The Nation Newspaper

Tag: PFA

  • Davido makes history as first African artiste to perform at PFA

    Davido makes history as first African artiste to perform at PFA

    Multi-award winning singer Davido has crossed the bar to make history by being the first African artiste to perform at the Professional Footballers’ Association (PFA) Awards in England.

    The performance came as an interlude before the biggest awards of the night were announced at the Lowry Theatre in Manchester.

    Read Also: Davido rewards content creator with N2m

    He took to his Twitter handle on Wednesday to relish his historic performance.

    He wrote: “Thank you @PFA for the opportunity to not only attend such a prestigious event but also perform. Music and sports have always gone great together and we proved that again last night! Next stop Dubai @cocacolaarena.”

  • PFAs pay 13,176 disengaged workers N5.09b

    ABOUT Five billion naira was paid to 13,176 disengaged workers by Pension Fund Administrators (PFAs)  in the third quarter of 2018.

    The N5.09billion payment is 25 per cent of their total Retirement Savings Account (RSA) under the Contributory Pension Scheme (CPS), as prescribed by the Pension Reform Act (PRA) 2014.

    The disengaged workers were those under 50 years and were unable to secure another job within four months of disengagement.

    This was shown in a report by the National Pension Commission (PenCom) made available to reporters in Lagos.

    According to the report, the cumulative total number of RSA holders, paid benefits for temporary loss of job, was 289,126 and  a total of N98.28 billion was paid.

    A further analysis showed that the private sector accounted for 95.62 per cent of beneficiaries  while the public sector accounted for 4.38 per cent.

    In the same vein, the PFAs, it was reported, paid N8 billion as death benefits to 2,426 beneficiaries in the period under review.

    This brought the number of deceased employees from both public and private sectors to 53,237.

    The amount paid during the quarter moved death benefits paid to N164.12 billion.

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

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

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

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

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

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

     

  • PFAs get new payment template

    Pension Fund Administrators (PFAs) have received a new framework on Programmed Withdrawal Template from the National Pension Commission (PenCom) for accurate computation of retirement benefits payments to retirees, The Nation has learnt.

    The commission released the new template effective September 5 this year for computation of retiree’s pension benefits following its discovery of challenges faced with the existing Programmed Withdrawal Template (PWT) for processing of Retirement Benefits.

    Programmed Withdrawal Template (PWT) is used to compute payments for retirees receiving their pension benefits through the Programmed Withdrawal (PW) payment option under the Contributory Pension Scheme (CPS), as well as arrears of monthly/quarterly pension payment if any.

    The challenges necessitated the Commission’s deployment of a revised PW template by a firm of Actuary which computes the benefits of retirees, as well as arrears of monthly and quarterly pension payment.

    It has also extended the computation of the benefits beyond the initial age of 65 years to cater for broad categories of retirees in the different sectors of the economy, including professors.

    Speaking with journalists at a pension workshop organised by Pension Fund Operators Association of Nigeria (PenOp), the Head of Compliance, Stanbic IBTC PFA, Ms Edidiong Akan said PenCom first introduced the revised PWT effective 15 May, 2018.

    However, she said, the revised PWT was suspended on August 8, 2018 and a final revised template was issued on September 5, 2018.

    She explained that the revised PWT incorporated the payment of appropriate arrears where benefits were not paid as and when due as the date of retirement and date of programming differs.

    She said: “The revised PWT extended computation of benefits to 100 years to accommodate professors and any future retirement age review. The primary focus of this was the issue of arrears and depletion of Retirement Savings Accounts (RSAs). When we started the CPS, the retirement age of professors for instance was 60 and then 65 before it was recently change to 70. It turned out that we could not compute for some of these categories of people at 70 with the old template. Templates simply look at how you put in figures at retirement. But the new template has been able to accommodate anybody that retire later in life.

    “Again, it also allows for the computation of benefits below the age of 50 years to accommodate those who retire on health grounds. Before when you retire this way, your age is irrelevant in the computation of the pension benefits that will be paid to you. This is because the old template does not recognise anyone that retires at less than 50 years and so your computation is not actually actuarially correct. But with the new template, if you retire on health ground for instance at age 45, it will compute what you can have access to over your expected life span.

    “Other areas in which the Commission have worked on to ensure accurate payments is the development and deployment of Additional Benefits Template (ABT) to pension operators for computation of additional retirement benefits of retirees effective July 2, 2018; and commencement of Pension Enhancement (PE) for retirees under the PW.”

    She further stated that the Commission has been having constant engagement with the stakeholders in the executive and legislative arms of government to eliminate delay in release of accrued rights for retirees of treasury funded Ministries, Departments and Agencies (MDAs).

  • PenOp: contributors’ change of PFAs to happen soon

    •Association gets first woman president

    Lack of biometrics has been hindering the implementation of the transfer window platform that will enable pension contributors and retirees change their Pension Fund Administrator (PFAs), Pension Fund Operators Association of Nigeria (PenOp) has said.

    This disclosure is coming on the heels of the emergence of the association’s first female President, Mrs. Aderonke Adedeji, at the sixth Annual General Meeting (AGM) of PenOp.

    Mrs Adedeji, who is also the Leadway Pensure Managing Director, spoke during a chat with reporters said she would further drive pension growth during her tenure.

    She assured contributors under the Contributory Pension Scheme (CPS) that the transfer window would soon be opened.

    According to her, the transfer window is a burning issue and the major challenge has been the lack of biometrics, noting, however, that the association is working  with the National Pension Commission (PenCom) to resolve the issues that will enable the takeoff of the transfer window.

    She said: “We are optimistic that it will be resolved very soon. The federal government has issued instructions that everybody should consolidate in terms of identification.

    “So, there is work going on and we have a meeting next week for discussion on biometrics that will set the foundation for us to begin to talk about transfer window. So, I see progress in that area shortly.”

    Section 13 and Section 106 subsection 1 to 4 of the Pension Reform Act 2004 as repealed by PRA 2014, stipulates that a contributor will be allowed to move his or her RSA account from one PFA to another in not more than once in a year.

    “Section 106 stipulates that an employee or beneficiary of a (RSA), who is dissatisfied with a decision of the PFA or employer in respect of pension matters under this Bill, may request, in writing, that such decisions be reviewed by PenCom with a view to ensuring that such decision is made in accordance with the provisions of this Bill or any regulations made,”she said.

    Aside from Mrs Adedeji, other members of PenOp executives are Vice President, Akeeb Akinola (Managing Director, Shell Closed Pension Fund Administrator); Head, Branding Committee, Wale Odutola (Managing Director, ARM Pensions); Head, Legal & Regulatory Committee, Dr. Hamza Sule Wuro Bokki (Managing Director, NPF Pensions); Head, Technical Committee, Dapo Akisanya (Managing Director, AxaMansard Pensions); and Treasurer, Chinedu Ekeocha (Managing Director, Diamond PFC).

     

  • Window for CPS retirees to change their PFA coming

    Window for CPS retirees to change their PFA coming

    Workers and retirees under the Contributory Pension Scheme (CPS) who desire to change their Pension Fund Administrators (PFAs) may soon be able to do so.

    This was made known in a report obtained by The Nation from the National Pension Commission (PenCom).

    According to the report, the PenCom has identified the major challenge hindering the opening of the transfer window which is meant to allow workers and retirees transfer their account from one PFA to another.

    Section 13 of the Pension Reform Act, 2014, provides that, “Subject to the Guidelines issued by the Commission, a holder of a Retirement Savings Account (RSA) maintained under this Act, may not more than once a year, transfer his account from one Pension Fund Administrator to another.”

    The report said in line with the provisions of the Act, the Commission has already released the regulations for the transfer of RSA to pension operators and also exposed same on its website.

    The Commission explained that a major challenge hindering the opening of the transfer window is the issue of RSA holders registering more than once through their PFAs on the Commission’s database.

    For effective take off of the transfer window, the Commission said it is putting in place infrastructure and modalities that would enable the cleaning up of the existing registration database to eliminate multiple registration thereby facilitating the opening of the transfer window.

    The Commission however implored all stakeholders to exercise patience as the window would be opened in due course.

  • Unstable capital market, others affecting PFAs’ performance

    Unstable capital market, others affecting PFAs’ performance

    •Trustfund records 20% growth

    The Chairman, Trustfund Pension Plc, Mrs. Ngozi Olejeme has blamed  instability in the capital market and non-payment of salaries, for the low performance of Pension Funds Administrators (PFAs).

    She listed some of the challenges in the business environment to include the falling oil prices, negative forecast of the outcome of the general elections and the devaluation of the naira.

    Mrs. Olojeme, who spoke during the 7th annual general meeting (AGM) of the firm in Abuja, pointed out that last year was stormy for the pension industry.

    Also speaking, the Managing Director, Mrs. Helen Da-Souza, Trustfund PFA grew funds under management by 20 per cent from N163.8 billion in 2013 to N196.1 billion last year.

    She said the Retirement Savings Account (RSA) fund grew from N163.81 in 2013 to N196.13 billion a year later, while the Retirees Fund grew by eight per cent from N24.68 billion in 2013 to N26.69 billion in 2014.”

    She, however, solicited the support of Trustfund major stakeholders that include Nigeria Social Insurance Trust Fund (NSITF), NECA,  NLC and TUC for the continued sustenance of the growth.

    Olejeme, who spoke through a director in the company, Peter Esele, said: “If one looks at the fact that Trustfund management declared the same 25Kobo dividend in 2013 and 2014, one may not appreciate how the difficulty in the environment in 2014 was.

    “We should not forget that the preparations for the 2015 general elections was at all-time high in 2014, the crash in the price of crude oil in the international market also happened in the same year and non-payment of salaries even at the federal level also took place during that year.

    “There was also the devaluation of the naira and we also witnessed the instability of the stock market where we invested about 30 per cent of our money. Overall, we have about 70 per cent of our resources invested in one form of money market or the other.

    “Coupled with all of these, were all the negative forecasts about the outcome of the general elections. All of these were formidable factors that impacted negatively on the performances of businesses. So, for us, to be able to march what was declared in 2013 is a great achievement.

    “We are also very happy that the shareholders showed massive understanding during the trying period. We are hopeful that with an improving operating environment this year, our shareholders will smile more next year.”

    Esele said  in spite of occasional difficult operating environment, the future for a robust contributory pension scheme is assured.

    He explained that with fierce speed corruption is permeating the social fabric of the Nigerian society, it has find it difficult to penetrate the contributory pension scheme owing to the safety guideline put in place to safeguard the funds.

    “With corruption registering its overwhelming presence in most parts of our national lives, we have not heard any corruption related issues in the contributory pension scheme. the scheme has enough checks and balances that make it practically impossible for anybody to lay hands on the money. Every contributor knows how much he or she has contributed because every contributor receives alert on phone or electronic mails indicating the figures every month. So, people know how much they are entitled to at the end of their work life. The contributory pension scheme is one of the things that have happened to the Nigerian worker,” he said.

  • PENCOM rolls out sanctions against errant PFA operators

    PENCOM rolls out sanctions against errant PFA operators

    The Pension Commission(PENCOM) has said that it  would  bring the full weight of the law to bear on any operator who violates provisions of the Pension Act 2014.

    Speaking at the Institute of Directors’(IoD) Nigeria Quarterly Business Luncheon, yesterday in Lagos, the Director- General, PENCOM, Mrs. Chinelo Anohu-Amazu, said the need to sanction offenders became necessary to sanitise and further encourage the industry’s growth. The theme of the Luncheon was: ‘’ 2014 Pension Act Review- Implications for employers of labour.’’

    Mrs Anohu-Amazu, who was represented by the Commission’s Secretary/Legal Adviser, Muhammad Sani Muhammad, said notable offences and penalities in Section 99 to 104 of the Pension Reforms Act 2014 are dear to the Commission and that no  effort would be spared in bringing perpetrators of the offences to book.

    He said contravening any provision of the Act where no specific penalty is prescribed attracts not less than N250,000 fine or not less than one year or both, adding that the government  would  enforce the law.

    He said any official of the Pension Fund Administrators (PFAs), Pension Fund Custodians(PFCs) and others who refused to give information to the Commission’s examiners or investors would pay a fine of N200,000 or serve a three year jail term, stressing that continuous refusal attracts N100,000 fine daily.

    He said directors, managers, and other key officers  who have knowledge or believed to have knowledge of the offence and did nothing to ensure  complainance are  liable.

  • PenCom grants police PFA final approval

    The National Pension Commission (PenCom) has granted the Nigeria Police Force (NPF) Pensions Limited, a Pension Fund Administrator, full approval to operate and manage pensions of its over 300, 000 officers and men.

    PenCom Head, Surveillance Department, YakubuDatti made this known to The Nation.

    He reiterated that the personnel of the Nigeria Police are still under the Contributory Pension Scheme (CPS) by virtue of Section 1 of the Pension Reform Act 2004 and as amended in the Pension Reform Act 2014.

    Head, Police Pension Department, Deputy Commissioner of Police, Ibrahim Mohammed, said the police pension PFA has started operations.

    He said the police agitated for their own PFA because they have had issues of Next-of-Kin (NOK) waiting for two to three years without getting their death benefits among others.

    He said: “Police can now take their own destiny into their hands. Issue of NOK without getting the death benefits of their loved ones  and other issues will be looked into. We know our problem’s peculiarity and how to attend to it.

    “We are excited that PenCom has granted the PFA license to operate because it will allow us to be able to deal with our pensions internally.”

    PenCom Acting Director-General, Mrs Chinelo Anohu-Amazu had earlier explained that the commission exercised its statutory powers and granted the NPF PFA approval-in-principle to allow the police establish their PFA to manage their pension assets.

    According to her, this is in line with the recommendations of the Oransanye Committee, which advised that with the exception of the military, which was granted exemption, no other Federal Government institution or force should be exempted from the scheme.

    She said the NPF Pensions was borne out of government’s refusal to allow members of the Nigeria Police pull out of the scheme and the directive that they remain in the CPS and seek administrative solutions to their grievances within the framework of the pension law.

    She said in compliance with this directive, police authorities incorporated a limited liability company, the NPF Pensions Limited, which has been licensed to operate as a PFA.

    She noted that in order to ensure smooth commencement of the NPF Pensions, the commission developed an operational framework that would guide the reassignment of Personal Identification Numbers and transfer of records of all the police contributors to the NPF Pensions Limited, which would be spread over an 18-month period.

    The Police have over N305 billion pension savings with existing PFAs out of the N4.3 trillion pension funds.

  • Non-remittance of pension deductions worries employees

    Some employers’ reluctance to remit pension contributions deducted from employees to Pension Fund Administrators (PFA) as required by the Pension Reform Act, 2004 is disturbing employees.

    Pension Reform Act (PRA 2004) provides that the employer shall not later than seven days from the day the employee is paid his or her salary, remit an amount comprising the employee’s and employer’s pension contributions to the custodian specified by the Pension Fund Administrator (PFA) of the employee.

    Section 11 (7) of the PRA 2004 further provides that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission provided that the penalty shall not be less than two percent of the total contributions that remains unpaid for each month the default continues.

    Some employees, who spoke with The Nation on condition of anonymity, lamented the non-remittance of their pension with their former and present employers.

    An employee, who simply identified himself as Stanley and works in a construction company, lamented how his former employer did not remit his pension for two years.

    He said the experience with his new employer too was bad, adding that his pension is not remitted to his PFA until after four months.

    Mrs. Ogundele said her employer, who is into manufacturing business, has not joined the Contributory Pension Scheme.

    She said he told them that he would pay in bulk anytime they leave the company.

    Director-General, the National pension Commission (PenCom), Mrs Chinelo Anohu-Amazu, said 498 employers have been with Certificate of Compliance for complying with the provisions of the Pension Reform Act, 2004.as at May 2, 2014, has fully complied.

    Mrs Anohu-Amazu noted that two weeks after default, payment of not less than two per cent of unpaid contribution should be paid to Retirement Savings Account (RSA) account, stressing that continuous default for one month after issuance of letter of advice, a letter of caution will be issued to the erring employer.

    She said after one month of failure to adhere to the letter of caution, a letter of warning, will follow and thereafter, one percent of the outstanding payable will be paid as monetary penalty if the default persists after three months. It said continuous violation after monetary penalty, will attract naming and shaming and thereafter legal action if violation persists.

    Chief Operating Officer, AIICO Pension Managers Ltd, Banjo Adedokun, said the defaulting employers would be penalised by PenCom.

    He however said the new bill which has been passed by the National Assembly when implemented would bring stricter conditions on erring employers.

    He said: “We have issues where we have delay in payment or nonpayment. This is why PenCom started working with recovery agents a year ago. The agents have been going around companies to work on the records and ensure they remit outstanding pension.

    “PenCom did a test run with the agents for three months and have gone back to its Board to modify a few things and see how enforcement can be done faster.

    “On our part as PFAs, we attend quarterly meeting with PenCom on issues like this and also engage the employers on quarterly basis talking to both the employer and ensuring that pension desk officer are set up in the companies.”

    Head, Risk and Compliance, Stanbic IBTC Pension Managers, Idu Okwuosa, said defaulting employers sanctioned.

    She added that one of the important parts of the new bill is penalties for people that embezzle pension fund. It is now clearly stated of what will happen to anybody that still pension fund.