Country profiles

Nigeria

Country profiles

Nigeria

Complementary pensions (Mandatory)

Updated: 31 December 2018

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2014: the Pension Reform Act 2014 was enacted, which repealed the Pension Reform Act of 2004.

2004: The Pension Reform Act 2004 (PRA 2004); establishes the Contributory Pension Scheme for both private and public sector employees in Nigeria; establishes the National Pension Commission (PenCom) as the sole regulator and supervisor of the scheme; abolishes the Pension Act of 1990, the Police and Other Agencies Pensions Offices Act of 1993 and the Police Pension Rights of Inspector-General of Police Act of 1993; and replaces the non-contributory and the PAYG schemes in the public sector, the National Social Insurance Trust Fund (NSITF) and voluntary employer-sponsored retirement plans.

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Employees in the public service of the Federation, the Federal Capital Territory (FCT) and private sector employers with three or more employees must become members of the Contributory Pension Scheme (CPS) and maintain an individual Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA) of their choice. The private sector employers with less than three employees as well as self-employed are eligible to participate in the scheme in accordance with guidelines issued by the Regulatory Authority, (PenCom).

The CPS is a centrally-run fully funded defined contribution scheme in which assets are held in individual accounts. Employers do not play any role in the management of the scheme, however, they have the responsibility to deduct and remit both employer and employee portions of pension contributions into the RSAs of employees.

Employees are free to choose a PFA independently of their employer. Employees must notify their employers of the PFA chosen and furnish his/her employer with the Personal Identification Number (PIN) for eventual remittance into the individual account.

All CPS members may make voluntary contributions to their individual accounts. Voluntary contributions are also permitted in respect of members not covered by the CPS.

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Contributory Pension Scheme: Licensed Pension Fund Administrators (PFAs) manage the employer and employee contributions held in individual Retirement Savings Accounts.

Any organization wishing to be licensed by the PenCom to carry on the business of a PFA must:

- be a duly incorporated limited liability company in Nigeria under the Companies and Allied Matters Act;
- have a minimum paid-up capital of NGN 1 billion;
- not engage in any business other than the management of pension funds;
- not have compounded its debt or failed to honour its obligations;
- have the professional and technical capacity to manage pension funds and administer retirement benefits; and
- possess appropriate information and communication technology to adequately cater for online real-time;
- transactions in addition to keeping proper accounting records.

Proof of all the above-mentioned must be sent to the PenCom together with, inter alia:

- a non-refundable application fee of NGN 500,000;
- an attestation that the applicant or its subscribers, proposed directors or officers have never mismanaged, either fully or partially, any fund;
- a draft copy of the Memorandum and Articles of Association of the applicant company;
- a feasibility report and/or business plan;
- five-year financial projections including balance sheet, profit and loss account and cash flow; and
- the structure of the proposed board and senior management, committees and internal control systems.

PFAs carry out the following main functions:

- open individual account for all members and issue a PIN;
- manage pension funds' assets;
- maintain books of account on all transactions relating to pension fund assets managed by it;
- provide regular information on investment strategy, market returns and other performance indicators of the investment accounts to PenCom, members and beneficiaries;
- provide customer service support to members, including access to members' account balances and statements as stipulated by regulations and on demand; and
- calculate and pay benefits.

Pension Fund Custodians (PFCs) are mandated to keep custody of pension funds and assets. PFCs also collect contributions on behalf of PFAs.

Any organization wishing to be licensed by the PenCom to conduct the business of a PFC must:

- be a duly incorporated limited liability company in Nigeria under the Companies and Allied Matters Act;
- have a minimum paid up capital of NGN 2 billion;
- be set up with the sole purpose of carrying out the business of a PFC;
- be wholly/jointly owned by licensed financial institutions with a minimum net worth of NGN 25 billion unimpaired by losses or as may be prescribed from time to time;
- have (or its parent company/companies has/have) a combined total balance sheet of at least NGN 125 billion;
- be capable of providing a guarantee to the full sum and value of pension fund assets held or to be held by it;
- have the professional and technical capacity to provide custodial services;
- have never been custodian of any fund which was mismanaged or has been in distress due to any fault; and
- possess appropriate information and communication technology that could adequately cater for online real-time transactions in addition to keeping proper accounting records.

Proof of all the above-mentioned must be sent to PenCom together with, inter alia:

- a non-refundable application fee of NGN 2 million;
- an attestation that the applicant or its subscribers, proposed directors or officers have never mismanaged, either fully or partially, any fund;
- a certified true copy of the Memorandum and Articles of Association of the applicant company;
- a feasibility report and/or business plan;
- five-year financial projections including balance sheet, profit and loss account and cash flow;
- the organizational structure showing functional units and reporting relationships as well as details of functions and responsibilities;
- the structure of the proposed board and senior management, committees and internal control systems;
- a draft copy of the proposed contract for custodial services between the custodian and PFAs; and
- the ownership structure of the applicant company.

PFCs carry out the following main functions:

- receiving pension contributions on behalf of PFAs;
- securely keeping securities which constitute pension fund assets and settlement documents;
- acting as clearing agent, buying and selling securities under the instructions of a PFA and collecting payments of dividends, interest and all other incomes related to PFA investments;
- investment accounting and performance measurement; and
- risk management and compliance reporting.

The Pension Reform Act allows the National Social Insurance Trust Fund (NSITF) to set up a PFA that would manage the current assets of its existing members and also attract new members. Existing members of the NSITF are not allowed to transfer their accumulated contributions to another PFA for at least five years from the date of the Pension Reform Act, 2004 (i.e. up to June 2009).

A private pension scheme that was already in existence when the Pension Reform Act, 2004 was signed into law may continue to operate under the supervision of PenCom, provided that:

- the scheme is fully funded and any shortfall is made up within 90 days;
- pension fund assets must be fully segregated from the funds and assets of the sponsoring company;
- pension fund assets must be held by a custodian;
- every member in the existing scheme is free to exercise the option to join the CPS and have his/her retirement savings credited to his/her individual account;
- all existing investments must come under supervision of the PenCom;
- Existing schemes submit a statement to PenCom, indicating assets, liabilities, list of members, current statements (for defined contribution schemes) and pensionable salary (for defined benefit schemes).

Any employer managing pension fund assets of NGN 500 million or more may apply to the PenCom to be licensed as closed pension fund administrator but the assets must be held by a PFC of its choice. Employers managing pension fund assets of less than NGN 500 million desiring to maintain their existing schemes must have the scheme managed by a licensed PFA. In both cases however, the employer must show that it possessed managerial capacity for the management of pension fund assets for a period of at least five years before the Pension Reform Act, 2004 came into force.

The existing schemes shall be closed to new employees and such new employees shall be required to have a Retirement Savings Account. In addition, Closed Pension Fund Administrators (CPFAs) shall continue to exist provided new employees of sponsor companies shall join the Contributory Pension Scheme and open Retirement Savings Account.

PenCom has the power to issue regulations and guidelines to give effect to the Pension Reform Act and to supervise and carry out examinations of PFAs, PFCs and other institutions related to the administration and management of pensions, in order to ensure that they comply with the provisions of the Pension Reform Act.

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Covered population

Contributory Pension Scheme: All public sector employees of the Federation and the Federal Capital Territory are mandatorily covered by the scheme. Private sector employees are covered if they work in organizations with three or more employees. The private sector employers with less three employees as well as self-employed are eligible to participate in the scheme voluntarily in accordance with guidelines issued by the Regulatory Authority, (PenCom).

The following are exempted from the Contributory Pension Scheme (CPS):

- current pensioners;
- employees who at the commencement of the CPS were entitled to retirement benefits under any existing pension scheme or have three years or less to retirement;
- judicial officers appointed to all the Federal Courts, State High Courts and State Courts of Appeal as defined in the Nigerian Constitution;
- personnel of the military, state security services and defence intelligence agency.

Public sector employees who, at the commencement of the CPS, were members of any unfunded existing pension scheme and had more than three years to retirement were transferred to the CPS.

States have their own laws on pension matters. However, PenCom has both regulatory and supervisory powers over schemes adopted by the states and local governments.

Enforcement of affiliation

Contributory Pension Scheme: No legal rules.
PFAs are allowed to employ sales agents for their marketing activities. The operational standards and modalities for the sales agents are set by PenCom. In addition, all sales agents attended a formal training programme organised and facilitated by PenCom.

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Sources of funds

Member contributions

Contributory Pension Scheme: Public and private employees contribute a minimum of 8 per cent of their monthly emoluments. Monthly emoluments comprise basic salary, housing and transport allowances.

Voluntary contributions may also be paid to the individual account. There are no limits on voluntary contributions.

Employer contributions

Contributory Pension Scheme: Public and private sector employers contribute a minimum of 10 per cent of their employees' monthly emoluments.

An employer may, however, choose to bear both the minimum employee and employer contributions, which must be at least 18 per cent of the employee's monthly earnings.

Additionally, employers must maintain life insurance policies in favour of their employees for a minimum of three times the employee's annual earnings payable in event of death in service. The premium is paid solely by the employer.

Contributions may be revised upwards by agreement between the employer and the employee. Any such revision must be notified to PenCom.

The employer must deduct and remit contributions to the PFC specified by the PFA within seven days of the salary payment date. The PFC must notify the PFA of receipt of the contribution within 24 hours.

Other sources of funds

Contributory Pension Scheme: Public and private sector employees who, at the commencement of the CPS were members of any unfunded existing pension scheme and had more than three years to retirement were transferred to the CPS and their accrued benefits based on past service recognized in the form of a bond, to be redeemed upon retirement into their respective individual accounts. In the case of funded schemes, any funds to which members are entitled must be credited to their individual accounts.

Methods of Financing

Contributory Pension Scheme: Fully funded in individual accounts.

Employers must, in additional, maintain life insurance policies in favour of their employees for a minimum of three times the annual earnings of the employee payable in event of death in service.

Asset Management

Contributory Pension Scheme: Pension funds can only be managed by PFAs and CPFAs (see section Types of Schemes), which have been duly licensed by PenCom with the objectives of safety of funds and maintenance of fair returns.

The assets of pension funds may be invested in:
- bonds, bills and other securities issued or guaranteed by the Federal Government and the Central Bank of Nigeria;
- bonds, debentures, redeemable preference shares and other debt instruments issued by stock-listed corporations;
- ordinary shares of public limited companies listed on a stock exchange with good track records having declared and paid dividends in the preceding five years;
- bank deposits and securities;
- investment certificates of closed-end investment funds or hybrid investment funds listed on a stock exchange with a good track record of earning;
- units sold by open-end investment funds or specialist open-end investment funds listed on the stock exchange recognised by the Securities and Exchange Commission (SEC);
- bonds and other debt securities issued by listed companies;
- property; and
- such other instruments as PenCom may prescribe.


Investments must also fulfil rating requirements issued by risk-rating companies registered under the Investment and Securities Act. In addition to the quality of the instruments in which pension fund assets can be invested, PenCom has issued quantitative limits on the size of pension fund assets under management that can be invested in each instrument and by the issuing organization.

Investment of assets outside Nigeria requires approval from the President of the Federal Republic of Nigeria.


A PFA is prohibited from investing in shares or any other securities issued by itself, PFCs holding assets on its behalf, and shareholders, agents and relatives of the PFA or PFC. PenCom may impose further restrictions on investment by PFAs if this is in the interest of the beneficiaries.

Non-compliance by a PFA with the above rules shall lead to sanction that could be a fine or prison term.
Restitution must be made for any losses caused by non-compliance.

Every PFA must establish a Risk Management Committee and an Investment Strategy Committee to assist it in carrying out its functions and, additionally, must employ a Compliance Officer for ensuring compliance with legal and regulatory provisions. The Compliance Officer reports directly to the PenCom on all non-compliance issues relating to the activities of his/her PFA or CPFA.

PenCom has established a Multi-Fund Structure for the RSA Fund. The Funds are structured demographically to fit the risk appetite of the contributors. They are stratified into the following four (4) groups:
Fund I:  Below 50 years (By choice)
Fund II: Below 50 years (Default Fund)
Fund III: For Pre-Retirees (50 years and above)
Fund IV: For Retirees only

 






The Funds have varying exposure to variable income investment as follows:
  Fund I Fund II Fund III  Fund IV
Maximum Exposure  75% 55% 20% 10%
Minimum Exposure 20% 10% 5% 0%

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Preservation, portability, transferability

Contributory Pension Scheme: A RSA holder has the right to transfer his/her individual account from one PFA to another once a year, without stating a reason. However, where a RSA holder changes from one employer to another, the same individual account is maintained for future contributions.

Public and private sector employees who at the commencement of the Contributory Pension Scheme (CPS) were members of any funded existing pension scheme and had more than three years to retirement were transferred to the CPS and their accrued pension rights for past services recognized in the form of a bond, to be redeemed upon retirement into their respective individual accounts. In the case of funded schemes, any funds to which members are entitled must be credited to their individual account.

The Pension Reform Act allows the National Social Insurance Trust Fund (NSITF) to set up a PFA to manage the current assets of its existing members and also attract new members. Existing members of the NSITF are not allowed to transfer their accumulated contributions to another PFA for at least five years from the date of the Pension Reform Act (i.e. up to June 2009).

Closed Pension Fund Administrators (CPFAs) and existing schemes (see section Types of Schemes) approved to continue by PenCom may retain their existing memberships. New membership to these schemes is closed by the PRA, 2014.

Nonetheless, members of these schemes can opt out and register with a PFA of their choice.

Retirement Benefits

Benefit qualifying conditions

Contributory Pension Scheme: Retirement benefits may be paid by PFAs when the affiliate member reaches age 50 or upon retirement after 35 years in service, whichever is later. Early retirement before age 50 is possible.

Withdrawal of funds before retirement

Contributory Pension Scheme: Withdrawals before age 50 are not allowed unless the RSA holder is retired in accordance with his/her employment contracts. However, a dismissed employee or someone that lost his employment due to organizational restructuring or retires voluntarily may also withdraw a lump sum of no more than 25 per cent of his balance in the individual account if after four months the employee has not taken up other employment.

Voluntary contributions may be withdrawn once in two (2) years up to 50 percent of the total balance of the voluntary contribution standing to the credit of the RSA domiciled as contingency fund and subsequent withdrawal would be on the incremental contribution after the last withdrawal.

Benefit structure / formula

Contributory Pension Scheme: Defined contribution.

Retirement benefit is based on the amount accumulated in the member's individual account. Members can decide on three options to receive the benefits:

- programmed withdrawals, managed by PFAs, paid on a periodic basis based on life expectancy;
- life pension annuity, in which case they purchase an annuity from a life insurance company with the balance of the individual account. The insurance company pays the retirement benefit on a periodic basis, as agreed with the member;
- lump sum payment deducted from the balance of the member's individual account, provided that the remaining capital is sufficient for financing a life annuity or programmed withdrawals of at least 50 per cent of the member's monthly earnings at time of retirement.

Members who retire before age 50 but in accordance with their employment contract may withdraw a lump sum provided that the remaining capital is sufficient for financing a life annuity or programmed withdrawals of at least 50 per cent of the member's monthly earnings at time of retirement.

The minimum pension established by law has not yet been determined by PenCom.

Guidelines on life pension annuities have been issued by PenCom in collaboration with National Insurance Commission (NAICOM).

Benefit adjustment

Contributory Pension Scheme: No legal rules.

Survivors

Benefit qualifying conditions

Contributory Pension Scheme: To qualify for survivors' benefits, the deceased member must have been in employment or a pensioner. The benefit of the member's balance in the individual account plus the benefits from the group life insurance policy maintained on the deceased employee's behalf by the employer (see section Sources of Funds, Employers contributions), must be paid to eligible survivors nominated by the member or to the widow(er) and children or, in the absence of a widow(er) and children, to the next of kin or any person designated by the member. In the absence of such eligible survivors, the benefits will be granted to any person appointed by the Probate Registry as the administrator of the deceased's estate.

Benefit structure

Contributory Pension Scheme: Survivor benefit is based on the amount accumulated in the deceased member's individual account plus three times the member's annual earnings, which represents the deceased's entitlements from the life insurance policy held by the employer (see section Sources of Funds, Employer Contributions).

Balances in the individual accounts of persons already receiving retirement pension are paid to eligible survivors.

Benefit adjustment

N/A

Disability

Benefit qualifying conditions

Contributory Pension Scheme: The member must be assessed by a qualified physician or a properly constituted medical board certifying that the member is no longer mentally or physically capable of carrying out the functions of his/her office due to total or permanent disability either of the mind or body.

Benefit structure

Contributory Pension Scheme: Disability benefit is based on the amount accumulated in the member's individual account if the member is retired from employment on medical advice or because of total or permanent disability.

Benefit adjustment

N/A

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Protection of Assets

Contributory Pension Scheme: Pension fund assets under the management of a PFA must be separated from the PFA's own assets. Pension fund assets under any licensed CPFA and approved existing scheme (see section Types of schemes) must be separated from the assets of the sponsoring company.

PFAs are prohibited from holding any pension fund assets, which must be held by PFCs separate from their own assets. PFAs are also prohibited from keeping pension assets with a PFC in which the PFA has any business interest, shares or any link whatsoever. No employee of the PFA may engage in any business transaction or trade with the PFA as a counterpart or with any subsidiary in relation to the pension fund or its assets.

The functions of the PFA and PFC are separated to ensure adequate checks and balances on the execution of their respective responsibilities.

Pension fund assets held by a custodian must not:

- be used to meet the claim of any of a PFC's creditors in the event of its liquidation;

- be seized or subject to execution of judgment debt or stopped from transfer to another PFC;

- be sold, or granted as loan or used as collateral.

PFCs must give a guarantee equivalent to the total assets under its custody. In the case of failure of a PFC, the title documents and investment certificates will be transferred to another PFC by PenCom pending decisions by PFAs that have custodial agreement with the failed PFC to move to another PFC. The only part of the assets that could be lost is the cash in transit, which has been contributed before PFA investment orders are executed by the PFC. The guarantee given by the PFC will be used to recover any losses on this asset class.

In the event of a PFA failing to comply with the provisions of the Pension Reform Act, the PFA is liable to a penalty which is not less than NGN 500,000 for each day that non-compliance continues. The PFA shall forfeit the profit from the investment to the beneficiaries of the individual account and if the investment has led to a loss, the PFA must be made to make up for the loss.

Financial and Technical Requirements / Reporting

Contributory Pension Scheme: PFAs, PFCs and CPFAs (see section Types of Schemes) must:

- submit their audited financial accounts to the PenCom for approval not later than 120 days from the end of their respective financial years;
- publish the approved audited account in at least two daily newspapers printed and circulated in Nigeria within one month of the approval by the PenCom;
- display the audited accounts in a conspicuous position in each of its offices and branches within 30 days of the approval by the auditor and throughout the financial year.

PFAs, CPFAs and PFCs must submit to PenCom, not later than four months from the end of the financial year, an annual report on the pension funds under their management in respect of the preceding year. Such a report must include the audited accounts. In addition, to monthly and quarterly reports, PFAs are also required to submit daily reports of investment activities for valuation by the PenCom.

Whistleblowing

Contributory Pension Scheme: PFAs, PFCs, CPFAs (see section Types of Schemes), auditors are all obliged to report any fraud, forgery or malpractice. PFAs, PFCs and CPFAs have a general duty to report any unusual occurrences with respect to the fund. PFAs and CPFAs must report the names of employees dismissed for fraud. Contravention of the reporting rules leads to fines or imprisonment and their licences can be revoked.

Standards for service providers

Contributory Pension Scheme: PFAs, PFC and CPFAs (see section Types of Schemes) must keep proper books of accounts and records showing income, expenditure, assets, investments and return on investments. They must have their accounts audited by qualified external auditors not later than four months from the end of the financial year. Auditors may be sanctioned for not reporting any mismanagement on the part of PFAs, PFCs and CPFAs.


PFAs are required to provide customer service support to individual account holders including quarterly statements of individual account balances as well as on demand. In addition, PFAs are also required to open customer care lines through which individual account holders can communicate their problems to their PFAs.

Fees

Contributory Pension Scheme: PFAs may charge monthly lump-sum administration fees to cover the cost of registration and the management of each individual account.
Administration fees for each RSA must not exceed NGN 100 per month.

PFCs and the Commission may respectively charge percentage fees for collection, management and supervision of pension fund assets based on the net asset values for RSA Active Funds and income based fees for RSA Retiree Fund. The maximum amounts of asset-based fees for purposes of individual accounts, as a percentage of the net assets value per year are structured based on the types of Funds.
PARTY Fund I  Fund II   Fund III  Fund IV 
 Effective
1-Jul-18		Effective
1-Jan-19 		Effective
1-Jul-18		Effective
1-Jan-19 		Effective
1-Jan-20		Effective
1-Jul-18		Effective
1-Jan-19		Effective
1-Jan-20 		Effective
1-Jul-18
PFA
 1.600% 1.500% 1.400% 1.300% 1.200% 1.300% 1.200% 1.100% 5.000%
PFC
 0.400% 0.300% 0.300% 0.275% 0.250%  0.275% 0.250% 0.225% 1.500%
PenCom 0.250% 0.225% 0.225% 0.215% 0.200% 0.225%  0.200% 0.175% 1.000%
Total 2.250% 2.025%  1.925% 1.790% 1.650% 1.800% 1.650% 1.500% 7.500%












Additionally, 0.8 percent of assets under management is charged per annum on AES and CPFA Funds while 5.00 percent of income is charged on AES and CPFAs Retiree/Gratuity Funds.

Winding up / Merger and acquisition

Contributory Pension Scheme: No legal rules.

No pension funds or assets kept with a PFC must be used to meet the claims of any of the PFC's creditors in the event it is liquidated. Similarly, in the event of winding up, liquidation or otherwise cessation of business of the PFC or any of its shareholders, the pension funds or assets in its custody shall not be seized or be the subject of execution of a judgement debt or stopped from being transferred to another PFC.

Bankruptcy: Insolvency Insurance / Compensation Fund

Contributory Pension Scheme: Each PFA must set up a reserve fund, which must be credited annually with 12.5 per cent of the net profit after tax to meet claims for which it might be liable.

Disclosure of information / Individual action

Contributory Pension Scheme: PFAs must provide regular information on investment strategy, market returns and other performance indicators to the Commission, and to members and beneficiaries. They must also provide access on demand to members' account balances and statements. There are no obligations on PFCs to report to members or beneficiaries. PFCs report to the PenCom on a monthly basis.

PenCom must ensure that all brochures, advertisements, communication, promotional materials and claims of PFAs are truthful and not omitting any fact which would make the information contained therein misleading or deceptive.

Any member or beneficiary of an individual account who is dissatisfied with a decision of the PFA or PFC may request that such decision be reviewed by PenCom, with a view to ensuring that such a decision is made in accordance with the provisions of the Pension Reform Act. The request must be made in writing to PenCom.

If a member, PFA or PFC is dissatisfied with PenCom's decision, an appeal can be made before the Investments and Securities Tribunal or application made for an arbitration case. The latter appeal can also be launched if any person or body is dissatisfied with any other action or decision of the PenCom.

Other measures

Contributory Pension Scheme: None.

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Taxation of member contributions

Contributory Pension Scheme: Tax-exempt. Income on voluntary contributions is taxed if they are withdrawn before the end of five years from the date that voluntary contribution was made.

Taxation of employer contributions

Contributory Pension Scheme: Tax-exempt.

Taxation of investment income

Contributory Pension Scheme: Taxed. Only value-added tax is paid on pension fund assets.

Taxation of benefits

Contributory Pension Scheme: Tax-exempt.

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National Pension Commission (PenCom): has the following functions to:

- regulate and supervise the CPS and all pension matters;
- issue guidelines for the investment of pension funds;
- approve, licence, regulate and supervise PFAs, PFCs and other institutions related to pension matters;
- establish standards, rules and guidelines for the management of pension funds;
- ensure the maintenance of a National Data Bank on all pension matters;
- carry out public awareness and education on the establishment and management of the CPS;
- promote capacity building and institutional strengthening of PFAs, PFCs, and CPFAs (see section Types of Schemes);
- receive and investigate complaints of impropriety levelled against any PFA, PFC or employer or any of their staff or agents;
-promote and offer technical assistance in the application of the CPS by the State and Local Government Councils in accordance with the objectives of the Act; and
- perform such other duties which, in its opinion, are necessary or expedient for the discharge of its functions.

PenCom has the following powers:

- formulate, direct and oversee the overall policy on pension matters in Nigeria;
- request or call for information from any employer, PFA, PFC or any other person or institution on matters relating to retirement benefit;
- charge and collect such fees, levy or penalties, as may be specified by the PenCom;
- investigate any PFA, PFC or other parties involved in the management of pension funds;
- impose administrative sanctions or fines on erring employers, PFAs or PFCs;
-order the transfer of management or custody of all pension funds or assets being managed by a PFA or held by a PFC whose licence has been revoked under this Act or subject to insolvency proceedings to another PFA or PFC as the case may be;
-move pension funds and assets from one PFA or PFC to another when the Commission believes that the funds and assets are endangered;
-appoint Management Committee in the resolution of failing pension operators;
-accredit any person, body corporate or institution that engages in any activity relating to pension matters in Nigeria pursuant to the Act;
-request the Accountant-General of the Federation to credit into the Federal Government Retirement Fund Account, Federal Government's obligation for the redemption of the Retirement Benefits Bonds issued to its employees for their past service;
- set up technical committees, working groups and task forces to assist the Commission in the performance of its duties and functions;
- make changes to its structure with the approval of the Board; and
-do such other things which in its opinion are necessary to ensure the efficient performance of the functions of the Commission under the Act.

PenCom must maintain a fund from which all its expenses will be defrayed. The fund is financed by the initial grant from the Federal Government, annual subvention from the Federal Government, fees and fines charged, income from any of its investments and all sums of money or income accruing to PenCom by way of testamentary dispositions and endowments.

PenCom may, at least once a year, authorize an inspection, examination or investigation, as the case may be, of PFAs or PFCs for the purpose of determining whether or not legal and regulatory provisions are being complied with. Similarly, targeted examinations may be authorized on these institutions by PenCom in the event of an infraction, complaint, whistle blowing, etc.

PenCom must submit, no later than four months after the end of each year, a report on its activities and administration during the preceding year, which must include its audited accounts and auditor's report, to the President and the Public Accounts Committee of the National Assembly.

National Pension Commission
No. 174 Adetokunbo Ademola Crescent
Wuse II
PMB 5170 Wuse, Abuja
Nigeria
Tel: (+234) 9 413 8736 - 40
Fax: (+234) 9 413 3363
Website: http://www.pencom.gov.ng

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