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Chuks Udo Okonta
Insurance operators seemed to be stuck between a rock and a hard place as they have to move over N164.7 billion to the pension industry, Inspen can report.
The funds include the over N145 billion annuity assets they were mandated to keep in the custody of Pension Fund Custodians (PFCs) and the N19.7 billion legacy pension funds being demanded by Pension Transitional Arrangement Directorate (PTAD).
PTAD has accused some insurance companies of withholding N19.7billion which they ought to have transferred to the agency.
The Agency Executive Secretary, Barrister Sharon Ikeazo, said in Abuja that the agency which is saddled with the responsibility of handling pension matters of pensioners under the Defined Benefit Scheme was working with the Minister of Finance to ensure that all outstanding legacy funds were transferred to the agency so as to have money to defray some of the liabilities arising from nonpayment of pensions.
She said the government will determine what action to be taken against such Insurance companies that held the agency to ransom by failing to transfer the funds to the agency.
“The Pension Reform Act 2014 mandated PTAD to take over all pension assets, funds and liabilities of erstwhile Pension Offices and Boards of Parastatals. While these Offices and Boards have been quick to transfer liabilities to PTAD, the funds and assets have not been forthcoming. We have been able to access funds to pay our arrears.
“Since PTAD took over the pension management of Parastatals such as Universities and Colleges of Education in August 2015, legacy pension funds amounting to N19, 137,694,619.94 have remained in the custody of the Insurance Companies.
“We have issued demand notices on the Companies involved, demanding for the transfer of these outstanding funds into our dedicated e-Collection account with the CBN. Till date, only Leadway Assurance has paid funds in its custody.
“We are working closely with the Honourable Minister of Finance to ensure that all outstanding legacy funds are transferred to us. This would enable us to defray some of Government’s liabilities arising from the non-payment of pensions,” she said.
Last week, the National Pension Commission (PenCom) and National Insurance Commission (NAICOM) resolved the annuity impasse by agreeing to allow life insurance companies to open operational accounts with Pension Fund Custodians (PFCs) of their choice.
The regulators in a joint circular, said they are currently reviewing the regulation on retiree life annuity, which will be jointly released to the public in compliance with the PRA 2014 within 3 months of this notice.
The parties also agreed to allowed all new annuity purchased or being processed to be domiciled in the dedicated account with the PFC, while the treatment of all existing retiree life annuity funds and assets, should be dealt with upon issuance of the forthcoming joint regulation.
NAICOM was enjoined to ensure that Life Insurance companies comply with the requirements, while the processing and approvals of new retiree life annuity requests shall continue forthwith.
Pension Fund Administrators (PFAs) were asked to resume the processing of new annuity requests for retirees and forward same to PenCom for necessary approval without delay, and PenCom was asked to ensure that PFAs transfer all approved premium for Retiree Life Annuity to the Operational Accounts opened by the Life Insurance Companies with PFCs.
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