entitlements till date and will continue to do so until 31st December, 2017.

    “PENCOM has prepared the necessary guidelines for the payment of the retired Federal Heads of Service and Permanent Secretaries under the CPS. 

    “This was a critical area the Executive Secretary of PTAD, Sharon Ikeazor had earlier stressed a need for, to ensure smooth transition devoid of hitches which could negatively impact on pension payments.

    “The Acting Director General of PENCOM, Aisha Dahir – Umar gave assurances to the Council of Retired Federal Permanent Secretaries (CORFEPS) representatives of a seamless transition as budgetary preparations were in progress to ensure payments are effected from January, 2018. Of recent, PTAD had carried out a verification of retired Federal Heads of Service and Permanent Secretaries.”

  • Wabba decries employers non-remittance of pension fund

    Wabba decries employers non-remittance of pension fund

    Nigeria Labour Congress (NLC) President Ayuba Wabba has chided employers who failed to remit pension funds, saying their action is a threat to the contributory pension scheme.

    Speaking at the Annual General Meeting (AGM) of Trustfund in Abuja, Wabba, a director in the organisation, lauded the Pension Fund Administrator (PFA), saying the NLC had directed its sectoral unions to compile names of organisations that deduct workers’ money but fail to remit it.

    He said: “During my visit to some of our sectoral unions, I urged them to follow up on the employers that deducted but failed to remit, and ensure that the right thing is done for the benefit of the working class. Where any employer refuses to comply, the national secretariat will step in. It is criminal for any employer not to remit deducted money because the law makes it compulsory for every employer to remit pension funds.”

    He lauded Trustfund Managing Director Mrs. Helen Da-Souza for ensuring that the PFA stayed afloat, and declaring dividend in an unfriendly environment occasioned by the recession.

    “There are challenges with the remittances of deducted fund especially by the employers, including state governments as they often fail to remit these funds. Trustfund is able to overcome the challenges because of the ownership structure of the organisation. Labour presence on the board of Trustfund ensures that the policies and operations of the organisation are tailored towards enhancing the well-being of workers and guarantee maximum return on investment.”

    In a related event, Wabba has commended the National Assembly for passing into law a bill on  Local Government autonomy.

    He gave this commendation at a  briefing in Abuja.

    He said the National Assembly deserved commendations for voting in favour of local government autonomy, despite pressure from interest groups.

    Wabba was optimistic that, if assented to, the amendments would free the local governments from the strangle-hold of state governments, and widen the democratic space as well as restore the lost glory of local governments.

    “The local government system,  known by various names, is the oldest form of administration, and sadly, the most abused and exploited in our post-colonial history.

    “Until progressive decline and bastardisation set in, the local government represented the centre of administrative excellence, clinical efficiency, training, education, development, tax administration and effective commodity boards. Local governments also represented maintenance culture of infrastructure, including roads, environmental sanitation, functional health facilities, low incidences of corruption and violent crimes. The singular reason for this magical performance was that local governments were close to the people and ministered to their needs,” he said.

    Wabba urged governors “to sheathe partisan or insular considerations and support these amendments in national interest”.