Pension

PenCom, NAICOM meet this week to resolve delay on annuity approval

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Chuks Udo Okonta

The National Pension Commission (PenCom) and National Insurance Commission (NAICOM) would meet this week to resolve issues responsible for delay in approval of annuity, Inspen has learnt.

It was gathered that the meeting would bring both regulators on the page and also pave way for a joint guideline that would regulate the operations of annuity.

The delay in the approval of annuity in recent times, remains a concern for insurance operators and retirees who are only left with programmed withdrawal option.

Inspen gathered that one of the contending issues in the administration of annuity, presently is the payment of commission to brokers and agents.

For PenCom, commission should never be charged on annuity as such was not provided in the Pension Act.

This medium gathered that the payment of commissions to brokers and agents remains an area insurers really want NAICOM and PenCom to carefully consider.

According to the Managing Director/ Chief Executive Officer, AIICO Insurance Plc, Edwin Igbiti, the issue of commission should be properly settled. He noted that since PenCom has directed that annuity fund should be domiciled with Pension Fund Administrators (PFCs) who will also benefit from the fund, the issue on payment of commissions to intermediaries should be in clear terms without an ambiguity.

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