Benefits of world’s pension summit - Anohu-Amazu

Anohu-Amazu

Chuks Udo Okonta

The World’s Pension Summit billed for July 7 and 8 in Abuja, will provide an opportunity for pension professionals across Africa to share blueprints and practices with the aim of further developing the pension market in the continent over the next decade, the Acting Director-General National Pension Commission (PenCom), Chinelo Anohu-Amazu, has said.
She noted that the Summit will focus on key lessons learned amongst African nations and will share global expertise on relevant topics and developments such as pensions administration and investment, risk management, regulatory essentials, technology, communication , and financial literacy.

She said: "We are delighted to bring the World Pension Summit to Africa. A number of African nations are experiencing strong economic growth supported by the rising investment in natural resources and robust private consumption. As a result, the role of the pensions industry in providing a stable consumer savings vehicle for Africa's growing middle classes, and the investment of capital from its pension funds, is of increasing significance.”

According to her, many of Africa's 55 countries will be represented at the Summit, including South Africa, Botswana, Ghana and Kenya.

Founder & Chairman of the World Pension Summit, Eric Eggink, said: "Africa's growth story, particularly Nigeria as its largest economy, has been well documented. But with such growth come a responsibility, expectation and opportunity to leverage capital growth, using pension funds as an instrument for further economic and social development.

"The Summit represents a strong commitment to ensure sufficient pension provision across the continent, so that African workers reap the benefits of their countries' successes with a future that is safeguarded in retirement."

Anohu-Amazu, noted that Nigerian pension sector has continued to thrive due to safety mechanisms built into it to protected the over N4.3 trillion contributed by workers.

She noted that one of the safe 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.