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PenCom goes tough on errant PFAs

By on January 27, 2015

PenCom said in a document obtained on Sunday that a review of the compliance reports forwarded by the PFAs to the commission revealed some cases of non-compliance.

Some of the defaults, it stated included non-compliance with investment limits by some PFAs; delay in payment of retirement benefits; receipt of pension contributions without appropriate schedules; unresolved customer complaints; failure to fill certain vacant management positions; and non-implementation of disaster recovery plans.

“The commission forwarded letters to concerned operators over the identified issues as well as monitored the operators in their efforts at resolving them,” it stated.

It said the evaluation of risk management reports forwarded by the operators showed that some of them faced operational risks associated with receipt of contributions without appropriate schedules; litigation; concentration of portfolio investment; and non-funding of Retirement Savings Accounts by employers.

The commission said the affected operators were subsequently advised to strengthen their mitigating measures to avert the identified risks.

The Acting Director-General, PenCom, Mrs. Chinelo Anohu-Amazu, said the commission had remained steadfast in the implementation of the CPS such that within about 10 years of existence, some modest achievements had been realised.

Foremost among such achievements, she said, was the consistent payment of retirement benefits to all employees who retired under the scheme since 2007 without the bottlenecks experienced in the past.

She observed that prior to the enactment of the PRA, pension administration in the country faced a myriad of problems.

The PenCom boss said that in the public sector which operated the Pay-As-You-Go scheme, some of the challenges encountered included lack of transparency in the administration of pensions which resulted in the accumulation of huge pension liabilities and inconsistent payment to retirees.

“The PRA which sought to address, in a holistic manner, the perennial problems associated with pensions in both the public and private sectors, established the CPS and created PenCom to regulate, supervise and ensure the effective administration of pension matters in Nigeria,” she said.

 

[Punch]