61% of Pension Fund invested in bonds, T-bills – Report

Total assets under the Contributory Pension Scheme rose by N460bn in three months to N13.88tn in March, according to figures from the National Pension Commission released on Friday.

This was contained in the National Pension Commission’s latest report titled, ‘Unaudited report on pension funds industry portfolio for the period ended 31 March 2022; Approved Existing Schemes, Closed Pension Fund Administrators and RSA funds (Including unremitted contributions @CBN & legacy funds).’

The funds, which ended December 31, 2021, at N13.42tn, rose to N13.61tn and N13.76tn as of the end of January and February 2022 respectively.

The data showed that N8.5tn of the total funds was invested in Federal Government securities, comprising bonds and treasury bills in March.

The amount represented 61.24 per cent of the total assets under the Contributory Pension Scheme.

Other investment portfolios where the funds were invested included: domestic and foreign ordinary shares; corporate debt securities comprising corporate bonds, corporate infrastructure bonds, corporate green bonds, and supranational bonds.

PenCom also disclosed that the total number of workers with Retirement Savings Accounts rose slightly to 9.589 million as of end of February, from 9.529 million as of end of December 2021.

It stated that 131,376 workers who retired from active service could not be placed on monthly pensions as of the end of 2021.

Figures obtained from PenCom showed that the affected workers had received all the contributions in their Retirement Savings Accounts totalling N32.58bn, having quit the Contributory Pension Scheme.

According to PenCom, the affected retirees had below N550,000 as the balance in their RSAs which did not qualify them to be enrolled under the two retirement options of annuity and programmed withdrawal

The pension regulator also said some foreign nationals returning to their countries withdrew their savings before leaving.

According to the Pension Reform Act 2014, any worker with less than N550, 000 would be given the total balance in their RSA by the PFA and allowed to leave the pension scheme.


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