Pension fund assets rise by N1.1tr YoY
By Jeph Ajobaju, Chief Copy Editor
Pension fund assets increased from N12.31 trillion in 2020 to N13.42 trillion in 2021, a rise by N1.11 trillion year on year (YoY), according to latest data published on the website of the National Pension Commission (PenCom).
Pension fund has grown more competitive since PenCom opened the window which allows holders of Retirement Savings Accounts (RSAs) to switch from one Pension Fund Administrator (PFA) to another.
In less than a year since the window was opened, 38,518 RSA holders have switched PFAs; and that has increased competition as PFAs find ways to attract more people to join the pension system.
PenCom has also completed evaluation of the Pension Reform Act (PRA) 2014.
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Other highlights
- Between November and December 2021, the fund’s assets climbed by N168.29 billion, according to the data, reported by Nairametrics.
- Assets valued at $32.51 billion at a rate of N410.66 to the dollar
- Number of RSA holders increased by 31 million from 9.22 million in 2020 to 9.53 million in 2021
- Total FGN securities remain the highest asset held with about N8.7 trillion in 2021, up from N8.1 trillion in 2020.
- The local money market held about N2.025 trillion in 2021, up from N1.647 trillion in 2020.
- Cooperate debt securities surged to about N943 billion in 2021.
72,000 register for Micro Pension Plan
PenCom Micro Pension Department Head Dowda Ahmed disclosed last December that 72,000 participants had been registered in the Micro Pension Plan (MPP) as of November 2021.
MPP is for the informal sector, such as the self-employed or organisations that cannot participate in the Contributory Pension Scheme (CPS) because they do not have a minimum of three employees as specified by the CPS Act.
“These include small-scale business owners, petty traders, artisans, and entrepreneurs, among others.
“The micro pension was put in place to curb old-age poverty by assisting people to contribute while working and have long-term savings they could fall back on when they become old,” Ahmed explained.
“MPP is based on individual and personalised Retirement Savings Account (RSA), as only the RSA holders have access to the balance in the account.
“There is separation of management and custody of the pension funds which ensures that Pension Fund Administrators (PFAs) who manage the fund do not have direct access to them as the funds are kept by the Pension Funds Custodians (PFCs).”