AIICO Insurance formal handover of Assets to PTAD

REMARKS BY SHARON O. IKEAZOR, EXECUTIVE SECRETARY, PENSION TRANSITIONAL ARRANGEMENT DIRECTORATE (PTAD) AT THE FORMAL HANDING OVER OF LANDED PROPERTIES, FIXED PRIVATE HOLDINGS AND CASH AS LEGACY FUNDS BY AIICO INSURANCE COMPANY LIMITED

I am gratified to be physically present here today on this occasion for the execution of a Memorandum of Understanding between the Pension Transitional Arrangement Directorate and AIICO Insurance Limited for the formal handing over and transfer of landed properties, Private Equity Holding and Cashas legacy funds in the Custody of AIICO INSURANCE Company Limited.

I believe it is well understood, the Pension Reform Act, 2014 vested all Defined Benefit Scheme (DBS) pension assets, funds and liabilities in PTAD. Following the consolidation of treasury funded parastatals’ pension by PTAD in August, 2015, the Federal Government discontinued the release of pension intervention funds to insurance companies. It is in fulfilment of its mandate under the Act, that PTAD has taken over the administration of Legacy Pension Funds and assets in the custody of insurance companies and Boards of Trustees of treasury funded Parastatals.

The Directorate, consequently, directed the concerned insurance companies to transfer all Legacy Funds and assets in their custody to PTAD. In compliance with the directives, some Insurance Companies and Pension Boards of Trustees have transferred funds and assets to PTAD.

As a result of that, we issued Demand Notices on the Insurance Companies involved, for the transfer of these outstanding funds into our dedicated e-Collection account with the CBN. As a today, only 5 of the 15 Insurance companies have compliedwith our demand notices by transferring all or part of the outstanding funds in their custodies to the Directorate. These are Leadway Assurance Limited, Custodian Life Assurance Limited, LASACO Assurance Plc, African Alliance Insurance Plc and NICON Insurance Plc.

We would like to use this opportunity to call on other concerned Insurance Companies still holding unto legacy funds to transfer them to PTAD without further delay. The slow response of some of these insurance companies has unnecessarily delayed the settlement of the huge pension liabilities inherited by PTAD.

In furtherance to our efforts in recovery of Pension Assets, today, AIICO Insurance has joined the league of responding Insurance Companies in transferring the ownership of fixed assets, Private Equity Holdings and Cash to PTAD as evidenced by the MOU we are executing today. We shall, as a matter of urgency and on the strength of the MOU formally takeover,free from encumbrances,the Properties, Private Equity Holdings and Cash which are listed and described under the Schedule to the MOU at a value to be determined by both parties as Legacy Funds and assets in the custody of AIICO Insurance which it held in trust for pensioners.

I must commend AIICO Insurance and indeed all the other insurance companies for their responses.
I want to assure you that PTAD would continue to strive to sustain professionalism, integrity, honesty, transparency and accountability in executing its mandate for the benefit of the concerned Pensioners and Government’s commitment to good governance.
I thank you all for listening.

Signed

Management