PenCom First Quarter 2022 Q1 Report Executive Summary – PensionNigeria

PenCom First Quarter 2022 Q1 Report Executive Summary

The National Pension Commission (PenCom) has released the 1st Quarter 2022 report for the pension industry. PensionNigeria is currently reviewing the report and we will analyse and breakdown the report accordingly.

Main while, in a welcome development, PenCom this time released a Summary of the report which provides an overview of the pension industry as at First Quarter 2022 and shows strong growth in pension fund assets and scheme memberships.

Below are the highlights of the report:

1. Pension Fund Assets

The total value of Pension Fund Assets under the management of Pension Fund Administrators (PFAs) increased by N1.53 trillion year-on-year from N12.34 trillion recorded as of the end of Q1 2021 to N13.88 trillion as of the end of Q1 of 2022. Quarter-on-quarter, total pension assets rose by N46 billion from the N13.42 trillion recorded at the end of Q4 2021 to N13.88 trillion at the end of Q1 2022. The growth in Pension Fund Assets was mainly due to contributions received and market valuation of Federal Government bonds and quoted equities.

2. Pension Fund Investments

In Q1 2022, Pension Fund Assets were mainly invested in Federal Government Securities and quoted domestic ordinary shares. The value of investments in quoted domestic ordinary shares increased by N28.95 billion to N944.26 billion. The asset class represented 6.80 per cent 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 per cent. Pension Fund Assets invested in Federal Government Securities decreased by 3.10 per cent to stand at N8.50 trillion. The decrease in the value of investments in FGN Securities was majorly due to matured investments in the asset class during the quarter.

3. Contributory Pension Scheme Memberships

The Contributory Pension Scheme (CPS) memberships increased by 322,974 year-on-year from 9.36 million at the end of the first quarter of 2021 to 9.68 million at the end of Q1 2022. Quarter-on-quarter, CPS memberships increased by 92,852 from 9.59 million recorded at the end of Q4 2021 to 9.68 million as of Q1 2022. The growth in the industry membership is due to an increased level of compliance by the public and private sectors.

4. Pension Contributions

The total pension contributions remitted to individual RSAs in Q1 2022 stood at N191.44 billion. The private sector contributed N101.11 billion or 52.82 per cent, while the public sector accounted for N90.33 billion or 47.18 per cent. Quarter-on quarter, aggregate pension contributions of the public sector increased from N3.92 trillion in Q4 2021 to N4.02 trillion at the end of Q1 2022. Similarly, the aggregate pension contributions of the private sector increased from N3.66 trillion in Q4 2021 to N3.76 trillion at the end of Q1 2022.

5. Recovery of Outstanding Pension Contributions and Penalties from Defaulting Employers

Recovery Agents appointed by PenCom issued demand notices to 23 defaulting employers. As a result, the sum of N422.34Million, comprising N124.89 million principal contributions and 295.45 million penalties, was recovered from the 23 defaulting employers. PenCom is preparing to take legal action against six recalcitrant employers after exhausting administrative measures to ensure compliance.

6. Issuance of Pension Clearance Certificates

The Commission issued 10,541 Pension Clearance Certificates to private sector organizations out of the 11,200 applications submitted. The remaining 659 applications were in the approval process at the end of the quarter.

7. Payment of retirement/terminal benefits

PenCom approved 8,528 requests from retirees to draw pension through Programmed Withdrawal (PW) in Q1 2022. Accordingly, the retirees received lump-sum payments totaling N36.25 billion, while their total monthly pensions amounted to N470.13 million. Similarly, PenCom approved the lump-sum payments of N13.21 billion to 3,264 retirees that chose Retiree Life Annuity. Furthermore, N22.69 billion was paid to fourteen (14) Retiree Life Annuity providers, as premiums regarding monthly/quarterly annuities of N231.93 million. Death benefits paid in Q1 2022 amounted to N13.39 billion.

8. Update on Micro Pension Plan

During the period under review, 2,897 new contributors were enrolled in the Micro Pension Plan by eighteen (18) Pension Fund Administrators (PFAs), bringing the total number of Micro Pension Contributors to 76,588. A total of N34.53 million was received as contributions from 8,668 Micro Pension Plan (MPP) contributors. The total value of Micro Pension Funds at the end of Q1 2022 was N263.57 million.

Despite the challenging operating environment, the Contributory Pension Scheme has remained robust and resilient. Pension contributions, pension assets and CPS memberships increased in Q1 2022, indicating a strong performance. It is expected that the recent successful increase of the Minimum Regulatory Capital (Shareholders’ Fund) of PFAs from N1 billion to N5 billion will further strengthen the PFAs for better performance. PenCom, hereby, reiterates its commitment to effective regulation and supervision of the Nigerian pension industry in order to ensure that retirement benefits are paid as and when due.

SIGNED: PenCom Management
07 June 2022

Check out other Publications by National Pension Commission (PenCom) HERE

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Daily Newsletter and get Today’s Top Pension News delivered straight into your email box every Evening. Click here to Subscribe

DONT MISS our 1st Quarter 2022 Report Series

Performance of all PFAs in Nigeria for January to March 2022
Micro Pension ROI for January to March 2022 for all PFAs in Nigeria
Update on RSA Transfer System (RTS) 1st Quarter 2022
Status of Contributory Pension Assets as at 31 March 2022
Status of Implementation of CPS in States as at 31 March 2022
PenCom First Quarter 2022 Q1 Report Executive Summary
Total RSA Registration with Age & Gender Breakdown as at 31 March 2022
Analysis of Pension Operating Environment Q1 2022
Appointment & Resignation of Pension Operators’ Board Members Q1 2022
PenCom issued 10,541 organizations Compliance Certificates in 1st Quarter of 2022
23 Employers paid N295.45 Million Penalty for late Remittance of Pension Contribution
How PenCom monitored the Pension Industry in 1st Quarter of 2022
Status of Contributory Pension Assets as at May 2022
Biggest PFAs & Fastest Growing PFAs by RSA Registrations 31 March 2022
More reports will be added as soon as they are available

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

Support PensionNigeria financially here, empower us to do more independent analysis of the Pension Industry in Nigeria

Subscribe to PensionNigeria Weekly Newsletter to ensure you don’t miss any post Click here to Subscribe

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube

error: Content is protected.