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Retirees Payments Stopped Over Empty Pension Accounts, PenCom Intervenes

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  • Retirees Payments Stopped Over Empty Pension Accounts, PenCom Intervenes

Some pensioners under the Contributory Pension Scheme stopped earning monthly stipends some years after they retired because they exhausted the money in their Retirement Savings Accounts.

Findings revealed that the affected retirees’ accounts became empty some years after earning monthly pensions because they didn’t have enough pension savings as of the time they retired.

However, the National Pension Commission is set to re-enrol the affected pensioners whose Pension Fund Administrators delisted from the payroll for exhausting their RSA balances.

It was discovered that the commission gave a directive to the PFAs to commence the payment to the retirees, using the funds in the Pension Protection Levy, which it imposed on the operators.

Experts said the major concern, however, is how long the PFAs would be able to sustain the bailout package, since as the Federal Government has declined to support them.

In a circular to the PFAs in October on, “The addendum to the framework on pension enhancement for existing retirees on programmed withdrawal under the CPS,” PenCom urged the PFAs to continue to pay retirees who had no more money for pensions in their Retirement Savings Account.

It stated, “Following the implementation of the framework on the pension enhancement for existing retirees on programmed withdrawal under the Contributory Pension Scheme, pursuant to sections 82(2) and (3c) of the PRA 2014, it has become necessary to issue clarifications as an addendum to the framework as follows:

“Pension Fund Administrators are hereby notified to continue paying pension to retirees that have fully exhausted their RSAs from the provision made for Pension Protection Levy pending the implementation of the Minimum Pension Guarantee.

“This clarification is made to replace the provision of section 5.23 of the framework on Pension Enhancement for existing retirees on Programmed Withdrawal under the Contributory Pension Scheme.”

Retirees under the CPS have openly expressed frustration over the low monthly stipends paid them, which is usually determined by the amount they are able to save before retirement.

The Pension Reform Act 2014 provides that PenCom should establish and maintain a fund to be known as the Pension Protection Fund in respect of the guaranteed minimum pension.

According to the Act, funding of the minimum guaranteed pension will be partly obtained from an annual subvention of one per cent of the total monthly wage bill payable to employees in the public service of the federation and returns from pension fund investments.

It should also be funded from the annual Pension Protection Levy paid by PenCom and all licensed pension operators at a rate to be determined by the commission from time to time.

So far, the Federal Government has yet to make any contribution into the fund.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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