MORE than 10 years after the inception of the Contributory Pension Scheme, CPS, following the Pension Reforms Act, PRA, of 2004, the pension assets have hit N4.746 trillion.
The first quarter report of 2015 released by the National Pension Commission, PenCom, said the scheme’s membership has increased to 6,515,736, noting that since the fourth quarter of last year, no fewer than 120,046 contributors have joined the scheme.
According to the report, “as at the end of the first quarter, 2015, 26 state governments had enacted laws on the CPS, while the remaining 10 were at the bills stage.
“The total pension contribution by both the public and private sectors into the RSA of employees was N2.953,09 trillion as at the end of first quarter, 2015. This was an increase of N79.87 billion, representing 2.70 percent over the total contributions remitted as at the end of December, 2014.
“While the public sector contributed 34.43 per cent of the total contribution, the private sector contributed the remaining balance of 65.57 per cent during the quarter. The private sector contribution increased from N1.229.77 as at the end of December, 2014 to N1.282.14 as at the end of the first quarter of 2015, representing an increase of 4.26 percent.
“The average monthly contributions by the private and public sectors were N17.46 billion and N9.17 billion respectively during the quarter.”
Ranking the contributions of Pension Fund Administrators, PFAs, the report said the top five PFAs (not named) accounted for 67.83 percent of total contributions received as at the end of the quarter under review. Similarly, the top 10 PFAs accounted for 90.56 percent of total contributions received over the same period.
It disclosed that while the bottom five PFAs accounted for 1.52 percent of total contribution received, the bottom 10 PFAs accounted for 9.44 percent of total contribution in the quarter.
The report added that “the total value of pension assets increased from N4.611.29 trillion as at the end of the fourth quarter of 2014 to N4.746.00 trillion at the end of the first quarter of 2015, representing an increase of N134.71 billion (2.92 percent) RSA Active Fund accounted for 63.99 percent of total pension assets under management during the quarter.
“The fund also accounted for 80.07 percent of assets growth during the quarter. This was partly explained by growth in pension contributions that averaged N26.62 billion in the quarter. The Closed Pension Fund Administrators, CPFAs, and Retiree Funds followed with proportional contributions of 33.19 and 4.05 percent of total pension assets respectively.”
“The Approved Existing Schemes, AESs, witnessed a decline of N11.79 billion, representing 1.80 percent during the quarter. The FGN Securities continued to dominate total pension fund investment portfolio. This asset class accounted for 66.22 percent of total pension fund investments during the quarter.
“This could be explained by the uncertainties that characterized the stock market in 2014 and the persistent volatilities in the stock market. Hence, operators saw FGN Securities as ‘flight-to-safety’ strategy.”
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