Effective Pension Processing: Common Challenges and Solutions.

A well-managed pension process is crucial for maximising returns and ensuring a smooth transition into retirement. At CrusaderSterling Pensions (CPL), our goal is to help our contributors secure financial stability through consistent and effective pension savings management. Despite the structured nature of the pension management system, contributors may encounter challenges that can disrupt the seamless flow of funds into their Retirement Savings Accounts (RSA).??

Here’s how you can successfully navigate some of these challenges and keep your retirement savings on track.?

Key Challenges and Solutions:?

1. Delays in Remittance: Sometimes, employers may delay remitting pension contributions due to administrative or financial issues, which can result in delays in crediting RSAs and missed investment returns. To address this, regularly check your account using our mobile app or website. If you observe any delays, promptly contact your employer to ensure they fulfill their remittance obligations.?
2. Incorrect Information: Employers must submit a Schedule of Collection (SOC) with every pension remittance to enable accurate crediting of employees’ pension accounts. Without an accurate SOC, CPL cannot properly allocate the pension contributions, leading to delays in crediting and other issues. Additionally, errors in RSA PINs or personal details can cause misallocation and further delays. To avoid these issues, confirm that your employer has accurate and up-to-date information. If you have changed jobs or updated your details, ensure that your records are updated accordingly. Employers must also ensure that the correct SOCs are sent to the respective Pension Fund Administrators (PFAs) with which their employees are registered. For CPL Contributors, SOCs should be sent to [email protected] and [email protected].?
3. Employer Non-Compliance: Irregular remittances by employers can impact your pension’s growth. Stay informed about your rights and responsibilities under pension regulations. If your employer is not complying, address the issue with them or contact CrusaderSterling Pensions for assistance. We are here to help ensure timely contributions.?
4. Lack of Monitoring: Failing to regularly monitor your pension account can lead to unnoticed discrepancies. Make it a habit to frequently check your pension statements through our mobile app and self-service portal. Identifying and resolving errors early ensures that your pension savings are accurately reflected.?

For any questions or enquiries about your pension account, kindly call Tomi on 0201 2713800-4, or Chidiogo on 0201 2714605. Send us an email at [email protected]?

Fund Price Update

Market Developments

Monetary Policy Rate: The Central Bank of Nigeria (CBN) has recently lifted its ban on lending to commercial banks through its Standing Lending Facility (SLF), allowing them to access funds from the central bank once again. This move aims to provide liquidity support to banks and stimulate financial intermediation. Alongside lifting the lending ban, the CBN has set the interest rate at 31.75%. This move aligns with the central bank's strategy to manage inflation while fostering economic growth and ensuring adequate liquidity within the banking sector. The CBN also announced that commercial and merchant banks would receive a 19% interest rate on deposits exceeding N3 billion in its Standing Deposit Facility (SDF).?

Inflation: Nigeria's headline inflation rate eased to 33.40%, a decrease of 0.79% from June 2024's rate of 34.19%, attributed to slower price increases for selected items. This marks a year-on-year rise of 9.32% points from the 24.08% recorded in July 2023, reflecting a significant increase over the past year. High food prices and a weaker Naira continue to drive inflation in Nigeria.?

External Reserve: Nigeria’s External reserves declined in August 2024 by 1.36% to US$36.30Billion from US$36.80Billion seen in the preceding month. The decline in the foreign reserves can be attributed to increased demand for foreign exchange during the period under review.?

Foreign Exchange: In August 2024, the Nigerian Autonomous Foreign Exchange Market appreciated by 0.63%, ending the month at N1,598.56 per US dollar, up from N1,608.73 per US dollar the previous month. Conversely, in the parallel market, the Naira depreciated by 1.56% month-on-month, closing at ?1,625 per US dollar, compared to ?1,600 per US dollar in the preceding month.?

Equities Market: For the second consecutive month, the Domestic Bourse ended on a negative note, as the NGX ASI declined by 1.22% from the previous month's close. The decline can be linked to ongoing economic challenges, including inflationary pressures and fluctuating foreign exchange rates.?

Fixed Income Market: Nigerian Treasury Bills segment experienced a notable drop in average yields, decreasing from 25.18% in July to 21.21%, a reduction of 3.97% month-on-month. Similarly, the average yields for FGN Bonds also fell from 19.76% in July to 18.96% in August. This decline in yields can be attributed to investors' response to the easing inflationary environment observed in July and their expectations for a less aggressive stance on interest rates in upcoming Monetary Policy Committee meetings.?