the nigerian pension industry towards impactful growth · 2020. 8. 14. · strategy development,...

RETIREMENT BENEFITS ADVISORY

Retirement Benefits Advisory Limited

Heritage House,

Plot 636A, Sultan Abubakar Way,

Wuse, Zone 3, Abuja+234 92 912 242 [email protected] | www.rba.com.ng |

RETIREMENT SOLUTION ADVISORY RISK & ACTUARIAL ANALYTICSLEARNING ACADEMY

Towards Impactful Growth

Supporting pillar of the Nigerian Pension Industry

The Nigerian Pension Industry

The Supporting Pillar of the Nigerian Pension Industry

RETIREMENT SOLUTION ADVISORY RISK & ACTUARIAL ANALYTICSLEARNING ACADEMY

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Dr. Musa IbrahimManaging PartnerRetirement Benefits Advisory LTD

Navigating impactful growth in the pension industry is a challenge.

Regulators, operators and governments are constantly challenged to make

informed decisions which will meet contributor expectations. To this end,

the Regulator introduced initiatives and developments to deal with the real

returns on investments, safety of pension assets and compliance with

relevant laws, regulations and best practices including IFRS.

However, for this growth to be impactful while achieving the objectives of

the CPS, industry stakeholders will need to re-align their activities to realize

inherent investment, economic and social opportunities.

Industry operators will seek to understand and benchmark their operations

and governance in tandem with regulatory requirements in the process of

identifying organizational shortcomings for the purposes of optimizing

their operations.

RBA is well positioned with the skills and the team to bring forward

innovative strategies which will address the needs of pension operators

and plan sponsors. Our team of consultants combine deep technical

pensions experience with a breadth of economic, financial and

supervisory/regulatory expertise. We have extensive industry knowledge

through the various roles we play as trusted advisors on plan design,

strategy development, actuarial valuations, enterprise risk management

and data analytics.

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Investment Perspective

The Nigeria pension system has consistently improved since inception

transcending the N8 Trillion mark in pension funds and assets. The industry has

generated an appreciable pool of long-term funds mostly invested in short term

investment instruments without concomitant investment in long-term

instruments.

Regulatory initiatives targeted towards increasing the available instruments for

the investment of pension funds and assets introduced new allowable securities -

Sukuk and mortgage bonds. Still the shallow nature of the Financial Market is yet

to take full advantage of the long term nature of the Funds.

There will be need to not just expand spectrum of investible instruments, but to

also harmonize regulatory policies in the financial landscape to guide the full

integration of the pension industry to derive value for all concerned stakeholders

The Retirement Savings Accounts has recorded consistent growth averaging

7.57% YoY over the past 5 years. However, coverage of the CPS is yet to improve

with a substantial part of the semi-formal and informal sector, constituting over

60% of Nigeria’s working population and contributing about 40% of the Nation’s

GDP, unincluded. The Micro-Pension about to be introduced by the regulator will

serve to improve pension coverage in Nigeria by attending to these underserved

segment. The successful implementation of this scheme will require strategic

engagement to justify the benefits as a more viable alternative to traditional

means of savings. In addition, it would serve as an incentive to attract this

segment of the workforce to CPS.

The integration of this segment of the population will ensure an increased

contribution, guaranteeing a sure source of low interest long-term funds for

economic development.

Social Perspective

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Navigating Growth in the CPS


Economic Perspective

The World Economic Forum (WEF) Global Competitiveness Index ranked Nigeria’s

infrastructure low. The infrastructure deficit is one of the biggest constraints to

doing business in Nigeria gravely impacting economic development. Traditionally,

infrastructural development has been the preserve of government and municipal

authorities, in recent times it has evolved into an asset class in its own right for

private sector investments most notably pension funds owing to its long-term

nature.

Leveraging the increasing pension funds and assets in infrastructural

developments will serve 2 major purposes:

• Economic development which will alleviate poverty and position

Nigeria competitively regionally and globally.

• Visibility and impact of pension fund sponsored infrastructural

development enhancing pension coverage especially with a view to

capturing the informal sector.

Recent initiative in the updating of the pensioner and contributor’s data by fund

operators brings into focus the safety and protection of pension data. Nigeria has

until recently been unresponsive to the global move on indexing and

consolidating of its citizen’s data from various sources into a concise and

formalized structure. However, with the recent move in instituting Bank

Verification Number (BVN), National Identity Number (NIN) and Pension

Identification Number (PIN), a consolidated data base of a percentage of Nigerian

workforce is in the horizon.

The issues of data integrity, security and protection is crucial, especially in the

pension industry where the future of the nation’s potential economic

development fund and social improvement rests. While there is in the legislative

house, a Bill currently being sponsored on the implementation of a Data

Protection Law for Nigeria, there is an imperative for pension industry to

institutionalize an extensive framework to ensure the protection of contributor

information.

Contributor Information & Data Protection

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We work with clients to help identify issues and solve problems using a

systematic and creative approach. Our involvement varies with the nature

of the situation and the request of the client. In particular, the assignment

may range from ad hoc advice on a particular problem or issue, to the

design of comprehensive systems for the client as well as the evaluation

and revision of existing systems.

RBA offers her experience, resources and service commitment to provide a

solutions-based approach that fully aligns with the best interests of our

clients through strategic partnerships with various service providers and

many years of practical and consulting experience in the following areas:

?Consulting on Regulatory and Supervisory Issues

?Training & Manpower Development

?Market Analysis

?Structure and Processes Review/Design

?Actuarial and Risk management Services

?Communication Campaign Initiatives –Design and Delivery

OUR SERVICES

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RBA Advisory is strategically situated to provide the expertise and guidance

to help industry players navigate the various organizational/operational

issues associated with the growth to improve profitability and productivity.

Our competencies lie in our ability to assist organizations maximize

revenue, generate growth and develop sustainable competitive edge

through our industrialized solutions. We are positioned as the choice

partners of growth in the Nigerian Pension Industry.

ADVISORY

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?Corporate Strategy and Implementation

We provide strategy development and implementation guide services to

organizations in the pension industry who are striving to put their organizational

direction into a concise and executable short, medium- and long-term plans.

?Retreats - Management and Board

We provide highly responsive methods in organizing retreats that focus on areas

that vary from vision/mission development and review, strategic goal setting to

performance management and skills/knowledge improvement. Our Strategic

management retreat is designed to provide opportunities for Board and

management to review their organization’s performance and trends and

strategize on modalities for improvement.

?Corporate Performance Managements

As an authority in the Nigerian Pensions Industry, we provide business

methodologies that can track and measure the performance of an organization.

We work out the best way to tactically monitor and manage the Key Performance

Indicators with the aid of our business intelligence.

?Business Simulation

We use our simulation expertise to build simulations, conduct results analysis and

get insight to overcome your business challenges. Our consultants are not only

RBA esperts, they are specialists in process improvements and operations

research, ensuring that you achieve maximum value from any project.

?Organizational Change management

We provide a framework for managing the effect of new business processes,

changes in organization structure or culture changes within an organization.

Knowing that shifting a culture requires a delicate systematic and well-planned

approach, we help guide organizations through the necessary transition ensuring

readiness for change.

?Human Resource Management

We partner with organizations in the Pensions Industry to develop a talent

strategy roadmap by using business modelling and industry insight to optimize

effectiveness in the area of talent management. By applying workforce &

analytics, we help every organization set a unique employment assistance

program based on their culture and needs.

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Our capabilities at aglance

Trainingneeds

Analysis

ACADEMY

RBA Academy is committed to supporting the sustainable growth of the

Pension Industry by offering a variety of training courses to enrich industry

competencies, skills and capacity. We align our courses to meet the

evolving pension landscape and needs of modern businesses; this way we

make sure that we are providing the very best training programs for our

clients, our Participants and their sponsors.

Skillsadequacy

Assessment

Induction for NewEntrants

ManagementTraining

Boardtraining

andInduction

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EXECUTIVE COURSES

Our programs also provide Managerial and Executive personnel with

strategic analysis and development courses in a calm and serene

environment overseas, conducive for optimum analytic reasoning and

learning, leaving them with the skill and confidence to leading

their organizations to be the top players in the industry.

OPEN TRAININGS

Our open courses promote

an open learning environment

where cross-functional

departments are represented

from various organization

and professional levels.

INPLANT TRAININGS

As an implant, RBA’s training

program is designed to

effectively and economically

meet the specific need of your

organization.

OUR TRAININGS

Trainings on Pension &

Management Courses

Induction for new Employees

Training/Induction for Directors

Pre-retirement workshops

and Seminars

Risk Management training

Core Custody Courses

Management Courses

LEARNING APPROACH

Facilitator-led presentations

Exercises

Case Studies

Syndicate group discussions

Visual presentations

Individual action plans

(to follow-up and evaluate

training results)

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The survival, continued growth and profitability of individual operators and

industry has become dependent on approaching pension business from an

integrated risk perspective. Hence, forward looking operators will

constantly need to test the risk preparedness of their business by making

the right investment in their people and processes to develop their risk

response capability.

RBA addresses risk in the Pension Industry with the following capabilities.

RISK MANAGEMENT

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Enterprise Risk Management (ERM):

Risk Appetite Framework:

Governance, Risk and Compliance (GRC):

Financial Risk Management (FRM):

Risks interconnected in nature, posing

threats in different organizational units. Operators will require a holistic approach

that integrates risk management in the enterprise system and culture. RBA’s risk

consultants will works with organizations to develop an enterprise-wide risk

readiness.

With the constantly evolving landscape, operators

need to understand the amount of risk to take-on in the pursuit of their corporate

objectives. RBA works with the Board and Senior management to ensure that the

key risks affecting their corporate objectives are considered in their strategic

planning sessions by developing and implementing a risk appetite framework

that:

?supports, reinforces and meets strategic targets

?generates efficiencies and improved cost management

?strengthens the risk culture

Operators will constantly need to

overcome the challenge of regulatory compliance, managing stakeholder

expectations and protecting their brand. Our consultants will work with them to

implement a GRC solution to build their capability to reliably achieve objectives,

address uncertainty and act with integrity. The GRC approach will ensure that

?the right people get the right information at the right times;

?that the right objectives are established;

?and that the right actions and controls are put in place.

Volatility in interest rates, currency markets

and equities expose fund portfolios. Strategic fund management and effective

decision making are crucial to achieve better business outcomes and increase

value for contributors in the the multi-fund structure. RBA consultants will work

with fund managers to develop risk optimization strategies that address a variety

of financial risks to pension funds while delivering better returns on assets.

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Today’s business of retirement benefits - pension, gratuity, provident fund,

workers’ compensation, annuity and other post retirement benefits

(medical etc) all require complex risk management. Our objective is to

provide you with practical advice and solutions to complex risk problems on

all aspects of retirement benefits. We offer a wide range of ATUARIAL

SERVICES to individuals and firms that need to evaluate, quantify and

manage retirement benefits risks in pension, insurance and workers’

compensation.

ACTUARIAL

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RBA can be engaged as an “Appointed Actuary”, as a co-actuary to work

with an existing actuarial firm to provide expertise in regulatory

compliance, or simply to be engaged to assist in the preparation of

working/supporting documents or providing opinion & recommendation

on Assumptions for your actuary.

RBA actuarial services provides solutions to pension & allied industry and

insurance that includes the following;

Pension Life Insurance and Annuity

Plan design, Evaluation andRe-Design

Claims Analysis Determination andValuation

Opinion and Recommendationson Assumptions

Valuation and FinancialAnalysis

Compliance Solutions

Annuity Pricing (Fixed, Equity Indexed, Variable, Immediate, Structured Settlements)

Valuation and FinancialReporting

Self Insurance

Principal Based Capital andReserves

Rate Making

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ANALYTICS

Information, insights and foresights impact every aspect of business.

Operators in the industry will need to understand contributor behavior

patterns especially in the informal and semi-formal sector meet their needs

and enhance long-term customer relationships.

RBA analytics services provide the tools that move your organization

beyond business intelligence (BI). Anticipate future trends, improve

decision-making and take your business to the next level.

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RBA Analytics

Predictive Analytics

Benchmarking Services

Marketing Analytics

Business Intelligence

[BI] Development

Our custom data and analytics solutions prepare your organization for the

future and the changing competitive landscape while simplifying complex

information about your business operations.

RBA Advantage

With proven delivery methodologies, we help you :

• Drive growth through:

• Deeper customer insights

• Product/service innovation

• Enhance cost management through

• Optimized operations

• Better financial performance analysis

• Improve risk management through

• Enhanced regulatory compliance

• Internal risk and control

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Our Engagement Methodology

We provide a responsive service through a 3-phase process of situational

assessment/diagnosis, underpinned by a highly interactive assessment

framework in areas of focus. This serves as a basis for proffering apposite

recommendations and an implementation plan specifically suited to our

client’s unique situation.

ENGAGEMENT METHODOLOGY

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Assess /Diagnose

Recommend

Implement


Our Core Values:

• Excellence:

• Empathy:

• Efficiency:

• Innovation:

we are committed to upholding the highest standards,

professional responsibility, accountability and integrity

we are committed to identifying with our client needs and

ideas to deliver on mutually beneficial services

we deliver solutions and services that are time and cost

efficient for our clients

we value and encourage innovation, creativity and

commitment in achieving and sustaining our goals through continuous

improvement.

Vision, Mission, Values

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Abuja School of Pension & Retirement Planning

Passion & Purpose

Transforming Retirement

Retirement Planning BrochureAPS

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RETIREMENT SOLUTIONS

Plan DesignRetirement

Planning

ModularRetirement Planning

Program

Entrepreneurship Workshop Life in Retirement

RBA Retirement Solutions provides specialized services in plan design,

retirement Planning, and pre-retirement training. We provide these

services through our subsidiary Abuja School of Pension and Retirement

Planning.

The APS Retirement Planning Program employs a four-pronged approach

that covers:

?Plan Design;

?Retirement Planning sessions;

?Entrepreneurship Development workshops;

?Refresher practicums on Life-In-Retirement.

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SOME OF OUR CLIENT ENGAGEMENTS

Client Situation

State Pension Board needed to evaluate the fund performance oftheir CPS to ensure the sustainability of their fund to meetobligations of their future retirees

Client required advisory services to set- up their operationalstructure towards obtaining their final license.

Client needed to ensure that employees are kept abreast of the rapidly evolving industry landscape.

Client needed to know its customer satisfaction index as well as industry trends and outlook

Operator needed to ensure that the risks their operations are exposed to are profiled and the management of risk is embedded in their business processes.

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RBA Advisory services guided the client using our proprietarymethodology to ensure the licensing, operational roll-out andsustained growth of the organization. Our engagement has helpedthe operator to increase its market position within a short tomedium term.

RBA Academy carried out a detailed need analysis to close theknowledge gap and align productivity to the current context ofcomplex industry situation

RBA analytics carried out a customer survey that delivered insightson areas of improvement on clients services and businessoperations

RBA Risk Management Solution reviewed the client existing riskmanagement framework to determine their risk maturity leveland developed a new risk management framework that improvedthe risk culture, risk assessment and reporting.

RBA Solution

RBA Actuarial services provided actuarial valuation of the fundand assessed the pension fund performance over a period of time.

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Retirement Benefits Advisory (RBA) was formed in response to the

growing demand for specialized services in the fast-expanding pension and

allied industry in Nigeria." The successful implementation of the

Contributory Pension Scheme, the introduction of a Workman's

Compensation Act, and the reinvigoration of the Insurance Sector have

significantly influenced the long-term perspective of the Nigeria Financial

Services Sector. The phenomenal growth in the number of participants

coupled with the huge savings pose opportunities and threats.

Retirement savings are arguably the most important source of long term

savings for any country. On the one hand, their long-term nature makes

them vulnerable to various risks while on the other they form a veritable

source of long-term financing of the real sector and capital intensive

infrastructure financing. This seemingly contradicting juxtaposition begs

for a robust enabling environment and expertise to manage the vast

resources, being generated, efficiently and effectively.

It is in response to such demand for expertise that well diversified and

experienced consultants – in the areas of Finance, Accounting, Economics,

Actuarial Science, Law, Regulation/Supervision and, Labor & Human

Relations – were pooled to form the Retirement Benefits Advisory Limited

to complement the industry efforts.

About Us

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the nigerian pension industry towards impactful growth · 2020. 8. 14. · strategy development,...

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