The National Pension Commission has transferred N9.82bn into the Retirement Savings Accounts of 136,578 workers, who contributed into the former Nigerian Social Insurance Trust Fund.
PenCom disclosed this in its third quarter 2018 report on ‘The transfer of Nigeria Social Insurance Trust Fund contributions to members RSAs.’
The report stated, “The commission continued the supervision of the transfer of NSITF contributions into beneficiaries’ RSAs during the quarter under review.
“In this regard, 741 NSITF transfer applications totalling N46.50m were received, processed and the amount was transferred to the RSAs of the NSITF members.
“To date, N9.82bn has been transferred into the RSAs of 136,578 NSITF contributors.”
While disclosing the update on the monthly ‘NSITF Scheme Pensions’ during the quarter, the commission stated that it processed pension payments totalling N59.00m in respect of 3,470 NSITF Pensioners.
“The total pension payment to NSITF pensioners’ amounted to N4.32bn as at the end of the reporting period,” it added.
Recall that regulated pensions for employees in the organised private sector began in 1961 with the establishment by an Act of Parliament of the National Provident Fund.
Under the NPF, the monthly contribution was six per cent of basic salary, to be contributed by the employer and the employee.
In 1993, the NPF metamorphosed into the Nigeria Social Insurance Trust Fund following the promulgation of the NSITF Decree No 73 of 1993.
The Act mandated all employers of labour in the organised private sector, with a workforce of not less than five persons, to register as members of the scheme and remit monthly contributions.
The NSITF was a Defined Benefits Scheme and the initial monthly contribution was 7.5 per cent of basic salary, of 2.5 per cent to be borne by the employee, and five per cent by the employer.
This was reviewed upwards in 2001 to 10 per cent of gross salary, 3.5 per cent to be borne by the employee and 6.5 per cent by the employer.
The Pension Reform Act was enacted in 2004.
In compliance with Section 42 of the PRA 2004, NSITF in collaboration with other institutional investors incorporated Trustfund Pensions Limited and ceded its pensions assets of approximately N54bn.
Trustfund Pensions got its licence to operate as a PFA from PenCom in 2006 and commenced operations immediately.
The PRA 2004 provided that contributions into the NSITF scheme together with accrued income should be transferred into members’ RSAs.
The Act also provided that the commission should supervise the transfer.
To establish the amount to be transferred on behalf of each contributor to the NSITF scheme, Trustfund and the commission worked to ascertain the amount to be transferred on behalf of each contributor of the scheme.
PenCom introduced a guideline to provide general guidance on how the transfer of NSITF contributions into the RSAs of employees would be effected and delineate the roles and responsibilities of each stakeholder.