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Tag: retirees

  • Lagos govt pays N33.9b to 8,409 retirees

    Lagos govt pays N33.9b to 8,409 retirees

    THE Lagos State Government has paid N33,943 billion as accrued pension rights to 8,409 retirees in the last 30 months.

    Governor Akinwunmi Ambode made this known at the 47th Retirement Benefit Bond Certificate Presentation in Lagos.

    He said 149 retirees of the state Public  Service were paid N723 million as their accrued pension rights. The cash was paid into their Retirement Savings Accounts (RSAs).

    He stated his interest in the well-being of retirees had been the driving force behind the regular funding of pension obligations.

    Ambode, represented by Commissioner for Establishments, Training and Pensions Dr. Akintola Benson, said

    “This is aside the regular monthly contributions into the Retirement Savings Account of active workers,”the governor said,  adding: “We have been able to clear the backlog of outstanding pension obligations we met at the inception of this administration, and we are forging ahead to ensure that fresh liabilities arising from recent retirements are systematically cleared.

    “We assure all retirees that their labour in the state shall not go unrewarded and they will not retire into penury.”

    Lagos State Pension Commission (LASPEC) Director-General, Mrs. Folashade Onanuga said the Contributory Pension Scheme (CPS) is the best thing democracy has bequeathed to Nigerian workers, because it makes employers fulfil their obligations to workers, ensure commitment on the part of the various tiers of government and does not give room for stressful verification exercise as is being experienced with the Defined Benefit Scheme (DBS).

    She advised retirees not to succumb to any pressure in the choice of annuity, or programmed withdrawal benefit options for receipt of monthly pension.

    She urged them to carefully go through the document that the state government provided through LASPEC on the features of the two benefit options and make an informed decision.

    Mrs. Onanuga said the government was looking at some welfare programmes to give them comfort in retirement, advising them to be wary of scammers, who are out there and may want to sell their ‘make quick’ money advice to them.

    One of the retirees, Mrs. Mary Obisanya, thanked the Governor for his efforts in ensuring that retirees in Lagos State  receive their entitlements.

    She also thanked LASPEC for the courteous manner in which the staff attended to them and wished that other parastatals could emulate and imbibe the culture of qualitative service delivery.

  • Lagos pays N1b to 301 public service retirees

    Lagos pays N1b to 301 public service retirees

    The Lagos State government has paid N1,075 billion into the Retirement Savings Accounts (RSA) of 301 Contributory Pension Scheme (CPS) retirees for November.The beneficiaries are drawn from the  public service, including local government and State Universal Basic Education Board (SUBEB) retirees.

    Governor Akinwunmi Ambode, who was represented by the Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson, at the 45th Retirement Benefit Bond Certificate Presentation Ceremony in Ikeja, Lagos, said he was interested in the retirees’ well-being, adding that the state was in the process of providing ID cards to pensioners  to enable them enjoy some benefits which they would have paid for.

    He noted that the administration, through the Lagos State Pension Commission (LASPEC), has been able to disburse more than N32 billion in accrued pension rights to 7,976 retirees from August 2015 to November, 2017.

    Describing the feat as an achievement other states would wish to attain, he said pensioners under the Pay-As-You-Go scheme receive their monthly pensions the same time active workers receive their salaries.

    He thanked the retirees for their services which brought out a better Lagos.

    LASPEC Director-General, Mrs. Folashade Onanuga, admonished the retirees on the importance of healthy living for them to enjoy their life in retirement.

    She also advised them to make decisions on either to receive their pension entitlement through the Life Annuity or Programmed Withdrawal, urging them to  critically study the educative materials on the two options and make decisions that they are comfortable with.

    One of the retirees, Mr. Adebayo Olayinka, prayed for the governor and wished him a second term in office. He also lauded LASPEC workers for their diligence.

    Another retiree, Mrs. Olufunke Atitebi, said there is a ‘big’ difference in the way Lagos retirees get their entitlements under Governor Ambode compared to what obtained before the governor came on board. “The monthly payment has made Lagos to stand out,”she said, urging the governor to keep up the good work and prayed God to continue to uphold and assist him in governance.  She, however, asked the government to find a way of assisting retirees and their families, adding that priority should be given to retirees’ children during recruitment exercise into the state civil service.

  • Retirees to get increment on monthly pension

    Retirees to get increment on monthly pension

    • PenCom rejects proposed 75% pension lump sum Bill

    About 70 per cent of retirees receiving monthly pension through the Programme Withdrawal mode will from this month receive an increase in their monthly pension payments, The Nation has learnt.

    This is coming on the heels of findings by the National Pension Commission (PenCom), that earnings of retirees under the Contributory Pension Scheme (CPS) have grown more, based on investment of their pension fund made by their various Pension Fund Administrators (PFAs).

    As a result, the commission sought approval from the Presidency to increase pensions of retirees in the country.

    It was also gathered that PenCom has kicked against Senator Wammako’s proposed “Bill to Amend the Pension Reform Act (PRA) 2014 to Provide for Definite Percentage a Retiree Can Withdraw from His RSA and or Other Matters Related Thereto.”

    PenCom’s Acting Director-General, Aisha Dahir–Umar, affirmed the pension increase plan in a memo submitted by PenCom to the Senate Committee on Establishment and Public Service at the Public Hearing made available to journalists in Lagos.

    She said: “Indeed, the Commission has just concluded an exercise to increase the monthly pensions of all retirees on Programme Withdrawal due to the income earned on investing their pension assets. The outcome of this exercise showed that 30 per cent of the retirees would not benefit from the increase due to insignificant income earned on the small balances in their respective RSAs.

    “The payment of enhanced pension would apply only to those retirees that left reasonable balances in their RSA, which has earned income over time. The payment will commence in December, 2017. This indicates that indeed the return on investment of pension fund is being utilised for the benefit of RSA holders.”

    On the Bill seeking for 75 per cent lump sum, Aisha Dahir–Umar said: “Section 2 (b) of the Bill  seeks to amend Section 7(1) of the PRA 2014 by inserting the words “of up to 75 per cent” immediately after the words “a lump sum.”

    She said the import of the proposed amendment, is to allow the retirees of all categories to withdraw up to 75 per cent of the balance in their Retirement Savings Account (RSAs) as lump sum, irrespective of whether or not the balance would be sufficient to procure a programmed fund withdrawals, or annuity for life.

    She pointed out that the commission considers the proposal for payment of 75 per cent of RSA balance as lump sum to a retiree, as faulty due to many reasons.

    “The proposal is based on a misunderstanding of the concept of pension payment under the CPS. It is trite that lump sum should not be fixed. Rather, what should be implemented is a minimum replacement ratio as monthly pensions. Accordingly, the retiree should keep an amount of monthly pension as replacement of salary over an expected life span. Whatever remains over that amount, may be taken as lump sum. The current replacement ratio under the CPS is 50 per cent of last pay by virtue of the provisions of the PRA 2014, and regulations issued by the Commission.

    “It is noted that one of the objectives of the CPS is to assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age. The proposed amendment would mean leaving only 25 per cent to be spread over lifespan of retiree, which may be longer than 20 years, thus giving a meagre monthly pensions below the current replacement ratio of a minimum of 50 per cent of last pay. It is doubtful if the 25 per cent balance in a retiree’s RSA, after deduction of 75 per cent lump sum, would, if spread through the retiree’s expected life span, be adequate to reasonably cater for his livelihood during old age. This proposal is never the case in ALL jurisdictions operating the Contributory Pension Scheme the world over.”

    She noted that rather than canvass for payment of 75 per cent lump sum, we believe that the remedy lies in the implementation of the provision of Section 4(4)(a) of the PRA, 2014 dealing with payment of additional benefits upon retirement.”

    According to her, it provides that “notwithstanding any of the provisions of this Act, an employer may then agree on payment of additional benefits to the employee upon retirement”. This would enhance the amount that employees may receive as lump sum upon their retirement.

    She submitted that the proposed Bill appears to undermine the essence of pensions as enshrined in the Constitution of the Federal Republic of Nigeria 1999 (as amended), as it would deny the retirees an adequate periodic income in retirement.

    She urged the Senate Committee to disregard the Bill and, instead, seek for the implementation of the provision of Section 4(4)(a) of the PRA 2014 on the payment of additional benefits by the employer as well as the institution of the Zero Pillar pension in Nigeria.

  • Stanbic IBTC Pension pays N279b to retirees

    The 2017 half year result of Stanbic IBTC Pension Managers Limited has shown a payment of over N279 billion to retirees since its inception in 2006, Chief Executive, Stanbic IBTC Pension Managers Limited, Eric Fajemisin has said.

    He made this known in a statement showing the company’s 2017 half year performance and made available to journalists in Lagos.

    He stated that the company has more than N1..7 trillion in assets under management, a feat that reinforces a strong evidence of its proficiency at ensuring safety and return of value on investment to RSA holders through higher standards of service delivery.

    According to him, between January and June this year, over 5,000 new retirees also received their benefits from the PFA, increasing the number of individual Retirement Savings Account (RSA) holders nationwide with it to over 1,500,000.

    Fajemisin who said the result affirms its status as Nigeria’s largest Pension Fund Administrator (PFA) added that a total of N16.6 billion was paid to retirees from January to June this year.

    He said: “The performance of the PFA also demonstrates the potential of the pension industry to pool the requisite funding to support Nigeria’s economic development.

    “The Pension Reform Act 2014, which replaced the 2004 Act, addressed a number of lacunas in the original Act such as the application of a portion of pension assets towards the payment of equity for a residential mortgage by the RSA holder as well as the inclusion of the informal sector in the Contributory Pension Scheme. However, there is more room for further development as the industry operators and the regulator and other stakeholders continue to collaborate to ensure continuous advancement.

    “We believe that every able-bodied Nigerian who earns a living is entitled to a pension at the point in time when that person can no longer work and would not want to be a liability to the nation or to the kith and kin. This is what makes participation in the nascent pension scheme quite imperative,” he said.

     

  • 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.”

  • Lagos to expand social nets for retirees

    Retirees are among the most vulnerable in the country and government in the interest of the society should embark on initiatives that benefit them, Lagos State Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson, has said.

    According to Benson, the state, as a result of this, is working to expand the existing social nets championed by the Civil Service Pensions Office (CSPO)  of his ministry for its retirees.

    He made this known at the workshop for officers of the CSPO titled: “Designing Social Safety Nets for Retirees  of the Lagos State Public Service”, which held in Lagos.

    The Commissioner, who said the purpose of the workshop was to explore the possibility of designing a framework to accommodate the existing and other possible safety nets for retirees of the state Public Service, said  Governor Akinwunmi Ambode fully understood and appreciated the roles played by public servants in governance.

    He added that the Governor was compassionate about pensioners hence, his dedication to the welfare of public servants during and after active service.

    He said: “The government is working to design suitable social safety nets for retirees and we hope the seminar will come up with novel suggestions on how to improve and expand the existing social nets. There are existing safety nets being implemented by the CSPO in the hope that they will help stimulate this seminar’s inquiries into how these measures can be improved and the modalities for creating and sustaining additional safety nets as may be thought fit.

    “In Lagos State, we believe that the society and the government should care for its retirees because they are our mothers and fathers. They are our first teachers. They teach how to love, how to care, how to give, how to forgive, how to accept, and most of all, they are our backbone of support. Without their endless sacrifice during our early years, we would not be capable of what we are today. We need to care for our retirees and the older citizens because they deserve to be cared for.

    “We should care because they have more knowledge and wisdom than any one of us. Their experiences through the turbulence of storms that life takes them through yield great wisdom.”

    They have come so far and they have learned so much, we have a responsibility to learn from that wisdom.

    “Also, we believe that there is need to know how we can create a society where people are not so worried about getting old, where there is less stereotyping of older people, more inter-generational contact, and more opportunities to see older people as assets? What are the issues around financing retirement and how do we make sure older adults are not excluded because they don’t have enough money?”

    In terms of existing initiatives, the Commissioner said the CSPO regularly distributes welfare packages to the retirees of the state’s public service that are 70 years and above.

     

    This initiative is informed by the commitment of the Governor Ambode to continue to celebrate and appreciate the invaluable contributions made by public servants to the status of Lagos State as a model state and as Nigeria’s Centre of Excellence, he added.

  • FG has no active data on retirees, says ex minister

    FG has no active data on retirees, says ex minister

    Former Minister of National Planning, Prof. Osita Ogbu has revealed that the Federal Government does not have an active data on retirees in the country.

    He said that the government does not have the required data on retirees, their age profile, health status, income profile, where they reside and lots more that can help elevate the suffering of retirees in the country.

    Ogbu also added that many people are retiring unprepared with no intellectual resources to fall back on and no support system for expressing themselves.

    He also added that the problem with policies in the country is the absence of continuity, politics is dominating economics excessively, tenure limitations by definition reduces the vision of the leader when it shouldn’t.

    Prof. Ogbu stated this in Abuja, at the inauguration ceremony of the governing council of the Institute of Retirement Management (IRM).

    His words, ” Many people are retiring unprepared they have no intellectual resource to fall back on, they have no support system or platform for expressing themselves. The nation has no active data on retirees, their needs beyond financial obligations.

    “When you have an institution like the Institute of Retirement Management, the Institute will be acting now on behalf of the government, they can be enabled to begin to document who is a retiree, what is the age profile, health status, income profile, where they reside these are the sort of data i mean not just knowing that they exist but in a constant basis knowing the welfare of our old and how they are faring over time so if the Government cannot do it then an agency like this can begin the process.

    “The problem with policies in the country is the absence of continuity, politics is dominating economics excessively, meaning tenure limitations by definition reduces the vision of the leader when it shouldn’t. So if I have four year tenure, I am only planning for four years but certain things take beyond four years that is why people have a long term plan, medium term and short term.

    “We don’t make decisions based on those performing and those not performing, we simply like getting our own people into places.”

    Chairman of the Council and former Head of the Civil Service of the Federation, Alhaji Isa Sali stated that the Institute will address the challenges faced by pensioners by advising the government and private sectors on ways to reduce the tension and hardship faced by the Nigerian pensioner.

    He added that the Institute as a non-state actor will partner with the government and private sector on the best way to take care of retirees  by intervening in situations to achieve a win win situation.

  • Premium Pension boss kicks against payment of 75% lump sum to retirees

    Premium Pension boss kicks against payment of 75% lump sum to retirees

    Allowing retirees to withdraw 75 per cent of their pension contributions under the Contributory Pension Scheme (CPS) is wrong, Chief Marketing Officer, Premium Pension Limited, Kabir Tijani, has said.

    Tijani made this known at a briefing on the proposed bill on lump sum payment of up to 75 per cent to retirees against the 50 per cent being paid now before the National Assembly.

    Tijani said if the bill was allowed to sail through, a major objective of the CPS would be defeated.

    He noted that a lot of people could not manage money. He said when such retire and take huge amount, they might squander it and later become liabilities to others, adding that the scheme had been designed to avoid such scenarios.

    ‘’This is why it is arranged that when you retire, you take a lump sum payment to adjust your life and the rest is spread as monthly pension.

    “We have  seen what is happening in the Senate in the news. The proposal by the distinguished senator that the percentage of the lump sum withdrawal should be increased to 75 per cent.

    “Our response to that is we are not going to support it as a Pension Fund Administrator (PFA) because we know that one of the objectives for having the scheme is to ensure that when people retire after they might have exhausted their adulthood in service. They should retire home and have something to live on until they pass on.

    “Under the new scheme, a retiree has the option to take lump sum. It is something that is provided under the law as an entitlement for the retiree. The law says you can take between 25 per cent and 50 per cent of the balance of your RSA as lump sum payment and the rest will then be spread as programmed withdrawal or annuity plan.

    “However, an employer is free to provide an additional benefit to its employees at retirement,’’  Tijani said.

  • Ekiti APC chief Araoye donates foodstuffs to retirees

    A chieftain of the All Progressives Congress (APC) in Ekiti State, Mr. Makinde Araoye (aka MKD), has distributed 100 bags of rice, 50 bags of wheat, 25 bags of Semovita, among others, to indigent retirees across the state.

    At the event, which took place at Emure-Ekiti, the headquarters of Emure Local Government Area, Araoye said he started the initiative, code-named Makinde Araoye Social Security Scheme, at his Ilawe-Ekiti country home in 2011 but extended it to the six local government areas in his senatorial district.

    The six local government areas are: Ekiti South West, Ekiti East, Ikere, Ise-Orun, Emure and Gbonyin.

    He said: “The tentacle of the social security scheme, which I flagged off in 2011 with just 15 senior citizens from my Ilawe-Ekiti country home in Ekiti South West Local Government Area as beneficiaries, has now been extended to cover senior citizens from all the towns and villages in Ekiti South Senatorial District.

    “The second edition of the now expanded Makinde Araoye (MKD) Social Security Scheme for indigent old persons, which is being flagged off today, has about 500 beneficiaries who are paid N10,000 each.”

  • Lagos disburses N740m to 255 retirees

    Lagos disburses N740m to 255 retirees

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

    Head of Information, Lagos State Pension Commission (LASPEC), Mrs Basirat Lawal, said yesterday that 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 Ambode through LASPEC has paid over N30 billion to retirees in the 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 that 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”.