PenCom Uncovers Unremitted Pensions, Service Shortcomings in Operator Audits
By Patience Ikpeme
The National Pension Commission (PenCom) has identified areas needing improvement within the Nigerian pension system.
This is coming from a new report which exposed findings from on-site examinations conducted by the Commission at 18 Licensed Pension Operators (LPFOs) last September.
While the Commission found that the LPFOs’ activities “were relatively in accordance with regulations,” there were some concerning lapses.
The examinations “covered six significant areas: pension assets management, fund accounting and valuation, pension administration, benefits administration, information and communication technology and customer support services.”
According to the report, “some observed lapses with regards to huge un-credited contributions, service delivery and maintenance of contributors’ records, were highlighted during the examination and are being addressed by the operators.”
The report underscored the importance of ensuring that pension contributions are properly credited to individual accounts. Delays or missing contributions can significantly impact Nigerians’ retirement savings.
The PenCom report also noted concerns regarding service delivery and recordkeeping by some LPFOs. Timely and accurate service is essential for ensuring that Nigerians have easy access to information about their pension plans and can efficiently manage their retirement savings.
PenCom did not disclose the identities of the specific LPFOs with these shortcomings. However, the report serves as a warning to all pension operators to prioritize efficient service delivery, accurate recordkeeping, and the timely crediting of contributions.
The report also details PenCom’s oversight activities regarding the Pension Transitional Arrangement Directorate (PTAD) and the Nigeria Social Insurance Trust Fund (NSITF). The Commission works to ensure the smooth operation of these entities and addresses any concerns ra
ised by pensioners.
