Stanbic IBTC Pension Managers pays N1trn to retirees

Stanbic IBTC Pension Managers pays N1trn to retirees

*Stanbic assists funding N6.7b facility for BAZE varsity teaching hospital

Stanbic IBTC Pension Managers said it has paid N1trillion to more than 69,000 retirees since inception. This was disclosed during the 2022 Employers’ Forum organised by the company in Lagos. At the forum themed ‘Pension Smart:  Equipping your Employees for a better future’, Dr. Babatunde Alayande, who spoke for the Pension Commission, explained that the reviewed  2014 Pension Reform Act ushered in the contributory pension scheme that is fully funded and privately managed based on individual accounts for both the public and private  sectors employees to ensure smartness under the new pension reform. 

He stated that  the objective of the pension reformed act are to establish uniform rules, regulations and standards for the habilitation, payments of retirement benefits  for the public service of the federation, the FCT state, local government and the private sector. He said the act  also made provision for the good operation of the  scheme; To ensure that every person who worked received retirement benefit as at when due; To assist individuals by ensuring they save to cater for their livelihood at old age and for proper administration of the system.

“To be smarter, there are provisions in the 2014 Act that made it possible for pension laws in Nigeria to be reviewed periodically to accommodate various dynamics in operating environment.

“The pension industry currently operates on the pension reform Act of 2014 to avert the confusion on whose authority it is to supervise and regulate pension matters in Nigeria. The  act established the pension commission as the sole regulator and supervisor of all pension matters in Nigeria. Noting that the theme of the forum was very apt for pension to be smart, he said to equip employees for the future, employers are expected to adhere to the pension act 2014 to ensure the remittance of pension contributions of employees into their employment account within 7days  of salary payment.

Head of Businesses Development, Mrs Yinka Johnson, shared insight on the pension journey so far.

She disclosed that the company now has 29 pension branches, 180 banks,has attained the 4 million AUM in 2021,  paid N4.4 billion to more than 69, 000 retirees monthly and has  paid 1 trillion to retirees since inception.

Johnson also said the company now has loyalty cards where clients can get discount at designated shops when the cards  are presented.

She said market pension plan was established in March 2019 to cater to clients in the informal sector such as companies with less than three staff, one man business, the creative and sports industry.

She  also said the company’s  investment philosophy are safety and liquidity; diversion; a sustainable long-term returns; robust risk management. 

“Before you move to a PFA first prove the time frame and source of data; Interrogate and investigate current list of cooperate and institution retirement benefits being managed; Has the return been audited; Check the return with market rates.If  the return is very high the risk is probably very high; Review the history of the company in managing clients assets: Review the compliance history of the manager  and Research PFA team and experience.

She noted that  the essence of the forum is to educate and create awareness, saying it’s geared towards retirement so that workers can retire well.

Head of Contributions and Collections Department, Mr Adetola Adewoyin, noted that the scheme involves actors and responsibilities, adding that there is need for collaboration to strengthen the process from the employee, the employer, pension fund custodian, pencom monitors,  the regulator who ensure that the process works out.

He emphasised the  critical role the pension Act places on the  employer because there is so much responsibility.

“The goal for all stakeholders is to see to the success of the process so the employee the employer, PFA PFC pension regulator need to get it right making sure that the account of clients are remitted as at when due”Uncredited contributors are a major problem in the industry and it ends up in suspense account not contributory is RSA.

He recommended that  issues that are avoidable be prevented to make the process better.

“We must  work together to make sure the employees and employers’ details  are updated.”

Oyinkansola Coker, Head Benefit Administration, spoke on preparing for retirement and accessing benefits after all the contributions must have been made. She advised that clients preparing for retirement must  first update their personal data.

For the payment package she noted that clients can be involved in program withdrawal or the annuity where a lump sum and monthly payout are given and then in the case of the annuity a guarantee is given by the insurance company.

She advised that ahead of retirement (6 months) documents should be put together to avoid common obstacles, personal information be updated, confirmation of data be made a for clearance when due.

“Your payslip, birth certificate or age declaration, reconciliation with your employer, letter of introduction, letter of service and others important documents must get to the pencom early for verification and on word processing.”