Over N25 billion of pension funds from the Defined Benefit Scheme (DBS) is still being owed by some insurance firms, the Executive Secretary, Pension Transitional Arrangement Directorate (PTAD), Mrs Sharon Ikeazor, has said.
She was highlighting the progress made by the Directorate in her 11 years of assuming office as the Executive Secretary at the just concluded 20117 Conference of the National Association of Insurance and Pension Correspondents in Lagos.
Nine out of 12 firms are holding the funds. The one year deadline given to the defaulting firms would expire next month.
Mrs Ikeazor said the PTAD had given the insurance companies one year to repay the monies owed, considering that the monies had been with them since 2015 and they knew they were to hand over to PTAD since then.
According to her, PTAD is liaising with the National Insurance Commission (NAICOM) for regulatory support as it may be compelled to take legal action and include the Attorney-General of the Federation and agencies such as the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC) to help recover the funds.
She stressed that while some of the affected companies had complied, some of them said they would not be able to meet the December deadline .
She said: “Among companies that have complied are Leadway Assurance with full payment of N33.3 million and AIICO Insurance, which complied in form of transferring properties and investments worth N1.5 billion.
“NICON Insurance substantially complied transferring fixed assets worth N13 billion to PTAD. The value placed on them are yet to be verified and reconciled. The Federal Ministry of Works and Housing is carrying out the valuation of those assets to determine their actual value. As at 31st August, 2017, the sum of N6.422 billion is in the Legacy Fund (e-payment) with the Central Bank of Nigeria.
“PTAD has entered the enforcement stage in the recovery process against defaulting insurance companies. The final Demand Notice was served in October.”
She urge the defaulting companies holding legacy funds to pay up to enable the PTAD deal promptly with the inherited liabilities.
She listed the Directorate’s areas of success since she assumed office as prompt payment of monthly pensions; completion of the verification process for the civil service and parastatals; automation of the pension payment processes and the use of Government-Integrated Financial Management System (GIFMIS) and tackling pension scammers and fraudsters.
The Directorate, she said, has also paid outstanding arrears, including the 33 per cent arrears and recovery of legacy funds from insurance companies.