On his the
A working document of the
"The Pension Reform Act 2014 has consolidated earlier amendments to the 2004 Act, which were passed by the
Furthermore, the 2014 Act has incorporated the Third Alteration Act, which amended the 1999 Constitution by vesting jurisdiction on pension matters in the National Industrial Court.
"Operators who mismanage pension fund will be liable on conviction to not less than 10 years imprisonment or fine of an amount equal to three-times the amount so misappropriated or diverted or both imprisonment and fine" the document read.
The new law repeals that of 2004, as sanctions under the old law were considered no longer sufficient deterrents against infractions of the law.
"Furthermore, there are currently more sophisticated mode of diversion of pension assets, such as diversion and/or non-disclosure of interests and commissions accruable to pension fund assets, which were not addressed by the PRA 2004. Consequently, the Pension Reform Act 2014 has created new offences and provided for stiffer penalties that will serve as deterrence against mismanagement or diversion of pension funds assets under any guise," the document read.
The 2014 Act also empowers
The Act also empowers
It also makes provisions for the repositioning of the
It makes provisions that will enable the creation of additional permissible investment instruments to accommodate initiatives for national development, such as investment in the real sector, including infrastructure and real estate development. This is provided without compromising the paramount principle of ensuring the safety of pension fund assets.
The Act also expanded the coverage of the Contributory Pension Scheme, CPS, in the private sector organizations with three employees and above, in line with the drive towards informal sector participation.
The 2014 Pension Reform Act reviewed upwards, the minimum rate of Pension Contribution from 15 per cent to 18 per cent of monthly emolument, where 8 per cent will be contributed by employee and 10 per cent by the employer.
"This will provide additional benefits to workers' Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement".
In the event of loss of jobs, the new Act reduces the waiting period for accessing benefits from six months to four months. This is done in order to identify with the yearning of contributors and labour.
The Pension Reform Act 2014 makes provision that would compel an employer to open a Temporary Retirement Savings Account, TRSA, on behalf of an employee that failed to open an RSA within three months of assumption of duty. This was not required under 2004 Act.
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