Top five PFAs account for 64.84% of total pension contributions
by Modestus Anaesoronye
May 22, 2018 | 2:16 am| | | Start Conversation
The ranking of Pension Fund Administrators (PFA) by total pension contributions show that top five received 64.84 percent of the total contributions as at the end of the fourth quarter 201, while the top 10 ranking PFAs accounted for 87.90 percent of the total contributions.
Ina document made available by the Nation Pension Commission (PenCom), the bottom 5 and 10 PFAs received N77.98 billion and N418.46 billion contributions of their members, representing 1.70 percent and 9.14 percent of the total contributions received as at the end of the fourth quarter of 2017 respectively.
According to the Commission, the total monthly pension contribution made by contributors from both the public and private sectors into their RSAs was N4.49 trillion as at the end of fourth quarter, 2017. This shows an increase of N147.92 billion representing 3.41 percent over the total contributions as at the end of the previous quarter. A review of the aggregate total contribution shows that the Public sector contributed 51.20 percent of the total contributions, while the Private sector contributed the remaining 48.80 percent. However, during the fourth under review, the Public sector contributed 51.39 percent of the total contributions received while the Private sector contributed 48.61 percent.
In terms of scheme membership, the pension industry recorded a 1.46 percent growth in the scheme membership during the fourth quarter of 2017, moving from 7.78 million contributors at the end of the preceding quarter to 7.89 million. The growth in the industry membership was driven by the Retirement Savings Account (RSA) Scheme, which had an increase of 113,347 contributors representing 1.47 percent.
A breakdown of the RSA registrations indicates a 0.62 percent (21,306) increase in membership of the public sector over the third quarter of the same year to stand at 3,478,867. This figure represents 44.46 percent of the total RSA registration as at the fourth quarter of 2017, as shown in Table 3.2.
The private sector shows a continuous dominance in RSA membership with 55.54 percent (4,345,044) of the total RSA registration as at the reporting period, moving from 4,253,003 in the previous quarter. The sector also witnessed a growth of 2.16 percent (92,041) in the quarter under review. This can be attributed to the increase in the level of compliance by the private sector as a result of the various steps taken by the Commission to improve compliance and coverage, as well as marketing strategies of the PFAs.
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