Continues from  last week

m)  Letters of Administration (S. 8(4) of the Bill): The exclusive jurisdiction of the National Industrial Court (NIC) to issue Letters of Administration for payment of retirement benefits may result in multiplicity of Letters of Administration in respect of the estate of one deceased person. It is therefore recommended for deletion.

n)     Charge on the Consolidated Revenue Fund (S. 12 of the Bill): The pension contribution of FGN employees is proposed to be a charge on the Consolidated Revenue Fund of the Federation. This is recommended for deletion because it may be contrary to S.80(2) of the 1999 Constitution (as amended).

o)     Disclosure of personal shareholding (S. 19(6) of the Bill): The requirement for disclosure of personal shareholding of Board members as well as their family members or close associates in any PFA or PFCs is recommended for deletion in view of the existing provision that Board members and their related persons should not have financial, equity or other interest in any PFA/PFC.

Outsourcing of functions

p)Delegation of powers (S. 24 of the Bill): Delegation of any of the Commission’s powers under the Act to anybody corporate or person who is not an officer or employee of the Commission is recommended for deletion as it is liable to be abused by way of outsourcing all the functions of the Commission.

q) Pension Transitional Arrangements Department (S. 45(1)(iii) of the Bill): The FGN and FCT Pension Transitional Arrangements Departments are to issue payment instructions to the Office of the Accountant General of the Federation, subject to clearance from the Commission. We recommend that the Commission, as regulators, should not be involved in operational issues of the Departments.

r)Existing private sector pension schemes (S. 50(3) of the Bill): The provision on submission of statement of affairs by all pension schemes existing before the commencement of the PRA 2004 is recommended for deletion because it was only relevant at the beginning of the pension reform.

s) Life insurance companies (S. 60(4) of the Bill): The provision on licensing of life insurance companies as PFAs is recommended for deletion since clear provisions have been made for licensing of PFAs under S. 60(1) & (2) of the Bill.

t) Payment of Court fines (S. 99(4) of the Bill): The provision is recommended for deletion because fines imposed by the courts are usually remitted to the Consolidated Revenue Fund and pursuant to section 80(2) of the 1999 Constitution (as amended).

u) Notifications (S.114(2) of the Bill): The provision on requirement for notification of the employee or the employer whenever information is provided to another institution is recommended for deletion because it would discourage information sharing among regulatory agencies.

4-0 Conclusion

4.1             Distinguished Senators and Honourable Members of the House of Representatives, the Commission tried to show in this memorandum the genesis of the exercise for the review of the PRA 2004. Having implemented the Act for eight years, it has become clear to all stakeholders in the pension industry that there is a need for a review of its provisions in order to take the reform to the next level.

4.2             Indeed the National Assembly is a critical stakeholder in the pension reform process which seeks to consolidate the gains of the Contributory Pension Scheme and sanitize the administration of pensions under the Define Benefits Schemes.

Consistent with this resolve, the National Assembly is requested to accept the proposal in the PRA 2013 and recommend its passage to enhance the legal and institutional frameworks for the administration of pension in Nigeria.

Concluded