By InvestAdvocate

Lagos (INVESTADVOCATE)-The total cumulative Pension Fund’s Asset has hit N2.4 trillion as at November 2011.

Muhammad Ahmad, Director General (DG) of the National Pension Commission (PenCom) Thursday disclosed this in his welcome remarks at the opening of the Workshop organised for Business Editors and Finance, Insurance and Labour Correspondents in Enugu Nigeria.

The N2.4 trillion indicates an increase of 33.33 percent (33.33%) when compared to the N1.8 trillion reported in year 2010.

Ahmad affirmed that the industry has continued to record modest achievements as 4.92 million Nigerians registered on the Scheme as at November this year.

“There are currently about 40,794 retirees from the public and private sectors under the Contributory Pension Scheme who are collecting their monthly pensions either by programmed withdrawal or annuity” he said.

According to the Pencom DG, they have collected over N 115.6 Billion as lump sum at the point of retirement and are collecting about N 1.284 billion as monthly pension.

Ahmad affirmed that as part of consolidation efforts in the review period, the Commission increased its Capital requirement for players in the industry from N150 million to N1.0 billion; indicating an increase of 567% increase and June 2012 has been set as deadline.

“As part of our consolidation efforts during the year under review, the Commission raised the capital requirements for PFAs from N150m to N1 Billion, of which the deadline is June 2012” he said.

“We have aggressively intensified our compliance mechanism by taking legal action against defaulting employers. The Bureau of Public Procurement (BPP) has continued to support the Industry by ensuring that service providers to the Federal Government comply with the BPP Act with regards to the Pension reform Act 2004” the PenCom DG said.

Ahmad said compliance by the informal sector received a major boost during the year as the 2 million membership of the National Union of Road Transport Workers (NURTW) signified their intention to embrace the scheme and the Industry is working towards registering them into the Scheme.

“I would like to use this opportunity to appeal to other Unions in the informal sector to emulate the NURTW by subscribing to the scheme as it is a veritable source of income for all categories of employees after retirement” he affirmed.

According to him, in year 2011, PenCom continued with its regulatory and supervisory philosophy, which is risk-based and consultative, covering all activities of the Commission with particular emphasis on issuance of guidelines and regulations; surveillance of licensed operators; compliance and enforcement; supervision of investment of pension funds; and maintenance of a databank on pension matters.

“In the same vein, we intensified efforts in the on-site inspection of employers, collaboration with regulatory and professional bodies, public enlightenment campaigns and application of regimes of sanctions” he said.

Ahmad further affirmed that the Commission has continued to collaborate and engage the State Governments in the implementation of the Contributory Pension Scheme in the States.

“The number of State Governments that have commenced the implementation of the scheme has increased to 18. Also, the support of the Debt Management Office (DMO) was obtained to ensure that, as a condition, State Governments desirous of obtaining Bonds must key into the Contributory Pension Scheme” the PenCom DG said.

The one – day workshop is on the theme: ‘Sustaining the Contributory Pension Scheme’. Three papers were presented, two from the Commission on the “Status and Level of Compliance with the PRA 2004” by M B Umar, Head of Compliance and Enforcement Department and The “Dynamics of Pension Fund Investment” delivered by Ehimeme Ohioma, Head of Investment Supervision Department.

The other paper was delivered by Dave Uduanu, Chairman of Pension Operators’ Forum (PenOP) which shed light on the role of stakeholders in the implementation of the Contributory Pension Scheme.