Don't Miss

Legacy Pension pays N18.25bn to 7,542 contributors

By on June 16, 2015

The Managing Director, Legacy Pension Limited, Mr. Misbahu Yola, says the company has paid a total sum of N18.25bn in various benefits to over 7,542 contributors in the last seven years.

Yola, who disclosed this while speaking at the company’s seventh Annual General Meeting in Abuja, said the sum of N1.02bn was remitted as annuities to insurance companies.

Giving a breakdown of the various payments to the beneficiaries, the Legacy Pension boss said that in 2014, N2.81bn was paid as arrears and programmed withdrawal.

He added that the sum of N1.26bn was paid as death benefits to relatives of 447 contributors, N81.12m as small balances to 314 contributors, and N206.38m as temporary access to 644 contributors.

He said the management of the company remained resolute in its determination in ensuring retirees got paid as and when due, adding that its monthly pension payment had risen from N66.36m in December 2013 to N84.27m in December 2014.

He explained to the shareholders that despite the challenges in the investment climate, pension assets being managed by the company had continued to return impressive gains.

For instance, he said the surplus in the Retirement Savings Account fund had risen by 33 per cent from N5.85bn in 2013 to N7.78bn in 2014.

He also said that the company recorded a 23.59 per cent increase in profit before tax from N730.29m in 2013 to N902.58m in 2014, adding that the company’s balance sheet remained solid with total assets rising by 19.14 per cent to N2.76bn.

On the state of the industry, the Legacy Pension boss said despite the growth in enrolment, funding of the various accounts had been a major challenge to the pension scheme.

This, he noted, was further heightened by poor revenue projection and the devaluation of the naira which had made things more difficult for employers.

In addition, he lamented that many states had yet to comply or fully comply with the scheme.

He said, “Insecurities experienced in the year did not help direct investment that would have created more jobs, with the elections come and gone, we believe that confidence will be restored.

“The challenges of the limited investment would be addressed when the new regulations on investment of pension fund assets from PenCom is implemented as it will boost investment diversification, according to demographic risk appetite.”

He, however, said that despite the challenges, the company was poised to attain greater heights through proactive management decision- making and effective risk management practices that would continue to add value to shareholders.

The Chairman of the company, Mr. Lamis Dikko, while speaking on the future outlook, said the passage of the Pension Reforms Act of 2014 was a major milestone that would boost the growth of the industry.

“The passage of the PRA 2014 is expected to spiral the enlistment of the informal sector into the Contributory Pension Scheme.

“We have no doubt that the National Pension Commission is poised to continually ensure the integrity and the confidence reposed in it by contributors through its risk-based approach supervision,” he added.