AIICO joins league of insurance companies to transfer assets to PTAD
The American International Insurance Company Limited (AIICO) on Tuesday formally handed over and transferred landed property, private equity holding and cash as legacy funds to the Pension Transitional Arrangement Directorate (PTAD), reports the News Agency of Nigeria (NAN).
Sharon Ikeazor, executive secretary of PTAD, expressed joy in physically witnessing the execution of a Memorandum of Understanding (MoU) between PTAD and AIICO on the asset transfer.
Ikeazor said that the Pension Reform Act 2014, vested all Defined Benefit Scheme-pension assets, funds and liabilities in PTAD.
She recalled that 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.
According to her, it is in the fulfilment of the mandate 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 to the insurance companies involved in the transfer of these outstanding funds into our dedicated e-collection account with the CBN,’’ Ikeazor said.
The executive secretary said that only five of the 15 insurance companies complied with the demand notices by transferring all or part of the outstanding funds in their custody to the directorate.
She listed Leadway Assurance Limited, Custodian Life Assurance Limited, LASACO Assurance PLC, African Alliance Insurance PLC and NICON Insurance PLC as those that have complied with the demand notices.
While urging other insurance companies still holding on to legacy funds to transfer them without further delay, she added that their slow response had unnecessarily delayed the settlement of the huge pension liabilities inherited by PTAD.
Ikeazor commended AIICO for joining 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 shall, as a matter of urgency and on the strength of the MoU, formally take over, free from encumbrances, the property, private equity holdings and cash which are listed and described in the schedule to the MoU.
“This is 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,’’ Ikeazor said.
The executive secretary said that PTAD would continue to strive to sustain professionalism, integrity, honesty, transparency and accountability in executing its mandate for the benefit of concerned pensioners.
She also gave the assurance of government’s commitment to good governance.
The News Agency of Nigeria (NAN) reports that Ikeazor, Godwin Iheabohike, Legal Adviser and Sani Mustapha, Deputy Director (Admin.) represented PTAD.
On the side of AIICO was Ayodele Bamidele, acting managing director, Donald Kanu, legal adviser and Benson Ogunyamoju, deputy general manager (Life).