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N6.5bn NSTIF contributions transferred to RSAs —PenCom

PenCom-360x225A sum of N6.57bnNational Insurance Trust Fund contributions was transferred into the Retirement Savings Accounts of 83,305 workers in the first quarter of 2012.

The National Pension Commission disclosed this in a report made available to our correspondent on Monday.

It stated that, “The total transfer of NSITF contributions during the first quarter of 2012 was N6.57bn, for the benefit of 83,305 NSITF members.”

According to the commission, PenCom amended the guidelines on the transfer of NSITF cont

A sum of N6.57bnNational Insurance Trust Fund contributions was transferred into the Retirement Savings Accounts of 83,305 workers in the first quarter of 2012.

The National Pension Commission disclosed this in a report made available to our correspondent on Monday.

It stated that, “The total transfer of NSITF contributions during the first quarter of 2012 was N6.57bn, for the benefit of 83,305 NSITF members.”

According to the commission, PenCom amended the guidelines on the transfer of NSITF contributions to employees RSAs to allow employers make direct submission for the transfer of the NSITF contributions of the active employees.

In the quarter, it added that “the commission reviewed and conveyed concurrence” to Trustfund Plc for 3,151 applications for the transfer of N207.3m into the NSIFT members RSA maintained with the Pension Fund Administrators.

The commission said that in 2011, approval was granted for the transfer of Nigeria Provident Fund (NSITF) contributions totalling N4.7bn in respect of 66,589 out of the 69,500 applications received from contributors.

To fast-track the transfer of NSITF contributions to employees RSAs, it added that the commission pursued direct engagement with significant employers, who were employers that had remitted contributions of N20m and above.

Under the old pension scheme, the National Provident Fund was established by the Act of Parliament in 1961 to regulate private sector pension scheme in the country. It ensured monthly contributions from the basic salaries of workers, to be contributed by both the employee and the employer.

The NPF was later converted to a limited social insurance scheme and administered by the Nigeria Social Insurance Trust Fund in 1993.

The Pension Act of 1979 and the NSITF, which administered the old scheme, subjected pensioners to very challenging conditions as they faced non-payment of their pensions, which resulted in the retirees queuing for days to claim what they believed they were owed. Many retirees died under such undue hardships.

This scheme was not funded, leading to mounting pension liabilities that became unsustainable. It was much unregulated; there was non- existence of pension schemes in many sectors, coupled with difficulty in accessing benefits.

The unfortunate setbacks of the scheme led to the repeal of the 1979 Act and the subsequent amendment of the Nigerian Social Trust Fund Act of 1993.

The 2004 Pension Reform Act was promulgated and it ensured a contributory scheme for the payment of retirement benefits of employees of the public service of the federation, the federal capital territory and the private sector.

ributions to employees RSAs to allow employers make direct submission for the transfer of the NSITF contributions of the active employees.

In the quarter, it added that “the commission reviewed and conveyed concurrence” to Trustfund Plc for 3,151 applications for the transfer of N207.3m into the NSIFT members RSA maintained with the Pension Fund Administrators.

The commission said that in 2011, approval was granted for the transfer of Nigeria Provident Fund (NSITF) contributions totalling N4.7bn in respect of 66,589 out of the 69,500 applications received from contributors.

To fast-track the transfer of NSITF contributions to employees RSAs, it added that the commission pursued direct engagement with significant employers, who were employers that had remitted contributions of N20m and above.

Under the old pension scheme, the National Provident Fund was established by the Act of Parliament in 1961 to regulate private sector pension scheme in the country. It ensured monthly contributions from the basic salaries of workers, to be contributed by both the employee and the employer.

The NPF was later converted to a limited social insurance scheme and administered by the Nigeria Social Insurance Trust Fund in 1993.

The Pension Act of 1979 and the NSITF, which administered the old scheme, subjected pensioners to very challenging conditions as they faced non-payment of their pensions, which resulted in the retirees queuing for days to claim what they believed they were owed. Many retirees died under such undue hardships.

This scheme was not funded, leading to mounting pension liabilities that became unsustainable. It was much unregulated; there was non- existence of pension schemes in many sectors, coupled with difficulty in accessing benefits.

The unfortunate setbacks of the scheme led to the repeal of the 1979 Act and the subsequent amendment of the Nigerian Social Trust Fund Act of 1993.

The 2004 Pension Reform Act was promulgated and it ensured a contributory scheme for the payment of retirement benefits of employees of the public service of the federation, the federal capital territory and the private sector.

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