Transcript Недержавне пенсійне забезпечення: перші

WORKINGS OF THE
CONTRIBUTORY PENSION SCHEME
By
National Pension Commission
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
1
Outline
 Rationale for the Current Pension Reforms
 How the Scheme Works
 Registration Procedures
 Collection & Accounting for Pension Contribution
 Payroll Adjustment
 Challenges in Collection & Remittance of Pension
Contributions
 Rights of Employees
 Reform Implementation Efforts
 Matters Arising
 Next Steps
 Conclusions
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
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Rationale for the Current Pension Reforms
 Most public sector schemes were unfunded
 Unsustainable pension liabilities
 Weak and inefficient administration of schemes
in both public and private sectors
 Demographic shifts and ageing make defined
benefits schemes unsustainable
 Many workers in the private sector were not
covered by any form of retirement benefits
arrangement
 Existence of diversified arrangements which
were largely unregulated in the private sector
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
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How the Scheme Works
Contributory
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Contributions by both employer and employee
Fully Funded
Individual Accounts
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Nature of the account, portability and withdrawals
(Lump sum, Annuity & Programmed withdrawal)
Privately Managed
Life Insurance Cover
Coverage and Exemptions
Strictly regulated and supervised - PenCom
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Presentation to Pension Desk Officers
and Payroll Accountants
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Registration Procedures
 RSA Opening
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Every employee is required by law to open an
RSA
It is ILLEGAL for employers to coerce employees
to open RSAs with specified PFA(s)
Registration procedure with selected PFA
Completion of registration form
Personal Data
Thump Print issues
Employment Records

PenCom to issue PIN to employees through PFA
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Presentation to Pension Desk Officers
and Payroll Accountants
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Collection and Accounting for
Pension Contributions
 Employer and Employees’ contributions have
been centralised and deducted at source by the
Budget Office of the Federation
 Personnel Costs are released to Ministries,
Departments & Agencies net of the deductions
 Contributions are being lodged into a Pension
Contribution Account at the Central Bank of
Nigeria
 Contributions are being remitted to the
Retirement Savings Accounts of employees who
registered with the Pension Fund Administrators
of their choice after due verification by PenCom
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
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Payroll Adjustment
Employee’s salary to be grossed up to
include only the employee’s contribution
which was deducted at source
No further deduction from employee’s pay is
required by MDA
Employee’s contributions should be shown
as deduction in payroll and pay slips
Employee’s contributions should be treated
as memorandum entry in payroll as no
further remittance is required
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
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Challenges in Collection & Remittance of
Pension Contributions
 Absence of reliable Nominal roll of many MDAs
 Reluctance to update records through the on-line
registration window
 Differences in Bio-data between the Nominal Roll
and Registration Data Base
 Some employees are yet to register with PFAs
 Those that registered have not provided proof of pay
– e.g. employment letter, pay slip, etc
 Some MDAs appeared to have been deducting
pension contribution in addition to the deduction
made at source
21/07/2015
Presentation to Pension Desk Officers
and Payroll Accountants
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Rights of Employees
Power of the Employee/Contributor
PFA Selection
 Right to RSA Statement on quarterly basis
and on demand
 Right to move RSA once a year
 Right to appoint next of kin
 Right to customer support from PFA
 Right to lodge complaints with PenCom
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Accumulated contributions from July
2004 to date will be credited into RSA
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Presentation to Pension Desk Officers
and Payroll Accountants
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Reform Implementation Efforts
Public Sector Accrued Pension Rights
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Government owes you pension rights for period you
served prior to Pension Reform Act 2004
Calculation of the accrued pension rights for FGN
employees has been conducted
Government to issue you an IOU to the tune of your
accrued rights
Government has been keeping aside 5% of its total
wage bill in Retirement Benefit Bond Redemption
Fund Account at CBN towards payment of the IOU
issued to you
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Presentation to Pension Desk Officers
and Payroll Accountants
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Matters Arising
 Multiple registrations
 Delays in remitting contributions to RSAs
due to the need to reconcile personnel
profiles submitted to PenCom
 Employer to provide regular updates on
personnel profile to PenCom
 Insured schemes
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Federal Government to continue funding the
scheme for existing pensioners and those
exempted from the scheme
Modalities are being worked out to pay all accrued
pension rights of current employees
Monthly pension contributions to continue to be
funded by Federal Government
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Presentation to Pension Desk Officers
and Payroll Accountants
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Matters Arising
 Benefit claims
 Lump sum withdrawal
 Periodic withdrawals – annuity &
programmed withdrawal
 Retired employees
End of service retirement
Voluntary retirement
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Sacked/dismissed employees
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Presentation to Pension Desk Officers
and Payroll Accountants
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Matters Arising
 Death benefit claims
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Group life insurance benefits
Full premium to be paid by employer
No deductions from employee salary
Death benefit claim form available on our website:
www.pencom.gov.ng
Employer to download and complete the form for each case of
death
Completed form to be returned to the Commission with
required supporting documents
PenCom to process and send to Budget Office for payment
Budget Office to pay beneficiaries
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RSA balances
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Accumulated Contributions
Accrued Pension Benefits – Bonds
Group Life Insurance benefits
Presentation to Pension Desk Officers
and Payroll Accountants
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Next Steps
 Employees not yet registered should
get registered with their chosen PFAs
to enable their benefits be transferred
to their accounts
 Employees to update their profiles online (e-mails can be sent with the
required details)
 Employers to submit updated nominal
rolls with PINs of employees indicating
GL & Steps
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Presentation to Pension Desk Officers
and Payroll Accountants
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Conclusion
 The Contributory Pension Scheme was
introduced to address the in-adequacies of the
Defined Benefit pension scheme that operated in
the public sector and to provide a uniform
pension system for both the public and private
sectors
 The National Pension Commission has recorded
tremendous achievements in laying solid
foundation for the implementation of the scheme
 Steps are being taken by PenCom to ensure that
concerns of all stakeholders are allayed and full
implementation of the scheme is achieved
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Presentation to Pension Desk Officers
and Payroll Accountants
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Thank You!
National Pension Commission
Plot 174, Adetokunbo Ademola Crescent
Wuse II, Abuja
09 – 4138736 – 40
[email protected]
www.pencom.gov.ng
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Presentation to Pension Desk Officers
and Payroll Accountants
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