Section 4.2.5 of the Guidelines on Accessing Retirement Savings Account (RSA) Balance Towards Payment of Equity Contribution for Residential Mortgage by RSA Holders (the Guidelines) stipulates that the Commission should liaise with the Central Bank of Nigeria on an annual basis to determine the mortgage lenders that meet the minimum requirements of the Guidelines and other conditions specified by the CBN.
Section 4.2.6 of the Guidelines stipulates that the names of mortgage Lenders that meet the eligibility criteria of the Guidelines shall be published on the Commission’s website on a bi-annual basis or when the CBN issues any new license.
Consequent to the above, please download the list of approved licensed Primary Mortgage Banks as obtained from the CBN attached.
PenCom reshapes how Pension Fund Administrators (PFAs) run branch offices and service centres towards stronger presence and better service delivery to retirees and contributors
The Pension Industry Information Dashboard offers a comprehensive, user-friendly overview of historical vital pension statistics.
HAPPY CUSTOMER SERVICE WEEK FROM ALL OF US @ PENCOM!
Guidance Note – Employees
This guidance note relates to employees with uncredited contributions.
Employees with RSA PIN
For employees who already have a Retirement Savings Account (RSA) PIN with any Pension Fund Administrator (PFA), please provide the following documentation:
In addition, every employee is required to undergo the Data Recapture Exercise (DRE), if not already done.
Note: Where employees have RSAs with the PFA where the uncredited contributions are domiciled, such persons only need to provide their valid RSA PIN for review/confirmation.
Employees without RSA PIN
For employees who are yet to register with any Pension Fund Administrator (PFA), please follow the following steps:
i. Approach the PFA of your choice to open a Retirement Savings Account (RSA)
ii. Upon registration, provide a copy of welcome letter obtained from your PFA to the PFA where the uncredited contributions are domiciled; and also provide the welcome letter to your employer to guide subsequent remittances (where applicable)
iii. Provide a copy of your employment letter to the PFA where the uncredited contributions are domiciled.
The Financial Services Regulation and Coordinating Committee (FSRCC), in
collaboration with National Broadcasting Commission (NBC), wishes to draw
the attention of the public to the worrisome increase in the activities of Illegal
Financial Operators (IFOs) which portends grave risk to the public confidence
and stability of the Nigerian Financial System… download for further details.
The public is hereby notified that, further to the acquisition of Access Pension Fund Custodian (APFC) and the transfer of all pension assets under custody to First Pension Custodian Nigeria Limited, the APFC has ceased to exist and the operating license has bee returned to the National Pension Commission.
The National Pension Commission (PenCom) wishes to inform the general public that the 2022 online Verification and Enrolment Exercise for retirees/prospective retirees of Federal Government Treasury-Funded Ministries, Departments and Agencies (MDAs) will commence on 20 June, 2022…. (download for details)
The Status of Implementation of the Contributory Pension Scheme by the 36 states of the Federation and the Federal Capital Territory has been uploaded for your information. Please download the files for more insight.
The National Pension Commission (PenCom) is pleased to inform all
stakeholders and the general public that as at 27 April 2022, all Pension Fund
Administrators (PFAs) have complied with the Commission’s directive for the
increase of the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion
to N5 billion….. (download for details)
The FSRCC wishes to draw the attention of the general public to the worrisome
increase in the activities of the Illegal Financial Operators (IFOs) which portends
grave risk to public confidence and the stability of the Nigerian Financial
System… (download for details)
A revised regulation on the administration of Retirement and Terminal Benefits has been published for the information of all stakeholders concerned. Please click on the following link for more information. https://www.pencom.gov.ng/revised-regulation-on-the-administration-of-retirement-and-terminal-benefits/
Please be informed that the Commission’s 2021 Fourth Quarter Report has been published on our website. click on the following link to view https://www.pencom.gov.ng/fourth-quarter-report-2021/
“THE COMMISSION IS PLEASED TO ANNOUNCE THE RELEASE OF N48.64 BILLION BY THE FEDERAL GOVERNMENT FOR THE PAYMENT OF ACCRUED PENSION RIGHTS TO 2021 RETIREES OF TREASURY-FUNDED MINISTRIES, DEPARTMENTS AND AGENCIES (MDAS).
THE FEDERAL GOVERNMENT HAD EARLIER SETTLED ALL ARREARS OF ACCRUED PENSION RIGHTS PAYMENTS TO THE VERIFIED AND ENROLLED RETIREES UP TO DECEMBER 2020”.
The National Pension Commission (PenCom) has developed an online application which automates the Annual Pre-Retirement Verification and Enrolment Exercise for retirees/ prospective retirees of Treasury-funded Federal Government MDAs. Accordingly, the online Enrolment Application would go live on 1st September, 2021…(download for details)
Sequel to the release of the Guidelines for the Micro Pension Plan (MPP),
the National Pension Commission (the Commission) identified the need to
intensify public enlightenment in a sustained manner, in order to raise the
level of awareness and acceptability of the MPP as a critical success factor.
This Framework spell out the modalities for the Commission and Pension
Fund Administrators (PFAs) to ensure effective and sustained
enlightenment and public awareness drive of the MPP.
The National Pension Commission (PenCom) has developed an online application which will automate the
Annual Pre-Retirement Verification and Enrolment Exercise. The Application has the capabilities to register,
verify and enroll prospective retirees of Treasury-funded Federal Government MDAs. Accordingly, the
online Enrolment Application would be hosted on PenCom website www.pencom.gov.ng….(Download for details)
The National Pension Commission (PenCom) is pleased to inform all its stakeholders, particularly retirees of
Treasury-funded Federal Ministries, Departments and Agencies (MDAs), that His Excellency, President
Muhammadu Buhari, GCFR, has approved PenCom’s submission on the payment of some critical aspects of
the outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme.
Specifically, the President has approved… [Download for Details]
In accordance with the provisions of Section 4(5) of the Pension Reform Act (PRA) 2014, every
employer shall maintain a Group Life Insurance Policy (GLIP) in favour of all employees. The
GLIP should be a minimum of three times the annual total emolument of the employees. Similarly,
Section 5.5 of the Revised Guidelines on GLIP for Employees provide that the employer shall
display a copy of the GLIP certificate in a conspicuous place within its premises, for the information
of the employees and as evidence of having taken such policy……. download for details
Please download media to view status of implementation of the CPS in the 36 States of the federation
Please download the file to view status of implementation of the CPS in the 36 States as at December, 2020
As a follow up to the Commission’s letter of 5 November, 2020 on the above subject matter, we write to clarify and direct as follows:
The National Pension Commission (PenCom) in compliance with the Public Procurement Act, 2007, is hereby inviting reputable experienced and interested consultants to submit Expression of Interest (EOI) for the provision of the under listed services: (Download for details)
The National Pension Commission (PenCom) in compliance with the Public Procurement Act, 2007, is hereby inviting reputable experienced and interested suppliers to submit tenders for the under-listed projects/Goods:
(Download for details)
This Fund Accounting Circular is for reporting the Accounting Entries for the transfer of RSA from one PFA to another and the purchase of RLA by Retirees with their RSA balances. The provisions of this Circular are consistent with the PRA, 2014.
Please download for information on level of implementation of the Contributory Pension Scheme by the 36 states of the Federation as at September, 2020.
Please be informed that the Commission’s 2019 Annual Report has been published on the website. To read the report, please click on Publications tab and search for 2019 annual report under “annual reports”, on the home page
Thank you.
THE PROVISIONS OF THE PENSION REFORM ACT 2014 GOVERNING APPOINTMENTS TO THE BOARD OF THE NATIONAL PENSION COMMISSION 1. The relevant statutory provisions governing the appointment to are the following:
i. Section 19(3) of the PRA 2014 provides that the Chairman, the Director General and Commissioners shall be appointed by the President subject to confirmation by the Senate.
ii. Sec 19(4) of the PRA 2014 requires that each of the appointees represents each of the six geopolitical zones of Nigeria…. download for details
The following guidelines and Regulations have recently been hosted on the Website.
Revised Regulation on Retiree Life Annuity (click on Guidelines and Regulations tab then click Guidelines tab to search)
Revised Guidelines on Group Life insurance Policy for Employees (click on Guidelines and Regulations tab, then click on Regulations tab to search)
Retiree Pack – Guide for Retirees under the CPS (Click on Guidelines and Regulations tab, then click on Guidelines tab to search)
The Federal Government has released the sum of 14.92 billion for the payment of accrued rights for retirees under the Contributory Pension Scheme (CPS). This amount will cover four months arrears.
The Accrued Pension Rights represents an employee’s benefits for the past years of service up to June 2004, when the Pension Reform Act (PRA) that birthed the CPS, came into effect.
The Commission appreciates the effort of the Federal Government at ensuring that the accrued rights arrears are cleared, and thanks the affected retirees of the Treasury-Funded Agencies for their patience.
Procedure for reprogramming RSA balances of Retirees already on programmed withdrawal exercising their rights to transfer to Retiree Life Annuity…
The National Pension Commission(PenCom) has published the 3rd Edition of the Frequently Asked Questions (FAQs) on the Contributory Pension Scheme (CPS). The publication updates the earlier edition of May 2018 and incorporates some new initiatives on the CPS which the Commission has concluded and commenced implementation. In addition, it seeks to address key issues that resonate during interactions of the Commission with contributors, retirees and other stakeholders. This is in furtherance of the Commission’s efforts at enhancing pension literacy and understanding of all provisions of the Pension Reform Act (PRA) 2014.
To view the document please go to PUBLICATIONS menu, click on GENERAL PUBLICATIONS menu, then download the FREQUENTLY ASKED QUESTIONS ON THE CONTRIBUTORY PENSION SCHEME.
Please find a detailed representation of implementation status of the Contributory Pension Scheme for all the states ad the FCT as at February 2020 (download for details)
The attention of the National Pension Commission (PenCom) has been drawn to an online article titled ‘PenCom Recruitment 2020/2021’, which directs the general public particularly persons seeking employment to visit the link: https//recruitmentportalngr.com in order to take part in the recruitment exercise.
The Commission hereby states unequivocally that no such exercise is underway, and that the article is totally false and intended to mislead unsuspecting Nigerians.
There is no recruitment exercise going on in PenCom, and the information in the publication did not originate from PenCom.
Members of the public are therefore advised to disregard this publication as all current information on the Commission and its activities are available on its website www.pencom.gov.ng or its Twitter handle and Facebook page.
The Commission remains committed towards serving its stakeholders.
Further to the Commission’s Circular Referenced PENCOM.INSP/CIR/SURV/15/15 of 22 October, 2015 on management of the Statutory Reserved Fund, the Commission has observed the need to revise the Investment Limits in Section VI of the Circular.
The Securities and Exchange Commission (SEC) has through a Circular dated 27 July 2019 directed that only Capital Market Operators duly registered by SEC are eligible to be paid brokerage fee/receiving agents’ commission and such Operators shall not pay or offer a percentage of the commission earned from services provided in transaction as an incentive for investment….(download for more details)
The National Pension Commission (PenCom), in furtherance of its mandate is desirous of implementing some of its projects under the 2019 fiscal
The National Pension Commission (PenCom) in furtherance of its mandate is desirous of implementing some of its projects under the 2019 fiscal year… (download for details)
The National Pension Commission (PenCom) is convening a Conference for Directors of Licensed Pension Operators to promote capacity building and institutional strengthening of Pension Operators in order to foster a sound pension industry anchored on good corporate governance that is consistent with international best practices.
Details of the conference are as follows:
Theme: DRIVING ECONOMIC DEVELOPMENT THROUGH A SUSTAINABLE PENSION INDUSTRY
Date: Tuesday 15 and Wednesday 16 October, 2019
Time: 8:30am
Venue: Lagos-Osun Hall, Transcorp Hilton Hotel, Maitama, Abuja
Attendance is open to all Licensed Pension Operators and each Operator is required to nominate four (4) Non-Executive Directors, of which at least one must be an Independent Director, to attend the Conference.
‘This is to inform all Heads of Human Resources/Training of Licensed Pension Operators that the HR/Trainers forum for the third quarter of the year 2019 is scheduled to hold on Thursday, 12 September, 2019 at the Radisson Hotel Ikeja, 42/44 Isaac John Street, G.R.A, Lagos at 10:00am prompt.
All Licensed Pension Operators are advised to ensure that their organizations are represented at the meeting.”
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 JUNE, 2019
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 MAY, 2019
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 APRIL, 2019
Ground Floor
Abuja Chamber of Commerce and Industry
KM 8, Umaru Musa Yaradua Express Road
Abuja
The National Pension Commission (PenCom) wishes to inform the general public that it has designed, developed and deployed an Enhanced Contributor Registration System (ECRS).
The ECRS is an electronic platform for the submission of requests by Pension Fund Administrators (PFAs) for the registration of contributors and issuance of Personal Identification Numbers (PINs). Consequently, the Commission has transited from the use of the existing Contributor Registration System (CRS) to the ECRS.
Drama on the Micro Pension Plan depicting characteristics and benefits.
The National Pension Commission (PenCom) has reacted to reports that states operating the Contributory Pension Scheme refused to remit about N3.4 billion pension contributions.
Some newspapers had quoted the acting Director-General, PenCom, Aisha Dahir-Umar, as saying some states in the federation refused to remit about N3.4bn pension contributions deducted from their workers monthly remunerations into their respective Retirement Savings Accounts with their Pension Fund Administrators.
The reports claimed that the PenCom DG stated this during the second quarter consultative forum for states in Lagos on Wednesday.
But in a phone interview with THE WHISTLER, Dahir-Umar described the reports as “not true,” adding that despite efforts to correct the false reports, the newspapers which carried the reports insisted on “being mischievous”
“The states have remitted but the remittances have not been credited due to many reasons. So it’s not about remittance. We spent the whole day calling the media. They are being mischievous.”
She further explained: “Unremitted means the money is with the employer (Government). Uncredited means the employer had remitted their money to operators but the RSAs have not been credited. The latter is the correct position.”
According to her, the states have remitted the funds but the operators don’t have enough information to credit the RSA’s, which she said has been an issue that the commission is strongly tackling.
“We have a detailed analysis of how much has not been credited in each of the states. The PFAs and the states are discussing the causes and the solutions to the problem.
“Some of the reasons are remittances made without avoiding schedules, remittances for employees without RSA PINs, remittances without employer codes, e-payments, etc.
“We have agreed that reconciliation committees should be set up in each state to find solutions to all these and report outcome at the next meeting.
She stressed that the case here should not be likened to corruption as the operators would require the aforementioned information to enable them credit retirement accounts.
https://thewhistler.ng/pencom-debunks-reports-of-non-remittance-of-3-4bn-pension-funds-by-states/
Section 69 (f) of the Pension Reform Act (PRA 2014) mandates Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to provide annual Fidelity Insurance Cover for all staff to the full value of the pension funds and assets managed or held by them or as may be determined by the Commission
PFAs would recall the various engagements of the Commission during the process of the development of the Enhanced Contributor Registration System (ECRS), and their subsequent participation in the pilot test of the application, preparatory to the deployment of same.
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019 for the North West Zone
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019 for the North East Zone
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019 for the North Central Zone
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019 for the South East Zone
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019 for the South South Zone.
This is to inform all employees of Treasury Funded MDAs of the Federal Government, that the National Pension Commission (PenCom) is organizing a nationwide preretirement verification and enrolment exercise commencing from 1 July to 2 August, 2019. The exercise is for employees in the service of the Federal Government Treasury Funded MDAs, who are due to retire from service between January and December 2020 by virtue of attaining the applicable maximum age or length of service, whichever is earlier.
This is to inform all employees of Federal Government Ministries, Departments and Agencies (MDAs) due for retirement between January and December 2020 under the Contributory Pension Scheme (CPS) the the National Pension Commission (PenCom) is organising the nationwide 2019 Pre-Retirement Workshop. The Workshop is scheduled to hold from 17 to 25 June, 2019.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 MARCH, 2019
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 28 FEBRUARY, 2019
‘This is to inform all Heads of Human Resources/Training of Licensed Pension Operators that the HR/Trainers forum for the third quarter of the year 2019 is scheduled to hold on Thursday, 12 September, 2019 at the Radisson Hotel Ikeja, 42/44 Isaac John Street, G.R.A, Lagos at 10:00am prompt.
All Licensed Pension Operators are advised to ensure that their organizations are represented at the meeting.”
In order to inform all stakeholders about the current status of the implementation of the Contributory Pension Scheme in the States of the Federation, please find the detailed status of implementation as at March, 2019.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 JANUARY, 2019
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 DECEMBER, 2018
In a bid to further enlighten the public on the Contributory Pension Scheme (CPS), the radio program titled “PenCom on the Radio” sponsored by the National Pension Commission (PenCom) debuted on Monday 28 January, 2019. “PenCom on the Radio” is a weekly 30-minute program which will air on Radio Nigeria Network every Monday at 8:00pm. The general public is therefore invited to listen to this interesting programme that would educate, enlighten and address so many issues pertaining to the CPS.
The National Pension Commission (PenCom) has issued a Pension Fund Administrator (PFA) Licence to Nigerian University Pension Management Company (NUPEMCO).
Following this development, PenCom hereby issues further clarifications with respect to section 11(1) of the PRA 2014 which allows employees choose PFAs of their choice.
NUPEMCO shall serve members and employees of the following under-listed organisations who are desirous of moving their Retirement Savings Accounts (RSAs) from their current PFA to the new PFA.
Consequently, any employee of the organisations that desires to move his/her RSA to NUPEMCO will be required to fill and submit a transfer consent form which is a pre-requisite for the National Pension Commission to approve the transfer of his/her RSA to the new PFA.
Accordingly, those employees that are not desirous of moving their RSAs to NUPEMCO are at liberty to remain with their existing PFAs. New employees of these organisations are also at liberty to choose NUPEMCO or other PFA’s.
Below are the organisations covered by NUPEMCO:
(d) Senior Staff Association of Nigerian Universities (SSANU); and
(e) National Association of Academic Technologist (NAAT).
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2014. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
In a bid to further enlighten the public on the Contributory Pension Scheme (CPS), a radio programme titled “PenCom on the Radio” sponsored by the National Pension Commission (PenCom) will debut on the 28th January, 2019.
PenCom on the Radio is a weekly 30-minute programme which will air on Radio Nigeria Network, every Monday at 8:00pm. The general public is therefore invited to listen to this interesting programme that would educate, enlighten, and address so many issues pertaining to the CPS
The National Pension Commission (PenCom) has been awarded the Outstanding Regulator of the Year 2018 by the Independent Newspapers Limited, publishers of Daily Independent Newspapers. The honour was in recognition of PenCom’s relentless pursuit of excellence in regulating the pension industry. The Commission was extolled for its strides in implementing the Contributory Pension Scheme (CPS) and moving pension administration to new heights.
PenCom Clinches Independent Outstanding Regulator Of 2018 Award
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 NOVEMBER, 2018
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 OCTOBER, 2018
The Federal Government has made it mandatory that every Nigerian must have a National Identification Number (NIN). To achieve this, all data generating organisations have been directed to harmonise their databases with the National Identity Management Commission (NIMC), whose mandate it is to implement the National Identity System in Nigeria.
To enable the Pension Industry comply, the National pension Commission has directed all Pension Fund Administrators (PFAs) to update the records of their clients. Consequently,, all Retirement Savings Account holders, both active and retired,, are hereby advised to approach their PFAs to provide their NINs and Bank Verification Numbers, as well as other mandatory biodata information.
Please note that all enquiries regarding this publication should be directed to the following email address: ndmd_secretariat@pencom.gov.ng
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 SEPTEMBER, 2018
The National Pension Commission (PenCom) has issued a Pension Fund Administrator (PFA) Licence to Nigerian University Pension Management Company (NUPEMCO).
Following this development, PenCom hereby issues further clarifications with respect to section 11(1) of the PRA 2014 which allows employees choose PFAs of their choice.
NUPEMCO shall serve members and employees of the following under-listed organisations who are desirous of moving their Retirement Savings Accounts (RSAs) from their current PFA to the new PFA.
Consequently, any employee of the organisations that desires to move his/her RSA to NUPEMCO will be required to fill and submit a transfer consent form which is a pre-requisite for the National Pension Commission to approve the transfer of his/her RSA to the new PFA.
Accordingly, those employees that are not desirous of moving their RSAs to NUPEMCO are at liberty to remain with their existing PFAs. New employees of these organisations are also at liberty to choose NUPEMCO or other PFA’s.
Below are the organisations covered by NUPEMCO:
(d) Senior Staff Association of Nigerian Universities (SSANU); and
(e) National Association of Academic Technologist (NAAT).
SIGNED:
Management
The main purpose of the Pension Reform is to introduce a pension system that is sustainable and has the capacity to achieve the ultimate goal of providing a stable, predictable and adequate source of retirement income for each employee in Nigeria.
With reference to your letter No. PENCOM/TECH/B&I/2018/8045 dated 2nd October 2018, I write to convey the approval of the Secretary to the Government of the Federation for the PenCom to issue the Guideline for Voluntary Contribution under the Contributory Pension Scheme as presented by the Commission
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 AUGUST, 2018
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 JULY, 2018
It has come to the Commission’s attention that following the Circular referenced INSP/CIR/SOD/18/01 of 31 August 2018, some Pension Fund Administrators have been refusing to execute the approvals granted by the Benefits and Insurance Department of the Commission for refund of pension contributions of State and Local Government employees.
Further to the Circular Ref. PENCOM/INSP/CIR/Surv/18/21 dated 8 August 2018, suspending the use of the Revised Programmed Withdrawal Templates (PWT), you are by this circular requested to revert to the old PWT for the computation of retirement benefits under the CPS.
The provisions of the Pension Reform Act 2014 (PRA 2014) applies to
all employees in the Public Service of the Federation, Federal Capital
Territory, States and Local Governments and the Private Sector
Organizations in which there are three or more employees. However,
Section 2(3) of the Act provides that employees of organizations with less
than three employees as well as self-employed persons shall be entitled
to participate under the Contributory Pension Scheme in accordance with
Guidelines issued by the Commission. The categories of persons
referred to in Section 2(3) of the PRA 2014 constitute the vast majority of
the working population.
Section 2(3) of the Pension Reform Act, 2014 (PRA 2014) provides that employees of organizations with less than three employees as well as the self-employed persons shall be entitled to participate in the Contributory Pension Scheme in accordance with Guidelines issued by the Commission.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 JUNE, 2018
This is to inform all Pension Fund Administrators that henceforth all requests for approvals
NATIONAL PENSION COMMISSION
PRESS RELEASE
One of the major achievements of the Pension Reform is the establishment of robust legal and institutional frameworks for the administration of pensions in Nigeria. The reform has instituted transparent processes in the operations of the National Pension Commission (the Commission) and the Pension Fund Administrators (PFAs) in the retirement benefits payment process, enforcement of compliance with the provisions of the Pension Reform Act (PRA) 2014 as well as other operations of the industry.
Consistent with the above, the public is hereby invited to note that payment of retirement benefits under the Contributory Pension Scheme (CPS) is made by the PFAs strictly from the Retirement Savings Accounts (RSA) of pension contributors. The RSA has three (3) basic components, namely, the monthly pension contributions; the returns on investment earned for the contributors by the PFAs; and the retirement benefits that accrued under the defunct Defined Benefits Scheme.
Section 7 of the Pension Reform Act 2014 and the Regulations on the Administration of Retirement & Terminal Benefits demand that the three (3) components of the retirement benefit must be consolidated in the RSA before any payment is made by the PFA. Accordingly, payments of retirement benefits are made promptly into the bank accounts of the retirees, except for cases where the employer delays in the release of funds to pay the accrued rights component of the retiree’s benefits.
In the performance of its statutory mandate, the Commission issues Compliance Certificate to organizations wishing to bid for contracts with Federal Government institutions, pursuant to the requirement of the Public Procurement Act 2007. Furthermore, as it is the case with all institutions, the Commission engages vendors and services providers from time to time.
In addition to the legal safeguards and institutional checks and balances of the CPS, the Commission, as the regulator of all pension matters in Nigeria, has entrenched good corporate governance practices, high ethical standards and zero tolerance to any form of malpractice in the conduct of its staff and the PFAs that manage the pension assets. In this regard, the Management and staff of the Commission do not receive money or other forms of gratification to facilitate payment of retirement benefits, issuance of Compliance Certificates and engagement of vendors and service providers. The Commission does not also give/accept kickbacks to/from any individual or organization in the discharge its responsibilities.
The members of the public, particularly pensioners and pension contributors are, therefore, reminded that no financial or other form of inducement should be given to anybody to facilitate payment of retirement benefits, issuance of Compliance Certificate or engagement as vendor or service provider. Indeed, members of the public are earnestly requested to immediately report to the Commission, anyone who makes any demand for any form of inducement in whatever form or disguise.
The Commission remains totally dedicated to the safeguard of your rights and payment of your retirement benefits as and when due.
Signed:
Management
NATIONAL PENSION COMMISSION
PRESS RELEASE
One of the major achievements of the Pension Reform is the establishment of robust legal and institutional frameworks for the administration of pensions in Nigeria. The reform has instituted transparent processes in the operations of the National Pension Commission (the Commission) and the Pension Fund Administrators (PFAs) in the retirement benefits payment process, enforcement of compliance with the provisions of the Pension Reform Act (PRA) 2014 as well as other operations of the industry.
Consistent with the above, the public is hereby invited to note that payment of retirement benefits under the Contributory Pension Scheme (CPS) is made by the PFAs strictly from the Retirement Savings Accounts (RSA) of pension contributors. The RSA has three (3) basic components, namely, the monthly pension contributions; the returns on investment earned for the contributors by the PFAs; and the retirement benefits that accrued under the defunct Defined Benefits Scheme.
Section 7 of the Pension Reform Act 2014 and the Regulations on the Administration of Retirement & Terminal Benefits demand that the three (3) components of the retirement benefit must be consolidated in the RSA before any payment is made by the PFA. Accordingly, payments of retirement benefits are made promptly into the bank accounts of the retirees, except for cases where the employer delays in the release of funds to pay the accrued rights component of the retiree’s benefits.
In the performance of its statutory mandate, the Commission issues Compliance Certificate to organizations wishing to bid for contracts with Federal Government institutions, pursuant to the requirement of the Public Procurement Act 2007. Furthermore, as it is the case with all institutions, the Commission engages vendors and services providers from time to time.
In addition to the legal safeguards and institutional checks and balances of the CPS, the Commission, as the regulator of all pension matters in Nigeria, has entrenched good corporate governance practices, high ethical standards and zero tolerance to any form of malpractice in the conduct of its staff and the PFAs that manage the pension assets. In this regard, the Management and staff of the Commission do not receive money or other forms of gratification to facilitate payment of retirement benefits, issuance of Compliance Certificates and engagement of vendors and service providers. The Commission does not also give/accept kickbacks to/from any individual or organization in the discharge its responsibilities.
The members of the public, particularly pensioners and pension contributors are, therefore, reminded that no financial or other form of inducement should be given to anybody to facilitate payment of retirement benefits, issuance of Compliance Certificate or engagement as vendor or service provider. Indeed, members of the public are earnestly requested to immediately report to the Commission, anyone who makes any demand for any form of inducement in whatever form or disguise.
The Commission remains totally dedicated to the safeguard of your rights and payment of your retirement benefits as and when due.
Signed:
Management
Click to register as a participant for the upcoming 2018 Directors Conference.
[rtec-registration-form event=2778]
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 MAY, 2018
Re:Implementation Guidelines on Retirement Savings Account (RSA) Multi-Fund Structure (Addendum).
Please, recall that the Multi Fund Structure for Retirement Savings Account (RSA) is expected to be effective from Monday, 2nd July, 2018.
Accordingly, the Commission wishes to notify Licensed Pension Fund Operators and other Stakeholders, of a revised fees structure for the Pension Industry, as follows:
Pursuant to its role as specified in Section 97 of the Pension Reform Act 2004, the National Pension Commission(PenCom) hereby sets out the minimum qualification requirements for appointments to the Board and Top Management positions of licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs).
The following are the ICT guidelines serving as a minimum IT requirements for licensed Pension Fund Administrators in Nigeria.
The key objective is to midwife a system that is robust, efficient and transparent in its entirety, based on principles required to assure the success of the Defined Contribution Pension System.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 30 APRIL, 2018
This is to inform all employees of Treasury Funded MDAs of the Federal Government, that the National Pension Commission (PenCom) is organizing a nationwide pre-retirement verification and enrollment exercise commencing from 25 June to 17 August, 2018. The exercise is for employees in the service of the Federal Government Treasury Funded MDAs, who are due to retire from service between January and December 2019 by virtue of attaining the applicable maximum age or length of service, whichever is earlier.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 MARCH, 2018
SUMMARY OF PENSION FUND ASSETS AS AT 31 DECEMBER, 2014
SUMMARY OF PENSION FUND ASSETS AS AT 30 NOVEMBER, 2014
SUMMARY OF PENSION FUND ASSETS AS AT 31 AUGUST, 2014
SUMMARY OF PENSION FUND ASSETS AS AT 31 MARCH, 2014
SUMMARY OF PENSION FUND ASSETS AS AT 31 DECEMBER, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 30 NOVEMBER, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 OCTOBER, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 30 SEPTEMBER, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 AUGUST, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 JULY, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 30 JUNE, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 MAY, 2015
SUMMARY OF PENSION FUND ASSETS AS AT 30 APRIL 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 MARCH 2015
SUMMARY OF PENSION FUND ASSETS AS AT 28 FEBRUARY 2015
SUMMARY OF PENSION FUND ASSETS AS AT 31 JANUARY 2015
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 31 JANUARY, 2018
Section 2(3) of the Pension Reform Act, 2014 (PRA 2014) provides that employees of organizations with less than three employees as well as the self-employed persons shall be entitled to participate in the Contributory Pension Scheme in accordance with Guidelines issued by the Commission.
The provisions of the Pension Reform Act 2014 (PRA 2014) applies to all employees in the Public Service of the Federation, Federal Capital Territory, States and Local Governments and the Private Sector Organizations in which there are three or more employees. However, Section 2(3) of the Act provides that employees of organizations with less than three employees as well as self-employed persons shall be entitled to participate under the Contributory Pension Scheme in accordance with Guidelines issued by the Commission. The categories of persons referred to in Section 2(3) of the PRA 2014 constitute the vast majority of the working population.
SUMMARY OF PENSION FUND ASSETS AND RSA REGISTRATION AS AT 28 FEBRUARY 2018
This Fund Accounting Guideline is for the regulatory reporting of the financial statements of Pension Funds
SUMMARY OF PENSION FUND ASSETS AS AT 31 DECEMBER 2017
SUMMARY OF PENSION FUND ASSETS AS AT 30 NOVEMBER 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 OCTOBER 2017
SUMMARY OF PENSION FUND ASSETS AS AT 30 SEPTEMBER 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 AUGUST 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 JULY 2017
SUMMARY OF PENSION FUND ASSETS AS AT 30 JUNE 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 MAY 2017
SUMMARY OF PENSION FUND ASSETS AS AT 30 APRIL 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 MARCH 2017
“This is to inform all Heads of Human Resources/Training Officers of Licensed Pension Operators that the HR/Trainers’ forum for the fourth quarter of the year 2018 is scheduled to hold on Thursday, 22 November, 2018, at the Radisson Hotel (former Protea Hotel), 42/44 Isaac John Street, GRA, Ikeja, Lagos at 10:00am prompt.
All Licensed Pension Operators are advised to ensure that their organisations are represented at the meeting.”
Consequent upon the persistent requests by some State and Local Government (LG) Pension Bureaux/Boards that they be allowed to share in the administration fee being charged on the administration of State and Local Government employees’ Retirement Savings Accounts (RSAs), the National Pension Commission (the Commission) considered the appropriateness and viability of the requests with a view to articulating how best to accommodate them.
Discussion on the regulations and guidelines around the investment of pension funds by the Head, Investment Supervision Department – Mr. Ehimeme Ohioma
PenCom’s Head, Research and Strategy Management Department, Dr. Farouk Aminu explains the A-Z of how contributors/retirees can access money from the CPS
Feedback from retirees on the implementation of the CPS as compared to the Defined Benefit (Old) Scheme
Mr. M.B. Umar discusses the regulatory framework of the CPS and the risk based supervision approach of the Surveillance Department of the Commission
A report of the Commission’s participation at the Abuja International trade fair as part of the sensitization exercise of the Micro Pension Scheme
26 Adeola Hopewell Street
Victoria Island
Lagos
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Any company operating a defined benefit scheme that is desirous of
continuing the scheme must, in addition to satisfying other conditions
specified in the Act, open RSAs so that the pension funds can be held
by a custodian. Computation of the accrued pension rights to be
credited to the RSAs shall be done by actuarial valuation.
The contributions into NSITF made by those exempted from the new
scheme shall be computed and credited into their respective RSAs
opened by the NSITF pending the retirement of such contributors.
Retirement benefits shall be paid to existing pensioners under the
rules upon which contributions were made, under the supervision of
the National Pension Commission.
NSITF will continue to provide social security services other than
pension to the country.
NSITF will only handle pension matters of existing pensioners and
those exempted by the Act who have contributed to the NSITF under
the supervision of the National Pension Commission.
A contributor or beneficiary under NSITF Act can only move his
pension contributions under NSITF to another PFA after a period of 5
years from the date of commencement of the Pension Reform Act
2004.
The pension funds contributed to the NSITF before the commencement
of the new pension scheme including the income shall remain with the
NSITF for a minimum period of five years from the commencement of
the Pension Reform Act 2004. NSITF shall establish a company to be
licensed by the National Pension Commission as a PFA which will
manage the pension funds in accordance with the provisions of the
Pension Reform Act 2004.
The RSA remains with the PFA of your choice for as long as you want.
You simply notify your new employer of the details of the PFA that
manages your account and thereafter your contributions will be sent to
the custodian of the PFA.
An actuarial valuation of his/her accrued retirement benefits will be
made and the amount plus his contributions to date will consist of
his/her retirement benefits in his/her RSA which can only be accessed
at the age of 50 years. Withdraws from the RSA will depend on the
professional advice of the PFA having regard to the provisions of the
Pension Reform Act 2004 which provides for lump sum withdrawal,
programmed withdrawals or purchase of annuity.
In the public service, Pension Departments have been created to carry
out the functions of the relevant pension boards or offices in the public
service of the Federation and Federal Capital Territory with a view to
making regular and prompt payment of pension to existing pensioners.
Pension Boards in the private sector existing before the coming into
force of the Pension Reform Act 2004 will continue to administer the
pensions of the existing pensioners and the National Pension
Commission will supervise such boards.
In the case of funded pension schemes in the public service of the
Federation and the private sector, employers shall undertake actuarial
valuation of the employee’s accrued benefits and credit the Retirement
Savings Accounts (RSAs) of its employees with such funds and in the
event of any deficiency, the shortfall shall become a debt and shall be
treated with same priority as salaries owed. The employer shall also
issue a written acknowledgement of the debt and take steps to meet
the shortfall.
The Federal Government has established a Retirement Benefits Bond
Redemption Fund Account in the Central Bank of Nigeria. The Federal
Government is already making a monthly payment into the Fund of an
amount equal to 5% of the total monthly wage bill payable to all
employees of the Federal Government and the Federal Capital
Territory.
Employee’s right to accrued retirement benefits for the previous years
he/she has been in employment is guaranteed by the Pension Reform
Act 2004. In the case of the public service of the Federation and the
Federal Capital Territory, where pension scheme was unfunded, the
right would be acknowledged through the issuance of a ‘Federal
Government Retirement Bond’ to such employee. The bond will be
redeemable upon retirement of the employee.
Withdrawals from the RSA can only be made upon retirement. However, where an employee makes additional or voluntary lump sum contributions into the RSA, he can withdraw such money before retirement or attainment of the age of 50 years.
If at the commencement of the Pension Reform Act 2004, the employee is entitled to gratuity (if he were to retire on that date), the gratuity shall be computed and included in the actuarial valuation as part of the accrued pension rights of such employee.
Upon retirement, an employee can draw a lump sum (by whatever name called) from the balance standing to the credit of his/her RSA provided the balance after the withdrawal could provide an annuity or fund monthly payments that would not be less than 50% of his monthly pay as at the date of his retirement.
However, an employer may choose to pay any other severance benefits (by whatever name called) over and above the retirement benefits payable to the employee subject to the terms and conditions of his employment.
Access to the RSA will only be allowed upon retirement. If an employee retires at the age of 50 years or more he/she can have immediate access to the RSA. Similarly, if an employee retires before the age of 50 years due to mental or physical incapacity, he or she can have immediate access to his/her RSA.
Whereas an employee who retires under the age of 50 years in accordance with the terms and conditions of employment will not access the RSA until after six months of such retirement if he/she does not secure another employment.
There is no qualifying period for pension. If an employee works for an employer for one month, his pension contribution will be paid by the employer into the employee’s Retirement Savings Account (RSA) for that month.
The Act did not stipulate any retirement age. It depends on each employee’s terms and conditions of employment.
The balance in the RSA will be used to procure an annuity that provides regular income to the contributor or fund a programmed withdrawal.
Where an employee who has been contributing under the new pension scheme dies before his/her retirement, his retirement benefits shall be paid to his beneficiary under a will or the spouse and children of the deceased or in the absence of a wife and child, to the recorded nextof-kin or any person designated by him during his/her life time or in the absence of such designation, to any person appointed by the Probate Registry as the administrator of the estate of the deceased.
An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree during his/her lifetime.
A programmed withdrawal is a method by which the employee collects his retirement benefits in periodic sums spread throughout the length of an estimated life span.
In order to ensure the safety of pension funds and to avoid mixing pension business and other businesses, it is desirable that the operators deal with pension funds only. This will enhance effective regulation and supervision.
The PFA will charge fees for the services being rendered on the RSA subject to such guidelines as may be issued by the National Pension
Commission from time to time.
An employee or contributor has the freedom to move his account, once a year, from one PFA to another without giving any reason(s).
An applicant PFA must have a minimum paid up share capital of N150,000,000 while an applicant PFC must have a minimum paid up capital of N2,000,000,000 and shall be a licensed financial institution with a minimum net worth of N5,000,000,000 unimpaired by losses
and has total assets of N125,000,000,000 or is wholly owned by a licensed financial institution with similar financial resources.
The PFA manages and invests the pension funds while the PFC keeps the pension funds and assets in safe custody and carries out
transactions on behalf of the PFA.
A Pension Fund Custodian (PFC) is a company licensed by the National Pension Commission to keep pension money and assets in the RSA on
trust for the employee on behalf of the PFA.
In accordance with the provisions of the Pension Reform Act 2004, only an employer with a pension scheme existing before the commencement of the Act can apply to be licensed as a closed PFA.
Every employee may decide to join the contributory pension scheme or move his RSA from a closed PFA to a PFA of his choice subject to such rules and regulations as may be issued by the National Pension Commission.
Any employer with existing scheme of less that N500,000,000 can still maintain the scheme but the scheme will have to be administered by a PFA separate from the organisation.
Any employer having existing pension fund assets worth N500,000,000 or more who also meets the requirements of the Pension Reform Act 2004may apply to the National Pension Commission for a closed PFA licence to enable it manage the pension funds of its employees directly or through its subsidiary.
Any employer managing its existing pension scheme before the enactment of the Pension Reform Act 2004 may apply to the National Pension Commission to be licenced as a Closed Pension Fund Administrator to continue to manage such pension scheme.
A closed PFA cannot open or manage RSA for employees other than its employees or employees of its parent company if it is a subsidiary.
The Pension Fund Administrator cannot collect or spend the pension money in the RSA.
The National Pension Commission will publish a list of all licensed PFAs and make it available to the public.
A Pension Fund Administrator (PFA) is a company licensed by the National Pension Commission to manage and invest the pension funds in the employee’s Retirement Savings Account (RSA).
The National Pension Commission is empowered by the Pension Reform Act 2004 to supervise and regulate new pension scheme.
The total contributions will be paid out by the employer directly to a Pension Fund Custodian and will be managed and invested by the Pension Fund Administrator (PFA) of the employee’s choice.
Yes. The new pension scheme entrenches the principles of transparency and accountability as reflected in the reporting requirement of the PFAs and PFCs to both the contributor and the National Pension Commission.
An employee has the right to choose who manages his RSA and the right to receive statements of his account on quarterly basis with details of contributions made and returns on investment.
There is adequate representation of relevant stakeholders in the Board of the National Pension Commission, which comprises of representatives of the Government, Nigeria Labour Congress, the Nigerian Union of Pensioners and the Nigerian Employers Consultative Association.
The minimum pension guarantee shall be determined from time to time by the National Pension Commission.
Under the Pension Reform Act 2004 a person can voluntarily retire or be compulsorily retired before the age of 50 years on the ground of medical advice, permanent disability or due to particular terms and conditions of employment. If any person retires under any of the foregoing circumstances, he is entitled to withdraw from his RSA even though he was under the age of 50 at such retirement; provided that, in the case of retirement due to particular terms and conditions of employment, the contributor does not secure another employment after six months from the last employment.
It is the duty of the PFAs to administer the contributions and invest in such a way that will ensure safe and reasonable returns on investment. The reserve fund created by the PFAs under the Act would compensate for any erosion of the value of the contributions.
The Government cannot tamper with the pension funds in your RSA, because the Government cannot have access to the account. Besides, the Government is primarily concerned with ensuring the safety of the money in your RSA through the enforcement of strict rules and regulations.
The Federal Government has established the National Pension Commission and charged it with the responsibility of regulating and supervising new pension scheme.
The Pension Reform Act 2004 allows any employee to complain about any PFA to the National Pension Commission.
The pension funds and assets in the Retirement Savings Account (RSA) are kept by the PFC and as such the liquidation of the PFA will not affect the funds and assets. Besides, every PFA is expected under the Pension Reform Act 2004 to maintain a statutory reserve fund as contingency fund to meet claims for which it may be liable as may be determined by National Pension Commission.
The functions of the Pension Fund Administrator (PFA) and Custodian are clearly spelt out in the Pension Reform Act 2004. The Act provides adequate safeguards against the misuse of the pension funds and assets by any operator.
All those managing or keeping custody of pension funds and assets will be licensed and continually regulated and supervised by the National Pension Commission.
The new pension scheme will ensure that you receive your pension after retirement without any delay.
No. Section 10(2) of the Pension Reform Act (PRA) 2014 exempts from tax all interests, dividends, profits, investment and other income accruable to pension funds and assets.
Contributions to the new pension scheme are tax free.
Pension Fund Administrators (PFAs) will issue regular statements of accounts and profit from investments to the employees.
There will be a huge pool of long-term funds available for investments, which will lead to national economic development.
Movement from one employment to another does not affect pension under the new scheme. The reform has removed the bottleneck associated with transfer of service from one organisation or sector to another, especially with regard to qualification for pension and the sharing formula for payment of pension as between employers.
The RSA is similar to a bank account except that no contributor can withdraw money from the RSA before his/her retirement. The PFA is required to invest the money and issue statements of account at least once every quarter to the contributor.
Every employee or contributor under the new pension scheme is expected to open RSA in his/her name with a PFA of his/her choice into which all his/her contributions and returns on investment are paid.
A fully funded pension scheme exists where pension funds and assets match pension liabilities at any given time.
Pension contributions are paid directly to the PFC to be held on the order of the PFA.
Your contributions are just savings out of your emoluments towards your old age and the employer’s contribution will only increase such
savings.
An employer can make all the contributions on behalf of the employee without making any deduction from the employee’s salary except that such contribution by the employer shall not be less than 15% of the monthly emoluments of the employee.
The employer shall contribute a minimum of 7.5% of the employee’s monthly emoluments towards the retirement benefits of the employee.
An employee shall make monthly contributions of a minimum of 7.5% of the total of his/her monthly emoluments (i.e., monthly basic salary, transport allowance and housing allowance) into his RSA.
Private sector pension schemes will be allowed to continue provided if there is evidence to show that the pension scheme is fully funded at all times, any shortfall made up within 90 days, pension funds assets are segregated from the assets of the employer/company, the pension funds assets are held by a licensed Custodian and the scheme is specifically approved by the National Pension Commission.
Most of the old pension schemes were not fully funded. Therefore, upon retirement, there were no ready funds to pay the pensioners. The new pension scheme is fully funded. Money is contributed into individual employee’s Retirement Savings Account (RSA) and when he/she retires, there will be money in his/her RSA to pay his pension.
One of the main objectives of the pension reform is to ensure that every person that worked in either the public or private sector in Nigeria receives his/her retirement benefits as and when due.
There is no merger of private sector pension with that of the public sector pension since the sources of funding are not the same. However, both are now being regulated under the same rules and regulations.
The new pension scheme is mandatory for all categories of employers and employees covered under the Pension Reform Act.
Any employee with more than 3 years to retire comes under the new pension scheme.
The existing pensioners, employees who have 3 years or less to retire and the categories of persons covered by the provisions of section 291 of the Constitution of Federal Republic of Nigeria 1999 are exempted from the new pension scheme.
The new pension scheme covers all employees in the public service of the Federation, the Federal Capital Territory and the private sector of the economy.
This new pension scheme is contributory, fully funded, privately managed, third party custody of the funds and assets and based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefits as and when due.
No. 22, Kazaure Road,
Bompai, Kano,
Kano State
Tel: (+234) 805 599 9335
Plot 9, PCN Layout,
Diamond Hill Calabar,
Cross River State
Tel: (+234) 805 599 9332
88A Oduduwa Crescent,
Ikeja, GRA
Lagos State
Tel: (+234) 8078859160
Plot No. 10,
Gombe-Biu Road,
Gombe, Gombe state
Tel: (+234) 805 599 9339
Plot 1, Aderemi Adeleye Street,
Off Fate Road, GRA
Ilorin, Kwara State
Tel: (+234) 8078859104, (+234) 8078859105
Road 1/47 , Udoka Housing Estate
Awka, Anambra State
Tel: (+234) 805 599 9337
The National Pension Commission issues licences to PFAs and Custodians, regulates their activities and generally formulates, directs and oversees the overall policy guidelines on pension matters in Nigeria.
The National Pension Commission (PenCom) was established by the Pension Reform Act (PRA) 2014 and later PRA 2014 to ensure effective administration of the Nigerian Pension Industry. It has been empowered by the PRA 2014 to superintend on all pension matters in Nigeria including supervision and regulation of the Contributory Pension Scheme (CPS) and the old Defined Benefits (DB) Scheme as well as the Pension Transitional Arrangement Directorate (PTAD).
The Commission operates under a Board of Directors (Board) headed by a part-time Chairman with the Director General as the Chief Executive Officer. The day – to – day running of the Commission is handled by the Executive Committee, which comprises of the Director General and four Executive Commissioners who are also members of the Board. Each Commissioner heads a Division that is made up of Departments and Units that are headed by Heads of Departments and Units respectively.
The Commission had established institutional and legal frameworks to facilitate the successful implementation of the provisions of the PRA 2014. In this regard, 21 Pension Fund Administrators (PFAs), 4 Pension Fund Custodians (PFCs) and 7 Closed Pension Fund Administrators (CPFAs) were licensed and currently operate in the industry. The total Pension Fund Assets had grown to N5.2 trillion ($26.4 billion) as at December 2015 with total membership count of 6.8 million as at the same period.
The payment of retirement benefits under the CPS by FGN to retirees as well as death claims to beneficiaries of its deceased employees is now regular and timely. Unless for the delays being experienced in the settlement of accrued benefits whenever there are delays in the funding of the Retirement Benefits Bond Redemption Fund by the FGN.
In the exercise of its statutory responsibilities, the Commission had conducted series of enlightenment and sensitization campaigns through the media and at various seminars, roundtable discussions and conferences. Some of these conferences were conducted in collaboration with other institutions including multilateral agencies such as the World Bank/IFC and the Commonwealth Secretariat. In this vein, the Commission has been collaborating with the Nigeria Labour Congress (NLC) and Nigeria Employers Consultative Association (NECA) to conduct annual seminars to promote compliance by employers.
There are currently 25 State Governments that passed Pension Reform Laws while others are at Bills stage. The PRA 2014 has made the implementation of CPS compulsory for the States and Local Governments and PenCom has been providing all necessary support to these important tiers of Government to ensure their successful adoption of the Scheme. The Scheme had facilitated increased transparency and accountability in determining budgetary estimates for payments of pensions by the Federal Government and all the State Governments that adopted it.
Indeed, in achieving the above milestones, Commission had collaborated with some government agencies notably Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), National Insurance Commission (NAICOM), Nigeria Stock Exchange (NSE), Financial Reporting Council of Nigeria, and National Bureau for Statistics (NBS). The Commission is also being supported by the Bureau for Public Procurement (BPP) in its efforts to ensure compliance by eligible employers. The BPP Act 2007 has provided that any company soliciting for contracts with any of the agencies of the Federal Government must produce evidence of compliance with the PRA 2004 before it can bid for the contract.
The PRA 2014 provided that PenCom reports to Mr. President and Commander-in-Chief of the Nigerian Armed Forces. Also, the Senate and the House of Representatives have oversight functions on the Commission through the Senate Committee on Establishment and Public Service and the House Committee on Pensions respectively.
NATURE OF THE FUND
The Fund shall be strictly for RSA Retirees in both the Private and Public Sectors.
COVERAGE
The Fund shall be restricted to RSA retirees in the first instance. AES &CPFAs shall continue in line with the rules governing their approved schemes. It shall be for retirees operating the Programmed Withdrawal retirement option. In essence, any retiree who had temporarily accessed his RSA by withdrawing 25% of RSA balance shall still remain under the RSA Fund and not the Retiree Fund.
Section 11 (5) (b) of the Pension Reform Act (PRA 2004) provides that the employer shall not later than 7 days from the day the employee is paid his/her salary, remit an amount comprising the employee’s and employer’s pension contributions to the custodian specified by the Pension Fund Administrator (PFA) of the employee. Furthermore, Section 11 (7) of the PRA 2004 provides that any employer who fails to remit the contributions within the time prescribed shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission provided that the penalty shall not be less than 2 percent of the total contributions that remains unpaid for each month the default continues.
Regime of Sanctions and Penalties for Non/Late Submission of Regulatory Returns
The Framework for the Supervision of States and Local Governments Schemes sets out the implementation processes and supervisory machinery to be adopted in ensuring effective and smooth operations of the Schemes at the State and Local Government levels, and also for supervising the activities of the State Pension Bureaux by the National Pension Commission.
The framework for resolution of failing Operators in the Nigerian Pension Industry is issued by the National Pension Commission (Commission) in the exercise of its powers under Sections 20 and 54 of the Pension Reform Act 2004 (PRA 2004). The framework is intended to standardize its actions in dealing with failing Operators.
FRAMEWORK ON SANCTIONS AND PENALTIES FOR NON COMPLIANCE WITH PRA 2004
This Framework covers operators (i.e. Pension Fund Administrators and Custodians) as well as Employers. It is expected that employee related compliance issues would be handled through their employers and awareness campaigns.
FRAMEWORK AND IMPLEMENTATION GUIDELINES FOR RSA RETIREE FUND
The requirements of this Code are consistent with the provisions of the Pension Reform Act, 2004 and are also considered enforceable within the industry.
The Code of Corporate Governance essentially aims to set out rules based on best practices to guide PFAs (including CPFAs) and PFCs on the structures and processes to be used towards achieving optimal governance set up.
In furtherance of the need to promote and ensure a high level of ethical standard amongst PFAs, CPFAs, and PFCs, the Commission has issued a Code of Corporate Governance for Licensed Pension Operators.
The Lagos State Bond has been granted a no objection for inclusion as an investment instrument.
We write to inform you that the Commission has issued a letter of no objection for inclusion of the N21 Billion Fixed Rate Niger State Bond Series 1 as an investible instrument in the Pension Industry.
It has been observed from the review of �company� audited accounts so far submitted by PFCs, that funds under custody are usually not disclosed on the financials.
Posting of audited accounts on Operators’ website
The following regulations are hereby issued: Guidelines for Risk Management Framework for Licensed Pension Operators.
All employees in the Federal Ministries, Departments, Agencies, Military, Para-Military, Security Establishments and the Federal Capital Territory(FCT) who have opened their Retirement Savings Accounts (RSAs) with their chosen Pension Fund Administrators (PFAs) are required to visit the website: <a href=”http://www.pencom.gov.ng”>www.pencom.gov.ng</a> and submit their current and up-to-date information.
This Circular is for guidance in terms of the selection and appointment of PFCs. The appointment of PFCs shall be in line with the following guidelines:
Opening of Retirement Savings Accounts with Licensed Pension Fund Administrators (PFAs).
Opening of Retirement Savings Accounts with Licensed Pension Fund Administrators (PFAs) for the implementation of the contributory pension scheme.
Opening of Retirement Savings Account with Licensed Pension Fund Administrators(PFAs) for the implementation of the contributory pension scheme.
The significant growth in the size of pension assets and the changing dynamics of pension business has necessitated the need for the Commission to issue another circular in respect of appointment to Board and Top Management Positions as well as new requirements for PFAs with funds under management of N100 billion and above. In addition, the control of a significant portion of Nigerian Pension business by a few Pension Fund Administrators has made it necessary to strengthen their operations.
The Commission has through its oversight function observed that the minimum paid up share capital of N150 million was no longer adequate to meet the operational expenses of a PFA business given its intensive IT nature and an average gestation period of 5 years. The Commission had consulted with the pension industry for its input on the new minimum capital requirement for PFAs. The input of the pension industry and subsequent review by the Commission resulted in the presentation of a technical paper to the Board of PenCom on the issue.
Please recall the commission’s earlier circular referenced PENCOM/INSP/CIR/PSP/11/01, which grants concessions to state to adopt a structured arrangement in the registration of States’ and Local Governments’ employees by assigning Pension Fund Administrators(PFAs) to specific Ministries, Departments and Agencies (MDAs). This concession was given to allow the states jump start the registration of their employees under the CPS.
Review of Pension rates in accordance with Section 173(3) of the constitution of the Federal Republic of Nigeria, 1999 as amended.
Payment of entitlements to retirees of the Federal Capital Territory Authority.
The Commission has observed from the review of Company audited accounts that Operators do not seek the prior approval of the Commission before payment of dividends to shareholders. In view of this, all licensed Operators are required to seek the prior approval of the Commission before payment of both interim and final dividend to shareholders.
We write to inform you that the Commission has issued a letter of no objection for the inclusion of Osun Development Bond 2012 as an investible instrument in the Pension Industry.
The Commission has observed that some Operators change their operating Software without notifying the Commission. Consequently, all licensed Operators are henceforth required to inform the Commission when changing their operating software. Any Operator infringing this requirement will from now on be penalized appropriately.
Minimum requirement for the inclusion of state bonds as investible instruments in the pension industry.
The Commission has realized through its oversight functions as well as information obtained from stakeholders in the pension industry that Pension Fund Administrators (PFAs) were failing in one of their core mandate which is to render good services to their clients.
It has been observed that Operators have formed the habit of not responding to correspondence from the Commission within the stipulated time frame. Consequently, Management is by this circular informing all Operators that effective from today, any Operator that fails to respond to any correspondence from the Commission within the prescribed period will be sanctioned in accordance with the Framework for the Regime of Sanctions and Penalties which was recently revised and sent to all Operators.
In keeping with the spirit of transparency and to ensure that all stakeholders, particularly RSA holders, have access to vital, basic information, this circular is issued to notify all PFAs of minimum information to be posted on their websites.
The Commission has observed that Operators generally do not treat the issue of staff training with paramount importance.
The Commission has observed that some Licensed Pension Fund Operators execute Technical Agreements with third parties without obtaining the prior approval of the Commission. This is of concern to the Commission especially as it has been observed that some clauses in these agreements are not in line with global best practice.
Using outsourced staff to perform pension administration, management, and custodial functions by Pension Fund Operators.
Investment of Pension funds in State and Local Government bond instruments.
Management has approved the Guildelines for the registration of Contributor/Member. The final guidelines is hereby exposed for operators to adopt.
We write to inform you that the Commission has received several enquiries concerning exemption of employees under the Contributory Pension Scheme in the Public Service of the Federation. Some of these include officers that had three years(3) or less to retire as at the commencement of Pension Reform Act 2004 or those who retire before the age of sixty(60)
CIRCULAR FOR CHANGE OF DATE OF BIRTH
ADDENDUM TO CIRCULAR ON REQUIREMENTS FOR PFAs WITH FUNDS UNDER MANAGEMENT OF N100 BILLION & ABOVE AND NEW REQUIREMENTS FOR APPOINTMENTS TO BOARD AND TOP MANAGEMENT POSITIONS OF ALL PFAs
ADDENDUM TO FRAMEWORK FOR RESOLUTION OF FAILING OPERATORS IN THE NIGERIAN PENSION INDUSTRY
It has come to the Commission’s attention that some State Governments, as employers, have been requesting for deductions to be made from the Retirement Savings Account (RSA) balances of their employees upon their retirement to settle outstanding financial obligations owed to the Government or their employers.
Transparency is one of the core values of the Commission which has been encouraged amongst the operators. As a regulatory philosophy, the Commission has adopted a stakeholder approach in its regulatory activities. This philosophy has often encouraged operators to make meaningful contributions that would add value to regulatory initiatives thus engendering amongst stakeholders, a sense of responsibility towards the industry.
The purpose of the guidelines is to provide general guidance on transitional matters for both the public and private sectors relating to the implementation of the Pension Reform Act 2004.
REVISED REGIME OF SANCTIONS
The Pension Reform Act, 2004 (the Act) provided that contributions into the NSITF scheme (the Scheme) together with accrued income shall be transferred into members.
Retirement Savings Accounts (RSAs) after the expiration of the 5 years moratorium i.e. from July, 2009. The Act also provided that the Commission should supervise the transfer.
GUIDELINES FOR RSA RETIREE FUND
These Guidelines seek to standardize procedures to be adopted by Closed Pension Fund Administrators (CPFAs) and Pension Fund Administrators (for Approved Existing Schemes) that operate Defined Benefit Schemes and have or intend to have direct investments in real estate.
Many employers in their effort to comply with the Pension Reform Act 2004 (Act) have demonstrated strong commitment by remitting regularly the pension contributions of employees who have opened RSAs to the PFAs. However, some of the employers who are complying with the provisions of the Act still have unremitted pension contributions because of failure of some of their employees to open RSAs. Meanwhile, the Commission believes it would be unjust to hold such employers liable for the violation of the Act in view of the fact that they have custody of the pension funds.
The Pension Reform Act, 2004 (the Act) provided that contributions into the NSITF scheme (the Scheme) together with accrued income shall be transferred into members.
Retirement Savings Accounts (RSAs) after the expiration of the 5 years moratorium i.e. from July, 2009. The Act also provided that the Commission should supervise the transfer.
Section 30 of the Pension Reform Act, 2004 established for the Public Service of the Federation and the Federal Capital Territory, Pension Departments to be known as the Pension Transitional Arrangement Departments (PTAD). The PTAD is to be made up of the existing pension boards or offices in the Public Service of the Federation and the Federal Capital Territory, Abuja.
The need for the issuance of a Guideline in respect of appointment of Pension Fund Custodians (PFCs) by Pension Fund Administrators (PFAs) has arisen as a result of the growing number of States that have enacted the Contributory Pension Scheme into law.
A continuous process of effective risk management is critical to the safety and soundness of the operations of Pension Fund Administrators and Custodians. Furthermore, Section 66 of the PRA 2004 requires every Pension Fund Administrator to establish Risk Management Committee for the purpose of determining the risk profile of the investment under management with a view to providing advice on the management of associated risks.
One of the functions of the Pension Fund Administrators (PFAs) according to the PRA 2004, section 45(a) is to open Retirement Savings Accounts for all employees and obtain Personal Identification Numbers (PINs) for the employees from the National Pension Commission (PenCom). In order to do this, the employers whether from the Federal/State or the private sectors must first be recognized and issued with unique employer codes. The employee’s PINs are attached to their respective employer codes in PenCom’s database and are to be adopted only within the Pension Industry.
These Guidelines are issued to form a basis for the appointment of PFAs by companies with approved existing schemes and to limit the assets of approved existing schemes that can be held in custody by PFCs.
These Guidelines are issued to regulate the publication of rates of return on RSA Funds by PFAs. The Guidelines summarize the standards and requirements, and succinctly present good corporate governance practices, relative to publishing annual rates of return by the PFAs.
The purpose of this document is to provide the basic procedures that shall to be adhered to for services provided by Pension Fund Custodians (PFCs) in terms of the Pension Reform Act 2004 (Act).
The purpose of these guidelines is to provide the basic procedures for the operations of Pension Fund Administrators (PFAs) pursuant to the Pension Reform Act 2004 (the Act).
The Commission’s Regulation on the Investment of Pension Fund Assets allows only States that have fully implemented the Contributory Pension Scheme (CPS) to access pension funds for the purpose of infrastructural development.
Sections 30 and 31 of the Pension Reform Act 2004 (PRA 2004) provides for the establishment of the Pension Transitional Arrangement Department (PTAD) and the FCT Pension Transitional Arrangement Department. These departments were given the responsibility of overseeing the management of pension under the defined benefit scheme for pensioners not transiting to the Contributory Pension Scheme.
Section 30(4) of the Act also specifies that the PTADs shall operate under the rules, regulation and directives made by the National Pension Commission (hereinafter referred to as the Commission) from time to time. These guidelines are therefore issued to specify minimum basic operational requirements to assist the PTAD in achieving its objectives as spelt out by the PRA 2004.
RETURNS ON REMITTANCES RECEIVED FROM THE OAGF
SCHEDULE OF EXPECTED MONTHLY CONTRIBUTIONS
SCHEDULE OF CONTRIBUTIONS
SCHEDULE OF REMITTANCE TO LEAD PFAs BY THE OAGF
Collection Process
IRREVOCABLE STANDING PAYMENT ORDER
IRREVOCABLE STANDING PAYMENT ORDER
The Pension Reform Act, 2004 (the Act) provided that contributions into the NSITF scheme (the Scheme) together with accrued income shall be transferred into members Retirement Savings Accounts (RSAs) after the expiration of the 5 years moratorium i.e. from July, 2009. The Act also provided that the Commission should supervise the transfer.
Retirement benefits are any entitlements/rights/privileges that accrue to a worker/employee upon leaving the services of an employer for reason of having worked or provided service to the employer. Such benefits could be paid in either lump-sum, periodically or a combination of both. Further still, such arrangements could include multiple benefits and severance arrangements.
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
Consequent upon the persistent requests by some State and Local Government (LG) Pension Bureaux/Boards that they be allowed to share in the administration fee being charged on the administration of State and Local Government employees’ Retirement Savings Accounts (RSAs), the National Pension Commission (the Commission) considered the appropriateness and viability of the requests with a view to articulating how best to accommodate them.
RETIREMENT SAVINGS ACCOUNT OPENING FORM
REGULATIONS FOR THE ADMINISTRATION OF LEGACY PENSION ASSETS
REGULATION ON VALUATION OF PENSION FUND ASSETS
1. Agusto and Co.
UBA House, 5th Floor,
57 Marina,
Lagos
Tel. +234 1 2707222-4, 7615985
E-mail: info@agusto.com
Website: www.agusto.com
2. Datapro Limited
6th Floor, Ashakun House
13/15 Lake Street
Off Broad Street
Akpongbon, Lagos
Tel. +234 8055416135/8033091467
3. Global Credit Rating
New Africa House
8th Floor
Marina
Lagos
Tel. +234 8056158393/8033283027
This is a Model Pension Law Designed for States of the Federation.
Plot 820/821
Labour House
Behind Ministry Of Finance
Central Business District
Abuja
Stanbic IBTC Towers
No. 6F Walter Carrington Crescent
Victoria Island, Lagos
No. 339 Cadastral Zone A08
Takwa Crescent
Off Adetokunbo Ademola Crescent
Wuse 2, Abuja
No. 4, Agwu Street
Off Faskari Crescent
Area 3
Garki – Abuja
Plot 289 Ajose Adeogun Street,
Victoria Island, Lagos
266 Muritala Mohammed Way
Yaba, Lagos
NPF Pensions House
Plot 3820, R.B. Dikko street, Off Shehu Shagari Way
Opposite Force Headquarters
Central Business District (CBD)
Abuja
Location: 312A,
Ikorodu Road, Anthony
Lagos
No. 207, Zakariya Maimalari Street
Cadastal AO
Central Business District, Abuja
121/123 Funsho Williams Avenue
Surulere, Lagos
No. 22, Otukpo Street
Off Gimbiya Street
Area 11
Garki, Abuja
172B, Moshood Olugbani Street,
Victoria Island,
Lagos State.
Plot 1698 C&D, Oyin Jolayemi Street
Victoria Island
Lagos
2 Adeyemo Alakija Street
Victoria Island, Lagos
UACN Corporate Centre Annex
1st Floor
UAC Foods Limited Building
KM 16, Ikorodu Road
Ojota Bus Stop
Ojota – Lagos
Plot 35
Kofo Abayomi Street
Victoria Island , Lagos
Civic Towers (4th & 5th Floors)
Ozumba Mbadiwe Road
Victoria Island, Lagos
Plot 2001 Tafawa Balewa Way
Area 7, Garki
Abuja
Plot 1297 Akin Adesola Street
Victoria Island
Lagos
3rd Floor, First Bank of Nigeria Building,
No. 2, Plot 451, Jos street,
Area 3, Garki
Abuja
21/22, Marina, Lagos.
No. 1, Abebe Village Road
Iganmu 101241, Lagos
22/24, Industrial Avenue
Illupeju, Lagos
No. 14b, Keffi Street
Off Awolowo Way,
South West Ikoyi, Lagos
Federal Mortgage Bank House,
Plot 266, Cadastral AO,
Central Business District,
Abuja
Distinguished Ladies and Gentlemen
I am delighted to welcome you to the Commemorative Dinner of the 10th Anniversary of the Pension Reform in Nigeria holding in Lagos. We are highly honored by the presence of all our distinguished guests at tonight’s occasion, amidst your engaging commitments. This Dinner is being held as part of the commemorative activities of the 10th Anniversary of the implementation of the Pension Reform in Nigeria which commenced at Abuja in July, 2014. It would be recalled that these activities were kick started with the successful hosting by Nigeria, through PenCom, of the maiden World Pension Summit ‘Africa Special’, organized in collaboration with the World Pension Summit Organization, Amsterdam, The Netherlands. It was followed by the Commemorative Gala held at the Presidential Villa, Abuja where some Icons of the Pension Reform were also recognized for their various distinguished roles in its actualization. It is noteworthy to mention that His Excellency, President Goodluck Ebele Jonathan, GCFR was present at both events as Special Guest of Honour, which was indicative of the Government’s commitment to the pension industry and confidence in its modest accomplishments. This event therefore, commemorates the milestone of a journey which sought to break Nigeria away from an endless cycle of despair in its pension sector and launch it into a new era of blissful retirement for all employees. The assemblage brings together private sector leaders, the Icons of the pension reform and other important stakeholders to celebrate as well as usher in the strategic focus of the reform as it transits into the next decade.
Distinguished ladies and gentlemen, on behalf of the Board, Management and Staff of the National Pension Commission (PenCom), I am delighted to welcome all of you to this important conference on the developments ushered in by the Pension Reform Act, 2014, which is the first of series of such conferences scheduled to be held in all the six geopolitical zones. We are indeed honoured by the presence of very important personages from both the public and private sectors who, despite their very busy schedules, found it worthwhile to accept our invitation either as facilitators or participants to this conference. This underscores the confidence reposed in PenCom in its modest effort at strengthening the Contributory Pension Scheme and repositioning pension administration in Nigeria.
Distinguished ladies and gentlemen, on behalf of the Board, Management and Staff of the National Pension Commission (PenCom), I welcome all of you to this important Stakeholders’ Sensitization Conference on the Pension Reform Act 2014 (PRA 2014). We are honoured by the presence of very important personalities who, despite their busy schedules, found it worthwhile to accept our invitation either as facilitators or participants to this conference. I must in particular acknowledge the presence of the Executive Governor of Enugu State, Chief Ifeanyi Ugwuanyi whose presence here is noteworthy and indicates a commitment to the welfare of workers through timely pension payments. We are encouraged by the support from all stakeholders which amplifies the confidence reposed in PenCom as it strives to consolidate the Contributory Pension Scheme (CPS) and reposition pension administration in Nigeria.
It is my honour to welcome you, on behalf of the Management of the National Pension Commission, to this very important Interactive Workshop on the Contributory Pension Scheme. You are no doubt aware that the Federal Government, as part of its on-going Economic and Governance Reform Programme, enacted the Pension Reform Act, 2004 which established the Contributory Pension Scheme and introduced major changes to our pension system. The Act also established the National Pension Commission that is charged with the responsibility of regulating and supervising all pension matters in Nigeria. In order to ensure that the new scheme achieves its primary goal of providing an enduring, self-sustaining and effective pension system, the understanding, cooperation and support of stakeholders is crucial.
I am greatly honoured to welcome you all to the official opening of the South-West Zonal Office of the Commission which is situated here in Lagos. I am particularly pleased that you accepted our invitation amidst your highly engaging schedules. We consider the presence of a large number of stakeholders at this event as a testimony to the confidence reposed in the Contributory Pension Scheme and our modest efforts at providing regulatory oversight on pension issues.
I am highly delighted to welcome you all to the official opening of the North-West Zonal Office of the Commission which is situated here in Kano. The Commission is particularly honored by the presence of all of you distinguished personalities at this occasion amidst your crowded schedules, which is an indication of the confidence reposed in the Commission’s modest efforts at superintending the Nigerian Pension Reform.
It gives me great pleasure to welcome you to this inaugural World Pension Summit ‘Africa Special’ being hosted here in Abuja. In recognition of the increasing significance of Pension Funds in shaping Africa’s future, this Summit – the first in its series – is designed to evoke pragmatic, sustainable and most effective initiatives for pension fund governance and regulation in the Continent.
I am indeed delighted to welcome you to this auspicious Forum organized for retirees under the Contributory Pension Scheme (CPS) by the National Pension Commission (PenCom). We consider retirees as a very important stakeholder group which symbolizes the success of the CPS on the payout sphere. On behalf of the management and staff of the Commission, I wish to convey our profound gratitude to you all, our esteemed retirees, for honoring our invitation to this forum.
Prior to the enactment of the Pension Reform Act 2004, pension schemes in Nigeria had been bedevilled by many problems. The Public Service operated an unfunded Defined Benefits Scheme and the payment of retirement benefits were budgeted annually. The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in the light of resource constraints. In many cases, even where budgetary provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of payment of pension rights. It was obvious therefore that the Defined Benefits Scheme could not be sustained.
In the private sector on the other hand, many employees were not covered by the pension schemes put in place by their employers and many of these schemes were not funded. Besides, where the schemes were funded, the management of the pension funds was full of malpractices between the fund managers and the Trustees of the pension funds.
This scenario necessitated a re-think of pension administration in Nigeria by the administration of President Olusegun Obasanjo. Accordingly, the administration initiated a pension reform in order to address and eliminate the problems associated with pension schemes in the country. The outcome of the reform was the enactment into law of the Pension Reform Act 2004.
After 10 years of implementing the pension reforms in Nigeria, the Pension Reform Act 2014 was signed into law to address the challenges faced in the implementation processes. In addition, new provisions were made to particularly strengthen the powers of the Commission to resolve conflicts in addition to providing stiffer penalties for infractions. The PRA 2014 addressed the issues regarding pensions of political office holders and Professors as well as provided incentives for increasing coverage of the scheme through allowing contributors to use portion of the balances in their retirement savings accounts to make equity contribution towards owning a residential property
The Commission shall have the power to:
The Pension Reform Act 2004 established the National Pension Commission (PenCom) as the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria.
The functions of the Commission include:
The main objectives and features of the Pension Reform Act 2004 are:
The pension reform programme is governed by the key principles of sustainability, safety and security of benefits, transparency, accountability, equity, flexibility, inclusivity, uniformity and practicability.
PenCom exists for the effective regulation and supervision of the Nigerian Pension Industry to ensure that retirement benefits are paid as and when due.
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SUMMARY OF PENSION FUND ASSETS AS AT 28 FEBRUARY 2017
SUMMARY OF PENSION FUND ASSETS AS AT 31 JANUARY 2017
To be an efficient regulator that promotes a resilient and sustainable Pension Industry delivering positive and measurable impact for contributors and the economy.
3rd and 4th Floors, Plot 22B, Idowu Taylor Street
Victoria Island, Lagos.
2nd Floor, UBA House
18, Adetokunbo Ademola Crescent
Wuse II, Abuja
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
REGULATIONS FOR COMPLIANCE OFFICERS
REGULATIONS FOR AUDITING PENSION FUNDS
The fees stipulated herein, are maximum amounts chargeable by Pension Fund Administrators (PFAs), Pension Fund Custodians (PFCs) and the National Pension Commission (Commission), for all services to be provided by them.
The requirements of these Guidelines are consistent with the provisions of the Pension Reform Act, 2004 and are also considered enforceable within the industry.
The fees stipulated herein, are maximum amounts chargeable by Pension Fund Administrators (PFAs), Pension Fund Custodians (PFCs) and the National Pension Commission (Commission), for all services to be provided by them.
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
REGULATION ON VALUATION OF PENSION FUND ASSETS
The requirements of this Regulation are consistent with the provisions of the Pension Reform Act, 2004. The purpose of the Regulation is to provide uniform rules and standards for the investment of pension fund assets.
The fees stipulated herein, are maximum amounts chargeable by Pension Fund Administrators (PFAs), Pension Fund Custodians (PFCs) and the National Pension Commission (Commission), for all services to be provided by them.
REGULATION ON VALUATION OF PENSION FUND ASSETS
