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Chuks Udo Okonta
The move by the National Pension Commission (PenCom) that annuity funds in the hands of life insurance companies should be domiciled with the Pension Fund Custodians (PFCs) has been proven to be a smart decision providing safety for retirees under retiree life annuity.
Though the policy was almost resisted by some parties, PenCom insisted and had its way, and life insurance companies were mandated to open accounts with PFCs, paving the way for the transfer of annuity funds to PFCs accounts.
Recent events, where annuitants with an insurance company have to stay five months without monthly annuity pension benefits and the payment of annuitants of defunct Niger Insurance, have showed what would have happened to annuitants if the fund was not transferred to pension fund custodians.
Concerned stakeholders have implored pension and insurance regulators – National Pension Commission and National Insurance Commission to be more proactive in regulating the entities under their control, so as to prevent issues that would cause harm to customers of the regulated companies.
They also called on the regulators to urgently resolve the issues affecting the insurance company, and ensure annuitants and other retirees get their monthly benefits as at when due.
