Expert lauds PenCom’s decision on contract staff

Adediji

Chuks Udo Okonta

The Group Managing Director Pensionscope Group, Peter Tai Adediji, has commended the National Pension Commission (PenCom) on its decision to streamline the duties to be performed by contract staff engaged by pension operators.

In a statement made available to the press, Adediji, said engagement of contract staff who are often not properly trained and not entitled to some benefits enjoyed by real employees, portends great treat to the growth of the pension industry especially now that some members of the public are yet to understand the difference between the old and new scheme which has built in checks and balances to eradicate fraud.   

He said: “Recently, the regulatory body of the Pension Fund Operators in Nigeria, the National Pension Commission (PENCOM), has issued a statement baring the Pension Fund Operators from using contract staff in their key operations.

“This is a welcome development as the engagement of contract staff is like engaging agberos who are like touts at our motor parks; their usefulness is never lasting. They perform more havocs than their usefulness. Governments at various levels have spent a lot to control the excesses of these agberos especially where their activities have resulted in the loss of lives.”

Adediji urged pension operators to avoid imitating other operators who believe in actualisation of their workforce, adding that due to the sensitivity of pension business, efforts must be made to forestall avenues capable of creating mistrust.
He called on the operators to cooperate with PenCom and other stakeholders to ensure that the objectives set in the Pension Reform Act are achieved.

It would be recalled that PenCom recently,  in a circular barred licensed pension operators from using contract staff for critical functions in their operations, such as  pension administration; benefit administration; fund management and accounting; settlement; safe keeping; contribution collection and administration and information and communication technology.

The commission hinged its decision on allegations of fraud and improper training of the outsource staff, stressing that the risks inherent in this arrangement had already started manifesting, as there are several cases of fraudulent activities involving these outsourced staff. 

The commission gave all licensed operators that have in their employment outsourced/contract staff in the affected functions, transition period of six months – to February 2015 to convert their employment to permanent status or replace them with permanent staff.