Stanbic IBTC Pension Managers harps on safety of pension assets

From left: Nigeria’s former High Commissioner to the United Kingdom, Dr. Christopher Kolade and Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle at the event.

Crosses N1tn asset under management

Against the backdrop of the recently enacted Pension Reform Act of 2014, Nigeria’s Stanbic IBTC Pension Managers Limited, a subsidiary of Stanbic IBTC Holdings Plc, has stressed that Nigeria’s pension industry now stands on a stronger foundation, providing safety for the over N4.4 trillion pension assets under management.

The company, Nigeria’s biggest Pension Fund Administrator (PFA), boasts of over one million retirement savings account (RSA) holders and assets under management in excess of N1 trillion, paying approximately N1.8 billion to almost 33,000 retirees monthly. Over N190 billion has been paid to retirees seamlessly since the PFA commenced operations in 2006.

Speaking at a conference on pension and corporate governance organised by the company in Lagos, Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle, said the new law had expanded the scope of participation in the pension scheme by Nigerians as well as strengthened compliance with its provisions, especially relating to enrolment and remittance of pension contributions.

"The Pension Reform Act of 2014, among its very many laudable provisions, will be instrumental in expanding coverage of the Nigerian pension system and strengthening compliance, while building a vibrant pension industry capable of supporting economic growth and development," Sogunle stated.

Sogunle explained that private sector organisations with 3 employees or more are expected to register under the scheme. The law also compels an employer to open a Temporary Retirement Savings Account (TRSA) on behalf of an employee that fails to open a Retirement Savings Account (RSA) within three months of being employed.

Sogunle added that whatever gaps existed in the old pension regime had been effectively plugged in the new law, making the incidence of ghost pensioners and widespread mismanagement of pension funds almost impossible. Very stiff penalties for pension funds fraudsters and employers who persistently fail to deduct and/or remit pension contributions of their employees within the stipulated time are expected to checkmate abuse.

Guest speaker and former Nigerian High Commissioner to Britain, Dr Christopher Kolade highlighted passion for high quality, productivity and integrity as key drivers for success in business, while urging every business to strive to achieve effectiveness through best practice.

Sogunle described as erroneous the impression often bandied in the public space that pension funds are left to PFAs, employers, individuals or operators to handle as they wish. Instead, he emphasized that pension fund assets are held by Pension Fund Custodians (PFCs) who execute benefit payments and investment instructions from the PFAs and are duly licensed by the National Pension Commission (PenCom). "The PFAs manage and administer the funds, while the PFCs have custody of the pension fund. There are sufficient legal and institutional bulwarks to protect pension funds," he stated, adding that funds are directly credited to the RSA of beneficiaries who enjoy unhindered access to any information relating to their pension contributions.

From left: Chief Executive Officer, Stanbic IBTC Pension Managers Limited, Dr Demola Sogunle; Head Business Development Nike Bajomo; Nigeria’s former High Commissioner to the United Kingdom, Dr. Christopher Kolade and Head, Research and Corporate Strategy Department PenCom, Dr Farouk Aminu at the event.

Also speaking, Executive Director, Investment Stanbic IBTC Pension Managers Limited,  Eric Fajemisin, said the stakeholders’ forum was specifically designed to appraise recent trends and developments in the industry as part of a multi-pronged enlightenment campaign to deepen pension practice in Nigeria and to have more people enlist in the Contributory Pension Scheme. The company, he said, would always spearhead the quest for global best practice in the industry.

"Our aim is to continue to set higher standards of service delivery and ensure that our retirement savings account holders have peace of mind and derive maximum value from their investment. We believe that the support, experience and capabilities of the Standard Bank Group, to which Stanbic IBTC belongs, have been instrumental in enhancing our expertise, resource base and general service delivery. This initiative is part of a long-term commitment that defines Stanbic IBTC Pension Managers Limited’s value proposition to its customers and to the industry in general," he said.

Fajemisin said innovations introduced by the PFA to enable clients experience excellent and convenient service delivery include the Stanbic IBTC Pension Managers mobile office; the first 24-hour multilingual call centre manned by personnel who speak the three major Nigerian languages - Yoruba, Igbo and Hausa; as well as Pidgin English; a footprint of over 200 branches of Stanbic IBTC Bank where RSA clients can access pension service; Stanbic IBTC Pension Managers’ regional offices; as well as selected branches of Zenith Bank PLC. Other access points include Stanbic IBTC Bank ATMs, online service for RSA holders, email, SMS and the Pension Notes, which accompany hardcopy RSA statements sent to customers quarterly.

Stanbic IBTC Pension Managers is a subsidiary of Stanbic IBTC Holdings Plc, 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 bank by assets and earnings.