*Pays N25.45bn to retirees
By James Emejo in Abuja
Shareholders of Legacy Pension Managers Limited have approved a dividend payout of N480 million for the 2015 financial year.
This translated to 60 kobo per unit of share and represented a 20 percent increase over the 50 kobo issued in 2014.
Speaking in Abuja at its Eighth Annual General Meeting (AGM), Chairman of the company, Alhaji Lamis Dikko said the 2015 financial year was rather a “bumpy ride” given the unfavourable business environment in the country.
Nevertheless, he said the company’s performance showed it remained proactive in its commitment to deliver on its promise of sustainable growth, good returns to shareholders as well as good customers’ service experience.
Meanwhile, he noted that the impending commencement of the Transfer Window (TW), which would allow pension contributors the freedom to move their accounts between Pension Fund Administrators (PFAs) will be a game-changing development with regards to market share.
He said: “Legacy Pension is positioned to take on the challenges ahead. Our entrenched cultures of sound corporate governance, compliance, proactive management as well as strong capital are some of our strengths for the building of a competitive franchise.”
The Managing Director, Legacy Pension, Mr. Misbahu Yola said its profit after tax (PAT) in the financial period stood at N623.37 million while asset under management increased to N166 billion, representing a 9.2 percent increase from N151.93 billion the previous year.
The company’s gross operating revenue to N2.19 billion in 2015 compared to N1.89 billion in 2014 while its registered employers rose to 6,713 from 5,107 as well as the registered contributors which increased by 13.98 percent to 327,211 from 287,072,
The company’s shareholders’ funds closed at N2.5 billion while total asset in its financial position grew 13.5 percent to N3.1 billion.
Yola said it had paid a total sum of N25.45 billion to 10,636 retirees and other eligible contributors since 2007, adding that as at 2015, the company had paid a total sum of N3.43 billion as lump sums, arrears and programmed withdrawals to 802 retirees; N1.18 billion was disbursed to 390 beneficiaries as death benefits.
He said compliance on enrollment by employers remained a challenge to the scheme while the current fiscal challenge and increasing unemployment had stunted the growth of enrollment into the contributory pension scheme (CPS).
Furthermore, he said that it’s asset management revenue was also affected by the transfer to the Police PFA as well as challenges of contribution remittances.
He said: “Funding the retirement savings account (RSA) has become a major issue. It’s not unconnected to the dwindling revenue in both the public and private sectors, resulting in the low level of pension contributions.
“In addition, while the Pension Reforms Act (PRA) of 2014 increased the minimum contribution by employers and employees to 18 percent cumulative contributions, this has not been implemented by many employers.”
According to him, the company will remain strong in its corporate governance and risk management practices.