FG recovers N13bn pension liabilities from NICON Insurance
The federal government has recovered N13 billion pension liabilities from NICON Insurance Limited as part of efforts to recover all pension intervention funds paid to insurance companies before the Pension Reform Act, 2014.
While signing the Memorandum of Understanding (MoU) with the Pension Transitional Arrangement Directorate (PTAD) on the handover of the legacy pension fund assets, the Executive Director, Finance and Administration of NICON Insurance, Mr Stephen Abiodun Ojo, said the payment done in landed property in lieu of cash was to offset some of its liabilities owed pensioners under the Defined Pension Scheme.
“Today, history is made because this pension liability has been a burden as we have been carrying the liability in our account. That is one of the issues we usually have when we want to get approval for our account,” Ojo said.
NICON Insurance managed the pension of over 50 parastatals and agencies under the Defined Benefit Scheme before the PTAD took over that function.
The Executive Secretary of PTAD, Barrister Sharon Ikeazor, said today NICON Insurance has joined the league of responding insurance companies in transferring the ownership of fixed assets to PTAD in lieu of cash payment as evidenced by the MOU we are executing today.
“We shall as a matter of urgency and on the strength of the MOU formally take over, free from encumbrances, the properties which are listed and described under the schedule to the MOU in lieu of cash payment at a value to be determined by both parties as Legacy Funds and assets in the custody of NICON Insurance which it held in trust for pensioners,” she said.
Ikeazor said as at October 2016 when she assumed office, the Federal Government was yet to recover the legacy pension assets and funds worth over N23 billion in the custody of the insurance companies. However, over N880 million has been recovered within the last six months bringing the total recovery to N5.6 billion.
She urged other insurance companies to offset their liabilities adding that the directorate will collaborate with NAICOM, ICPC, EFCC and the Ministry of Finance to enforce the right of pensioners towards the early recovery of legacy funds before the December 2017 deadline.