PENSION REFORM ACT AND RETIREMENT: THE CHALLENGES FACING STAKEHOLDERS By: Eno Umoh

1. PENSION REFORM ACT AND RETIREMENT: THE CHALLENGES FACING STAKEHOLDERS By: Eno Umoh Head, Business Development & Marketing Trustfund Pensions Plc

2. OUTLINE Overview of the Pension Reform Act (PRA), 2004 Who are Industry Stakeholders? Our Challenges: Phase I: Enrolment of Contributors Phase II: Managing Retirement Savings Accounts (RSAs) Phase III: Benefits Payment and Administration Phase IV: Retiree Relations

3. Trustfund Pensions Plc: Distinctive Qualities You Need to Know

4. 1. Ownership Structure • NIGERIA LABOUR CONGRESS (NLC) • TRADE UNION CONGRESS (TUC) • NIGERIA EMPLOYERS CONSULTATIVE ASSOCIATION (NECA) • NIGERIA SOCIAL INSURANCE TRUST FUND (NSITF) • CHAPEL HILL DENHAM GROUP • MAINSTREET BANK LIMITED • NIGER INSURANCE PLC

5. Dr. (Mrs.) Ngozi Olejeme Chairman, NSITF Board Chairman Mrs. Helen Da-Souza Trustfund Pensions Plc Ag.MD/CEO Chief Richard Uche President, NECA Director Comr. Abdulwahed Omar President, NLC Director Comr. Peter Esele President, TUC Director Mr. Justus C. Uranta GMD, Niger Insurance Plc Director Mr. Mobolaji Balogun GMD, Chapel Hill Denham Group Director Mr. Akinwumi Oladeji NECA Director Mrs. Osaretin Demuren Independent Director Comr. Aderemi Adegboyega NSITF Director Comr. Ayuba Wabba NLC Director Mrs. Faith Tuedor-Matthew Mainstreet Bank Ltd. Director 2. CORPORATE GOVERNANCE: Our Board Of Directors

6. 3. Unrivalled Experience • Our affiliation with NSITF enables us draw from over 40 years • experience in the management of Contributory Pension Schemes, as the largest Pension Fund Manager in Nigeria. • Our affiliation with NECA enables us draw from the experience of • seasoned HR Professionals. • Our affiliation with NLC and TUC brings us closer to the expectations of contributors.

7. Overview of the Pension Reform Act (PRA), 2004 Passed into Law on 25th June, 2004 Designed to Address an Excess of N1 Trillion Accumulated Pension Debt Defined Contributory Pension Scheme Separation of Administration and Custody of Pension Assets Highly Regulated Mandatory for all Organizations with a Minimum of 5 Employees Empowers the Worker/ Employees

8. Who are Stakeholders in the Contributory Pension Scheme? The National Pension Commission (PenCom) Pension Fund Administrators (PFAs) Pension Fund Custodians (PFCs) Employers of Labour All Contributors Other Beneficiaries e.g. Providers of Financial Services, Technology Solution Providers, etc.

9. PHASE I: ENROLMENT OF CONTRIBUTORS Lack of Adequate Sensitization Unethical Marketing PFAs offering unrealistic services e.g. the provision of loans Failure to Provide Accurate Information at the point of Enrolment Age , Valid addresses, Employment details Multiple Registrations Registration of Contributors with Irregular Work Hours

10. PHASE II: MANAGING RETIREMENT SAVINGS ACCOUNTS (RSAs) Partial and Zero Funded Accounts Delays in Remitting Pension Contributions Deductions Made From Employee Salaries Without Remitting to the PFA Remittance Made for Contributors Without Valid PINs Remittance of Pension Contributions Without Accurate Schedules Distribution of Quarterly Statement of Accounts Managing Contributors Inadequate Technology Limited Investment Outlets

11. PHASE III: BENEFIT PAYMENT AND ADMINISTRATION Redemption of FGN Bonds (Public Sector) Contributors not attending the verification exercise Non-Transfer of Legacy Pension Funds (Private Sector) Processing Survivor Benefits The Role of the Next-of-Kin Non-Payment of the Group Life Insurance Challenges in Obtaining Letters of Administration Updated Customer Details Post Retirement Information including Addresses

12. PHASE IV: RETIREE RELATIONS Lack of Updated Customer Information Managing Retirees

13. THANK YOU.