Stanbic IBTC Pension Managers Limited has over 1.5 million Retirement Savings Accounts (RSAs), with assets under management in excess of N1.88 trillion, Chief Executive, Stanbic IBTC Pension Managers Limited, Eric Fajemisin has said.
He made this known at the employers’ forum, titled: partnering to deliver excellent pensionadministration Services, held in Benin, Edo State.
He stated that the company, a Pension Fund Administrator (PFA) has paid approximately N1.8 billion to over 44,000 retirees monthly.
He added that over N261 billion has also been paid to retirees since the PFA began operations in 2006, Bajomo added.
He, however, noted that employers was critical stakeholders to ensuring that the over 73 million employed Nigerians have RSA account.
According to him, the forum which was the first to be held in 2017 is part of efforts to boost participation in the Contributory Pension Scheme (CPS) and ensure that employed Nigerians have RSA accounts.
The event was the first leg of the 2017 edition of the company’s employers’ forum that started three years ago. ‘’It is part of our strategic approach to engaging industry stakeholders on ways to strengthen the Nigerian pensions industry’’, he said.
Fajemisin stressed that employers remained the pivot upon which the sustainability of the pension scheme rests and as such it is imperative to engage them on their key roles and how those roles impact the pension scheme.
He said employers must show commitment in terms of ensuring their employees have RSA and funding of those accounts through regular remittances.
He said: “There is a clear need to ensure the rapid growth of the CPS by increasing its uptake by Nigerians. Latest figures from the Nigerian Bureau of Statistics showed that the country has 73.4 million working Nigerians. Of this number only about 10 per cent representing 7.3 million Nigerians are captured in the CPS. This forum is designed to bring together employers and pension experts and act as a platform where knowledge and information can be shared on the pension business and how to increase participation in the scheme.
“Some of the expectations this year’s employers’ forum highlighted include derivable benefits of participation in the pension scheme, safeguards put in place to protect pension funds, expected participants in the pension scheme, ways to enhance collaborations to move Nigeria’s pension industry forward, the role of an employer/employee in the CPS, and the challenges and opportunities in the industry.
“Others include how pension assets can be deployed to support sustainable development in the country. The forum also examined contributors’ access to their RSAs, and claims processing, withdrawal from the pension scheme, returns on investment on pension funds, annuity and regulatory oversight, among others.”
Fajemisin called on employers and other stakeholders to engage to fashion out how sustainable growth of the industry can be achieved and more importantly, ways of ensuring workers enjoy a level of comfort while in retirement and create economic prosperity for all.
The banking Executive Director, Investments, Oladele Sotubo, noted that the company believes in active engagement of employers on the importance and impact of their role in pension administration and the retirement process, part of which includes helping their workers have retirement plans through the opening of retirement savings accounts and regular remittance of their contributions.
He stressed that the overall aim is to increase participation by more Nigerians. “Let us note that under the Pension Reform Act of 2014, private sector organisations with a minimum of three employees or more are required to register under the scheme. Also, an employer is compulsorily required to open a Temporary Retirement Savings Account (TRSA) for an employee who fails to open a RSA within three months of being employed. The law also prescribes stiff penalties for pension fraud including employers who steadily fail to deduct and/or remit pension contributions of their employees within the stipulated time.
According to the report, Head, Business Development, Stanbic IBTC Pension, Mrs. Nike Bajomo on her part, reiterated that the PFA, backed by the expertise and experience of Stanbic IBTC Group, a member of the over 153-year-old Standard Bank Group, will not relent in providing excellent service to its RSA holders and Nigerians.
“Stanbic IBTC Pension is a subsidiary of Stanbic IBTC Holdings, a member of Standard Bank Group, a full service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African financial institution by assets and earnings. It is rooted in Africa with strategic representation in 20 countries on the African continent. Standard Bank has been in operation for over 153 years and is focused on building first-class, on-the-ground financial services organisations in chosen countries in Africa and connecting other selected emerging markets to Africa and others, applying sector expertise, particularly in natural resources, globally.
“The employers’ forum will be held in eight cities across the country, with the Benin forum, kick-starting the engagements.
‘’Stanbic IBTC Pension Managers said it identified employers as a critical stakeholder in the pension industry and has designed the forum to engage them and encourage their buy-in into the CPS,” he added.