Pension

PenCom to hammer PFAs for wrong payment of death benefits

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Chuks Udo Okonta

Pension Fund Administrators (PFAs) will henceforth be liable and pay from their statutory reserve fund in the event of payment of death benefits to wrong beneficiaries, the National Pension Commission (PenCom) has warned.

PenCom stated this in a circular entitled: ‘Addendum to the Circular on Reversed Procedures on the Processing of Death Benefits’ dated October 4, 2019 and signed by its Head, surveillance Department, Ehimeme Ohioma.

The commission noted that the circular was issued to address certain challenges encountered by PFAs in the cause of implementing the procedures stipulated in the circular on Revised Procedures on the Processing of Death Benefits issued on October 3, 2018.

The pension industry regulator also mandated PFAs to collect details information of nominated parent/guardian of a minor beneficiary and request beneficiaries to submit National Identification Number (NIN) slip/card or any valid means of identification other than voters card.

PFAs were also charged to play the role. Of a mediator in the event that they received two letter of administration or court orders from two named beneficiaries.

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