THE NATIONAL PENSION COMMISSION AND ITS FUNCTIONS UNDER THE PENSION REFORM ACT, 2014

 INTRODUCTION

The Pension Reform Act (PRA), 2014 which established the Contributory Pension Scheme (CPS) provides that the CPS should be privately managed and ‘exponentially’ transparent. To this end, the Act made provision for specific institutions that will manage the Scheme. Principal among the institutions is The National Pension Commission (PenCom), established under Section 17 of the Act. PenCom has its headquarters in Abuja and its zonal offices in the five geopolitical zones of the federation-North-West  (kano State); South-South (Cross River State); South-West (Lagos State); North-East (Gombe State); North-Central (Kwara State) and South-East (Anambra State). PenCom was established by the PRA to do the following and more: 

OBJECTIVES/POWERS/FUNCTIONS/DUTIES/RESPONSIBILITIES OF PENCOM

✓ It enforces and administers the provisions of the Act

✓ It issues regulations, circulars and guidelines to PFAs, PFCs and CPFAs, that is Pension Fund Administrators, Pension Fund Custodians and Closed Pension Fund Administrators respectively.

✓ It regulates, supervises and ensures the effective administration of pension matters and retirement benefits in Nigeria.

✓ It establishes standards, rules and regulations for the management of the pension funds under the Act.

✓ It investigates any pension fund administrator, custodian or other party involved in the management of the pension funds.

✓ It imposes administrative sanctions or fines on erring employers or pension fund administrators or custodians.

✓ It co-ordinates and enforces all other laws on pension and retirement benefits.

✓ It issues licences to Pension Fund Administrators and Custodians as well as regulates their activities.

✓ It formulates, directs and oversees the overall policy guidelines on pension matters in Nigeria.

✓ It regulates and supervises the Nigerian Pension Industry to ensure that retirement benefits are paid promptly and as and when due.

✓ It oversees the regulation and supervision of the Contributory pension Scheme established under the Act.

✓ It processes applications and issues certificate of compliance to companies and employers who have complied with the provisions of the Act on the established Contributory Pension Scheme.

✓ It imposes penalties on companies that fail to remit deductions as stipulated by the Act or that default in complying with the provisions of the Act.

✓ Where there is an established misappropriation of pension funds, it removes from office, any Director or Officer of the Pension Fund Administrator (PFA) or Pension Fund Custodian (PFC) who misappropriates the funds.

✓ It takes and processes complaints from RSA holders or beneficiaries who have any problem with their PFA or employer.