LASPEC boss proffers solution to annuity feud

From left: Director-General Lagos State Pension Commission, Folashade Onanuga, Chairman House Committee on Establishments, Training and Pensions, Adedayo Famakenwa; Commissioner Establishments, Training and Pensions Lagos State, Dr. Benson Akintola and Acting Head of Service, Lagos State, Folasade Adesoye at an event in Lagos.

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Chuks Udo Okonta

The Director-General, Lagos State Pension Commission (LASPEC) Folashade Onanuga, has said the transfer of annuity assets to Pension Fund Custodians (PFCs) would ensure proper safe valve for the funds.

She also believes the management of the assets, should remains sorely with life insurers, due to risk factors associated with the business.

Onanuga, who spoke with Journalists in Lagos, stated that since annuity business entails underwriting risks, it should be fully domiciled in insurance companies, stressing that annuity operations is quite different from pension contributions, which has no risk elements.

She advised the National Pension Commission(PenCom) and her counterpart, National Insurance Commission (NAICOM) to quickly find a common ground in resolving the issues raised by the life insurers as well as pension operators, to find an amicable solution that will benefit all stakeholders.
Her commission, she said, had complied with the directive, stressing that retirees have the liberty to return to annuity after the three months mandate given by PenCom.

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