News Column

PFAS Must Enlighten Workers On Pension, Financial Matters - PENCOM

June 17, 2014

Sola Alabadan



The Pension Fund Administrators (PFAs) has a duty to keep enlightening Retirement Savings Account (RSA) holders and the retirees on pension and financial matters, the National Pension Commission (PenCom) has asserted.

Speaking at a workshop organised by the commission for retirees and retiring employees in Lagos recently, Head, PenCom'sBenefits and Insurance Department, Lana Loyinmi, said it has been observed that one of the challenges facing the contributory pension scheme in Nigeria is "inadequate communication enlightenment of RSA holders/retirees by PFAs".

He listed the rights of contributors under the scheme to include continuous enlightenment on pension and financial matters by the PFAs, transfer RSA before/ after retirement from one PFA to another when the window opens, negotiate/change mode of withdrawal of pension benefits, e.g from programmed withdrawal to annuity, as well as provide quotation/provisional agreement from a life insurance company to the PFA for the purchase of annuity and receive periodic statement of account from the PFA, by hard copy or e-mail.

He pointed out, however, that the regulation does not allow change from annuity back to programmed withdrawal at present.

PenCom further posited that the roles of PFAs to retirees include enlightening the retiree on the features of the Programmed Withdrawal and Annuity, filing request with the pension regulatory body for any retiree changing from annuity, issuing payment instruction to PFC for periodic withdrawal, re-issuing standing order every 12 months and instructing PFC to effect payment of annuity premium to insurance company.

In case any pension contributor dies or is declared missing, the PFAs are also required to confirm the identity of Next of Kin (NOK) of deceased, and advise NOK to provide the following documentations: valid letter of administration or will admitted to probate (basic) and certificate of death/cause of death or certificate of registration of death or police report (if death is by accident) or burial warrant issued by a local government council or evidence of death/burial issued by religious leader.

On the duties of retirees, PenCom stated that they are required to provide contact address after retirement, provide other documents required by the PFA, introduce the NOK to PFA before/after retirement, provide details of bank account for receiving retirement benefits, receive pension as and when due by direct payment to their bank account and also to write/ update a will with named administrator.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: AllAfrica


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters