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Trustfund’s processes and operations conform with
the best international practices, and are supported
by Accenture, a leading international consulting company,
and Sonda of Chile, a foremost IT solution provider
in the pension fund industry. It is worthy of note that
modern contributory pension saving scheme originated
in Chile, which maintains one of the best managed pension
schemes worldwide.
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Across the world there is a growing awareness of the impact shifting demographics will have on people's live and recognition that companies like ourselves have a valuable role to play in helping to address some of the issues this creates.
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Private Sector Pension |
The history of regulated private secctor pension scheme in Nigeria began in 1961 with the establishment of the National Provident Fund (NPF), which was established by an Act of Parliarment in 1961. Its purpose was to provide income loss protection for employees as required by the International Labour Organization (ILO) Social Security (Minimum Standards) Convention 102 of 1952. the scheme covered only employees in the private sector, and the monthly contribution was 6% of basic salary, subject to a maximum of N8.00 to be contributed in equal proportion of N4.00 each by the employer and the employee.
In 1993, the National Provident Fund (NPF) was converted to a limited social insurance scheme, administered by the Nigeria Social Insurance Trust Fund (NSITF). The NSITF was a defined benefits scheme and covered employees in the private sector. The initial montly contribution of members was 7.5% of basic salary, shared in the proportion of 2.5% by the employee, and 5% by the employer, but was later in 2002 revised to 10% of gross salary (comprising basic salary, transport and housing allowances) shared in the proportion of 3.5% by the employee and 6.5% by the employer.
In the private sector, many employers also ran different pension scheme in addition to NSITF scheme. |
PUBLIC SECTOR |
The pulic sector ran a defined benefit scheme, which was operated on a "pay as you go", and was largly unfunded. Pension arrears in the federal public service as at 2005 was estimated to be in excess of N2trillion.
The Federal Government of Nigeria, in 2004, revolutionized pension management and administration in Nigeria, with the enactment of the Pension Reform Act 2004 in June 2004. The Act assigned the administration, management, and custody of pension funds to private sector companies, the Pension Fund Administrators (PFA) and the Pension Fund Custodians (PFC). The Act further mandated the Nigeria Social Insurance Trust Fund (NSITF) to se up its own Pension Fund Administrators (PFA) to compete with other PFAs in the emerging pensions industry, and also to manage the accumulated pension funds of current NSITF contributors for a transitional perod of five years.
More about Our Indusry>>> |
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