• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

GetInsurance

  • General Insurance
  • Car Insurance
  • Health Insurance
  • Life Insurance
  • Travel Insurance
  • Reviews
  • Others
    • Business Insurance
    • Agents & Brokers
    • Home & Properties
  • Apply for Insurance
You are here: Home / Others / PENCOM (National Pension Commission) – What you should know

PENCOM (National Pension Commission) – What you should know

August 5, 2021 by Get Insurance Today

The National Pension Commission (PenCom) is the premier body in charge of regulation, supervising, and ensuring the effective administration of pension in Nigeria. With PenCom, every employee in both the public and private sector now has an effective way of saving for their retirement with a guarantee. Also, PenCom is governed by the Pension Reform Act 2004 and the subsequent act in 2014. This article discusses everything you need to know about the National Pension Commission.

National Pension Commission
National Pension Commission

Historical background of PENCOM

Before the enactment of the pension reform act 2004, pension schemes and savings in Nigeria was plagued with several problems. Basically, the civil service operated an unfunded and defined scheme that meant the government included retirement benefits of workers among budget allocations.

However, even with this, there were still several cases of untimely release of funds or outright misappropriation. Therefore, this led to the new act in 2004, and PenCom rising to the management challenge.

Ten years after the first act, the government signed the pension reform act 2014 into law to resolve implementation challenges. Also, they made new provisions to strengthen PenCom’s power to resolve challenges and including penalties for defaulters.

Basically, the PAR 2014 was to address the pension of political offices and professors and also allowing individuals to make equity contributions to own a property through their funds.

What are the functions of the PENCOM?

According to law, the functions of PenCom include:

  1. Supervision and regulation of the scheme which the government established under the act
  2. Issuing guidelines for the investment of pension funds
  3. Licensing, approving, supervising, and regulating fund administrators and institutions related to pension matters
  4. Establishing rules, guidelines, and standards for managing the pension funds
  5. Carrying out the maintenance of a national data bank on pension-related matters
  6. Encouraging capacity building and the strengthening of pension fund custodians and administrators
  7. Accepting and investigating complaints against fund administrators, employers, custodians, or staff
  8. Carrying out other duties in the commission that are necessary for performing its functions under the Act

The pension act of 2004

The objectives of this act are to:

  1. Ensure that every staff in the public, private, and federal capital territory receives his retirements benefits when due
  2. Assist individuals by ensuring they save enough to carter for their old age
  3. Establish rules, regulations, and standards for the administration and payment of retirement benefits for workers across all sectors of the nation

The pension act of 2004 amended

The pension act of 2004 amended states that:

“There shall be established for any employment in the Federal Republic of Nigeria, a Contributory Pension Scheme (in this Act referred to as “the Scheme”) for payment of retirement benefits of employees to whom the Scheme applies under this Act.”

The pension act of 2014

The objectives of this scheme are to:

  1. Ensure that every staff of the public, private and FCT sector receives his or her retirement benefits as at when due
  2. Assist improvident individuals to save up for their livelihood during old age
  3. Establish a uniform set of standards, rules, and regulations for administering and making payments of retirement benefits for workers across all sectors

The act of 2014 differs from 2004 because it enforces compulsory pension scheme with penalties for defaulters, as well as providing PenCom with more authority for regulation.

How can I contact PenCom?

You can get in touch through any of the following mediums:

Head quarters office address: 174 Adetokunbo Ademola Crescent, Wuse 2, Abuja, Nigeria

Email: info@pencom.gov.ng

Phone: 0700-CALLPENCOM (0700-225 -573-6266) +234 9460 3930

You can also use the get in touch dialog box on their official website through the following link https://www.pencom.gov.ng/contact-us/

Conclusion

PenCom remains the body in charge of the administration and management of pensions in Nigeria. Basically, they exist to ensure and enforce order and are within the law to punish defaulters. This has benefited Nigerians in so many ways, especially with the new scheme that has solved the delays in pension payment and reduction of corruption.

Need a loan? Visit this platform that allows you to compare loans from different lenders in minutes, allowing you to select the best and most favourable for you.

Related Posts:

  • PenCom – Everything you need to know
  • Pension companies in Nigeria: Top 10 Of The Very Best
  • Business Ideas in Nigeria- Top 36 that'll Make You Money
  • AWABAH - How to register for the micro pension scheme In 3…
  • Tangerine Pensions Limited – Everything you need to know
  • Premium Pensions - All you should know

Filed Under: Others

Primary Sidebar

NIId Insurance Verification

NIId Insurance Verification – Everything You Need TO Know

It is no news that motor insurance is compulsory … Read More about NIId Insurance Verification – Everything You Need TO Know

What Is Insurance Market

What Is Insurance Market?

The topic of insurance is a broad one that has got … Read More about What Is Insurance Market?

How Much Life Insurance Should I Buy?

How Much Life Insurance Should I Buy?

It is common for people to ask the question, “How … Read More about How Much Life Insurance Should I Buy?

Best Travel Agency In Nigeria

Best Travel Agency In Nigeria

The recent unfortunate happenings in Nigeria have … Read More about Best Travel Agency In Nigeria

Archives

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Related Posts:

  • PenCom – Everything you need to know
  • Pension companies in Nigeria: Top 10 Of The Very Best
  • Business Ideas in Nigeria- Top 36 that'll Make You Money
  • AWABAH - How to register for the micro pension scheme In 3…
  • Tangerine Pensions Limited – Everything you need to know
  • Premium Pensions - All you should know

Footer

  • About GetInsurance
  • Contact Us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2022 Get Insurance. All Rights Reserved.