Director General, PenCom, Mrs. Aisha Dahir-Umar
Leave a comment and share
Chuks Udo Okonta
The National Pension Commission (PenCom) said it increased the shareholders’ fund of Pension Fund Administrators (PFAs) from N1bn to N5 billion so as to boost their capacity in terms of operational efficiency and service delivery.
PenCom stated this in a circular entitled: Revised Minimum Share Requirement for Licensed Pension Fund Administrators (PFAs), dated April 29, 2021 and sent to managing directors/chief executive officers of all licensed pension fund operators.
“The increase in the minimum regulatory capital is necessitated by the need to improve the capacity of PFAs, in terms of operational efficiency and effectiveness as well as service delivery,” PenCom stated.
The pension sector regulator noted that its board also approved a 12-month transition period, effective April 27, 2021, within which PFAs are to meet the new minimum capital.
“The board of the commission at its 48th meeting on April 27, 2021 approved the increase of the minimum regulatory capital (shareholders’ fund) requirement for PFAs from the current N1billion to N5 billion, unimpaired losses,” it said.
Director, Centre for Pension Rights Advocacy, Ivor Takor, mni Esq, said the new capital base is in order, whilst expressing optimism that the PFAs would be able to meet the expected fund.