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PenCom Records N14.9tn Contributory Pension Fund in 2022

The total assets of the Contributory Pension Scheme grew by N1.56 trillion in 2022 as it recorded N13.42 trillion in 2021

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The National Pension Commission has revealed that N14.99 trillion was recorded as a Contributory Pension fund at the end of year 2022.

This was contained in its latest report titled– Report on pension industry portfolio for the period ended 31 December 2022.

According to PenCom, the total assets of the Contributory Pension Scheme grew by N1.56 trillion in 2022 as it recorded N13.42 trillion in 2021.

Investors King reports that the members of the contributory scheme increased by 333,002 in 2022 as the number of contributors was formerly 9,529,127 as at 2021 ending. 9,862,129 members were recorded at the end of 2022. 

The Commission gave the breakdown for 2022 as follows: N9.64 trillion or 64.33 percent of the assets was invested in the Federal Government securities, N1.66 trillion for incorporate debt securities, N1.98tn for money market securities and N82.8bn for mutual funds aside other investment figures.

The Director-General of PenCom, Aisha Dahir-Umar marveled at the increase in pension fund assets in the third quarter of 2022 despite the economic situation globally.

She averred that the Pension Scheme will diligently deliver good and quality services for the benefit of its contributors.

Dahir-Umar noted that the Commission has broadened its means of acquiring funds for the scheme and embarked on infrastructure projects amongst other forms of investments.

She said the efforts put forth are yielding much increase which makes the Commission ahead of the economic situation and inflation. 

The Director-General hinted that steps have been taken to enable the commission’s annual average rates of return of pension funds in Retirement Savings Account and legacy funds to rise above inflation rates.

Her words, “This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy. Perhaps, the most significant achievement recorded in the third quarter of 2022 was the successful issuance of guidelines on accessing RSA.

“Balance towards payment of equity contribution for residential mortgage. The guidelines give effect to Section 89(2) of the Pension Reform Act 2014, which allows eligible RSA holders to apply a percentage of the balances in their Retirement Savings Accounts for payment of equity contribution towards residential mortgage for employees of the public, private and the informal sectors.”

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Pension

Pension Fund Administrators Channel N130 Billion into Infrastructure Investments

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Pension Fund Administrators (PFAs) have strategically invested N130.18 billion from the Contributory Pension Scheme into infrastructure projects by the end of September 2023.

The data from the National Pension Commission reveals the commitment of PFAs to diversifying their investment portfolio while maintaining compliance with the Pension Reform Act of 2014.

As of the reporting period, the total assets under the Contributory Pension Scheme amounted to N17.35 trillion.

In addition to infrastructure investments, PFAs directed funds into various avenues, including domestic and foreign ordinary shares, federal and state governments’ securities, and money market instruments.

The investment strategy aligns with the amended investment regulation introduced by the commission.

The regulation outlines stringent requirements to ensure prudent and compliant investment practices in line with the provisions of the Pension Reform Act.

It emphasizes that pension fund custodians should adhere to written instructions from licensed PFAs regarding the investment and management of pension fund assets.

The regulation also sets guidelines for allowable investments outside Nigeria, and PFAs are cautioned against contracting out the custody of pension fund assets to third parties without prior approval.

This strategic approach not only upholds regulatory standards but also serves the long-term interests of contributors, ensuring a balanced and diversified investment portfolio.

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Federal Government Completes N1.02 Billion Payment to Power and Transport Pensioners

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The Federal Government announced the successful disbursement of N1.02 billion to 7,091 pensioners from the Power and Transport Sectors of the Parastatals Pension Department.

This vital step to fulfill pension obligations was revealed by Olugbenga Ajayi, the Head of the Corporate Communications Unit at the Pension Transitional Arrangement Directorate (PTAD), in a statement released on Sunday.

The allocated sum accounts for 39% of the accrued pension arrears owed to retirees in these sectors for the period spanning from August 2015 to September 2023.

The process involved a meticulous calculation of each pensioner’s monthly pension based on their career details, salary structure, and applicable pension increments.

This commendable initiative stemmed from the realization that 7,091 pensioners in the power and transport sector were receiving inadequate pension payments due to discrepancies within the inherited payroll system managed by PTAD.

Dr. Chioma Ejikeme, the Executive Secretary of PTAD, reiterated the government’s commitment to upholding fairness, equity, and justice, ensuring that every pensioner receives their rightful pension under the Defined Benefit Scheme.

Dr. Ejikeme also assured federal pensioners that the payment of accrued pension arrears would continue until all obligations are satisfied, subject to the availability of government funding.

This announcement underscores the government’s unwavering dedication to the welfare of retirees and is a significant milestone in addressing outstanding pension liabilities in the country.

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Nigeria’s Pension Industry Reaches New Milestone as 10 Million RSAs and N16.76 Trillion in Assets

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The National Pension Commission (PenCom) announced that as of the end of the third quarter of 2023, the number of Retirement Savings Accounts (RSAs) under its Contributory Pension Scheme (CPS) has surged to 10 million.

What’s more, the pension assets under current management are now worth N16.76 trillion in today’s value.

During an interactive session held in Kano for the organized private sector, Dr. Umar Farouk Aminu, Commissioner of Administration at PenCom, delivered the news on behalf of Director General Aisha Dahir-Umar.

Aminu highlighted PenCom’s substantial strides in ensuring a seamless implementation of the CPS, emphasizing their focus on deploying the Enhanced Contributors Registration System (ECRS) within the pension industry.

Dahir-Umar acknowledged the rapid growth of Nigeria’s pension sector, underlining the introduction of the Data Recapture Exercise (DRE).

The DRE mandates all RSA holders who joined the CPS before July 1, 2019, to update their information with their respective Pension Fund Administrators (PFAs).

Furthermore, PenCom has successfully transferred contributions worth N10.20 billion to the RSAs of 142,486 NSITF Scheme contributors. They continue to prioritize the smooth transition of NSITF contributions into RSAs.

This milestone was celebrated at an interactive session in Lagos, where calls for collaboration among all stakeholders were reiterated.

The introduction of the RSA Transfer System (RTS) in 2020 was highlighted, showcasing its significant impact on improving service delivery by PFAs.

Adewale Smatt Oyerinde, the Director General of NECA, expressed optimism that these developments and deliberations would drive further advancements in Nigeria’s pension sector.

The achievements underscore the growing importance of prudent financial planning and management in the country.

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