In line with the Act setting up the Pension Transitional Arrangement Directorate (PTAD), the Directorate has taken over certificates of occupancy of 28 properties located all over the country tentatively valued at N13 billion in lieu of cash payments under legacy funds from Nicon Insurance Company limited.
Executive Secretary, PTAD, Mrs. Sharon Ikeazor disclosed this at the execution of the Memorandum of Understanding (Mou) between PTAD and Nicon Insurance in Abuja.
Ikeazor noted that of the N23bn in custody of insurance companies, a total of N5.6bn has so far been recovered, of which over N800 million was recovered within the last six months, adding that these recoveries will help defray federal government liabilities arising from non-payment of pensions.
She said that the pension reform act 2014 vested all pension assets, funds and liabilities in PTAD, and it was in fulfillment of it’s mandate under the act that PTAD is taking over administration of such funds and assets in custody of insurance companies and boards of trustees of treasury-funded parastatals.
She however hinted that some insurance companies and pension board of trustees have complied and transferred funds and assets to PTAD and issue issued demand notices to insurance companies in custody of legacy funds to comply accordingly.
Recall that following the consolidation of treasury funded parastatals’ pension by PTAD in August, 2015, the Federal Government discontinued the release of pension intervention funds to insurance companies.
It is in fulfilment of its mandate under the Act, that PTAD has taken over the administration of Legacy Pension Funds and assets in the custody of insurance companies and Boards of Trustees of treasury funded Parastatals, and has directed the concerned companies to transfer all Legacy Funds and assets in their custody to PTAD.
According to her, only Leadway Assurance Limited, Custodian Life Assurance Limited, LASACO Assurance Plc and African Alliance Insurance Plc that honoured PTAD demand notices by transferring all or part of the outstanding funds in custody to the Directorate.
“It has become imperative to call on other concerned Insurance Companies still holding unto legacy funds to transfer them to PTAD without further delay. The intendment of the Federal Government in releasing these funds is to grow them for the prompt payment of pension to pensioners”, she said.
She further said that NICON Insurance managed the pension of over 50 Parastatals and Agencies under the Defined Benefit Scheme, stressing that it has joined the league of responding Insurance Companies in transferring the ownership of fixed assets to PTAD in lieu of cash payment as evidenced by the MOU being executed.
“We shall, as a matter of urgency and on the strength of the MOU formally takeover, free from encumbrances, the properties which are listed and described under the Schedule to the MOU in lieu of cash payment at a value to be determined by both parties as Legacy Funds and assets in the custody of NICON Insurance which it held in trust for pensioners”, Ikeazor said.
She noted that the event is both symbolic of Government’s intolerance to the delay in the transfer of the legacy funds to PTAD and a warning signal that the wheel of justice may begin to roll much faster towards achieving higher level of compliance.
She posited that the Directorate, will, in collaboration with the NAICOM, ICPC, EFCC and Ministry of Finance continue to enforce the right of pensioners towards the early recovery of legacy funds within the next 18 months towards defraying Government’s liabilities arising from the non-payment of pensions.
