The National Pension Commission has plan to create and maintain a pension protection fund which will benefits retirees registered with any of the pension schemes established, approved and recognised by the Pension Reform Act, 2014, investigation has revealed.
According to PenCom, the fund would be used to guarantee the minimum monthly pension stipends that retirees would be getting, just the way workers in public and private sectors were enjoying the minimum wage. Part of the funds for the minimum guaranteed pension will be generated through an annual subvention of one per cent of the total monthly wage bill payable to employees in the public service of the federation.
It will also be funded from the yearly pension protection charge paid by the commission and all licensed pension operators at a rate to be determined by PenCom from time to time.
An official of PenCom reported that the commission would utilise the pension security fund for the minimum guaranteed pension for all Retirement Savings Account holders who had done business with a licensed Pension Fund Administrator for a minimum number of years to be specified by the commission. The fund would also be used for the payment of compensation to qualified pensioners for shortfall of monetary losses arising from investment activities.
The Commission is to make regulations to oversee the operations of the pension protection fund, fund management and custody, set eligibility criteria and related matters.