We have further gotten closer to our clients with our Mobile App- ARM boss

Operators in the nation’s pension industry are going the extra mile to ensure that beneficiaries in the Contributory Pension Scheme (CPS) enjoy quality service driven by innovation. Abisola Onigbogi, head, Business Development at ARM Pension Managers (PFA) Ltd in this interview shares his thought on the firms latest mobile App, other innovations and state of the industry. Excerpts

Your firm has just introduced a new technology called ARM “Engage Mobile App”. What does this mean?

It is a virtual office; a real hand-held branch of the Company that is always available 24/7 wherever you are. The ARM Engage Mobile App is a customer friendly application that gives our clients easy and convenient access to their Retirement Savings Account on any smart phone (Blackberry, Android or IoS). As technology evolves, ARM is constantly exploring new and innovative ways to remain close to our esteemed clients and the Mobile App is an additional touch point for us.

What gave rise to this innovation and how will it benefit your clients?

One of our main objectives for this financial year is improving customer experience and we are making conscious efforts to expand the channels through which our existing and potential clients can reach us. This has informed the decision to launch our solar-panelled mobile office and Mobile App amongst others. The Mobile App is free, interactive, user-friendly, convenient, and can be used on the go. Also, it will help clients monitor their contributions and confirm employer deductions; provide an avenue for existing and potential clients to receive latest industry updates and will help in planning for retirement via our retirement calculator.

How does this innovation differentiate ARM from other PFAs?

We are a customer-focused firm and even though we ‘sell’ the same products and services as others in the industry, it is our mode of delivery of that service that has set us apart. A couple of applications exist in the industry but our latest iteration is miles ahead of what is available in the functionality and ease of use; and testament to this is in the very positive feedback we have received from early adopters. The intention is to continuously be at the forefront in delivering the best possible service to our customers with cutting-edge technology. We will not relent in exploring other novel avenues to continue to do so.

How will this service impact on your performance and position in the market?

This service draws us nearer to our clients as it has made us more accessible and will help in building customer loyalty. In addition it increases our brand visibility and gives us a faster and more efficient avenue to communicate with our clients. Lastly, it ensures that all communication reach the intended targets as it is personalized. At ARM Pensions, our aim is to be the most customer-friendly PFA in the country and a clear leader in the delivery of first class client service and this represents another step in that direction.

The country’s pension industry is going through a transformation, what is the hope of the Nigeria worker?

The Pension Reform Act (2014) was enacted to broaden the scope and close loopholes identified in the PRA 2004. For us as a Pension Fund Administrator and the Industry as a whole, our goal is to ensure that every Nigerian worker can not only remain financially independent at retirement but also maintain a comfortable lifestyle. Consequently, we encourage employers and their employees to embrace the scheme whole-heartedly to achieve this goal. Our clients are encouraged to make additional voluntary contributions if they believe their mandatory contributions will not be sufficient to afford them their intended retirement lifestyle and some of the current advantages of such voluntary contributions include tax benefits, flexible contributions and the fact that it can be withdrawn at any time.

Some contributors in the CPS have retired with a kind of shock on what they get as monthly pay, what will be your explanation for this?

The Pension Reform Act (2014) states that at retirement contributors are entitled to a lump-sum payment provided that the remaining balance is sufficient to procure a programmed withdrawal or an annuity that will produce an amount that should not be less than 50 percent of his/her annual salary as at the date of retirement. However the pension contributions of some RSA holders that retired in the first few years of the CPS were not so much due to the limited time they had in the scheme, especially those that did not have any accrued rights or accumulated contributions from past schemes. This has meant that at the point of retirement such contributors do not have significant pension contributions. The PRA 2014 however takes this into consideration as those with RSA balances less than N550, 000 are paid an en-bloc payment i.e. their total pension contribution at a go. On the other hand, contributors that either just joined the scheme or have several more

years to go will enjoy the full benefits of the CPS. In addition, Section 84(1) of the Act makes room for Minimum Pension Guarantee for contributors that have worked for a minimum number of years as specified by the National Pension Commission (PenCom). The Regulator is currently working on a framework for this MPG and once it is finalized and the guidelines released, we expect that this will serve as a buffer/cushion to contributors with low balances. However, and as I mentioned earlier, with the ARM Pensions Mobile App, one can easily calculate the likely en-bloc and programmed payments due at retirement, and in the event that it is not sufficient to ensure one can continue to maintain a desired lifestyle, we encourage our clients to participate in the Additional Voluntary Contribution scheme to shore up their pension benefits.

Pension operators and the regulator have expressed their commitment to explore opportunities in the informal sector, how soon will this happen? And what is the strategy?

Based on data available and anecdotal evidence, the informal sector represents majority of the country’s labour force and it is important that they join the Scheme as they stand to gain a lot from it. The market women, taxi drivers, artisans, transport workers and other one-man businesses, etc., all form part of this sector and the Regulator is already working on a draft guideline that will open the CPS to this sector. It is not our place to give an exact date for when they can join the Scheme as that is subject to all modalities being put in place. The Regulator will make the pronouncement in due course once the industry is set.

Take review of the Pension Industry in the last seven months?

As a dynamic Industry, there are always new happenings and updates some of which include a few more States preparing to join the Scheme, some approved schemes/CPFAs transiting to RSA, and Recovery Agents driving compliance by following up with employers that have either not been remitting at all, or not remitting in full. Furthermore preparations are in full swing for the transfer window as once it commences, contributors will be able to switch from one PFA to another. A guideline for this process is already on PenCom’s website and modalities are being put in place to ensure that it will be seamless upon commencement. Lastly, the Regulator is working on guidelines for using RSA contributions to access Mortgage loans in line with Section 89(2) of PRA 2014 and once this is concluded, we anticipate that it will have a positive ripple effect on primary home-ownership in Nigeria.