PenCom says membership of contributory pension scheme increases to 6.19m in Q2

The National Pension Commission (PenCom) said the membership of the contributory pension scheme had increased from 6.09 million in first quarter to 6.19 million in second quarter of 2014.

This is contained in the commission’s quarterly report obtained by the News Agency of Nigeria (NAN) on Wednesday in Abuja.

The report said the increase was largely explained by Retirement Savings Account (RSA) memberships, which accounted for 98.94 per cent of total pension scheme memberships during the quarter.

It said that Approved Existing Schemes (AES) and Closed Pension Fund Administrators (CPFA) accounted for the remaining balances of 0.66 and 0.40 per cent respectively.

The breakdown showed that the RSA membership as at the end of the second quarter was 6.13 million; CPFA membership was 24,637 while AES membership was 40,951.

According to the report, the analysis of total RSA registrations for both public and private sectors shows that total RSA registrations increased by 1.77 per cent from 6.02 million in the first quarter.

It added that the private sector recorded highest number of RSA registrations at 3.12 million, thereby accounting for 50.91 percent of total registrations.

“The public sector also witnessed an increase in RSA membership as total registrations marginally increased from 2.99 million in the first quarter to 3.01 million, representing an increase of 0.52 per cent.

“In all, the public sector accounted for 49.09 per cent of total RSA registrations at the end of the quarter under review,” it said.

The analysis of the age distribution of RSA holders showed that the age category “30-39” accounted for the highest proportion of registrations in the quarter at 39.39 per cent.

The report also showed that age category 49 years and below accounted for 77.96 per cent of RSA contributors during the period under review.

It said that ranking of PFAs by number of registered contributors showed increases in the shares of the top three, five and 10 PFAs during the quarter.

According to the report, the shares increased from 45.44, 62.39 and 87.30 per cent in the first quarter to 46.68, 63.78 and 87.77 per cent respectively in the second quarter.

“However, while the share of the bottom three and five PFAs decreased marginally by 0.01 per cent, those of bottom 10 PFAs decreased by 0.47 per cent.

“A review of the range of market share of RSA registrations by number of PFAs shows that 75 per cent of the PFAs have less than 500,000 RSAs under their management.

“Another remarkable result of the analysis is that four PFAs have between 500,000 and 1,000,000 RSAs under their management,” it said. (NAN)