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Tag: pension

  • Legislators push for Pension Reform Act’s implementation

    Legislators push for Pension Reform Act’s implementation

     The National Assembly is pushing for the full implementation of the Pension Reform Act, 2014 to ensure that retirees under the Defined Benefits Scheme enjoy the same comfort in retirement with that of their counterparts under the  Contributory Pension Scheme (CPS), writes Omobola Tolu-Kusimo

    Workers across the world are taking more than a passing interest in what befalls them when they retire.

    In Nigeria, the story is not different. Though the country has crossed a milestone in reforming its pension system, much more still needs to be done in terms of implementating the new pension law, the Pension Reform Act 2014.

    The National Assembly says consolidating the gains of pension reform in the country will require full implementation of the enabling law, urging its action to ensure that retirees under the Defined Benefits Scheme (DBS) and the Contributory Pension Scheme (CPS) enjoy comfort in retirement.

    They also believe that the implementation of the law will ensure that never again will retirees, who have served their fatherland meritoriously, roam the streets begging for alms.

    The ongoing pension reform in Nigeria started with the enactment  Act which established the National Pension Commission (PenCom) and the CPS.  That became necessary because the DBS was not fully funded by governments across the country.  Relief came the way of retirees under the old scheme in 2013 when the Federal Government reformed the DBS with the establishment of the Pension Transitional Arrangements Directorate (PTAD).

    One year after PTAD was established, the Pension Reform Act, 2014 was enacted to repeal and replace the 2004 Act.  The new law gave PenCom regulatory roles over PTAD and further strengthened the latter to deliver on its mandate of ensuring that pensioners under the DBS get their pensions as at when due.

     

    In the beginning

    Before the establishment of PTAD, the Federal Government had set up the Pension Reform Task Force, headed by Mr. Abdulrasheed Maina, to reform the DBS.  Members of the task force were later alleged to have helped themselves from the money meant to pay pensioners to the tune of billions of naira while many of retirees died in poverty.

    The allegations led to the sack of the task force and their job became a subject of investigation by the Seventh National Assembly.  Revelations of massive fraud perpetrated by the members of the team were unearthed even as Maina was said to have shunned invitation by the legislators to come and clear his name.

    Just lately, Maina and some members of his team, now answering fraud charges at various law courts, began sponsoring intensive media campaigns to disparage the revelations made by the National Assembly and showcase some unconfirmed achievements recorded by the team in an attempt to convince the President Muhammad Buhari to reinstate them.

    However, giving vivid details of the discoveries of the Senate Committee on States and Local Governments in the Seventh National Assembly, its Chairman, Senator Kabiru Gaya, observed that prior to pension reform in the country, government found it extremely difficult to address the issue of pensioners roaming the streets of major cities begging for alms as a result of non-payment of their pension or negligence on the part of those coordinating the pension system.

    Addressing participants at the just-concluded Stakeholders Sensitisation Conference on the Pension Reform Act  in Abuja, Senator Gaya recalled that under the DBS, many retirees died because of delay or refusal of government to pay their pension while negligence on the part of those who managed pension fund contributed to the plight of retirees under the old scheme.

    “The Defined Benefits Scheme caused death of retirees because their pension were either delayed or not paid at all for a long period as a result of corruption.  The introduction of the Contributory Pension Scheme will reduce corruption to the barest minimum if not erase it and stiffer laws and penalties should be looked into,” he said.

    Reflecting on “Consolidating the Gains of Pension Reform in Nigeria,” Gaya painted a gloomy picture of the DBS prior to the establishment of PTAD in 2013. According to him, the scheme was plagued by “lack of funding, insufficient budgetary provisions, mismanagement, maladministration, inadequate legal framework and constant death of retirees while awaiting their entitlements and high corruption” among other things.

    Also, giving an insight into the findings of the National Assembly Investigative Panel on Pension, he said pensioners found it difficult to get their entitlements.

    “Some of our members cried when they saw the pains these pensioners were going through.  Some of them have gone mental because they were asking for the claims and they could not get them and some of the people handling pension fund were having good time and good foods on their tables.  I personally assisted one of them financially because he was telling us several things as if we were the civil servants that failed to pay their pension.

    “During our investigations, we found that money was kept in banks for years and pensioners were not being paid.  One organisation paid N5 billion while it had N21 billion in its purse kept in banks generating interest while it refused to pay pensioners,” he said.

    He also stated some of the challenges the National Assembly surmounted in the course of making the pension laws saying “during our pension probe we had situations where some members of the Task Force became forces that we cannot fight.When we collated the report for the Chairman of the task force and members of his team to account for N195 billion, we invited him but he refused to appear.”

     

    Legislators’ effort

    Members of the National Assembly observed that with the establishment of PTAD, the gory tales they inundated with is now a thing of the past.  The Directorate is working very hard to bring back smiles to the faces of pensioners under the DBS.  The law makers also noted that to sustain the successes so far recorded with the old scheme, there is need to further strengthen PTAD by fully implementing the new pension law.

    Assuring PenCom of the support of the National Assembly in implementing the Pension Reform Act 2014 fully to meet the expectation of workers and retirees in the country,  Gaya recalled that the lawmakers had in the past made useful recommendations towards the successful reform of the pension industry and would support PenCom and other pension stakeholders to continue delivering on its mandates.

    “That is why we made about 122 recommendations to the Senate which include that funds should be in the custody of the Central Bank of Nigeria (CBN) not in commercial banks and that those already in commercial banks should be returned to CBN. I want to assure you that the National Assembly is ever supportive of  strengthening of this Act to alleviate the sufferings of our elder statesmen,” Gaya said.

    He also encouraged stakeholders in the pension industry to uphold best practice in the administration of retirement benefit fund in the country saying “PenCom, PTAD and all others should be diligent, prompt, transparent, honest and sincere in their days of service because they are also close to the net.

    “For us to move forward in this country, we have to fight corruption.  We have to be sincere in our jobs and for those who steal so much, once you cross a certain level all the money you accumulate is a waste.”

    The Deputy Chairman of the House of Representatives Committee on Pension, Hon. Samson Okwu in the Seventh Assembly also supported Gaya on the need to fully implement the new pension law.  Speaking during a Stakeholders Sensitisation Conference in Abuja, he encouraged pension stakeholders to fashion out ways to fully implement the new pension law to ensure that self-employed people and workers in the informal sector are brought under the CPS.

    He said: “I charge professionals to look into the law and system such that we can give guarantees to contributors.  Your contributions will pave the way for us to learn how all Nigerians can key into the system such that we will have a guaranty of savings for all Nigerians such that even the welder by the road side can be part of the scheme.

    “The Eighth National Assembly will partner the industry and we will work together to make the pension system better.”

    Justifying their push for full implementation of the law, the legislators observed the CPS is working perfectly and according to plans.  The scheme, is fully funded and retirees under it are getting their pension as at when due. There has not been any case of fraud or corruption in the system from inception, they said.

    The legislators however, noted that the only way to ensure that the gains so far made with the DBS will not be reverse is to fully implement the Pension Reform Act, 2014.  This will also ensure that situations where fund managers under the old scheme come in contact with pensioners’ money and may be tempted to divert or mismanage will be completely avoided.  The era where managers of the scheme deposit pensioners’ money to earn interest while pensioners wallow in abject poverty will be gone for good with the full implementation of the new pension law, they maintained.

    According to the law makers, for the DBS to succeed, it is important to further strengthen PTAD and ensure that the CBN continue to keep custody of all the money meant for pensioners under the DBS and pensioners’ entitlements continue to be transferred directly to their bank accounts from the apex bank after verification.  They want retirees under the old scheme to enjoy good life in retirement as much as their colleagues under the CPS, insisting that it is only the full implementation of the new pension law that will make all these possible.

     

    PTAD

    Established August 2013 in line with provision of Section 30(2) (a) of the Pension Reform Act, 2004 and now Section 42(1) of the Pension Reform Act 2014, the PTAD took over the management of the Defined Benefits pension schemes of federal parastatals and agencies and has been implementing a new structure, which is a clear departure from the old system and also introduced a new orientation to service delivery to meet the needs of pensioners.

    The pension law directed directors of the Civil Service Pension Department, Police Pension Department and Customs, Immigration and Prisons Pension Department to report to the Executive Secretary of the Directorate.  Also, all the Boards of Trustees of pension schemes being operated by FGN parastatals report to PTAD.

    PTAD Director-General, Nellie Mayshack, said the agency however prides itself as “progressively working hard” to sanitise the pension administration system and restore public confidence through effective management, accountability and transparency and alleviating the sufferings of pensioners through regular and prompt payments, constant communication and easily accessible to by retirees.

    The directorate also said it is improving service delivery to pensioners, ensuring effective planning and management of pension under the DBS and ensuring transparency and accountability in the management of pension funds while restoring confidence and trust in the system.

  • 10 years after Pension Reform Act, is NSITF still waxing stronger? 

    10 years after Pension Reform Act, is NSITF still waxing stronger? 

    Despite the enactment of the Pension Reform Act 2004 which took away its major responsibility, the Nigerian Social Insurance Trust Fund (NSITF) is still waxing stronger, writes Eric Ikhilae.

    Some years ago, it was common  to see ex-service men and other retirees queue for days to get their pensions. Some died in the process, a development many attributed to the failure of the pension system.

    To tackle the challenge, the Federal Government in  2000, took steps to reform the pension system, which resulted, among others, in the enactment of the Pension Reform Act (PRA) 2004.

    Earlier, an agency – the Nigeria Social Insurance Trust Fund (NSITF), established by Act No. 73 of 1993 – had been responsible for providing a Social Insurance Scheme (SIS) for employees in the Organised Private Sector (OPS). It replaced the defunct National Provident Fund (NPF).

    With the PRA 2004, the main duties of the NSITF – pension management – a major element of the Social Insurance Scheme (SIS), was taken away from the NSITF and handed to a new body – Trust Fund Pensions (TFP) Plc. The development saw NSITF transferring over N54 billion worth of assets to TFP. NSITF was given five years, between 2004 and 2009, to complete the transfer of pension assets and liability to the TFP, the new Pension Fund Administrator (PFA).

    While the reform helped to ameliorate the challenges in the pension management, it marked a major downturn in the operations of the NSITF. The withdrawal of its pension administration function led to a drastic reduction in its activities, and as such, could not afford to retain its workforce, leading to a mass retrenchment in 2006.

    The gloom that enveloped the NSITF during this transition, no doubt, resulted in low motivation, frustration and disenchantment among the remaining staff, which also accounted for why it could not drive through the process of passing the Employee Compensation Bill that was before the National Assembly.

    For the Federal Government, the new challenge was how to sustain the NSITF which, in Section 71(2) of the PRA 2004, is meant to function as a social insurance advocate and provider of employee compensation benefit. The government was faced with the task of assembling a management team to help drive this strategic institution out of the woods into an agency capable of harnessing its potential for the actualisation of its goals and objectives.

    The administration of the late President Umar Yar’Adua promptly constituted a board headed by Dr. Ngozi Olejeme as Chairman, with a management team led by Alhaji Umar Munir Abubakar as the Managing Director/Chief Executive Officer (CEO).

    Today, the NSITF has bounced back to business, with a lot of achievements to its credit.The chairman’s leadership has strengthened the management, administrative operations, capacity of the Fund and cemented its relationship both internally and externally.

    In effect, she has created a harmonious relationship between the board, management and staff of the NSITF, on the one hand, and stakeholders, like the Nigeria Employers Consultative Association (NECA), the National Labour Advisory Council (NLAC) –consisting of the Nigeria Labour Congress (NLC) and the Trade Union Congress  (TUC) of Nigeria and the National Economic Council (NEC), on the other.

    The harmonious relationship and understanding between the NSITF and its stakeholders helped increased public and private sector support in making it a major employee compensation service provider and a key player in the socio-economic affairs of the country.

    Under the Board and Management, the NSITF championed the process, leading to the repealed  obsolete Workmen’s Compensation Act (WCA) of 1942 and in  its place, the Employee Compensation Act  (ECA) of 2010  was enacted, which now allows NSITF to offer many services.

    With the backing of the Federal Government, the NSITF initiated the process that led to the inauguration of a National Working Committee on Social Security Policy for Nigeria – headed by elder statesman, former Head of State, Yakubu Gowon.

    The membership of the Committee was drawn from all spectrum of the society, including labour groups, employers’ associations, Civil Society Organisations, professionals and the three tiers of government, with key officials from the Presidency, as well as the National Planning Commission (NPC), National Pension Commission (NPC), Nigeria Governors’ Forum (NGF) and Association of Local Governments of Nigeria (ALGON).

    The Committee has since submitted its report to the Federal Government; the government’s White Paper on the report is being awaited.

    The passage of the ECA into law in 2010 has not only made the NSITF to engage more hands in its operations, the Employees’ Compensation Scheme  has created a huge employment opportunity in the labour market. The NSITF staff of 94 in 2009 have risen to over 4000 as at June, last year.

    To ensure that its operations and services are easily accessible, NSITF embarked on massive infrastructure development, leading to the establishment of offices in all states, including the Federal Capital Territory (FCT), bringing its branches to 49 with 11 Regional Offices.

    The NSITF has also begun an extensive transformation of the entire operational system to ensure Confidentiality, Integrity and Availability (CIA) of all its  records as it drives theEmployees’ Compensation Scheme, with the computerisation of all business processes of the organisation.

    In claims and compensation for employees, the NSITFhas created ECS Claims and Compensation Manuals, already being used. This has, among others, helped to reduce the turnaround time for claims processing from one month to two weeks, leading to the payment of about N315million to 1,393 claimants from August 2011 to July 2011.

  • 10 years after Pension Reform Act, is NSITF still waxing stronger? 

    10 years after Pension Reform Act, is NSITF still waxing stronger? 

    Despite the enactment of the Pension Reform Act 2004 which took away its major responsibility, the Nigerian Social Insurance Trust Fund (NSITF) is still waxing stronger, writes Eric Ikhilae.

    Some years ago, it was common  to see ex-service men and other retirees queue for days to get their pensions. Some died in the process, a development many attributed to the failure of the pension system.

    To tackle the challenge, the Federal Government in  2000, took steps to reform the pension system, which resulted, among others, in the enactment of the Pension Reform Act (PRA) 2004.

    Earlier, an agency – the Nigeria Social Insurance Trust Fund (NSITF), established by Act No. 73 of 1993 – had been responsible for providing a Social Insurance Scheme (SIS) for employees in the Organised Private Sector (OPS). It replaced the defunct National Provident Fund (NPF).

    With the PRA 2004, the main duties of the NSITF – pension management – a major element of the Social Insurance Scheme (SIS), was taken away from the NSITF and handed to a new body – Trust Fund Pensions (TFP) Plc. The development saw NSITF transferring over N54 billion worth of assets to TFP. NSITF was given five years, between 2004 and 2009, to complete the transfer of pension assets and liability to the TFP, the new Pension Fund Administrator (PFA).

    While the reform helped to ameliorate the challenges in the pension management, it marked a major downturn in the operations of the NSITF. The withdrawal of its pension administration function led to a drastic reduction in its activities, and as such, could not afford to retain its workforce, leading to a mass retrenchment in 2006.

    The gloom that enveloped the NSITF during this transition, no doubt, resulted in low motivation, frustration and disenchantment among the remaining staff, which also accounted for why it could not drive through the process of passing the Employee Compensation Bill that was before the National Assembly.

    For the Federal Government, the new challenge was how to sustain the NSITF which, in Section 71(2) of the PRA 2004, is meant to function as a social insurance advocate and provider of employee compensation benefit. The government was faced with the task of assembling a management team to help drive this strategic institution out of the woods into an agency capable of harnessing its potential for the actualisation of its goals and objectives.

    The administration of the late President Umar Yar’Adua promptly constituted a board headed by Dr. Ngozi Olejeme as Chairman, with a management team led by Alhaji Umar Munir Abubakar as the Managing Director/Chief Executive Officer (CEO).

    Today, the NSITF has bounced back to business, with a lot of achievements to its credit.The chairman’s leadership has strengthened the management, administrative operations, capacity of the Fund and cemented its relationship both internally and externally.

    In effect, she has created a harmonious relationship between the board, management and staff of the NSITF, on the one hand, and stakeholders, like the Nigeria Employers Consultative Association (NECA), the National Labour Advisory Council (NLAC) –consisting of the Nigeria Labour Congress (NLC) and the Trade Union Congress  (TUC) of Nigeria and the National Economic Council (NEC), on the other.

    The harmonious relationship and understanding between the NSITF and its stakeholders helped increased public and private sector support in making it a major employee compensation service provider and a key player in the socio-economic affairs of the country.

    Under the Board and Management, the NSITF championed the process, leading to the repealed  obsolete Workmen’s Compensation Act (WCA) of 1942 and in  its place, the Employee Compensation Act  (ECA) of 2010  was enacted, which now allows NSITF to offer many services.

    With the backing of the Federal Government, the NSITF initiated the process that led to the inauguration of a National Working Committee on Social Security Policy for Nigeria – headed by elder statesman, former Head of State, Yakubu Gowon.

    The membership of the Committee was drawn from all spectrum of the society, including labour groups, employers’ associations, Civil Society Organisations, professionals and the three tiers of government, with key officials from the Presidency, as well as the National Planning Commission (NPC), National Pension Commission (NPC), Nigeria Governors’ Forum (NGF) and Association of Local Governments of Nigeria (ALGON).

    The Committee has since submitted its report to the Federal Government; the government’s White Paper on the report is being awaited.

    The passage of the ECA into law in 2010 has not only made the NSITF to engage more hands in its operations, the Employees’ Compensation Scheme  has created a huge employment opportunity in the labour market. The NSITF staff of 94 in 2009 have risen to over 4000 as at June, last year.

    To ensure that its operations and services are easily accessible, NSITF embarked on massive infrastructure development, leading to the establishment of offices in all states, including the Federal Capital Territory (FCT), bringing its branches to 49 with 11 Regional Offices.

    The NSITF has also begun an extensive transformation of the entire operational system to ensure Confidentiality, Integrity and Availability (CIA) of all its  records as it drives theEmployees’ Compensation Scheme, with the computerisation of all business processes of the organisation.

    In claims and compensation for employees, the NSITFhas created ECS Claims and Compensation Manuals, already being used. This has, among others, helped to reduce the turnaround time for claims processing from one month to two weeks, leading to the payment of about N315million to 1,393 claimants from August 2011 to July 2011.

  • Pardoned Biafra soldiers plead for pension

    Former soldiers of the Biafra Army who were pardoned in 2011 by former President Olusegun Obasanjo are yet to receive their pensions, The Nation learnt.

    The ex-soldiers said that they were yet to receive the retirement fund said to be over N1 billion.

    The National Commander of Pardoned War Veterans Social Association, Col Emmanuel Osita Ossai (rtd), alongside his commanders from various commands in Imo, Enugu, Anambra, Delta, Abia, Cross River, Rivers, Bayelsa, Ebonyi, and Akwa Ibom states, said the war veterans were granted presidential pardon in 2011 and that N1,584,992,100 was approved for their pensions.

    He added that since then, not one kobo has been released to them.

    “I, Col. Emmanuel Ossai, a veteran commander, am hereby telling you that since we were pardoned in May 2011 till today, we have not been paid the approved amount. The Federal Government scheduled to be paying us the amount yearly but 2011 passed, 2012, 2013, 2014 and this 2015, five years now, Federal Government is still owing us the money,” Col. Ossai lamented.

    He called on President Jonathan to see that they get the money before he hands over power to the incoming administration.

    “Now, I and my members are appealing to Jonathan that we be paid our money before he hands over,” he said.

    Ossai also lamented that since the money was approved for them, many

    of their members have died without getting the money. He also regretted that their members wounded during the Nigeria-Biafran Civil War were still languishing at Okwe, Imo State.

    The National Commander pointed out that they had submitted their nominal role to the Secretary to the Government of the Federal (SGF) and that they promised to gazette it, “so that we will be receiving our monthly pensions. We are appealing to the Federal Government to make sure that we are given the money which has accumulated for five years before we start waiting for pension.”

    Ossai said that some groups are claiming to be the authentic group the Federal Government should pay the money. But he also said that such claimants were causing confusion because before Ojukwu died, it was he (Ossai) that he anointed to lead the veterans.

    He said there were other groups formed by Nwobosi, Okonkwo and Njokanma at Ogwashi-Ukwu, Delta State, but pointed out that all of them were trying to throw the spanner into the work because it was his group that got the blessing of Ojukwu before he died. He showed evidence that his organisation has been registered with the Corporate Affairs Commission hence it is the authentic group.

    Ossai intimated that Ojukwu that actually blessed and authorized him to lead the pardoned war veterans.

    He said: “Many people have been struggling to claim the money but God did not allow them, knowing full well that we are the right people. As my Chief of Staff earlier said, I am the General Officer Commanding.  Ojukwu handed over the staff of office to me to lead others.  After the handover, he embraced me and advised me that I should ensure that my men always obey the Federal Government.  That we should not do anything that will provoke the Federal Government. Since then, we kept to this advice.

    “The organisation was the only one recognised by Ojukwu.  Let others show evidence that they were given powers by Ojukwu,” Ossai said.

    The National Commander however congratulated President Jonathan on behalf of his members for the bold stand he took by conceding defeat with honour.  “We congratulate the president-elect, Gen. Buhari and we promise to work sincerely with the government of the day.”

    Chief of Staff of the veterans, Lt. Col. Mbina- Mbina confirmed that Ojukwu did authorise Ossai to lead them.

    “Obasanjo in 2011 went on air and granted ex-Biafran soldiers presidential pardon. Sequel to this, in September 2009, the veterans asked Ojukwu who would lead them after his passing and Ojukwu said it was Col. Emmanuel Ossai. Ojukwu said, this is your commander and he gave him the staff of office. That was how we continued the struggle and in May 2011, Federal Government in conjunction with the Senate approved N1,584,992,1000 for the monthly pension of all ex-Biafra soldiers,” Mbina said.

  • Kwankwaso: Kano spent N50b in four years on pension

    Kwankwaso: Kano spent N50b in four years on pension

    The Kano State Government spent over N50 billion in the past four years as pension entitlements, Governor Rabi’u Musa Kwankwaso, has said.

    The governor spoke at the inauguration of three warehouses built by the Kano Pension Trustees Fund for N298 million at the Kano Free Trade Zone, Panisau, in Ungoggo Local Government Area.

    He said his administration increased pension allowances from N100 to a minimum of N5,000 monthly by constituted a standing committee to address bottlenecks in pension settlements.

    Kwankwaso said this was besides the renovation of the state pensions board’s property under Public-Private Partnership (PPP).

    The governor said the state Pension Trustees Fund also invested N4 billion of the N30 billion to build the Kwankwasiyya, Amana and Bandirawo cities.

    He said the government had acquired property in Abuja and Lagos, which were being managed by reputable firms, as part of the strategic investment.

    Kwankwaso thanked the state pension administrators and pensioners for cooperating with his administration to make their lives better.

    The governor urged them to maintain the trend.

     

     

  • Revised pension guidelines’ll widen market, says PenCom boss

    Revised pension guidelines’ll widen market, says PenCom boss

    There is going to be an increase in the Retirement Saving Accounts(RSAs) from 6.5 million to 20million, creation of new portfolios, and a deeper market whenever  the Revised Investment Guidelines (RSGs)  is ready,  the  Secretary/ Legal Adviser, National Pension Commission (PenCom), Muhammad Sank Muhammad, has said.

    He told The Nation that the guidelines would provide a platform that would widen the capacity of the Commission to increase its investment outlay and further grow the pension industry.

    He said the guidelines would enable the Commission to provide bring the informal sector to the pension contributory nets.

    He said: “When the RIGs ready, more people would be able to participate in the pension scheme. The current 6.5 million Retirement Saving Accounts is small when you place it side by side with the population of 170million in Nigeria. By the time we deepen the pension fund via investment in the real sector, the market will blossom.

    “The pension market is huge given the fact PenCom has been able to get 6.5 million accounts in less than 10 years. We are targeting 20million accounts in the next five years. We hope to achieve this through the investment guidelines that is currently under reviewed and other initiatives packaged by the Commission.”

    According to him, the Commission would improve on its infrastructural facilities in order to be able to expand its market.

    He said: “We need to do a lot of work, especially in the area of deploying the necessary information communication technology (ICT) tool. There are millions of people in the informal sector that want to be part of the contributory pension scheme. There is immense potential in the informal sector and the only way to tap the opportunities in the sector is to bring its people into pension saving nets.”

  • Pension Task Team denies N195b fraud

    Pension Task Team denies N195b fraud

    • Buhari ‘should prosecute offenders’

    The former Pension Reform Task Team (PRTT), led by Alhaji Abdulrasheed Maina, yesterday urged the President elect,  Gen Muhammadu Buhari (rtd), to ensure the prosecution of persons involved in pension scams.

    The PRTT said pension cabals in the nation’s public service had denied some retired public servants their rightful benefits.

    PRTT, represented by the Executive Secretary of Legislative Watch, Hon. Ngozika Ihuoma spoke during a briefing on the alleged disappearance of N195 billion pension through a probe in Abuja.

    Maina said since the inauguration of the pension team in June 2010 until its dissolution in 2012, the National Assembly (NASS) did not appropriate any fund to the team in its Appropriation Act of 2010, 2011, 2012 and 2013.

    He queried how the team would have misused N195 billion when no resources were appropriated to it.

    The PRTT was reacting to allegation on the discovery of N195 billion pension fund by the Etuk led Joint Committee on Establishment and Public Service and States, Local Government Administration.

    According to Maina, Alhaji Ali Abacha’s allegations against the PRTT, which comprised the anti-graft agencies and other paramilitary agencies, are sheer desperation. He added that the PRTT had blocked ‘their means of many years of pension fund and compulsive stealing.’

    “The PRTT only deals with paper works to compute pensioners’ entitlements after which it sends it to Head of Service for approval. Nigerians should note that the team is not in custody of recovered funds; the recoveries are executed by anti-graft agency where applicable.

    “The proceedings and findings of the said Etuk pension probe committee was declared null and void by a Federal High Court ruling on 31st March, 2013 as having not met the constitutional requirements of Section 88 (1) of 1999 Constitution as amended,” he said.

     

  • Pension cash changes come into force

    The shake-up is one of the coalition government’s biggest reforms, allowing people who have saved for a pension to do what they want with their money.

    It means people who are retiring no longer have to buy an annuity to provide a fixed, regular income.

    The changes were announced by Chancellor George Osborne in his March 2014 Budget.

    Until now those who were retiring could cash in up to 25 per cent of their pension pot as a tax-free lump sum.

    They then had two options: reinvest their pension pot – or keep their current investments – and take an income from their funds as they needed. The second option open to them was to take out an annuity, which provided a fixed, regular income in their retirement.

    The changes that have now come into force mean those due to retire now can do whatever they like with 100% of their pension pot, for example invest in property, although crucially they will still only receive the first 25% tax free.

    The reforms have been welcomed in principle, but pensions experts have raised concerns about how they will operate in practice.

    Many pension companies have said they are not yet ready to allow people to cash in their pensions because it brings extra costs to schemes as well as risk.

    More than half of workplace pension schemes are still undecided about whether to offer access to the new freedoms, and 15% say they definitely will not, according to pension consultants Xafinity.

  • 180,586 employers on pension fund scheme

    180,586 employers on pension fund scheme

    • Fund hits N4.7tr

    The Pension Reform initiated and carried out by the Bureau of Public Enterprises (BPE) has impacted positively on the Nigerian economy.

    Currently, over 6.5 million people are contributors from 180,586 employers that have keyed into the scheme, the Director-General of BPE, Mr. Benjamin Ezra Dikki, has revealed.

    BPE, Head, Public Communications, Chigbo Anichebe made this disclosure in a statement, yesterday.

    According to the statement, Dikki said 20 Pension Fund Administrators (PFAs), seven Closed Pension Fund Administrators (CPFAs) and four Pension Fund Custodians (PFCs) have so far been registered since the scheme began in 2004.

    Receiving a delegation led by the Ambassador of the European Union (EU) to Nigeria and Economic Community of West African States (ECOWAS), Mr. Michel Arrion, in his office in Abuja,   further said that the total funds under the Contributory Pension Scheme is over N4.7 trillion.

    These funds have provided stable deposits, enabling banks to lend more on long-term basis

    He said the various reforms carried out by the Bureau had impacted positively on the  economy and that the over-riding objective of the reforms is to create an enabling environment for private sector investments.

     

  • Pension assets hit N4.6trillion

    Pension assets hit N4.6trillion

    THE NATIONAL Pension Commission, PenCom, at the weekend said the nation’s total pension assets had risen above N4.6 trillion.

    Director-General of PenCom, Mrs. Chinelo Anohu-Amazu, who disclosed this at a one-day dialogue on ‘The capital market and 2015 federal budget’, organised by the Chartered Institute of Stockbrokers in collaboration with Association of Stockbroking Houses of Nigeria and the Association of Issuing Houses of Nigeria, said it was heartening to note that things are really looking up for the pension scheme thus far.

    She said with more than 21 pension fund administrators and over 6.3 million contributors nationwide, the pension scheme holds a lot of promise as a major source of socio-economic development.

    “Payment of pension under the contributing pension scheme is now prompt and consistent since 2007. So far, over 6.3 million contributors have been registered into the scheme since its inception.”

    While noting that the Pension Reform Act 2004 was not perfect, she, however, said the re-enacted Pension Reform Act, 2014 has been designed in such a way to cover those in the public and private sub-sectors.

    The PenCom boss, who was represented by Mr. Olulana Olayemi, also hinted of plans by the Commission to partner with investors in the capital market with a view to developing the sector.

    According to her, pension fund is very important in view of the fact that it produces long-term funds for the capital market.

    PenCom, she said, would come out with useful regulations to support investment windows within the market.

    The capital market operators, she maintained, should be able to come up with new products that will make use of pension assets.

    “On our part, we will come with risk acceptance criteria to guide the process. We would be very flexible. This is just to show the extent we are willing to go to support capital market,” she stressed.