The Pension Transitional Arrangement Directorate (PTAD) has called on insurance companies that are yet to transfer the legacy pension funds and assets in their custody to do so with immediate effect.
The Executive Secretary Barr. Sharon Ikeazor, in a statement on Sunday by the Deputy Director of Communication, Mr Emma Okondo, said that Pension Reform Act, 2014 vested all Defined Benefit Scheme (DBS) pension assets, funds and liabilities in PTAD.
The Executive Secretary said that all the concerned insurance companies should transfer all Legacy Funds and assets in their custody to PTAD.
Ikeazu made the call recently in Lagos during the formal handing over and transfer of landed properties, private equity holding and cash as legacy funds in the custody of AIICO Insurance Limited to PTAD.
She said that some Insurance Companies and Pension Boards of Trustees have transferred funds and assets to PTAD in compliance with the directives.
Ikeazor said, “As a result of that, we issued Demand Notices on the Insurance Companies involved, for the transfer of these outstanding funds into our dedicated e-Collection account with the CBN.”
She observed that only 5 of the 15 Insurance companies have complied with agency’s demand notices by transferring all or part of the outstanding funds in their custodies to the Directorate.
Ikeazor listed those that have complied are, Leadway Assurance Limited, Custodian Life Assurance Limited, LASACO Assurance Plc, African Alliance Insurance Plc and NICON Insurance Plc.
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, she noted.
According to Ikeazor, 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.
She therefore, called on other concerned Insurance Companies still holding unto legacy funds to transfer them to PTAD without further delay.
She lamented that the slow response of some of these insurance companies has “unnecessarily delayed the settlement of the huge pension liabilities inherited by PTAD.”
“In furtherance to our efforts in recovery of Pension Assets, today, AIICO Insurance has joined the league of responding Insurance Companies in transferring the ownership of fixed assets, Private Equity Holdings and Cash to PTAD as evidenced by the MOU we are executing today.”
“We shall, as a matter of urgency and on the strength of the MOU formally takeover, free from encumbrances, the Properties, Private Equity Holdings and Cash which are listed and described under the Schedule to the MOU at a value to be determined by both parties as Legacy Funds and assets in the custody of AIICO Insurance which it held in trust for pensioners,” Ikeazor added.
She commended AIICO Insurance and the other insurance companies for their responses.
Ikeazor assured that PTAD would continue to strive to sustain professionalism, integrity, honesty, transparency and accountability in executing its mandate for the benefit of the concerned pensioners and government’s commitment to good governance.