Pension

Lagos, March 12, 2024: The pension fund assets has appreciated by N1.17 trillion to N19.53 trillion as at Jan. 31, as against N18.36 trillion recorded in Dec. 31, 2023.

This is contained in the National Pension Commission’s (PenCom’s) unaudited report on the Pension Funds Industry Portfolio for the period ended Jan. 31.

PenCom said that N12.14 trillion of the fund was invested in the Federal Government’s securities.

According to the commission’s breakdown; N11.59 trillion was invested in bond, treasury bills gulp N221.81 billion, agency bonds was N14.86 billion, N124.89 billion was put in Sukuk bonds and green bonds got N181.57 billion.

The pension regulator stated that N270 billion was invested in state government securities and N1.71 trillion in money market instruments.

PenCom further said that the fund assets in United States Dollars value was N14.39 billion at an exchange rate of N1,356 per a Dollar.

According to the commission, Retirement Savings Account (RSA) subscribers as at the period under review stood at 10.22 million.

Lagos, Feb. 17, 2024: The Lagos State Government says it has paid not less than N138.1 billion as accrued pension right to 34,178 retirees since the inception of the Contributory Pension Scheme(CPS) in the state in 2007.

Gov. Babajide Sanwo-Olu of Lagos State disclosed this at the 103rd Bond Retirement Bond Certificates Presentation, organised by the Lagos State Pension Commission(LASPEC) on Friday in Lagos.

Sanwo-Olu stated that since the inception of his administration in May 2019, the government had paid N56.552 billion into the Retirement Savings Accounts (RSAs) of 16,026 retirees of the state.

He said the retirees worked in the mainstream, local government, State Universal Basic Board (SUBEB), Teaching Service Commission (TESCOM) and other parastatals of the state government.

According to him, the state government has also paid N3.150 billion into the RSA of 1,013 retirees as accrued right paid for February.

The governor said: “this is alongside their monthly contributions which have already been remitted into their respective RSAs with the Pension Fund Administrators (PFAs).

“As of today, my administration would have covered nearly half of the total payments made by previous administrations since the inception of the CPS in Lagos State.

“While we acknowledge the backlog in the payment of accrued rights, our attention is focused on systematically eliminating this backlog.

“I’m pleased to announce that we have made substantial progress in this regard and I am confident that before the end of my tenure, our aspiration for a “Pay As You Go” model will be realised.”

Sanwo-olu said his administration would continue to run an open government that acknowledges its diversity and promotes inclusion.

He affirmed that no matter the age, gender, sex, tribe or special needs, the welfare and well-being of employees of the Lagos State Public Service, whether in active service or retired,  would be a top priority.

The governor noted that the state continues to be the leading light, not only in the administration of pension benefits but generally in good credible governance.

“We are top performer in pension payments among other quality indices of the CPS

“This was attested to at the year 2024 Africa Brand Awards and the year 2024 Africa Public Sector Leadership Awards, where LASPEC won the gold award for Best Employee Welfare Pension Company of the year.

“The Director-General, LASPEC, Mr Babalola Obilana, also emerged as the Pensions Personality of the year, respectively,” he said.

Sanwo-Olu commended Obilana and staff of the commission for their diligence and commitment to innovation, excellence, and professionalism.

He charged them to keep up the good work in the commission and aim for greater accomplishment.

The governor congratulated the beneficiaries of the 103rd retirement benefit bond certificate presentation, and wished them God’s guidance and better life in retirement.

“I want to express my profound gratitude to the retirees who have dedicated their lives in service to our dear state.

“Your dedication, hard work, and sacrifice have contributed immensely to the growth and development of this great state.

“Your commitment to duty has not gone unnoticed, and today, we gather to honour you and express our deepest appreciation,” he said.

In his goodwill message, Mr Bode Agoro, Head of Service, Lagos State, thanked the Gov. Sanwo-Olu for demonstrating relentless commitment to staff welfare.

Agoro said that the state government is grateful for the service of its retirees and would forever be committed to implementing policies that would keep supporting the well-being of its senior citizens.

He congratulated the beneficiaries and advised them to utilise their money judiciously while wishing them all the best in life.

In his address, Obilana said that the ceremony was an avenue for the state to celebrate the commitment and invaluable contributions of its retirees and  also reflect on the legacy they left behind in the state.

He extended his gratitude to the retirees for years of service invested in the state.

The director-general noted that the retirees’ unwavering dedication, professionalism and passion have not only inspired and mentored countless officers, but have also contributed to the success of Lagos state.

Obilana lauded Gov. Sanwo-Olu for his consistency in the payment of the accrued pension right and commitment to staff welfare.

“Retirement is not the end, but rather the beginning of a well-deserved period of relaxation, exploration and fulfillment of long-held dreams and aspirations.

“As we celebrate the accomplishments of our retirees, let us also reaffirm our commitment to upholding the values and principles they have exemplified throughout their careers.

“Let us continue to strive for excellence, innovation and collaboration as we work together to achieve our shared goals and objectives.

“I pray God Almighty grant you good health and long life to enjoy your retirement benefits.

Responding on behalf of the retirees, Mrs Adetokunbo Eko, retired Asst. Director and former Head of Public Affairs Unit, LASPEC commended the state government for prioritising the welfare of its staff and pensioners.

Eko stated that the commitment of the state government to its workers had contributed to the progress of Lagos State.

She expressed hope that the government would clear the outstanding accrued pension, while wishing her fellow pensioners long life in good health and greater achievements ahead.

Abuja, Feb. 8, 2024: The Director-General, Bureau of Public Service Reforms (BPSR), Mr Dasuki Arabi, has assured that retirees would benefit from the pension reforms.

He also assured that would ensure that the reforms were effectively implemented in the interest of beneficiaries.

Arabi made this known in Abuja on Wednesday at a stakeholders’ workshop on Identification of Effective Implementation of Reform Modalities in Nigeria’s Pension Administration.

The event is focused on reviewing pension reforms and administration in Nigeria, highlighting progress, challenges and the way forward.

He said Nigeria’s pension system from the colonial Pension Ordinance of 1951 to the Pension Reform Act 2004 has introduced the Contributory Pension Scheme for workers in the country.

He said despite these reforms, challenges persisted including non-compliance by some state governments, delays in payment of pension benefits, bureaucratic bottlenecks and unreliable records.

According to him, the BPSR will ensure that every person that worked in either the public or private sector in Nigeria receives his/her retirement benefits.

“It is our duty to ensure that these reforms are not just on paper but are effectively implemented to benefit our retirees.

“The Pension Reform Act of 2004 marked a pivotal moment in the history of our pension system. It introduced the Contributory Pension Scheme, a mandatory initiative aimed at providing a sustainable and reliable framework for the retirement benefits of all employees in Nigeria.

“However, despite these well-intentioned reforms, challenges persist, and it is essential for us to identify and address the gaps hindering the realisation of these objectives,” he said.

The director-general highlighted some key objectives of the workshop as exploring effective operationalisation of pension administration, bridging institutional challenges, and developing strategies for sustainable reform.

“Stakeholders from various sectors, including government agencies, the National Pension Commission, and the National Labour Congress are invited to provide insights and experiences,” he said.

He further explained that BPSR would also advise government on how to build a sustainable and effective  pension system.

The Secretary to the Government of the Federation (SGF), George Akume, has emphasised the importance of continual reassessment of the pension administration process to ensure efficiency, transparency and benefits for pensioners.

Akume, who was represented by Dan’Azumi Dahiru, a Director in SGF’s office, urged stakeholders to work together to identify evidence-based reform modalities aligned with Nigeria’s national development priorities.

He highlighted the commitment of the current administration to prioritising the welfare of citizens and ensuring pension policy in Nigeria ranked amongst the best globally.

He then called for synchronisation of activities among agencies working on pension issues and emphasised the need for digitalisation to streamline pension administration.

Mr Bukar Talba, the Chairman, Committee on Public Sector and Institutional Reforms, House of Representatives, said the social security for working class and older people was a huge responsibility that must be safeguarded like every fundamental right.

According to him, pension reform is a complex and critical topic that addresses the restructuring of retirement system to ensure long-term financial sustainability.

The Executive Secretary, Pension Transitional Arrangement Directorate (PTAD), Chioma Ejikeme, said that prior to the establishment of PTAD in 2013, the old pension offices faced overwhelming challenges.

In a paper titled, Pension Transition-Bridging the gap and setting modalities right, she said that these challenges were an accumulation of a number of negative incidents and inactions on the part of the old Pension offices and government that resulted in the absence of a comprehensive database of pensioners.

The workshop is with a call for continued cooperation and commitment to the reform process to ensure a prosperous future for Nigeria’s pensioners.

Abuja, Dec. 6, 2023: Sen. Adams Oshiomhole has called on organised Labour to revisit the management of the Contributory Pension Funds.

Oshiomhole said this at the 8th Quadrennial National Delegates Conference of the Academic Staff Union of Educational and Associated Institutions (NASU) on Tuesday in Abuja.

The theme of the conference was “Trade Unionism in the Era of Economic Crisis: Addressing the Increasing Poverty Level of Nigerian Workers”.

The former Governor of Edo State  alleged that Federal and State Governments were borrowing from the contributory pension funds at a low interest rate, thereby breaching the concept of establishing the contributory pension scheme.

According to him, “I know I resisted the idea of contributory pension to be managed by Pension Fund Administrators (PFAs), when I was the NLC president.

“These PFAs are profit seekers. You cannot give me 6 per cent return on my pension savings at an interest rate of 25 per cent.

“This is unfair. It means the worker is  getting poorer. You must not accept that because you are the greatest contributors to the economy.

“Today, the pension scheme is over N11 trillion deducted and ought to go into mortgage investments for workers who had retired.

“If the N11 trillion is put into mass housing, workers, upon their retirement, would not be homeless.

“I want to urge you all to revisit these monies that PENCOM is managing, who is borrowing and what are they doing with the money,” he said.

He added that the scheme was supposed to address workers social capital needs.

Oshiomhole also condemned the recent brutalisation of the NLC President, Joe Ajaero.

He, however, faulted the nationwide strike which temporarily grounded social and economic activities in the country for two days.

“Often times, Iabour leaders seek implementation of their demands from governments with biased positions that are not well articulated, giving the government officials upper hand in their negotiations.

He said the labour movement must always approach issues in a united front, even though the capitalists will always find ways to break or fragment them.

On the fuel subsidy policy of the government, Oshiomhole urged workers not to lament their sorry situation but to put on their thinking cap and wriggle out of the dire situation.

He said rather than spend time agonising over government policies that are not working in their favour, they should engage as a united front to press home their demands to those in authority.

Abuja, Dec. 2, 2023: The National Salaries, Incomes and Wages Commission (NSIWC) says its circulars are issued after consultations with the Federal Government and major stakeholders.

The Chairman of the Commission, Mr Ekpo Nta, clarified this when he played host to Executive Committee of the Nigeria Union of Pensioners (All Sectoral Units/Parastatals) Nationwide in Abuja.

The chairman of the committee, Sir Samuel Adewale, led the team on the visit.

According to Nta, the circulars have provisions for anyone to seek clarification, and no agency is authorised to unilaterally amend them without its written consent.

“Usually, where there is a cogent reason, the Commission issues a crossed-reference Clarification Circular, after due process, for record purposes.

“The Commission, being the Secretariat of the Tripartite Committee of the National Minimum Wage, will ensure seamless preparations for considering a new National Minimum Wage.

“It also prepares the accompanying pension review in 2024 as provided by the National Minimum Wage Act 2019 and Section 173(3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), respectively.

While responding to a pensioner’s observation that the Constitution provides for a “corresponding increase in pensions,” Nta said the word “corresponding” was not used in Sect. 173(3).

He clarified that increased allowances for serving officers could not be interpreted as salary increases.

The NSIWC’s boss informed his guests that the Commission in May forwarded its report on the harmonisation of pensions to the government for consideration.

He said this was done after synthesising inputs from relevant stakeholders, including pension unions, and the availability of funds.

Nta said the Commission regularly followed this up as it had a bearing on considering pension increases in 2024.

Responding to their complaints of non-receipt of the payment of recently approved palliatives, he said the relevant organs of government were addressing the issues.

Nta said the Commission would look into the issues raised by the committee based on the documents the Union had submitted.

He advised the union to negotiate with friendly health maintenance organisations to provide affordable health insurance coverage for its members after explaining how they could benefit from such services.

Nta then urged the senior citizens to avail themselves of having scheduled free online Zoom meetings with him in the future.

Given their ages, he said this was better than embarking on expensive and hazardous trips from all over the country.

Earlier, the Chairman of the Committee on Pension NUP-ASU/Parastatals, Comrade Gabriel Oladele, urged the Chairman to intervene on the issues of wrong computations of their consequential adjustments.

After decades of enjoying the same, Oladele also called for redress for the alleged unreasonable deductions from their pensions.

Abuja, Nov. 29, 2023: The Senate has tasked its Committee on Anti-Corruption and Financial Crimes to investigate the activities of Pension Fund Administrators (PFAs) over unpaid pension.

This followed the adoption of a motiond “ on the need to address the travails of pensioners, their next-of-kin and deceased relatives over unpaid pensions, gratuities and other entitlements”, by Sen. Kelvin Chukwu (LP-Enugu) at Tuesday’s plenary.

Presenting the motion, Chukwu said there were undue delays in payment of pensions, gratuities and other entitlements, causing sufferings and trauma to retirees.

“Due to bureaucratic bottlenecks and endemic corruption in the payment process, the situation has subjected many pensioners to abject penury.

“With some even dying in queues of protracted and never- ending verification exercises that yield little or no result whatsoever.

“The prevailing issues include the non-payment of outstanding arrears to scores of pensioners, non- enrolment of thousands of pensioners on the pension payroll, non-payment of death benefits to deserving Next-of-Kin.

“This is made worse by improper keeping of records, unscrupulous officials who demand different documents and call for similar verification exercises time and time again,” he said.

He said that the administration of the pension funds had been enmeshed in unprecedented corruption over the years with some public officers, institutions of government and even banks all complicit.

The lawmaker said that except pensioners received fair and prompt treatment, the country was unwittingly encouraging the propensity of civil servants to be corrupt.

“This is as a career in civil service is no more attractive especially as senior citizens are treated shabbily.

“It goes further to speak of our value system as any society that cannot treat its elderly citizens with care, respect and dignity advertises its disregard for values,” he said.

Chukwu said that considering the fact that senior citizens were no longer relevant in the labour market, the government must do something drastically to ameliorate the trauma and sufferings of pensioners.

“After many years of hard labour, a worker is indeed entitled to some peace and security at old age,” he said.

Abuja, Nov. 22, 2023: The Pension Fund Operators Association of Nigeria (PenOp) said that the Nigeria offshore pension funds’ investments to commence soon, as part of the efforts to boost return on investments.

The Chief Executive Officer of PenoP, Oguche Agudah said this at a virtual session on Tuesday.

The session was tagged “Ask Me Anything” organised by the operators to create awareness on activities and operations of the Contributory Pension Scheme (CPS) in the country.

Agudah said that all pension funds were presently invested onshore.

“However, there are engagements ongoing with the regulators, the National Pension Commission (PenCom) and the Central Bank of Nigeria (CBN) that once all modalities are put in place we will commence offshore investments of pension funds,” Agudah said.

Responding to question on where Retirement Savings Account (RSA) holders access their funds after retirement, Agudah said the fund could be accessed even outside Nigeria.

“In RSA, holders get returns of Investments credited to their accounts because “Pension Fund Administrators (PFAs) everyday invest in different sectors like bonds, treasury bills, or capital markets among others in line with the laid down guidelines by the regulators PenCom.

“Those who left the country can access their pension, RSA holders can access their funds anywhere in the world using the cross border arrangement policy in line with regulations of the scheme,” Agudah said.

He said that for programmed withdrawal for RSA holders, immediately a holder resigns or retires from work before attaining the age of 50, the person could access 25 per cent of their RSA savings after four months.

Agudah said that after the PFA has confirmed important information the rest would be spread across once the holder attains 50 years of age.

Fielding question on the perception that “pension is a scam”, Agudah said that such expression was just a myth by people who did not have a clear understanding of what the CPS is all about.

He said that pension is currently stand as one of the most strictly regulated sectors in Nigeria where contributors are guaranteed that their monies are safe.

Calabar, Nov. 12, 2023: Governor Bassey Otu of Cross River says plans have been concluded to approach the capital market to raise N24 billion to offset pension and gratuity arrears of retired civil servants.

A statement by his Chief Press Secretary, Mr Emmanuel Ogbeche, in Calabar on Saturday said that Otu had in his 100 days address, resolved to offset the arrears before the end of the year.

He had stated that the last time gratuities were paid to retired civil servants was in 2014.

According to the statement, the “Governor reiterated government’s resolve to clear the backlog of unpaid gratuities owed retirees, and emphasised that government cannot allow the aged sleep hungry or be unable to afford their medications.

“Consequently, funds are being sourced from the capital market to redeem the debts owed retirees by the government.”