PenCom 2nd Quarter 2022 Report Executive Summary

August 24, 2022 PensionNigeria

National Pension Commission (PenCom) Second Quarter 2022 Report Shows Steady Growth in Pension Fund Assets Despite Economic Headwinds.

The National Pension Commission (PenCom) has released its 2nd quarter 2022 report for the pension industry, PenCom also published the highlights of the report to inform all stakeholders and the general public.

Below are the highlights of the report:

Pension Fund Assets

Total pension assets rose quarter-on-quarter by N388.98 billion from the N13.88 trillion recorded at the end of Q12022 to N14.27 trillion at the end of the second quarter of 2022. The growth was mainly due to contributions received and interest income which was partly offset by depreciation in the prices of Federal Government of Nigeria (FGN) bonds and equities during the period.

Pension Fund Investment

Federal Government Securities and quoted domestic ordinary shares continued to account for the highest percentage of Pension Fund Assets investments in the second quarter of 2022. Investments in FGN securities stood at N9.01 trillion, indicating an increase of 505.81 billion (5.95%) over the value of N8.50 trillion as of 31 March 2022. On the other hand, investments in quoted domestic ordinary shares increased by N12.53 billion to N1.069 trillion. The asset class represented 7.48 percent of total Pension Assets. The increase in the value of investments in domestic quoted equities was primarily due to the appreciation of some stocks on the Nigerian Stock Pension Index, which gained 9.95 percent.

Contributory Pension Scheme Memberships

The Contributory Pension Scheme (CPS) memberships increased by 362,547 year-on-year from 9.44 million at the end of second quarter of 2021 to 9.80 million at the end of second quarter of 2022. Quarter-on-quarter, the increase in membership was 122,719 (1.28%), from 9.68 million in first quarter to 9.8 million in the second quarter of 2022.

Pension Contribution

The total pension contributions remitted to individual RSAs in Q2 2022 stood at N238.75 billion. The public sector accounted for N136.79 billion or 57.29 percent. In comparison, the private sector contributed N101.98 billion or 42.71 percent. Quarter-on-quarter, aggregate pension contributions of the public sector from inception increased from N4.02 trillion in Q1 2022 to 4.15 trillion at the end of the second quarter of 2022. Similarly, the aggregate pension contributions of the private sector from inception increased from N3.76 trillion in the first quarter of 2022 to N3.86 trillion at the end of the second quarter of 2022.

Recovery of outstanding Pension Contributions and Penalties from Defaulting Employers

Recovery Agents appointed by PenCom issued demand notices to 20 defaulting employers. As a result, the sum of 721.12 million, comprising 517.65 million principal contributions and 211.46 million penalties, was recovered from the 20 defaulting employers. PenCom is preparing to take legal action against seven (7) recalcitrant employers after exhausting administrative measures to ensure compliance.

Issuance of Pension Clearance Certificates

The Commission issued 10,085 Pension Clearance Certificates to private sector organizations out of the 12,760 applications submitted. The remaining 2,675 applications were in the approval process at the end of the quarter.

Payment of retirement/terminal benefits

PenCom approved 5,460 requests from retirees to draw pension through programmed Withdrawal (PW) in the second quarter of 2022. Accordingly, the retirees received lump-sum payments totaling N26.32 billion, while their total monthly pensions amounted to N353.40 million. Similarly, PenCom approved the lump-sum payments of N10.32 billion to 2,817 retirees that chose Retiree Life Annuity. Furthermore, N20.64 billion was paid to Retiree Life Annuity providers as premiums regarding monthly/quarterly annuities of 212.69 million. Death benefits paid in second quarter of 2022 amounted to 12.32 billion.

Update on Micro Pension Plan

During the period under review, 3,831 new contributors were enrolled in the Micro Pension Plan (MPP) by seventeen (17) Pension Fund Administrators (PFAs), bringing the total number of Micro Pension Contributors to 80,419. Contributions were received from 9,586 Micro Pension Plan (MPP) contributors totaling N22.19 million. The total value of Micro Pension Funds at the end of the second quarter of 2022 was N280.78 million. Within the same period, 33 Micro Pension participants converted to the mandatory Contributory Pension Scheme (CPS). PenCom approved the requests of eleven (11) MPP contributors for contingent withdrawals amounting to N1.68 million.

Update on RSA Transfer

A total of 14,821 RSA holders successfully transferred their accounts with their associated pension assets to new PFAs in the second quarter of 2022.

PenCom concluded that through effective regulation and supervision, the Contributory Pension Scheme (CPS) has remained strong and resilient, and reiterates its commitment to ensure that retirement benefits are paid as and when due.

Check below for PensionNigeria breakdown of all the important aspects of the PenCom 2nd Quarter 2022 Report

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DONT MISS our 2nd Quarter 2022 Report Series

PenCom 2nd Quarter 2022 Report Executive Summary
Analysis of Pension Operating Environment Q2 2022
Performance of all PFAs in Nigeria for January to June 2022 (Year to Date)
Micro Pension Return on Investment (ROI) for January to June 2022 for all PFAs in Nigeria (Year to Date)
Update on RSA Transfer System (RTS) 2nd Quarter 2022
List of Organisations Issued Compliance Certificates as at 30 June 2022
Status of Contributory Pension Assets as at June 2022
Status of Implementation of CPS in States as at 30 June 2022
Micro Pension Registrations per PFA & Fastest Growing PFAs as at 30 June 2022
Appointment & Resignation of Pension Operators’ Board Members and Top Management Q2 2022
PFAs’ Total Shareholders’ Fund now ₦211.26 Billion
Update on NSITF & Refund of Pension Contribution to Military & SSS Q2 2022
Recovery Agents recover ₦22.13 billion from Defaulting Employers as PenCom receives 89 complaints
Lagos State committed to ₦2 billion Monthly to clear Outstanding Accrued Rights of its Retirees, this is how the State has performed
PenCom refunds N4.27 Billion as Zamfara State withdraws from Contributory Pension Scheme, what lies ahead for Retirees
PenCom Engagements with State Governments to ensure Retirees receive Pension as and when due Q22022
Micro Pension Contribution per PFA Q2 2022
RSA Registration Age and Gender Breakdown Q2 2022
Update on the Micro Pension Plan Q2 2022
Biggest PFAs & Fastest Growing PFAs by RSA Registrations 30 June 2022
PenCom approved over N1.58 Trillion for PFAs to pay RSA Holders as at June 2022

Also Check out
Performance of all PFAs in Nigeria for Full Year 2021

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