Pension

PenCom, NAICOM meeting on annuity in process

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Chuks Udo Okonta

Top management of the National Pension Commission (PenCom) and National Insurance Commission (NAICOM) are presently in a meeting to resolved issues inhibiting the approval of annuity.

Inspen gathered that the meeting which is purely administrative, would pave way for the regulators to clear all concerns and set new template for the administration of annuity.

Our source noted that the outcome of the meeting will be tabled separately before the leadership of NAICOM and PenCom, for them to critically examine the terms and made input before a final resolution would be reached.

A source from the insurance side, told this medium that the main issue which is the payment of commission to intermediaries would be vigorously be pushed forward in the meeting.

Recall in the that PenCom and NAICOM in the month of March this year, attempted to resolved the annuity impasse by agreeing to allow life insurance companies to open operational accounts with Pension Fund Custodians (PFCs) of their choice.

The regulators in a joint circular made available to Inspenonline, said they are currently reviewing the regulation on retiree life annuity, which will be jointly released to the public in compliance with the PRA 2014 within 3 months of this notice.

The parties also agreed to allowed all new annuity purchased or being processed to be domiciled in the dedicated account with the PFC, while the treatment of all existing retiree life annuity funds and assets, should be dealt with upon issuance of the forthcoming joint regulation.

NAICOM was enjoined to ensure that Life Insurance companies comply with the requirements, while the processing and approvals of new retiree life annuity requests shall continue forthwith.

Pension Fund Administrators (PFAs) were asked to resume the processing of new annuity requests for retirees and forward same to PenCom for necessary approval without delay, and PenCom was asked to ensure that PFAs transfer all approved premium for Retiree Life Annuity to the Operational Accounts opened by the Life Insurance Companies with PFCs.

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