Pension fund belongings hit N21.92tn in October – PenCom

The Nationwide Pension Fee has disclosed that the full pension fund belongings beneath the Contributory Pension Scheme have risen to N21.92tn as of October 2024, with contributions from 10.53 million registered contributors.

The fee additional anticipates that the belongings will surpass N22tn by the tip of the yr.

The disclosure was made by the Director-Basic of PenCom, Ms Omolola Oloworaran, throughout the 2024 PenCom Media Convention held in Abuja on Thursday.

She highlighted the Fee’s dedication to making sure the security of contributors’ funds by prudent administration and sustainable progress methods.

Oloworaran acknowledged, “As of October 2024, the CPS has recorded 10.53 million registered contributors and boasts pension fund belongings of N21.92tn. These numbers replicate our unwavering dedication to fund security, prudent administration, and sustainable progress.”

Nevertheless, she famous the financial challenges impacting the pension fund, together with excessive inflation, naira devaluation, and the lingering results of unorthodox financial insurance policies, which have eroded the true worth of pension funds and decreased contributors’ buying energy.

To deal with these challenges, PenCom has undertaken a assessment of its Funding Laws, specializing in diversifying investments into inflation-protected devices, various belongings, and foreign-currency-denominated investments.

Along with guaranteeing fund security, the Fee is prioritising the growth of pension protection. Oloworaran defined that PenCom plans to revamp the Micro Pension Plan and leverage know-how to encourage participation from the casual sector.

This effort is geared toward enabling extra Nigerians to avoid wasting for retirement whereas selling inclusive progress and monetary safety.

The PenCom DG famous, “Nevertheless, the financial realities of 2024 and previous years current distinctive challenges. Excessive inflation, the devaluation of the naira, and the lingering results of unorthodox financial insurance policies have eroded the true worth of pension funds, impacting contributors’ buying energy.

“To deal with these challenges, PenCom has initiated a complete assessment of the Funding Laws, specializing in diversifying pension fund investments into inflation-protected devices, various belongings, and foreign-currency denominated investments. Our purpose is to safeguard contributors’ financial savings and guarantee resilience towards future financial volatility.”

She additionally addressed delays within the cost of retirement advantages to retirees of Federal Authorities treasury-funded Ministries, Departments, and Businesses.

In line with her, N44bn has been launched beneath the 2024 funds appropriations to settle accrued pension rights for retirees from March to September 2023.

She famous that the Fee is working intently with the Federal Authorities to institutionalise a sustainable answer that ensures retirees obtain their advantages promptly.

She stated, “We’re additionally addressing delays in retirement profit funds to retirees of Federal Authorities treasury-funded MDAs.

“Just lately, N44bn was launched beneath the 2024 funds appropriations to settle accrued pension rights for retirees from March to September 2023. Transferring ahead, we’re working with the Federal Authorities to institutionalise a sustainable answer, guaranteeing retirees obtain their advantages promptly and with out undue stress.”

Oloworaran additional introduced the launch of an e-application portal for Pension Clearance Certificates in October.

This platform permits corporations to seamlessly apply for and obtain certificates on-line.

Up to now, 38,528 PCCs have been issued, a improvement she stated enhances the benefit of doing enterprise and ensures compliance.

Additionally, she revealed that the Pension Trade Shared Service Initiative is in its superior levels of implementation.

This initiative goals to digitise pension contributions and remittances, resolving discrepancies attributable to incomplete remittance particulars and guaranteeing seamless processing of Retirement Financial savings Account contributions.

To enhance the retirement course of, the fee has launched a revised programmed withdrawal template.

The up to date template simplifies entry to voluntary contributions and adjusts the edge for en-bloc funds in keeping with the brand new minimal wage.

Wanting forward, Oloworaran emphasised that PenCom plans to combine know-how into each side of the pension business in 2025.

She stated this integration would improve accessibility, reliability, and sustainability inside the system, whereas additionally calling on the media to help the Fee’s efforts by elevating public consciousness concerning the CPS.

The DG expressed gratitude to the media for his or her position in enlightening Nigerians concerning the CPS and reiterated the significance of collaboration in reaching PenCom’s objectives.