In order to reposition the pension sector for better efficiency perfomance, the National Pension Commission (PenCom)has released the Revised Regulation on the Administration of Retirement and Terminal Benefits.
According to the released dated back to March 18, 2022, stated that the objective of the Regulation is to establish a uniform set of rules, procedures and standards to be adopted by Pension Fund Operators for the administration of retirement and terminal benefits under the Contributory Pension Scheme (CPS).
In that report it was disclosed that the Regulation PenCom listed the sanctions for PFAs that delay pension payment to RSA holders.
Part of the report ready: Where a PFA delays the submission of a request for the payment of benefits by a retiree/beneficiary(ies) to PenCom for approval for more than 10 working days from the date of submission of relevant documents, the PFA shall pay an administrative sanction of N200,000.00 and N20,000.00 for every further day of delay thereafter.
“Where a PFA delays payment of retirement benefits for up to 5 working days after receipt of no-objection from PenCom, the PFA shall pay an administrative sanction of N200,000.00 and N20,000.00 for every day of delay thereafter.
Also, where a PFA fails, neglects or refuses to enlighten the retiree on the features of PW and RLA to enable the retiree make an informed decision, the PFA shall be liable for an administrative sanction of N500,000.00.
Furthermore, a PFA and/or PFC that pays retirement benefits without PenCom’s prior no-objection approval shall pay an administrative sanction of N1,000,000.00. This is in addition to refunding either the principal amount so paid or lost investment income thereof, whichever is higher.
A PFA that pays an amount in excess of that specified on the no-objection approval granted by PenCom shall be liable to refund the amount overpaid and investment income lost arising from the transaction, except where the difference is a residual amount or as a result of return on investment, the report stressed..
“Any PFA that pays an amount lower than that specified on the no-objection approval granted by PenCom, shall, in addition to paying the differential to the retiree, pay an administrative sanction of N500,000.00.
And also, any PFA that negligently submits to PenCom, a request with incorrect information that is likely to result to accelerated depletion of the RSA balance of a retiree, shall pay an administrative sanction of N500,000.00. In addition, the PFA shall refund to the RSA both the amount that was overpaid and the lost investment income.
“Any operator that negligently submits to PenCom, a request with incorrect information and later request the permission of the Commission to resubmit the request, shall pay an administrative sanction of N100,000.00 per RSA.
“Any violation of any provision of this Regulation for which no sanction has been prescribed shall attract an administrative sanction of not more than N2,000,000.00.
Apex regulator made it clear that all sanctions in this Regulation shall be charged to the Operator’s Profit and Loss account and the burden shall not be transferred to the employees of the Operators. Any violation of this provision shall attract an administrative sanction of five times the initial sanction amount, it added..
“The highest sanction amount in this Regulation is N2,000,000.00, where a PFA transfers burden of the sanction to its employee, PenCom will sanction such PFA 10 times the amount, which is N10 Million”
