Law, morality and outrageous pensions for ex-governors By Joseph Onyekwere and Godwin Dunia

Pension

Since the various state houses of assembly have refused to amend or abrogate outrageous life pensions for their former colleagues and ex-governors of their states, the discourse has also refused to die down too.
Just recently, some Nigerians expressed outrage at the development, in the light of the dwindling economic situation in the country and the inability of most of the states to pay workers’ salaries.
While the law recognises pension for public servants, including governors, the introduction of generous packages into the scheme, especially when most of the beneficiaries retire into the National Assembly or federal cabinet, leaves much to be desired.


Currently, about 21 former governors and deputies are drawing salaries from public purse as either serving senators or ministers. The Revenue Mobilization Allocation and Fiscal Commission (RMAFC), approves payment of 300 per cent basic salary as severance allowances for political office holders on leaving office but various state assemblies had approved a wide range of entitlements for ex-governors and their deputies, including legislators. The former governors who are now senators are Theodore Orji (Abia), Godswill Akpabio (Akwa Ibom), Bukola Saraki (Kwara), Rabiu Musa Kwankwaso (Kano), Kabiru Gaya (Kano), Abdullahi Adamu (Nasarawa), Sam Egwu (Ebonyi), Joshua Dariye (Plateau), Jonah Jang (Plateau) and Shaaba Lafiagi (Kwara).
Others are Ahmed Sani Yarima (Zamfara), Aliyu Magatakarda Wamakko (Sokoto), Danjuma Goje (Gombe), George Akume (Benue), Bukar Abba Ibrahim (Yobe), Isiaka Adeleke (Osun) and Adamu Aliero (Kebbi).
Former deputy governors in the Senate are Enyinaya Abaribe (Abia), Ms Biodun Olujimi (Ekiti) while Danladi Abubakar Sani served as the acting governor of Taraba State.
Former governors now ministers include Babatunde Raji Fashola (Lagos), Rotimi Amaechi (Rivers), Chris Ngige (Anambra), Kayode Fayemi (Ekiti) and Dr. Ogbonnaya Onu ( old Abia).
According to a Lagos Pension Law approved by former governor, Bola Tinubu in 2007, a former governor will enjoy the following benefits for life: Two houses, one in Lagos and another in Abuja, estimated by property experts to cost N500 million and N700 million for Lagos and Abuja respectively.
Others are six brand new cars replaceable every three years; furniture allowance of 300 per cent of annual salary to be paid every two years, and a close to N2.5 million as pension (about N30 million pension annually). He will also enjoy security detail, free medicals including for his immediate families.
Other benefits are 10 per cent house maintenance, 30 per cent car maintenance, 10 per cent entertainment, 20 per cent utility, and several domestic staff.
In Rivers, the law provides 100 per cent of annual basic salaries for ex-governor and deputy, one residential house for former governor “anywhere of his choice in Nigeria”; one residential house anywhere in Rivers for the deputy, three cars for the ex-governor every four years; two cars for the deputy every four years.
His furniture is 300 per cent of annual basic salary every four years en bloc. House maintenance is 10 per cent of annual basic salary. In Akwa Ibom, the law provides for N200 million annual pay to ex governors, deputies. He enjoys a pension for life at a rate equivalent to the salary of the incumbent governor/deputy governor respectively.
A new official car and a utility vehicle every four years; one personal aide and provision of adequate security; a cook, chauffeurs and security guards for the governor at a sum not exceeding N5 million per month and N2.5 million for the deputy governor.
There is also a free medical services for governor and spouse at an amount not exceeding N100 million for the governor per annum and N50 million for the deputy governor.
Also, there is a five-bedroom mansion in Abuja and Akwa Ibom and allowance of 300 per cent of annual basic salary for the deputy governor.He takes a furniture allowance of 300 per cent of annual basic salary every four years in addition to severance gratuity.The Kano State Pension Rights of Governor and Deputy Governor Law 2007 provides for 100 per cent of annual basic salaries for former governor and deputy.
Furnished and equipped office, as well as a 6-bedroom house; “well-furnished” 4-bedroom for deputy, plus an office.The former governor is also entitled to free medical treatment along with his immediate families within and outside Nigeria where necessary. It is same for deputy.
Two drivers are also for former governor and a driver for his deputy; and personal staff below the rank of a Principal Administrative Officer and a PA not below grade level 10. There is a provision for a 30-day vacation within and outside Nigeria.
The narrative is the same for Gombe, Kwara, Zamfara and Sokoto among others. The legality of those laws and their inconsistency with the provisions of the RMAFC still remain an issue yet to be determined by an Abuja Federal Court.
The effect of the pension is also worrisome to most Nigerians who questioned the morality behind the scandalous payment to people who are also drawing remunerations. It also indicates that our politicians are not only self-serving but lack sense of sacrifice at a crucial period of economic challenge.`
A senior advocate of Nigeria and former President of Nigerian Bar Association (NBA), Dr Olisa Agbakoba, said the issue of outrageous pension packages for former governors despite the fact that they are still serving as Ministers or whatever, ‘is one of the problems of inequality that we are facing as a country’. Pointing out that this is the reason the country has a situation whereby those who do not have constituted about 90 per cent majority of the population against the few rich elites.
On if there is any political party that can proffer solution to the problem of inequality, the SAN said: “The way things are right now, there is no political party in Nigeria that is ready to address and resolve this issue of inequality. This is because they are still far from been capable of addressing this social problem. That was why Donald Trump won the presidential election in America, because he appealed to populism.”
Agbakoba also emphasized the need for Nigerians to frontally confront the problem of inequality, which he described as a ‘fraction of our social problem in Nigeria, if we wish to get better’.
Another senior advocate of Nigeria and Senior Partner, Jireh & Graeys Attorneys, Norrison Quakers, described the development as regrettable at this period of critical financial crisis that calls for sacrifice.
He said: “It is regrettable because it is not a legal issue but it is more of a moral issue, which expectedly, the affected politicians who must have attained a certain level of comfort in life ought to have willingly sacrifice for the sake of national development.”
Quakers also called for the need for government to do something about the perception of ‘being in governance’ in Nigeria.“Being in government should be a call to serve rather than for personal aggrandizements. And except this is done, people will always want to get there to take their own share,” he declared.
Also, Seth Amaefule, a lawyer said the matter of outrageous pensions for former governors has dominated public discussion for a while now.And according to him, such is not the best for us.
“We believe it is wrong, despite the fact that vit is allowed by law. You will notice that this same development happening at the federal level has beginning to happen at the states level and it is a very serious issue,”he stated.


To Amaefule, the problem is as a result of some of our laws which need to be amended. His words: “As a lawyer, some of our laws ought to have been amended by now, but the point is that the same people who ought to do that are those benefitting from this anomalies. “But my humble opinion is that our laws are to some extent faulty such that it needs an amendment to be able to right some wrongs.”In the same vein, 2nd vice chairman of the Nigerian Bar Association (NBA), Mr. Monday Onyekachi Ubani, condemned the development and described it as immoral. He urged the people to stand against it.

Culled from Guardian

Former banker ordered to hand over foreign pension income to ex-wife in landmark divorce ruling-Patrick Foster

A judge ordered the ex-husband of Ankita Goyal to hand over income from a pension he had transferred to India Credit: Charlie Forgham-Bailey

A former banker who blew his fortune on spread-betting was yesterday ordered to hand over income from a foreign pension to his ex-wife, in what lawyers said was a landmark ruling stopping divorcing spouses concealing assets offshore.
Amit Goyal, who once earned £385,000 a year as a senior investment banker, was told to hand over two-thirds of his pension income to his ex-wife, Ankita, after transferring the funds to an Indian pension provider in a bid to hide his assets.
Legal experts said that the case was a landmark judgment that would stop warring spouses from attempting to shelter their wealth from the British courts.

Amit Goyal, a former banker, was found to have lied about his assets Credit: Champion News Service

Sarosh Zaiwalla, a solicitor who acted for Mrs Goyal on a pro-bono basis, said: “This judgment will come as a welcome relief to parties who find that, in anticipation of matrimonial proceedings, their spouse's pension has been transferred overseas.”
Mr Goyal, who had worked for firms including Barclays and Deutsche Bank, wed his wife in an arranged marriage in 2004. They separated in 2011 and have a nine-year-old daughter.
The former banker initially tried to claim that he had not been validly married, as an imposter had taken his place at their wedding, although this was dismissed by a judge in 2013.

Amit and Ankita Goyal married in 2004

It later emerged that Mr Goyal had gambled away his wealth on spread-betting, was more than £650,000 in debt, and had transferred three British pensions to India.
A court ordered him to hand over his last assets, £19,000 of shares, to his ex-wife, but he instead gave them to a cousin in what he said was payment for an existing debt.
In a Family Court ruling handed down yesterday, Mr Justice Mostyn dismissed Mr Goyal’s claims that he had handed his pension to a Mr Deshmukh, to whom he owed money.

The ruling was handed down in the Family Court

The judge said that although an email account in the name of Mr Deshmukh had corresponded with the pension provider “there is no evidence that [the firm] do not believe that this is other than an email account operated by the husband”.
He ordered Mr Goyal to hand over £4,000 of his annual pension income to his wife, which he said was “a very small sum objectively, but it will be a meaningful sum for her as she attempts to rebuild her life and to support their child”.
Mrs Goyal said she was yet to received a penny from her ex-husband, in the five years since divorce proceedings began.
She said: “To be honest if I had not had the support of my family and friends I don’t think I would have survived.”
Culled from Telegraph

89 per cent Nigerian workers not on pension scheme – NBS -Oladeinde Olawoyin

Federal Secretariat Complex, Abuja

More than 89 per cent of Nigerian workers are not registered under the contributory pension scheme, the National Bureau of Statistics, NBS, has said.
According to a report released by the NBS on Monday, the Retirement Savings Account, RSA, membership distribution data for Q4 2016 reflected that 7,348,028 workers are registered under the pension scheme out of a total working population of 69,470,091 as at Q4 2016.
This, the report said, represents 10.8 per cent of the total working population.
The NBS explained that the trend is not surprising given the largely informal structure of the Nigerian labour force.
It stated further that about 50 per cent of the current workforce are engaged in subsistence agriculture and informal trading, noting that micro businesses for example account for over 90 per cent of total small, micro, and medium scale enterprises, SMEs, in Nigeria.
An analysis of the report shows a total male working population of 36,363,042, with 14.37 per cent representing 5,226,897 registered under the scheme. Similarly, only 2,121,131 representing 6.41 per cent out of a total female working population of 33,107,859 are registered under the scheme.
Also, out of the 7,348,028 RSA members, 71.13 per cent were men and only 28.87 per cent were women. This ratio appears small when compared with the gender split of the working population which has 52.3 per cent and 47.7 per cent men and women respectively.
Meanwhile, the RSA membership is dominated by the private sector.

Analysis shows that the federal government had 1,866,850 registered RSA members under the national pension scheme as at Q4 2016 of which 1,363,266 (representing 73 per cent) were male and 503,584 (representing 27 per cent) were female.
The implication of this, the NBS says, is that there are a lot more male employees in the federal public service than female.
At the state and local government levels, 1,508,471 state public workers are registered under the national pension scheme with 849,493 males representing 56.3 per cent and 658,978 females representing 43.7 per cent. The bureau says this may indicate that the federal public
service is larger than that of all 36 states combined.
Also, similar to the federal service, men dominate with respect to number of employees.
Further analysis of the report shows that private firms had 3,972,707 registered RSA members under the pension scheme as of Q4 2016 of which 3,014,138 representing 75.9 per cent were male and 958,569 representing 24.1 per cent were female.
The NBS said among the three classes of workers registered under the scheme, private firms’ working population dominated the membership distribution and closely followed by the federal and state working population.
Analysis of the age distribution of workers shows that the highest number of registered working population came from the age bracket of 30-39yrs.
It was closely followed by the working population within the age bracket of 40-49yrs and 50-59yrs.
“This is expected considering ages 25-44 account for about 55 per cent of the total working population,” the report stated.
The report also revealed that the least number of registered working population came from above 65yrs and 60-65yrs age bracket.

Culled fro  Premium Times

Only 10.8% of Nigerian workers on pension scheme – NBS On January 24, 201712:02 amIn NewsComments By Yinka Kolawole LAGOS—Only 10.8 percent of Nigeria’s total working population is registered under the nation’s contributory pension scheme, according to the National Bureau of Statistics, NBS. In a report released yesterday, NBS said the retirement savings account (RSA) membership distribution data for the fourth quarter of 2016 reflected that 7,348,028 workers are registered under the pension scheme of a total working population of 69,470,091. This represents 10.8 percent of the total working population. Protesting Pensioners This is not surprising given the largely informal structure of the Nigerian labour force with about 50 percent of the current workforce engaged in subsistence agriculture and informal trading. A breakdown of the RSA membership revealed that of a total male working population of 36,363,042, only 14.37 percent or 5,226,897 male workers are registered under the scheme. Similarly, only 2,121,131 or 6.41 percent out of a total female working population of 33,107,859 are registered under the scheme. It said: “Accordingly, out of the 7,348,028 RSA members, 71.13 percent are men and only 28.87 percent are women. This can be compared with the gender split of the working population which has 52.3 percent men and 47.7 percent women. “As should be expected, RSA membership is dominated by the private sector. The federal level has 1,866,850 registered RSA members under the national pension scheme as at Q4 2016 of which 1,363,266 (or 73.0 percent) are male and 503,584 (or 27 percent) are female.” This may indicate that there are a lot more male employees in the federal public service than female. “At the state (including local government) level, 1,508,471 state public workers are registered under the national pension scheme with 849,493 (or 56.3 percent male and 658,978 (or 43.7 percent) female. This may indicate that the federal public service is larger than that of all 36 states combined and similar to the federal service, men dominate with respect to number of employees.” “Private firms had 3,972,707 registered RSA members under the pension scheme as of Q4 2016 of which 3,014,138 o or 75.9 percent were male and 958,569 or 24.1 percent female. Among the three classes of workers registered under the scheme, private firms’ working population dominated the membership distribution and closely followed by the federal and state working population. “The highest number of registered working population came from the age bracket of 30-39yrs and closely followed by the working population within the age bracket of 40-49yrs and 50-59yrs. This is expected considering ages 25-44 account for about 55 percent of the total working population However, the least number of registered working population came from above 65yrs and 60-65yrs age bracket,” the report stated.

Read more at: http://www.vanguardngr.com/2017/01/10-8-nigerian-workers-pension-scheme-nbs/

An important warning for every worker in the UK-ByMartin Lewis

This is a warning for every worker in the UK. Have you turned down a pay rise without realising it? Millions have done or risk doing just that. It happens when your employer ‘auto-enrols’ you into a pension scheme but you decide to opt out - in most cases a huge mistake

(Photo: Getty Images)

Auto enrolment is a rule which says companies must opt-in their employees to pay towards a private pension – a savings scheme to provide money for you in later life, on top of the state pension.
However, crucially the firm must also contribute to your pension savings – on top of your salary. If you opt out of the pension scheme you don’t get this extra cash. The effect of this is a bit of a mind twist…

• EVERYONE WHO IS OPTED IN EFFECTIVELY GETS A PAYRISE… as your employer is giving you extra money you wouldn’t have got otherwise, even though it’s not immediately usable.
• EVERYONE WHO IS OPTED IN GETS LESS TAKE HOME PAY… to get the extra money, you must save now; so your disposable income, the amount you can spend each month, is reduced.

If you’re struggling that’s likely hard to hear. Yet not doing it means giving up extra cash, and in turn that means running the risk of a cold baked bean retirement; as whether in future the state pension alone will be enough to live off is a questionable. This is about saving now, so your living standards don’t plummet later.
Just to reiterate, DO NOTHING, and legally the default setting is some of your earnings are put towards pension saving. I’m in favour of this.
Many people are scared of making financial decisions, and inevitably most of us are guilty of focusing on the now, not the future. This way, make no decision, and it’s hopefully the right one.

It costs just £34 to get £100 added to pension savings

Is your pension worth what you think it is? (Photo: Getty)

If like most people you earn over £11,000 (and under £43,000) you pay basic 20% rate tax on all income above that, meaning for every £50 you earn you only take home £34 due to tax AND national insurance.
Yet pension savings, come from PRE-TAX salary, so putting £50 a month in your pension only reduces your pay packet by £34 (£29 for higher 40% rate taxpayers). Plus as often employers will match the £50 you put in, to get a total of £100 a month added to your pension, it only costs you £34.
Over a year at this level of saving you’d pay £410 but your pension will have £1,200 added to it. That’s unbeatable.

From 2018 all employers must auto-enrol staff

Cash in: Company pensions are a no-brainer wage rise

All firms with over 50 people must currently auto enrol all staff aged over 22 who earn more than £10,000 a year, and gradually smaller firms must too, until by February 2018 all employers will.
The minimum contribution usually taken from your salary is 0.8% (so £8 per £1,000 earnt), and if you do that firms have to add at least 1%, and over the next few years that amount will rise.
Many firms will match your contributions above the minimum level, some adding up to 5% of your salary. It’s worth checking, and trying to take advantage.

Read More

• Tories' Lifetime ISA branded "dangerous" by former Tory pensions minister

How much should you save toward your pension?

It's important to plan your pension

Be prepared to have the pants scared off you. There’s a very rough rule of thumb that shows how much you should put in your pension for a comfortable retirement – roughly a half to two thirds of your final salary.

1. Take the age you start your pension and halve it.
2. This is the percentage of your salary that needs saving each year until you retire (thankfully it includes your employer’s contribution too).So someone starting aged 20 would need 10%, aged 30 would need 15%.

For most people these amounts are impossible, so don’t get too hung up on it. Instead just use it to realise that a) the sooner you start the better b) put in as much as you can afford.
One trick to boost your pension contribution, if you’re lucky enough to ever get a pay rise, immediately put a quarter of the new money towards your pension. That way before you’re not used to earning it, you won’t miss it as much (I call this the forgotten gold technique!)

 Mirror Pension

Nigeria Strategy Report H1 2017 (9) - Pension Reforms Set Sights On Infrastructure Investing

Thursday, January 19, 2017 03:48 PM / ARM Research 

Key Developments in Domestic Economic and Policy Environment  

In today’s cut-out from our core strategy document – the  Nigeria Strategy Report, we focus on developments in domestic pensions industry over H2 16 as well as delineate potential impact of new initiatives on the market over 2017.  

Despite prevailing economic headwinds which drove unemployment rate higher (+4pps to 13.8% in Q3 16) and delayed payments of RSA contributions to appropriate PFAs at the Federal and State levels, total pensions asset rose 17% YoY (2015: +11% YoY) to N6 trillion over 9M 2016. Specifically, the rise in the number of unemployed had stoked concerns over outflows from RSA accounts given the PENCOM provision which allows individuals who are out of work for a period of at least 4 months, to access 25% of their RSA contributions. The concerns notwithstanding, optimism was bolstered by subsisting increases in the number of compliance certificates issued by PENCOM which could cascade into new offsetting RSA inflows. 

Elsewhere, possibly reflecting concerns over the sustainability of currently elevated interest rates environment—in view of the recession-hit domestic economy—and recent clamour for a redirection of Nigeria’s pension resources to infrastructure upgrade, PENCOM released draft regulation on investment of pension funds in infrastructure in November 2016. Under the guidelines, PFAs can now invest up to 20% of accumulated pension assets in infrastructure (vs. 5% previously) split into investments in infrastructure bonds (75%) and infrastructure funds (25%). However, PENCOM noted that both instruments (infrastructure bonds and infrastructure funds) must demonstrably meet the conditions for investing pension funds in infrastructure before PFAs would be allowed to take advantage of the outlets. 

Our review of experiences across other markets suggest inherent problems with attaining the 20% target. First, in terms of deal flow, after a brisk pace in early 2000s, privatization of public enterprises has slowed on the back of strong resistance by labour unions and political interest groups which shrinks the amount of brownfield assets available for infrastructure investing. Secondly, the average lifespan for PPP projects is north of 20 years and given the lack of a deep and liquid non-sovereign naira yield curve, funding for such projects acts as a constraint. Added to all these, given the usual long gestation periods for infrastructure projects which is often characterized by constant litigations in environments where contractual agreements are often breached, Nigeria’s weak regulatory and legal institutions look set to remain a key setback to the new initiative. 

PFAs maintain FI “love story” as equities journey south

Despite prevailing economic headwinds which drove unemployment rate higher (+4pps to 13.8% in Q3 16) and delayed payments of RSA contributions to appropriate PFAs at the Federal and State levels, total pensions asset rose 17% YoY (2015: +11% YoY) to N6 trillion over 9M 2016. Specifically, the rise in number of unemployed (+21% to 16 million people by Q3 16) had stoked concerns over outflows from RSA accounts given the PENCOM provision which allows individuals who are out of work for a period of at least 4 months, to access 25% of their RSA contributions. The concerns notwithstanding, optimism was bolstered by subsisting increases in the number of compliance certificates issued by PENCOM (9M 16: +31% YoY to 3,619 vs. +27% YoY to 2,762 in 2015) which could cascade into new offsetting RSA inflows.   

Looking at the breakdowns of overall asset holdings, gains mirrored strong expansion in value of Fixed Income (FI) securities (+20% YoY N5.1 trillion) as well as tamer growth in Variable Income investments (3% YoY to N870 billion). Notably, PFAs stepped up their chase for higher yields (average fixed income yields over Q3 16: +127bps YoY to 15.98%) which boosted FGN (+26% YoY to N3.5 trillion) and corporate bonds assets (+99% YoY to N294 billion). 

Accordingly, FI share of pension assets climbed 202bps YoY to 85%. At the variable income end, gains across investments in real estates (+3% YoY), private equity (+73% YoY), and infrastructure funds (+67% YoY) more than offset weaknesses from declines in domestic equities (-3% YoY). Overall, given the scale of the inflationary spiral in 2016, gains in pension assets looked less promising in real terms.

Figure 1: PFA Asset Allocation

 

PENCOM unfurls guidelines for infrastructure investing

Possibly reflecting concerns over the sustainability of currently elevated interest rates environment—in view of the recession-hit domestic economy—and recent clamour for a redirection of Nigeria’s pension resources to infrastructure upgrade, PENCOM released draft regulation on investment of pension funds in infrastructure in November 2016. Under the guidelines, PFAs can now invest up to 20% of accumulated pension assets in infrastructure (vs. 5% previously) split into investments in infrastructure bonds (75%) and infrastructure funds (25%). However, PENCOM noted that both instruments (infrastructure bonds and infrastructure funds) must demonstrably meet the conditions for investing pension funds in infrastructure before PFAs would be allowed to take advantage of the outlets. 

Specifically, for infrastructure bonds, the underlying (single) infrastructure project must be worth at least N5 billion with the contract awarded to a concessionaire with strong record of accomplishment via a transparent bidding process. Beyond this, the target projects must be viewed as feasible as well as financially rewarding for interested PFAs with the bond also having clear credit enhancements in forms of FGN or bank/DFI guarantees and a maturity date that is before the termination of the concession.  

To protect investing PFAs against project suspensions, cancellations, and changes in policy decisions that could alter prior financial forecasts, PENCOM also recommended that the said infrastructure bonds have practicable redemption procedures. For infrastructure funds, the guidelines require that qualifying funds are expected to have clear exit windows via IPOs, sale to other PE Funds, trade sale, or sale to strategic investors. Furthermore, the requirements mandate PFAs only to invest in infrastructure funds managed by SEC registered fund managers. As with the underlying projects for infrastructure bonds, these funds are required to have a value of at least N5 billion, 60% of which must be invested in projects within Nigeria, with the pricing of its underlying assets available for disclosure alongside its carefully audited annual financial statements. In addition, in the event that the fund does not have development finance institutions or MDFOs as co-investors, it would be required to possess a minimum of BBB ratings from a SEC recognized rating agency as well as a minimum of 3% ownership stake in the business. 

Review of global trends throws up interesting insights

Globally, the idea of pension fund investment in infrastructure has gained grounds in recent years, as pension fund managers seek to expand their investment frontier beyond the traditional asset classes in a bid to diversify risk and return. Infrastructure investments meet this need for underlying cashflows stem from hard assets and display lower correlation with traditional asset classes which are increasingly interlinked across countries in today’s financial markets. In evaluating the feasibility of PENCOM’s claims, we examine trends across other regions starting with Australia and Canada, whose pension funds are pioneers in the deployment of pension assets into financing infrastructure projects. In Australia, where defined contribution schemes are prevalent1 as in Nigeria, average pension funds allocation to infrastructure has risen 

from 2% of AUM in the 1990s to 5-6% in 2013 and infrastructure funds are the dominant vehicle for pension fund exposure to infrastructure given lack of depth and liquidity of Australia’s corporate bond markets. On the supply side, limited influence of the central government in the provision of infrastructure assets has resulted in the broad adoption of the PPP approach towards provision of infrastructure. Furthermore, limited political opposition to privatization has ensured a steady flow of pipeline brownfield assets for infrastructure investments. Worthy of note is that Australian pension funds display a marked preference towards brownfield assets to limit risks from construction cost overruns and lower than forecast project cashflows in the future. In terms of fund performance, empirical research finds that pension funds with high exposure to alternative assets, comprising unlisted property, infrastructure, PE and hedge funds, outperformed those with lower exposure. 

On the other hand, pension funds in Canada, where defined benefit type schemes are dominant2, gain exposures to infrastructure largely via direct infrastructure equity (51%) and infrastructure bonds as Canada’s deeper debt markets allows these investment vehicles issue bonds (vs bank financing in Australia) to finance the construction of infrastructure projects. That said, in contrast to Australia, political opposition to privatization in Canada ensures that the deal flow pipeline for PPP type schemes in Canada is limited resulting in more participation in offshore infrastructure schemes than in Canada. Outside of these two countries, pension fund allocations to infrastructure hover between 2-3% across other developed climes. Across Africa, infrastructure investing remains in its infancy and, as with its developed market counterparts, is largely conducted via specialized funds. 

Figure 2: Pension fund allocation to infrastructure across countries (%) 

But familiar bottlenecks temper optimism

Our review of experiences across other markets suggest inherent problems with

attaining the 20% target. First, in terms of deal flow, after a brisk pace in early 2000s, privatization of public enterprises has slowed on the back of strong resistance by labour unions and political interest groups which shrinks the amount of brownfield assets3 available for infrastructure investing. For greenfield projects, fears of political backlash to tolling of public projects has resulted in FG and State Government’s adoption of multilateral funding arrangements in the provision of such projects. Though recent collapse in oil revenues and the scale of infrastructure needs render these approaches piecemeal, government remain unwilling in electing to gear national balance sheets as against adopting PPP vehicles towards providing infrastructure. 

Secondly, the average lifespan for PPP projects is north of 20 years and given the lack of a deep and liquid non-sovereign naira yield curve, funding for such projects acts as a constraint. In contrast to Australia, where infrastructure funds can raise bank financing or tap overseas bond markets, given relative currency stability, these options are unavailable for Nigerian infrastructure funds. Added to all these, given the usual long gestation periods for infrastructure projects which is often characterized by constant litigations in environments where contractual agreements are often breached, Nigeria’s weak regulatory and legal institutions look set to remain a key setback to the new initiative. 

Putting all of this together therefore, though laudable, PENCOM’s quest to achieve 20% asset allocation to infrastructure (40% by 2019) could pass as inordinately overambitious if the aforementioned concerns persist. In any case, even optimistically assuming that PENCOM manages to reach its lofty ambition which we feel could also have the potential to broaden investment frontiers beyond generic stocks and bonds investing as well as provide outlet into characteristically high inflation-hedged instruments, the scale of Nigeria’s infrastructure requirement ($100 billion/N30.5 trillion annually according to National Integrated Infrastructure Masterplan) renders the potential N1.2 trillion and FG’s planned 2017 capex of N2.3 trillion, cumulatively, at a sizable discount to actual needs.  

Culled from proshare 

Pension for Nigerians in the Diaspora, good omen – Dabiri-Erewa

The  Senior Special Assistant to the President on Foreign Affairs and Diaspora, Abike Dabiri-Erewa, has described the proposed pension scheme for the Diaspora pensioners as a good development and unique in Nigerian history.
Dabiri-Erewa said this in a statement on Wednesday in Abuja by her media aide, Mr Abdur-Rahman Balogun.
Dabiri Erewa commended unique efforts by the Pension Transitional Arrangement Directorate (PTAD) to include Nigerian pensioners in the Diaspora in the nation’s pension scheme which she said, had never happened before.
“This is unique in the history of Nigeria as nobody has deemed it fit to capture the data of Nigeria pensioners in the Diaspora,’’ she said.
According to the presidential aide, the measure will save the Nigerian pensioners abroad the trouble of coming and going back for the collection of pension.

“The introduction of the scheme is an interesting news to the Diaspora and we will work with our pensioners in the Diaspora because they deserve to receive their pension after meritorious service to the country.
“Am sure this will go a long way to show that this administration cares for all Nigerians, either at home or in the Diaspora.
“We will look forward to capturing every Nigerian in Diaspora who had served the country,” Dabiri-Erewa said.
The Executive Secretary of PTAD, Mrs Sharon Ikeazor, had on Tuesday said the agency was proposing pension scheme that would capture Nigerians in the Diaspora who had served their country diligently.
Ikeazor said the directorate would commence pension scheme for the Nigerians in the Diaspora who had served the country before travelling abroad.
“They are our heroes and heroines who had worked for this country since independence and there is need to capture them in our pension scheme through verification and updating our database,’’ she said.
She explained that the Diaspora pensioners were Nigerians who worked in the country and due for pension but did not collect their pension before going abroad.

She said the directorate would partner the office of SSA to the President on Foreign Affairs and Diaspora to enable it to capture pensioners in the Diaspora to have their accurate database.

Culled from Nation

BVN affects 15,600 pensioners- PTAD

Sharon Ikeazor: PTAD executive secretary

Isaac Aregbesola,
Mrs Sharon Ikeazor, Executive Secretary of Pension Transitional Arrangement Directorate (PTAD), on Tuesday said the directorate had suspended 15,600 pensioners from its payroll for lack of Bank verification Number (BVN).
Ikeazor said this while addressing newsmen after a meeting with the Senior Special Assistant to the President on Foreign Affairs and Diaspora (SSAPFAD), Mrs Abike Dabiri-Erewa in Abuja
The PTAD boss said the measure was part of the agency’s commitment to get authentic database of pensioners and streamline its payroll.
“So far we have dropped about 15,600 pensioners off our pay roll that have no BVN. So we just flat their account so that money does not go in there.
“We have told the genuine ones to update their BVN so that we can put them back on our payroll. We have saved the government millions of naira through the exercise.
“This action was in collaboration with the Independent Corrupt Practices Commission (ICPC) and commercial banks to obtain current status of bank account being used by pensioners to receive their pension payment,” she said.
She noted that BVN was mandatory for the operation of a bank account.
She said that Pension payment to the accounts would remain suspended until the affected pensioners updated the status of their bank accounts and submitted it to PTAD along with other documents.
Ikeazor  said the pension administration she inherited did not have accurate data base for the pensioners and that the directorate had started nationwide verification to correct this.
According to her, the agency has in last year, carried out verification in some states in the North East which includes Yola, Adamawa, Gombe, Taraba and Bauchi.
“Now we are going to start in Maiduguiri and Yobe as well because we want to key in to the development agenda of the government for the North East,” she said.
She said that the agency had this year also started the verification in south-south with Port Harcourt and Bayelsa centres which would move on to Edo and other centres.
The aim of the directorate, according to her, is to go round Nigeria to ensure that every pensioner is verified, as our anthem says the labour of our heroes past shall not be in vain.
“Pensioners who have used all their lives to serve the nation supposed to get their pension.
“At the same time, as we are verifying, we are saving the government a lot of money.
“Because we can give the government accurate data of pensioners so that government can know its liabilities,” she said.
The News Agency of Nigeria (NAN) reports that PTAD is responsible for the pension administration of the Defined Benefit Scheme
PTAD was established to address the numerous pensioners’ complaints that bother on issues such as non-payment of monthly pension, short payment of pension and gratuity.
Others are removal of name on pension payment voucher, non-payment of harmonised pension arrears, irregular payment of federal pensions and non receipt of pension after retirement.
PTAD, as empowered by the Amended Pension Reform Act, 2004, takes over the management of three of the offices presently running the old pension scheme.
These are the Civil Service Pension Department, the Police Pension Office and the Customs, Immigration and Prisons Pension Office.

Culled from NAN

Everything you need to know about how and when to retire and how to survive on a pension-ByTricia Phillips

More than half of people over 55 have no idea when they will be able to afford to retire, so here are some questions you need to ask yourself before you do

What do you need to know to make sure you can retire? (Photo: ALAMY)

More than half of people over the age of 55 have no idea when they will be able to afford to retire, a study has revealed.
When you give up the nine to five grind depends on individual circumstances – what savings you have, the bills you have to pay and the retirement lifestyle you want.
Here are the questions you need to ask yourself to work out if you are financially fit for retirement.
And for those of you who are not quite ready there’s a six-point action plan to help you along.

When will I get my State pension and how much will I get?

The state pension age is currently based on gender and date of birth. By 2020, it will be 66 for men and women, rising to 67 and beyond from 2026. Find out your retirement date and pension by getting a state pension forecast at gov.uk/check-state-pension or call 0345 3000 168.
This should be your starting point as your state pension is the basis of your retirement income.

What income will I get from my workplace or private pensions?

You could boost your pension by as much as 30% if you shop around (Photo: Getty)

Contact your workplace pension provider and any other firms you have savings with for details of the type of pension you have, fund size and your options on when and how you access them.
Check if you have any valuable annuity rate or income guarantees, if you have to access funds at a certain age for them to be valid and if there are any exit fees if you take pensions earlier than your nominated retirement date.
Andrew Tully, of Retirement Advantage, says: “Don’t simply accept the pension income from the firm you’ve saved up with. Always shop around as you could boost it by as much as 30% by comparing quotes. You can also save hundreds of pounds in fees by comparing income drawdown plans too.”

How can I track down any older pensions?

The Government offers a free pension tracing service at gov.uk/find-pension-contact-details .

Anything else I need to consider?

Check if you have anything that could boost your income, such as ISA or other savings, investments or Premium Bonds.

How much debt do I have?

Be realistic about how much time it will take to pay off your debts (Photo: Daily Record)

Debt is expensive and will put a big dent in your pension income.
Be realistic about how much you are paying out and how long it will take to clear your mortgage, credit cards or loans – and if it’s viable from your pension income.
Andrew Hagger from Moneycomms.co.uk, says: “A £2,000 balance on a credit card, at a typical 18.9% and paying the minimum 2% each month, would take 26 years to clear and cost £2,457 in interest. That could prove a big drain on a retirement income.”

Can I afford my basic bills?

Make sure your pension rises each year with inflation (Photo: Getty)

Make a budget of your likely expenditure in retirement. As well as your regular bills, such as energy, council tax and food, make sure you include annual expenses such as car insurance , MOT, Christmas and birthday gifts, gym membership and pet insurance.
Also, consider the risk of rising inflation. You need to ensure your pension income rises each year in line with inflation.
What sort of lifestyle do I want in retirement?
No one wants to be a JAM – just about managing – with no money to enjoy socialising or holidays. Don’t forget to ensure you have a bit extra to cover these costs too.
If you are considering an income drawdown – taking cash in chunks, rather than an income for life – think about how long your pot of retirement cash may need to last.

Do the figures add up?

You can always work part-time for a while to reach a better postion (Photo: Getty)

Is your total retirement income sufficient to pay your regular bills with a slush fund for unexpected bills and to fund a few treats?
If yes, then great, your finances are fit for retirement. If not, don’t panic.
Andrew Tully says: “You can always consider working longer, or perhaps slowing down a bit by working part-time to boost your income.”
And follow our six-step plan below to get your finances on track.

Six steps to get your finances ready for retirement

Don't panic, just follow these tips (Photo: Getty)

1. Tackle debt. Clear it to reduce your monthly bills so you can afford to retire sooner. Ditch expensive credit card debt and switch to a 0% balance transfer deal. Consider a money transfer credit card to clear overdrafts or a personal loan to clear numerous debts.
2. Try overpaying on your mortgage. Even paying just £50 a month extra will help reduce the term and interest you pay to get it cleared quicker and more cheaply.
3. Don’t pay too much for your bills. Compare the market and switch to better deals on insurances. Also, ensure you are on the right energy tariff. Every penny you save can be used to clear debt or build savings.
4. Top up your pension. Put a bit more away to build a bigger pot.
5. Start a savings fund. While you’re still earning, push yourself. Start small, it all adds up and will give you more freedom on when you can afford to retire.
6. Think about downsizing. Moving to a smaller, cheaper property could help you clear your mortgage earlier or to release some money to help boost your retirement income.
7. If you can’t get the books to balance and you are property rich and cash poor you could consider unlocking some of the cash tied up in your home via an equity release plan. It’s controversial and not the right move for everyone, but it works for some.

Culled from Mirror pension

Money Problems: 5 Signs You’re Not Ready to Retire- Sheiresa Ngo

Saving for retirement takes tons of time and planning — have you saved enough?  | iStock.com

Today was rough — your boss yelled at you, your co-workers are as evil as ever, and you’re facing a two-hour commute home. Your lunch break has barely begun and you’re already daydreaming about going home and getting in your bed so that you can forget this horrible day. As you go through your work day, visions of retirement are dancing in your head. However, if you don’t have the financial resources, your dreams won’t become reality anytime soon — you’ll just have to tough it out until you scrape together enough cash to make your escape. Are you on track to pack it up for good? Unless you get a few key goals in order, you’ll have to keep daydreaming for now (and working, of course). Here are some signs you’re just not ready to retire. Sorry.

1. You don’t have a financial plan

Without a financial plan, it’ll likely take you a lot longer to retire | iStock.com

Despite what your co-worker said, the retirement fairy isn’t a real thing. Don’t think you’re just going to fall into a comfortable retirement after years of not planning for — or even thinking about — your golden years. Everything won’t just come together at the last minute, particularly because it generally takes 30 or more years to save enough money. Sure, you could win the lottery, but you could also face a financial disaster that sets you back. It’s best to prepare for the worst.
If you’re not sure how to begin the retirement planning process, make an appointment with a certified financial planner. He or she can help you learn what you need to do to reach a realistic retirement goal. A financial planner can also help you figure out how much money you’ll need in total to retire comfortably, and you’ll receive assistance with developing a way to save the money you need. There are also several retirement tools that can supplement your work with a financial planner.

2. You recently experienced a major financial setback

Financial setbacks can throw off your retirement savings | iStock.com

Retirement curveballs crash through the windshield of life when you least expect them. If you’re close to retirement and then experience a major setback such as a divorce, job loss, or birth of a child (hey, lots of surprise babies come later in life), you’ll need to rethink your retirement target date. It will also be necessary to either add income or cut back on spending so that you can adjust for the financial changes that have occurred. If you continue to spend as you have been, you won’t be able to reach your retirement goal in a timely manner.

4. You still have a lot of debt

Debt can hold you back from retiring early | iStock.com

Are debt demons haunting you at night? Significant credit card debt or a large mortgage will set you back. These large debts will eat into your retirement savings and make daily living a struggle. Make sure to pay down as much debt as you can before making your exit.

3. Your money is tied up with financing your child’s college tuition

Financing your child’s education can put a major dent in your retirement fund | iStock.com

We’ve said it before and we’ll say it again: Your child can get a scholarship for college, but you can’t get a scholarship for retirement. If financing your child’s college education is preventing you from saving as much as you could for retirement, it would be wise to cut back your financing or stop paying the tuition altogether. Have your child take on more responsibility when it comes to filling out financial aid applications and looking for grants and scholarships. There’s no guarantee your children will be able (or willing) to help you out financially when you reach retirement, so take care of your retirement finances now while you still have time. This way, you won’t have to burden them.

5. You’re lagging behind your savings goal

Always keep track of your savings goals to stay on target | iStock.com

If you’re way off track with your retirement savings, you’re not ready. You’ll likely have to work longer so that you can make a last-ditch effort to retire somewhat comfortably. If you find yourself in this boat, catch-up contributions may also help. For 2016, you’re allowed to contribute a maximum of $18,000 to a 401(k). If you’re age 50 or older you can make an additional catch-up contribution of $6,000.
Once you’ve gotten closer to your goal, you’ll need to monitor your savings efforts — now is not the time to set it and forget it. One way to get a better idea of how close or far you are to your goal is to use a retirement savings calculator. This can help you see whether you’re right on schedule or if you should be saying a prayer. When calculating your retirement needs, don’t forget to take into account additional expenses such as health care.

Culled from wallstreetcheatsheet

Kebbi finds three pupils’ names on pensioners’ list By Charles Coffie-Gyamfi (Abeokuta) and Ahmed Idris

Pension

Federal pensioners in Ogun protest against 14-month unpaid entitlements
Kebbi State government has discovered names of three Primary Three pupils in its pensioners’ list.
The Secretary to the State Government (SSG), Alhaji Umar Babale Yauri, who made the disclosure yesterday in Birnin Kebbi, said the pupils were among those claiming to collect pensions.
He pledged that government would weed out ghost pensioners and workers for genuine beneficiaries to get their entitlements.

“We found a lot of irregularities in the pensions board and fake names claiming to collect pensions in the state,” he remarked. He added that the government had set aside billions of naira for the payment of pensioners.
The SSG also stated that the current administration had strategised against infiltration, adding that the state had partnered with UNICEF to register Almajiri schools to expedite re-enrolment in conventional ones.
In another development, federal pensioners in Ogun State yesterday protested against their alleged unpaid 14-month gratuities and pensions.
They also accused the government of not paying the “desired and deserved” attention to their welfare. They called on the Labour movement and government at all levels to set “a day or a week for pensioners”.
The placard-carrying pensioners were those who retired from the Nigerian Television Authority (NTA), Neuropsychiatric Hospital as well as other federal agencies and establishments.
Their leader, Mr. Kayode da-Silva, who spoke at a press conference at the state secretariat of the Nigeria Union of Journalists (NUJ), Iwe-Iroyin, Abeokuta, called on President Muhammadu Buhari to declare a state of emergency on the situation.
Da-silva noted that the contributing pensions scheme stipulated that their gratuities should be paid three months after their retirement. But he lamented that the Federal Government and National Pensions Commission had not offered credible and satisfactory reasons for the protracted delay.
He said: “Only God knows how many of the pensioners have died on account of this undue and undeserved delay. A number of us suffer from age-related ailments and must be on drug daily.
“Pensioners should not be made scapegoats for all the shortcomings of Federal Government agencies and personnel.”
He, therefore, urged Buhari to order the immediate payment of their pensions by (PENCOM).

Culled from Guardian

Hungry Osun pensioners open IDP camp for members -Aanu Adegun

- Pensioners in Osun state have opened an IDP camp for members in protest against the non-payment of their allowances by Osun state government

- The pensioners said they embarked on their action to expose Rauf Aregbesola led Osun state government insensitivity to the plight of pensioners

- The pensioners are allegedly being owed several months’ pension allowances

Osun pensioners hungry, open IDP camp for members

Pensioners in the state of Osun have opened an IDP camp for their members because of the inability of the state government to pay them their pension allowances, the pensioners claim.

According to the images obtained by The Punch, the pensioners wrote on their banner: "Internally displaced pensioners camp in Osun state organized by forum of 2011/2012 group of retirees of the Nigerian Union of Pensioners.

"You are welcome to Osun state internally displaced pensioners (IDPS) Camp: The first of its kind in Nigeria. This is to expose Rauf Aregbesola led Osun state government insensitivity to the plight of pensioners in the state."

The pensioners are allegedly being owed several months’ pension allowances by the Osun state government.

Recall that a total of N14.2bn was said to have been paid by the government of the state of Osun to clear all salary arrears.

This was revealed by the governor who confirmed the said amount was paid out by his government in less than two weeks before the end of December 2016.

Culled from Naij.com

Royal Mail enters talks with unions over pension change

Image copyright Getty Images

Royal Mail has begun a consultation over changes to its final salary pension scheme amid threats of strike action from unions.

The FTSE 100 company said it would not be able to afford the rising cost of its contribution to the defined benefit pension plan from 2018.
It will affect 90,000 scheme members.
Unite will consider strike action if Royal Mail does not "respond positively", and the CWU said "unagreed" changes would face a ballot.
Royal Mail wants members of the scheme to change to a defined contribution plan - in which the company and staff contribute to a pension pot with no guarantee of how much the eventual payment will be.

'Cause for concern'

The Royal Mail pension plan currently has a £1.7bn surplus but Royal Mail forecasts that it will run out in 2018 and that continuing contributions under the existing arrangement is "not affordable". It currently contributes £400m a year but forecasts this will rise to more than £1bn in 2018.
It said: "With our unions, we have been actively exploring possible changes to potentially enable us to keep the plan open on a defined benefit basis after March 2018 as part of our pension review process.
"We will continue discussions with our unions during and after the consultation. We will carefully consider feedback and any affordable proposals that members or their representatives make."
However, Unite said the consultation was a "cause for concern" and said it would look to mitigate the impact of any proposed changes during and after the consultation process.

Boxing ring

Brian Scott, national officer of Unite said: "The consultation is complex and the company needs to ensure that its employees, our members, clearly understand the potential impact on them, and the reasons and justification for the proposed changes."
He added: "It is too early to make any pronouncements on industrial action, but if the company does not respond positively on this and other issues we cannot rule this out."
Terry Pullinger, deputy general secretary postal at the CWU, said: "So we move from shadow boxing to the ring and negotiations will now begin in earnest, and the CWU is fully committed to developing an agreed solution which maintains the pension promise of a wage and dignity in retirement.
"However, any attempt to introduce any unagreed change by the business would be met with an industrial action ballot."
Shares in Royal Mail were down 2% to 454p.

Culled from BBC 

Expert blames pensioners’ plight on policy inconsistency- Alemma-Ozioruva Aliu

Pensioners

The multiple challenges facing pensioners in Nigeria are due to the Federal Government’s policy inconsistency as well as not always consulting other government components in policy reviews, a Senior Lecturer of the Public law Department at the University of Benin, Dr Gabriel Arieshe has said.
Speaking on the theme, ‘Nigerian pensioners: The struggle for gratuity and pension after retirement’, as part of activities to mark Pensioners Day in Edo State, Arieshe said unilateral decisions by the Federal Government on pension matters should be discontinued with even though it is on the exclusive legislative list.
“Policy inconsistency with the frequent reviews of pension schemes by the Federal Government without consulting state governments and other stakeholders constitutes another major problem. The frequent reviews have caused implementation problems at the state level with some state governments denouncing outright certain reforms.

“Of course, the federal has exclusive legislative competence over pension matters as provided for in item 44 of the Exclusive Legislative List of the 1999 Constitution, however, a holistic and consultative approach to pension reform will make implementation easy,” he explained. Earlier in his opening remarks, the Chairman, Nigerian Union of Pensioners, Edo State, Pullen Noruwa, appealed to the governor of the state, Godwin Obaseki, to use his good office to address the salient issues affecting their wellbeing.
While commending the smooth transition of power from the previous government to Obaseki, he said some issues they had with the previous government should be addressed.
He lamented that Edo State is the state in the South-South that is yet to implement the six per cent and 15 per cent increases approved by the Federal Government since 2010, adding that the refusal of the state government to implement various increments has led to some pensioners in the state earning less than N2, 000 a month.
Noruwa said they were frustrated at various attempts to meet with the former governor, Adams Oshiomhole and that their frustrations led to their taking to the streets in protest to press home their demands.

Source: Guardian

Lagos state Pension commission pays N170m to beneficiaries of deceased workers

The Lagos State Government, through its Pension Commission, LASPEC, has paid N170 million insurance benefits to beneficiaries of deceased employees. Director-General, DG, LASPEC, Mrs. Folashade Onanuga made this known during the 2016 Senior Citizens/Pensioners Day celebration, in Ikeja. Onanuga said:

Culled from lib