PenCom Updates Public On Reforms, Warns Against Scammers
The National Pension Commission (PenCom) has restated the commission’s commitment to running a smooth and transparent management of pension contributions made by both employees and retirees into the Retirement Savings Account (RSA).
PenCom said its series of reforms which include a robust legal and institutional framework, ensure that the interest of pension contributors are well protected in the payment of retirement benefits as they enforce compliance with the provisions of the Pension Reform Act (PRC) 2014.
The Commission retreated this in a press release issued by its management on Friday.
“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 conduct Defined Benefits Scheme.
“Section 7 of the Pension Reform Act 2014 and the Regulations on the Administration of Retirement and 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, payment of the 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 event that a retiree does not have accrued rights, the retirement benefits are based on monthly contributions and returns on investment”.
PenCom said, “in the performance of its statutory mandate, the Commission issues Compliance Certificate to organisations wishing to bid for contracts with Federal Government institutions, pursuant to the requirement of the Public Procurement Act 2007.”
The Commission further said from time to time, it equally engages vendors and service providers just as it does with all institutions.
To further reassure pension contributors that they are in safe hands, PenCom said, “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.”
The Commision also clarified that neither its management nor member of staff receives “money or other forms of gratification to facilitate payment of retirement benefits, insurance of Compliance of Certificates and engagement of vendors and service providers. The Commission does not also give/accept kickbacks to/from any individual or organisation in the discharge of its responsibilities.”
It further warned pensioners and pension contributors to be wary of scammers who may want to swindle them out of their hard earned money by promising to help them facilitate payment of retirement benefits, insurance Compliance Certificates or engagement as a vendor or service provider. The Commision urged the public to report suspected fraudulent practices by anyone or organisation to its management through: [email protected] and [email protected]