Wednesday 28 May 2014

How we safeguard over N4.3trn pension contributions – PenCom


Chinelo Anohu-Amazu
Chuks Udo Okonta

 

The National Pension Commission (PenCom) has reiterated that 

Safety mechanisms have been built into the Contributory Pension Scheme (CPS) to safeguard the over N4.3 trillion contributed by workers.

 

The Acting Director-General National Pension Commission (PenCom), Chinelo Anohu-Amazu, said this at a forum organised by the Nigerian Bar Association (NBA) in Lagos. She noted that one of the safety valves and beauty of the scheme is the separation of the function of management from that of Custody of pension assets, adding that government contribution is a charge on the consolidated revenue fund, unlike in the past.

 

She also enumerated that there is guarantee of assets in custody by owners of the Pension Fund Custodians (PFCs) and mandatory statutory reserve requirement by Pension Fund Administrators (PFAs).

 

She said there are also meticulous investment limits and risk rating, daily monitoring of pension fund investment, ensuring that fit and proper persons are put in place for pension funds management, strict corporate governance and disclosure requirement.

 

Anohu-Amazu said adept attention is taken to ensure that pension assets are not

used to meet the claim of any creditors or be sold, or granted as loan, statutory

reserve Fund: PFAs required to set aside 12.5 per cent of profit after tax  to absorb any losses, strict compliance to rules and regulations by operators: requirement for appointment of compliance officers, scheme is strictly regulated and supervised by PenCom

 

On how the mechanisms are enforced, she said the commission regularly carries

out public enlightenment, collaboration with other regulatory authorities,

imposition of regime of sanctions and penalties, engagement of recovery agents.

 

Others she said are institution of criminal and civil actions, as appropriate for

infractions through Federal High Court, National Industrial Court,

investment and Securities Tribunal.

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