The Senate on Tuesday passed the Pension Reform Bill which prescribes a minimum of 10 years imprisonment for any person found guilty of stealing pension funds.
The bill also prescribes that any Pension Fund Administrator (PFA) or Pension Fund Custodian (PFC) who misappropriates pension fund will be liable to refunding three times the value of the amount diverted.
The passage of the bill followed the conclusion of clause-by-clause consideration of the report of the Senate’s Committee on Establishment and Public Service.
The bill, if signed into law, would automatically repeal the Pension Reform Act, 2004, thereby making it possible for every person who worked either in the public and or private sector, to receive pension as at and when due.
It states that all monies received as penalty by the Pension Commission shall be paid into the Pension Protection Fund expected to be established under section 82 of the Act.
Apart from payment of fines and serving the required jail terms, the bill also provides sanction of forfeiture of property, asset or fund to the Federal Government on anyone found to have misappropriated pension funds.
It prescribes a fine of N10 million on any PFA which failed to meet the obligations of pension contributors while each of the directors of the firm would pay N5 million as penalty.
It further stipulated that a PFA which failed to comply with any provision of the Act "shall be liable to a penalty of not less than N500,000 for each day that the non-compliance continues."
In addition, according to the bill, the PFA will forfeit the profit from that investment to the beneficiaries of the Retirement Savings Accounts while it is also to make up in the case of any loss.
It also provides that for anyone to be qualified for appointment as Director General of PENCOM such person must have 15 years postqualification experience, inaddition to other requirements.
Briefing journalists after the passage of the bill, the Chairman, Senate Committee on Establishment and Public Service, Sen. Aloysius Etok, said that the bill has fixed 10 years of cognate experience out of the 15 years provided.
"In Nigeria, professional pension administration is below 10 years. It’s important to note that we are talking about cognate experience, not post-qualification experience.
"If you are talking about post-qualification experience what about somebody who has 30 years post-qualification experience but with only two years cognate experience in pension management?
"So, we decided that somebody who has had five years somewhere else and then has additional 10 years cognate experience in professional pension management would be fit to serve as DG."
Etok said that the Head of Service of the Federation and heads of different departments had directed all the account departments to ensure that pension deductions were treated and immediately transmitted to the receiving authority.
According to him, once the bill is assented to by the President, all penalties and prescriptions contained in the Act would be strictly adhered to by all government agencies.
"We have penalties ranging from 10 years imprisonment, and for even failing to give proper information, you have to pay N500,000 daily.
"If you embezzle pensions’ funds now you will pay not less than three times the amount of funds you embezzled. That is how serious this bill has treated pension funds.
"If you embezzle N10,000 you are bound to pay a minimum of N30,000 and in some circumstances the presiding judge has the right to make you refund and even go to prison," he said.
Etok expressed optimism that the President Goodluck Jonathan would give assent to the bill within a short period to bring total reform into management of pension funds in the country.
Source NAN
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