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.
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:
- Supervision and regulation of the scheme which the government established under the act
- Issuing guidelines for the investment of pension funds
- Licensing, approving, supervising, and regulating fund administrators and institutions related to pension matters
- Establishing rules, guidelines, and standards for managing the pension funds
- Carrying out the maintenance of a national data bank on pension-related matters
- Encouraging capacity building and the strengthening of pension fund custodians and administrators
- Accepting and investigating complaints against fund administrators, employers, custodians, or staff
- 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:
- Ensure that every staff in the public, private, and federal capital territory receives his retirements benefits when due
- Assist individuals by ensuring they save enough to carter for their old age
- 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:
- Ensure that every staff of the public, private and FCT sector receives his or her retirement benefits as at when due
- Assist improvident individuals to save up for their livelihood during old age
- 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
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/
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.
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