Pension Accounting in the Public Sector

PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

Question

a. Sections 42 and 44 of Pension Reform Act (PRA) 2014 established Pension Transitional Arrangements Directorate (PTAD) for public service of the Federation and Pension Transitional Arrangements Directorate (PTAD) for the Federal Capital Territory (FCT) respectively.

Required:

i. Identify SEVEN functions of the PTAD as contained in PRA (2014). (7 Marks)
ii. Identify THREE powers which National Pension Commission has over Pension Transitional Arrangements Directorate for public service of the Federation and Federal Capital Territory. (3 Marks)

b. Two accountants in the Ministry of Finance of Welfare State were in a debate as to which basis of accounting for revenue and expenditure should be adopted in the state. Five bases of accounting for the finance of the state were put forward: accrual basis, cash basis, modified cash basis, modified accrual basis, and commitment basis.

Required:

As a student of public sector accounting, explain any FOUR bases under the following headings:

i. Concepts of the FOUR bases.
ii. THREE merits of cash basis.
iii. THREE merits of accrual basis. (10 Marks)

Answer

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Tags: National Pension Commission Powers, Pension Reform Act, PTAD Functions, Public Sector Pension
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: MAY 2023

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

Question

Mr. Betta Tomoro is a staff of Goodlife Local Government Council of Welfare State. He has been in the local government council’s employment for twenty-five (25) years. Recently, he attained the age of fifty-two (52) years. He had risen to the post of an Assistant Director on grade level 15, step 2. Mr. Betta Tomoro and his employer had contributed the sum of N8.5 million under the old Pension Scheme and Pension Reform Act 2014. Monthly contributions are sent to his Pension Fund Administrator (PFA), Diversity Pension Managers Limited.

It is the practice of the Pension Fund Administrator to send to Mr. Betta Tomoro the records of his pension on a monthly basis. However, in April 2015, no further record was received by Mr. Betta Tomoro concerning his pension fund. This resulted in his visit to the Pension Fund Administrator’s office to inquire about the sudden stoppage of his pension fund.

During cross-examination at the Court of Competent Jurisdiction to hear pension-related offences, it was found that five staff members of Diversity Pension Managers Limited had bought mansions in Victoria Garden City and other houses in London valued at N380 million. They jointly floated a company, Owo-mugun Limited, with all operational infrastructure in place, all valued at N175 million. They also had N18 million in various local and international bank accounts.

After two hearings on the allegations of criminal misappropriation of clients’ pension monies filed against these staff, judgment was reserved by the court for December 15, 2015.

Required:

a. In line with the Pension Reform Act 2014, identify TWO acts that constitute criminal offences.
(4 Marks)

b. If by December 15, 2015, the five staff are found guilty of misappropriation of clients’ pension fund, state THREE penalties provided to be imposed on them as per the Pension Reform Act 2014.
(6 Marks)

c. Identify THREE Courts of Competent Jurisdiction that can hear pension-related cases as provided in the Act.
(3 Marks)

d. If Mr. Betta Tomoro preferred to withdraw his service voluntarily from Goodlife Local Government Council at the age of forty-five (45) years, what provisions would be available to him concerning his pension contribution?
(3 Marks)

e. Assuming the prevailing interest rate is 21.5%, compute the total amount payable by the convicts (including interest) if the entire amount misappropriated is ordered to be refunded by the court.
(4 Marks)

Answer

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Tags: Courts of Competent Jurisdiction, Criminal Offences, Interest Rate, Penalties, Pension Fund Misappropriation, Pension Reform Act, Voluntary Withdrawal
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: NOV 2015

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

Question

In accordance with Section 2(1-2) of the Pension Act 2014, both the public and private sectors’ pension schemes are now contributory. The employers and employees are expected to contribute a minimum of 18% in aggregate towards the retirement of the employees. The rate is subject to review as may be agreed between the employer and employees.

Required:

Identify TWO categories of persons exempted from the scheme.
Discuss THREE deficiencies of the scheme.

Answer

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Tags: Deficiencies, Exemptions, Pension Schemes, Public Sector, Retirement Benefits
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: NOV 2019

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

Question

In compliance with the extant directive of the Federal Government that all retiring employees should be documented in the year prior to that in which they are to retire, Hajia Muslima Ladipo applied to be registered in 2016.

She was employed as a junior officer on Grade Level 04 in the Ministry of Goods Exchange & Exhibition on July 1, 1981. She rose through the rank and was finally promoted to chief exhibition officer on salary grade level 14 on January 1, 2016.

The result and letter of her promotion were released in mid-2016. For documentation, national officers are posted to the nearest cities to their places of work/residence for the exercise. Hajia was therefore documented in Ibadan being the nearest centre to Lagos where her office was situated.

Retiring officers are to produce evidence of employment and retirement at the documentation centre and also be present physically for a biometric process.

Hajia retired from service with effect from June 30, 2017. She complained that she had not received any gratuity and her name was not in the pension register.

Required:
a. Identify four main objectives of the Pension Reform Act 2014, as it relates to employees. (8 Marks)

b. Explain three roles/functions of each of the Pension Fund Administrators and the Pension Fund Custodians. (6 Marks)

c. State whether any of the objectives of the Pension Reform Act has been breached in the case of Hajia Muslima Ladipo. (2 Marks)

d. Identify four documents required for proper documentation of a retiring officer under the guidelines issued by the Federal Government. (2 Marks)

e. Identify two categories of officers specifically exempted by Section 5 of the Pension Reform Act. (2 Marks)

Answer

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Tags: Pension Documentation, Pension Fund Administrators, Pension Fund Custodians, Pension Reform, Retirement Benefits
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: MAY 2019

PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

Question

Required:

As a student of public sector accounting, explain any FOUR bases under the following headings:

i. Concepts of the FOUR bases.
ii. THREE merits of cash basis.
iii. THREE merits of accrual basis. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: National Pension Commission Powers, Pension Reform Act, PTAD Functions, Public Sector Pension
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: MAY 2023

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

Question

After two hearings on the allegations of criminal misappropriation of clients’ pension monies filed against these staff, judgment was reserved by the court for December 15, 2015.

Required:

a. In line with the Pension Reform Act 2014, identify TWO acts that constitute criminal offences.
(4 Marks)

c. Identify THREE Courts of Competent Jurisdiction that can hear pension-related cases as provided in the Act.
(3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Courts of Competent Jurisdiction, Criminal Offences, Interest Rate, Penalties, Pension Fund Misappropriation, Pension Reform Act, Voluntary Withdrawal
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: NOV 2015

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

Question

Required:

Identify TWO categories of persons exempted from the scheme.
Discuss THREE deficiencies of the scheme.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deficiencies, Exemptions, Pension Schemes, Public Sector, Retirement Benefits
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: NOV 2019

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

Question

Retiring officers are to produce evidence of employment and retirement at the documentation centre and also be present physically for a biometric process.

Hajia retired from service with effect from June 30, 2017. She complained that she had not received any gratuity and her name was not in the pension register.

Required:
a. Identify four main objectives of the Pension Reform Act 2014, as it relates to employees. (8 Marks)

b. Explain three roles/functions of each of the Pension Fund Administrators and the Pension Fund Custodians. (6 Marks)

c. State whether any of the objectives of the Pension Reform Act has been breached in the case of Hajia Muslima Ladipo. (2 Marks)

d. Identify four documents required for proper documentation of a retiring officer under the guidelines issued by the Federal Government. (2 Marks)

e. Identify two categories of officers specifically exempted by Section 5 of the Pension Reform Act. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Pension Documentation, Pension Fund Administrators, Pension Fund Custodians, Pension Reform, Retirement Benefits
Level: Level 2

Topic: Pension Accounting in the Public Sector
Series: MAY 2019

Topic: Pension Accounting in the Public Sector

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PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

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Topic: Pension Accounting in the Public Sector

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PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

You're reporting an error for "PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector"

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector"

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

You're reporting an error for "PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector"

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

You're reporting an error for "PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector"

PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector

Outline PTAD's functions and National Pension Commission's powers over PTAD as per the PRA 2014.

You're reporting an error for "PSAF – May 2023 – L1 – SA – Q3 – Pension Accounting in the Public Sector"

PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector

Analysis of pension misappropriation under the Pension Reform Act, detailing offences, penalties, and competent jurisdictions.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q2 – Pension Accounting in the Public Sector"

PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector

Identifies two categories of persons exempted from the contributory pension scheme and discusses three deficiencies of the scheme.

You're reporting an error for "PSA&F – Nov 2019 – L2 – Q3a – Pension Accounting in the Public Sector"

PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector

Discuss the objectives of the Pension Reform Act and roles of pension administrators and custodians.

You're reporting an error for "PSAF – May 2019 – L2 – Q2 – Pension Accounting in the Public Sector"

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