By VICTOR AHIUMA-YOUNG

NATIONAL Pension Commission, PenCom, has unfolded the commission’s plans for sustainable pension industry in the country.

Speaking at a recent workshop in Enugu, Director-General of PenCom, Mr M. K Ahmad, recalled some of the achievements of the commission since inception and noted that as it consolidates on its achievements in the implementation of the pension reform in 2012, a number of initiatives would be introduced.

Represented by represented by the Commissioner Administration of the Commission, Mr. M. T. Mamman, Mr. Ahmad said, “the Retirement Savings Account (RSA) transfer mechanism would be made operational as the framework is currently being reviewed by the industry. To provide RSA holders with choices of investments, a Multiple Fund structure would be introduced subject to specific guidelines by the end of the second quarter of next year.

Additional disclosure requirements would be required of operators to promote further transparency and accountability in the industry. The Risk Management and Analysis System which is the core supervisory application would be finalised and would greatly improve the efficiency and effectiveness of the Commission.”

“As we also move forward with the pension reform, we should not lose sight of the fact that there may be challenges and attempts to undermine the system. It is therefore the duty of all of us as RSA holders and relevant stakeholders to ensure that the scheme is not only protected but also nurtured to sustainable and enduring system which we would be proud to bequeath to next generations yet unborn.”

According to him, “The industry has continued to record modest achievements as 4.92 million Nigerians had registered on the Scheme as at November this year. There are currently about 40,794 retirees from the public and private sectors under the Contributory Pension Scheme who are collecting their monthly pensions either by programmed withdrawal or annuity. They have collected over N 115.6 Billion as lump sum at the point of retirement and are collecting about N 1.284 billion as monthly pension. Additionally, assets worth N2.4 trillion have been accumulated as at November, 2011.

As part of our consolidation efforts during the year under review, the Commission raised the capital requirements for PFAs from N150m to N1 Billion, of which the deadline is June 2012. We have aggressively intensified our compliance mechanism by taking legal action against defaulting employers. The Bureau of Public Procurement (BPP) has continued to support the Industry by ensuring that service providers to the Federal government comply with the BPP Act with regards to the Pension reform Act 2004.”

It will be recalled in a communiqué at the end of the workshop, the commission disclosed that participants it had adopted various “strategies to ensure compliance which include public enlightenment, Media Publicity Campaigns, Collaboration with other Regulatory and Professional Bodies, Engagement of Consultants, Disclosure requirements, Issuance of one year compliance certificates to companies who have complied with the scheme from January 2012, financial literacy and enforcement.

The compliance certificates would be issued to organizations bidding for contracts with MDAs effective January 2012. Therefore organizations requesting for compliance must provide comprehensive evidence of compliance up to 31 December 2011.”

The participants noted the delay and inaccurate remittances of monthly contributions into public sector employees’ RSAs due largely to the failure of MDAs to submit updated nominal rolls to PenCom and urged the Government to compel MDAs to submit updated nominal rolls annually to the Commission.