National Pension Commission (PenCom) has announced that up to 20 Pension Fund Administrators (PFAs) were able to meet the April 27 deadline for a Minimum Regulatory Capital (shareholders’ fund) from N1 billion to N5 billion.
This was disclosed by PenCom in a statement on Friday, after PenCom approved recapitalisation for PFAs, with a 12-month transition from April 27, 2021, to April 27, 2022.
During the start of the year, PenCom had issued certificates of compliance to 207 organizations.
What they are saying
The Commission revealed that assets had grown by 244 per cent from N3 trillion in 2012 (when the previous recapitalisation was done), to N12.29 trillion (as at Dec. 31, 2020), adding that sustained growth in assets signifies increased responsibilities that require more operational capacity by the PFAs.
- It stated, “10 PFAs had met the new regulatory capital requirement of N5 billion as at Dec. 31, 2021, while the others intensified efforts to meet the April 27, 2022 deadline” citing that the exercise resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20.
- PenCom said “The commission approved the acquisition of AIICO Pension Managers Ltd. by FCMB Pensions Ltd. and the merger between Tangerine Pensions Ltd. and APT Pension Funds Managers Ltd.
- “It also approved a subsequent change of name of the merged entities to Tangerine APT Pensions Limited.
- “In addition, the commission approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Ltd. after its acquisition of majority shareholding.
It added that the with the end of the recapitalization scheme, stakeholders, particularly Retirement Savings Accounts holders should expect increased effectiveness and efficiency as well as improved service delivery from PFAs,
The operation of pension administrative system in Nigeria is still not favorable to the contributors as pensioners find it uneasy to have access to their funds. There is need to operate PFAs in connection to the beneficiaries BVN such that they can easily withdraw their money from their designated bank accounts and as well should have a card inform of ATM to be able to get some part of their contributions in an event of emergency.
It will be easy to achieve this process with the deployment of technology such that individual accounts with PFAs can be linked to his or her designated bank account via BVN. This can reduce fraud and reduce the stress of long periods of verification and as well enhance efficiency and effectiveness.
Who exactly is the owner of money in the RSA accounts, retirees or the administrators ?
what does it profit a retiree to ha 10m in his RSA but unable to settle family bills?