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ARM, Stanbic IBTC, Pension Alliance lead in micro pension

Here are six times you can draw from your pension

At the end of 2022 financial year, ARM Pension Managers Limited, Stanbic IBTC Pensions Managers Limited and Pension Alliance Limited were ahead of other pension fund administrators (PFAs) in Micro Pension Plan (MPP) enrollment.

Out of 89,327 registered enrollees (contributors), ARM Pension led with 22,580 members or 25.25 percent, while Stanbic IBTC Pensions followed with 14.962 or 16.75 percent.

Pension Alliance Limited and Tangerine APT Pensions Limited came third and fourth with 7,148 and 7,011 respectively, according to data from the National Pension Commission (PenCom).

The MPP generated N42,118,470.69 at the end of fourth quarter 2022, bringing the total amount contributed under the scheme to N368,034,392.81.

In the fourth quarter, Stanbic IBTC Pension Managers registered the largest number of micro pension contributors of 1,448, followed by ARM Pensions Managers (1,205) and Tangerine APT Pensions (1,065).

Norrenberger Pension, Crusader Sterling Pension Limited, First Guaranty Pensions Limited had seven, four and three contributors, respectively.

A breakdown of the pension contributions received in Q4 showed that Stanbic IBTC Pension Managers, ARM Pension Managers and Premium Pensions had the highest contributions of N16,943,318.00; N11,611,148.25 and N3,006,300.00, respectively.

In contrast, the PFAs with the lowest contributions were Crusader Sterling Pensions, First Guaranty Pensions and Norrenberger Pensions with N90,000.00; N57,200.00 and N34,340.00, respectively.

Out of the total pension contributions received, Stanbic IBTC Pension Managers, ARM Pension Managers and Fidelity Pension Managers Limited accounted for the largest part: N160,278,158.77; N50,231,013.09 and N39,493,887.14, representing 43.55 percent, 13.5 percent and 10.73 percent respectively as at December 31, 2022.

During the review period, seven PFAs processed and approved MPP contingent withdrawals for 11 contributors amounting to N2,998,536.62 in Q4, bringing the total contingent withdrawals to N26,186,850.22 from 136 contributors as at the end of last year.

Implementing the provision of the law which allows micro pension contributors to join the Contributory Pension Scheme, PenCom revealed that a total of 58 micro pension contributors converted from MPP to the mandatory CPS in Q4 2022 with N250,504.88 contribution, bringing the total conversion amount to N4,826,280.72 from 477 MPCs as at December 31, 2022.

Meanwhile, PenCom and other stakeholders in the industry have continued to create awareness through stakeholder engagements and awareness campaigns.

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To ensure the effectiveness of the media campaign, additional outdoor campaign materials were deployed for wider reach, especially through placement of stickers on Bus Rapid Transit in Lagos, red buses in Abuja, and taxis in Port-Harcourt, Aba and Onitsha.

Other efforts are the development of incentives, which has been recognised as a critical factor for informal sector workers’ participation in the MPP. Three service providers, AXA Mansard Health Insurance, Leadway Assurance Company and Tangerine Life Insurance, were engaged by Pension Fund Operators Association of Nigeria to provide health insurance cover to contributors.

The MPP, which was established through the provisions of Section 2(3) of the Pension Reform Act 2014, aims at ensuring that the informal sector participants save towards their old age, as this category of workers constitutes a large percentage of the working population in the country.

Dauda Ahmed, head of micro pensions department at PenCom, while speaking on the scheme during the Lagos International Trade Fair held in Lagos recently, said the commission was at the event to enlighten Nigerians on the benefits of micro pension

The trade fair, he said, was one of the strategies the commission was using to sustain the momentum on micro pension, while also using the media as a partner to reach out and enlighten the masses on its benefits.