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| Chairman, Pension Fund Operators of Nigeria (PenOp) Misbahu Yola |
A move towards automation of pension fund administration will result in higher compliance rates and will also facilitate monitoring of compliance.
This was a position articulated by Travant, a Lagos-based investment company at a conference, recently, in a presentation entitled “An outsider’s perspective on the mechanisms and operations of the new framework.”
“There needs to be a concerted effort to minimize the cost and inefficiencies of administration of pension contributions,” Travant stated.
Travant posited that the administration process was currently predominantly manual, labour intensive and cumbersome thus discouraging prompt execution.
Among a number of steps that could be explored towards minimising the burden were move towards electronic payments and returns, exploring possibility of linking remittance to payment of salaries at source and considering the establishment of some form of pension clearing body in the longer term.
It was canvassed that Pension Fund Administrators (PFAs) can be more involved in ensuring greater compliance to ease pressure on the National Pension Commission (PenCom) resources and this can be achieved through the automation of their activities.
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