Membership under the Contributory Pension Scheme (CPS) has increased by 322,974 year-on-year from 9.36 million at the end of the First Quarter (QI) of 2021 to 9.68 million at the end of Q1 2022.
Quarter-on-quarter, CPS membership rose by 92,852 from 9.59 million recorded at the end of Q4 2021 to 9.68 million as of Q1 2022.
The growth in the industry membership is due to an increased level of compliance by the public and private sectors.
However, the total pension contributions remitted to individual Retirement Savings Account (RSAs) in Q1 2022 stood at N191.44 billion with the private sector contribution put at N101.11 billion or 52.82 per cent. The public sector accounted for N90.33 billion or 47.18 per cent.
Quarter-on quarter, aggregate pension contributions of the public sector increased from N3.92 trillion in Q4 2021 to N4.02 trillion at the end of Q1 2022.
Similarly, the aggregate pension contributions of the private sector rose from N3.66 trillion in Q4 2021 to N3.76 trillion at the end of Q1 2022.
This was shown in the newly released First Quarter 2022 report by the National Pension Commission (PenCom).
PenCom Director-General Aisha Dahir-Umar said that the commission also recovered outstanding pension contributions and penalties from defaulting employers during the period under review. She added that recovery agents issued demand notices to 23 defaulting employers.
Dahir-Umar disclosed that N422.34 million, comprising N124.89 million from principal contributions and 295.45 million penalties, was recovered from the 23 defaulting employers.
She said that the commission was preparing to take legal action against six recalcitrant employers after exhausting administrative measures to ensure compliance.
On issuance of pension clearance certificates, she said: “The commission issued 10,541 certificates to private sector organizations 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”.
Giving an update on Micro Pension Plan, she said: “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.”
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