Following its prudent supervision of activities at the Nigeria Social Insurance Trust Fund (NSITF), the National Pension Commission (PenCom) perfected the transfer of N43.81 billion from the fund to workers’ Retirement Savings Accounts (RSAs) during the third quarter of the current year.
According to a report obtained by New Telegraph, the amount covers 635 NSITF members’ applications received during the quarter under review.
The report noted that all applications were processed and computed amounts were transferred to the RSAs of the NSITF members.
“From inception to date, N9.79 billion has been transferred to the RSAs of 135,226 NSITF contributors. a During the quarter, the Commission processed pension payments totaling N49.30 million in respect of 2,843 NSITF pensioners.
“This included the payment of pension arrears totaling N59. 97 million to 504 pensioners who were previously removed from the payroll due to their non-participation in previous verification exercises. To date, the total pension payments to NSITF pensioners amounted to N4.24 billion.
On update of recovery of outstanding pension contributions and interest penalty from defaulting employers, the Commission maintained the services of 14 Recovery Agents.
PenCom noted that following the issuance of demand notices to defaulting employers, whose liabilities had been established by the agents, some employers had remitted the outstanding pension contributions and the corresponding penalties.
“During the quarter, the sum of N465.02 million, representing principal contribution of N335.70 million and penalty totaling N129.32 million was recovered. This brought the total recoveries made to date to N14.38 billion comprising of principal contribution of N7.48 billion and penalty of N6.96 billion.
Also giving an update on the activities of the Pension Transitional Arrangement Directorate (PTAD), the regulator said it had continued to monitor the payment of pensions to public service retirees under the Defined Benefit Scheme (DBS) by PTAD.
The report pointed out that during the quarter under review, a total number of 11 complaints on the DBS were received and forwarded to PTAD for resolution.
“A follow-up of the complaints ensured that all the complaints have been resolved. A review of the statutory monthly returns rendered by PTAD revealed that a total of N6.81 billion had been paid to 221,309 pensioners in the quarter ended 30 June, 2018.
It further noted that the commission processed 398 applications for the refund of pension contributions to military personnel and security agencies in continuation of refunding employee contributions to staff of these agencies following their exemption from the Contributory Pension Scheme (CPS) in 2011.
The sum of N63.66 million was refunded based on the processed applications while the sum of N163.77 million, representing the contributions made by the Federal Government on behalf of the personnel was returned to the Contributory Pension Account with the Central Bank of Nigeria.
On investment, the commission revealed that the total value of pension fund assets based on unaudited valuation reports grew from to N7.94 trillion as at 31 March, 2018 to N8.23 trillion as at 30 June, 2018 representing a growth of 3.64 per cent (N288.88).
The growth indicates a decreased growth rate compared to the 5.70 per cent for the previous quarter.
As at second quarter of 2018, the RSA active fund had the largest portfolio, accounting for N5.57 trillion (67.69 per cent) of the total assets under management.
Closed Pension Fund Administrators and AESs assets stood at N1.09 trillion and N947.92 billion, representing 13.20 per cent and 11.51 per cent of the total assets under management respectively. The RSA Retiree Fund stood at N625.27 billion, representing 7.60 percent of the total assets.
A breakdown of pension industry portfolio indicates that the pension fund assets were mainly invested in Federal Government securities, with allocation of 70.75 per cent of total pension assets under management (FGN Bonds: 49.08 per cent, Treasury Bills: 20.76 per cent, Agency Bonds: 0.10 per cent, Sukuk Bonds 0.71 per cent and Green Bonds 0.09 per cent).
This was slightly higher than the 70.39 per cent recorded in the second quarter of 2018. The increase in the value of Bonds was partly due to new investments and accrued coupons.
The value of investments in quoted ordinary shares was N709.51 billion (8.62 per cent of industry portfolio value) as at 30 June 2018, indicating a decrease of N25.00 billion (3.40 per cent) compared to the value of N734.51 billion as at 31 March, 2018.