Pension scheme gains 322,974 between Q4 2021 and Q1 2022
By Jeph Ajobaju, Chief Copy Editor
Registration for the Contributory Pension Scheme (CPS) rose by 322,974 from 9.36 million in the first quarter ended March 2021 (Q1 2021) to 9.68 million Q1 2022.
The membership grew by 92,852 from 9.59 million in Q4 2021 to 9.68 million in Q1 2022, according to National Pension Commission (PenCom) First Quarter 2022 report.
Total contributions into Retirement Savings Accounts (RSAs) in Q1 2022 stood at N191.44 billion. The private sector contributed N101.11 billion (52.82 per cent), the public sector N90.33 billion (47.18 per cent).
Aggregate public sector pension contributions jumped from N3.92 trillion in Q4 2021 to N4.02 trillion in Q1 2022.
Aggregate private sector pension contributions rose from N3.66 trillion in Q4 2021 to N3.76 trillion in Q1 2022.
PenCom Director General Aisha Dahir-Umar said in Q1 2022 the Commission also recovered outstanding pension contributions and penalties from defaulting employers and recovery agents issued demand notices to 23 defaulting employers.
Up to N422.34 million, comprising N124.89 million principal contributions and 295.45 million penalties, was recovered from the defaulting employers.
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Contributions and withdrawals
PenCom is preparing to take legal action against six recalcitrant employers after exhausting administrative measures to ensure compliance, Dahir-Umar added, according to reporting by The Nation.
Her words: “The Commission issued 10,541 certificates to private sector organisations out of the 11,200 applications submitted. The remaining 659 applications were in the approval process at the end of the quarter.
“Also, on payment of retirement/terminal benefits, the Commission approved 8,528 requests from retirees to draw pension through Programmed Withdrawal (PW) in Q1 2022.
“Accordingly, the retirees received lump sum payments totalling N36.25 billion, while their total monthly pensions amounted to N470.13 million.
“Similarly, PenCom approved the lump-sum payments of N13.21 billion to 3,264 retirees that chose Retiree Life Annuity. Furthermore, N22.69 billion was paid to fourteen (14) Retiree Life Annuity providers, as premiums regarding monthly/quarterly annuities of N231.93 million.
“Death benefits paid in Q1 2022 amounted to N13.39 billion.”
Micro Pension Plan
“During the period under review, 2,897 new contributors were enrolled in the Micro Pension Plan by 18 PFAs, bringing the total number of micro pension contributors to 76,588.
“A total of N34.53 million was received as contributions from 8,668 Micro Pension Plan (MPP) contributors totalling N34.53 million. The total value of Micro Pension Funds in Q1 2022 was N263.57illion.
“Despite the challenging operating environment, the CPS has remained robust and resilient.
“Pension contributions, pension assets and CPS membership increased in Q1 2022, indicating a strong performance.
“It is expected that the recent successful increase of the Minimum Regulatory Capital (Shareholders’ Fund) of PFAs from N1 billion to N5 billion will further strengthen the PFAs for better performance.
“PenCom hereby reiterates its commitment to effective regulation and supervision of the Nigerian pension industry in order to ensure that retirement benefits are paid as and when due.”