₦airaland Forum

Everyone dreams of a retirement where everything is taken care of, but that doesn’t just happen because you want it to. It takes planning, and planning begins now.

The first step is opening a retirement savings account and on the way to help you save a just enough to help you maintain a decent standard of living even when you are retired.

So… talk to your Pension Fund Administrator and they’ll talk you through every required process, because by law, every employer in Nigeria with three or more employees is mandated to help you put away 8% of your basic salary, housing and transportation allowance, in addition to your employers 10% of same; and in the event of the loss of your job, you have access to 25% of of your savings so far.

So remember, joining the contributory pension scheme is the best thing to do NOW!

It is safe, transparent, monitored and fully funded.

For more information on pensions please visit penop.com.ng or send an e-mail to info@penop.com.ng

Everyone dreams of a retirement where everything is taken care of, but that doesn’t just happen because you want it to. It takes planning, and planning begins now.

The first step is opening a retirement savings account and on the way to help you save a just enough to help you maintain a decent standard of living even when you are retired.

So… talk to your Pension Fund Administrator and they’ll talk you through every required process, because by law, every employer in Nigeria with three or more employees is mandated to help you put away 8% of your basic salary, housing and transportation allowance, in addition to your employers 10% of same; and in the event of the loss of your job, you have access to 25% of of your savings so far.

So remember, joining the contributory pension scheme is the best thing to do NOW!

It is safe, transparent, monitored and fully funded.

For more information on pensions please visit penop.com.ng or send an e-mail to info@penop.com.ng

CLICK HERE TO GET THE FULL REPORT:https:///uw8pRXkc8z

drberry:
I'm not surprised at the low score of this administration in their first year, neither am I expecting any serious change to during the remaining part of their tenure. I'll rather be really surprised if they perform
Why?
Because it's APC ( ALL PROMISES CANCELLED)

lol APC (all promises cancelled) havnt heard that meme before, but that notwithstanding this nation can not be left for one man alone to run....we all have our roles to play

i have read this part of this report and all i can say is that it is only one year in office, but pmb needs to speed things up in other to turn things around sooner rather than later....nass is not helping issues either.....i dont think this regime will survive 2019 if the things pointed out in this report is not attended to ASAP!!!

We hope that the report can inspire policy makers to make relevant adjustment and allocate resources towards areas of serious concern. HOPE IS ALL WE HAVE, WE ARE AT THE MERCY OF LIONS LEFT WITH A YOUNG CALF, HOPING THE LIONS WILL TURN THE OTHER WAY AND MOVE ON.....WE NEED PRAYERS!!!

It is difficult being a senior citizen in Nigeria, a country with zero social safety net for old people. Yet by 2056, every 25-year-old today would have clocked 65, the official retirement age in Nigeria.

To remember old age is to take note of the challenges that come with it. At sixty-five, you have a high chance of developing some chronic health condition, which will in turn shoot up health related bills. If you know any old person, then you may have heard them complain of one or a combination of these health issues: arthritis, rheumatism, diabetes, high blood pressure, glaucoma, cataract, osteoporosis and many more. The list is endless. At that point, you also need to maintain a decent standard of living, needing to pay special attention to your diets, eating more of fruits and vegetables to build resistance against illnesses and diseases.

As the need to increase expenditure rises, your capacity to earn decreases. In old age, you are either no longer working or you are just working little – as your strength can carry you – with its attendant reduction in income. You will be needing most money at a time you are only able to make the least of it. This means the only time to take care of that future is now, when you are still young, strong and less prone to ailments that will limit your capacity to earn.

But how many people think there’s a need to save for their old age? Not much. And we have statistics to prove this. By the end of March this year, only 7.01 million Nigerians have registered with the Nigerian Contributory Pensions Scheme, a social safety programme aimed at catering for the retirement needs of workers. The law establishing the pension scheme, called the Pensions Reform Act 2014, mandated employers in the formal sector to also make contributions for each of their employees, making available same percentage (or even more) as the worker, into the worker’s Retirement Savings Account. But so far, only 6.9% of the total labour force in Nigeria has enlisted to the scheme.

If those in the formal sector have not bothered about saving for their old age needs, then imagine what it is like in the informal sector, which constitutes 70% of Nigeria’s working population. Who is having a conversation about the bus driver’s needs, the barber, the vulcanizer, the mechanic, the electrician, the hairdresser, the tailor, and vast majority of players in the informal sector who have zilch knowledge of the contributory pension scheme?

But it’s not entirely a hopeless situation. If you are in the formal sector, and you haven’t started making contributions towards your old age, then you should start today, now. Look for Pension Funds Administrators in Nigeria (actually, just a bit of a google search will give you the answer) and inform the HR and Accounts units of your organisation that you want them to start making monthly contributions to your Pension Savings Account. That also means the company (your employer) will start making their own contributions (which should be 10% of your salary, but not deducted from your salary. It’s simply an amount from your employer that is worth ten percent of your salary.)

Right now, only 26 out of the 36 states have adopted the Pension Scheme and are at various stages of implementation. And even in the states that adopted it, there are doubts that many of them still remit the contributions given Nigeria’s current economic quagmire. One would have expected the trade unions and the Nigerian Labour Congress to raise such questions and do well to put the erring state governments on their toes.

For those in the informal sector, PenCom has some good news. By the way, PenCom is National Pension Commission, the body that regulates pension operations in Nigeria. The regulatory body has concluded plans to roll out what it calls Micro Pensions, a long-term financial plan for the provision of pension coverage to organisations with less than 3 employees (the current pension law captured only organisations with 3 employees and above) as well as players in the informal sector. The features of the Micro Pension scheme include flexibility in contributions, such that the typical player can conveniently save for his old age. The micro pension scheme will also make it easy for participants to make withdrawals even before retirement age.

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The Lagos State Government on Thursday disclosed that it had remitted a sum of N64 billion into the retirement saving accounts (RSAs) of civil servants as contributory pension scheme since the inception of the scheme.

Commissioner for Establishments, Training and Pensions, Dr. Akintola Oke said there had been regular deductions of 7.5 percent from the salaries of staff and corresponding 7.5 percent by the state government into the retirement savings accounts maintained by them with their appointed Pension Fund Administrators (PFAs).

As at March, 2016, the deduction has cumulatively risen to N64 billion approximately since the inception of the scheme in 2007. Also, since the commencement of the retirement benefit bond certificate presentation in 2010 to over 10,000 retirees/deceased/ withdrawn staff, Lagos has paid accrued pension rights of about N48.08 billion.

Lagos reduced the backlog of terminal entitlements of retirees. Between August 2015 and April 2016, the government had, through the Lagos State Pension Commission (LASPEC) paid N13.701 billion into the Retirement Savings Account (RSA) of 3,069 retirees.

1,294 retired from the Local Government, 745 from the State Universal Basic Education Board (SUBEB), 731 Teachers Establishment Pension Office (TEPO) and 299 from the mainstream service.

The state governor, Akinwunmi Ambode has directed that outstanding pension payment of three years arrears on the 142 percent pension increase as approved by the administration of Asiwaju Bola Tinubu be paid with immediate effect.

The sum of N2.03 billion was paid as pensions between May 2015 and April 2016, and in November 2015, the Civil Service Pensions Office facilitated and completed the payment of severance, pensions and gratuity to 73 disengaged staff of the defunct Eko Today which amounted to N37.17 billion.

The sum of N1.5 billion intervention fund for the payment of outstanding gratuities and pension arrears to Local Government retirees, including the balance of 142 percent pension arrears amounting to N1.77 billion, would be effected as soon as the verification exercise was conducted.

On the issue of pension fraudsters, the commissioner said the government had begun sensitization programmes in all ramifications on the activities of these fraudsters, stressing that apart from drawing the attention of the state government to this unsavory report, LASPEC had gone further to sensitize the public with the printing of posters and handbills.

The Lagos State Government on Thursday disclosed that it had remitted a sum of N64 billion into the retirement saving accounts (RSAs) of civil servants as contributory pension scheme since the inception of the scheme.

Commissioner for Establishments, Training and Pensions, Dr. Akintola Oke saidsaid there had been regular deductions of 7.5 percent from the salaries of staff and corresponding 7.5 percent by the state government into the retirement savings accounts maintained by them with their appointed Pension Fund Administrators (PFAs).

As at March, 2016, the deduction has cumulatively risen to N64 billion approximately since the inception of the scheme in 2007. Also, since the commencement of the retirement benefit bond certificate presentation in 2010 to over 10,000 retirees/deceased/ withdrawn staff, Lagos has paid accrued pension rights of about N48.08 billion.

Lagos reduced the backlog of terminal entitlements of retirees. Between August 2015 and April 2016, the government had, through the Lagos State Pension Commission (LASPEC) paid N13.701 billion into the Retirement Savings Account (RSA) of 3,069 retirees.

1,294 retired from the Local Government, 745 from the State Universal Basic Education Board (SUBEB), 731 Teachers Establishment Pension Office (TEPO) and 299 from the mainstream service.

The state governor, Akinwunmi Ambode has directed that outstanding pension payment of three years arrears on the 142 percent pension increase as approved by the administration of Asiwaju Bola Tinubu be paid with immediate effect.

The sum of N2.03 billion was paid as pensions between May 2015 and April 2016, and in November 2015, the Civil Service Pensions Office facilitated and completed the payment of severance, pensions and gratuity to 73 disengaged staff of the defunct Eko Today which amounted to N37.17 billion.

The sum of N1.5 billion intervention fund for the payment of outstanding gratuities and pension arrears to Local Government retirees, including the balance of 142 percent pension arrears amounting to N1.77 billion, would be effected as soon as the verification exercise was conducted.

On the issue of pension fraudsters, the commissioner said the government had begun sensitization programmes in all ramifications on the activities of these fraudsters, stressing that apart from drawing the attention of the state government to this unsavory report, LASPEC had gone further to sensitize the public with the printing of posters and handbills.

The depreciated Naira and falling oil prices could not stop pension funds in Nigeria from posting positive performances in Q1, howbeit modest.

This is significant for pension fund contributors as the value of the pension fund is mostly at risk during economic downturns. A lot of Nigerians contribute about 8% of their Basic, Housing and Transport as pension while their employers also contribute a further 10%. The contributions are managed by Pension Fund Administrators of their choice.
Analysis by Quantitative Financial Analytics shows that Nigerian pension fund managers posted modest return of between 0.29% and 2.95% for RSA funds and between 1.58% and 3.46% for Retiree funds. Pal Gratuity funds also recorded impressive but modest returns as Pension Alliance Guinness Fund and Pension Alliance Emenite Gratuity Fund, posting 2.57% and 2.5% respectively. The pension funds, which gained from falling yield and rising bond prices in the first quarter of the year seem to have benefited from the CBN’s decision to hold the interest rate close to 11% for a greater part of the quarter.

All the pension funds largely out-performed the NSE Pension Index, which posted a negative 14.86% in Q1. It is still arguable, however, if the NSE Pension Index is a good bench mark for the pension funds, because, while the pension funds are largely invested in fixed income securities (Bond and Treasury Bills), the NSE Pension Index is predominantly an all equity based index. The largest gain in the pension fund managers’ returns came from the Retiree Fund category which also shows lower volatility and risk.

The fact that even the few pension funds with equity exposures decreased the equity weighting in their portfolios, opting instead for government and corporate bonds, meant that pensions were somewhat insulated from the ills that bedevilled the market during the first quarter of the year.

In a quarter where the All-Share Index performed abysmally at -11.65%, and all the other market indexes making losses, it is a thing of joy to retirees and pension fund investors that the pension fund managers came off the quarter with positive returns.