NATIONAL Pension Commission, PenCom is to would initiate processes to automate retirement benefits approval process to ensure retirees get their retirement benefits as and when due.

Director General of PenCom, Alhaji M.K. Ahmad in the commission’s 2010 Annual report, said PenCom would develop framework for auctioning annuity/ programme withdrawals as well as examine and propose Reserve/Intervention Fund to handle diminution in value of pension assets.

According to him, “In order to ensure a strong and competitive pension industry that would be driven by fit and proper persons, the Commission would raise paid-up capital requirement for licensed operators. In addition, the guidelines for qualification of top management staff of licensed operators would also be updated towards achieving this goal.

Already work is ongoing in developing and implementing framework for supervision of states and local governments as well as Standard Operating Procedures for corrective actions, withdrawal and suspension of licence, mergers and acquisitions and contingency plan.”

“In line with the objective of ensuring that retirees get their retirement benefits as and when due, the Commission would initiate processes to automate retirement benefits approval process, develop framework for auctioning annuity/ program withdrawals as well as examine and propose Reserve/Intervention Fund to handle diminution in value of pension assets.

All these would necessitate strengthening the internal operations of PenCom to enable it effectively and efficiently discharge its duties and attain world class standards. In this regard, the Commission would refine its structure in line with changing operational environment, ensure clarity in the definition of roles and responsibilities of its staff and pension operators as well as commence the automation of its processes and operations.”

The Director-General said “The pension industry has a promising future with the sustainable government support in creating the enabling environment for the industry to grow as well as continuous support of all stakeholders.

PenCom would maintain its risk-based philosophy in order to promote transparency, provide early warning signals and encourage pension operators to regularly self-evaluate their activities particularly the Commission would continue to be proactive in its regulatory and supervisory activities as well as leverage on the reforms in the banking and non-banking financial sector to promote growth of pension fund assets and ensure fair returns on pension fund investments.”

The Commission would leverage on the state-of-the-art information and communication technology to enhance its surveillance and supervisory activities on the industry. There is no doubt that the deployment of the Risk Management and Analysis System (RMAS) would enable PenCom obtain direct information on different activities of the Pension Fund Operators to ensure a safe and sound pension industry.

Similarly the Automatic Fingerprint Identification System (AFIS) would assist the Commission to identify multiple registrations using biometrics of the RSA holders. Finally, the Oracle E-business Suite application would also enhance the efficiency of the operations of the Commission. Arrangements had already commenced toward ensuring the completion and implementation of these applications in 2011.