Lagos, Ogun, Delta, Kaduna, Niger and Jigawa- have fully complied with the Contributory Pension Scheme (CPS) meaning that they have maintained life insurance in favour of their employees for a minimum of three times their yearly total emolument as contained in section 9 (3) of the Pension Reform Act, 2004.
President of Pension Fund Operators Association of Nigeria (PENOP), Dave Uduanu, who made this known at a media parley in Lagos, said the National Pension Commission (PenCom) and the association are worried by this trend and have devised measures to enlighten the non-compliant states to key into the scheme.
He, however, said operators were sensitive about the management of the fund. According to him, the scheme is young but growing, making its safety critical in meeting its key objectives, which is to ensure that workers (contributors) have access to their funds at retirement.
He said this was why operators were wary of where to invest, despite pressures from all corners, that pension funds should be used to develop projects such as infrastructure.
He said: “We have quite a lot of investment windows approved for us by our regulator, but still, we are buyers of securities, we are buyers of investment instruments and not a charity organisation that would repair roads and electricity.
“If roads are to be built for tolls, or other liquid investments, where we are sure that retirees’ funds are safe we can be part of it.”
Chief Executive officer, Stanbic IBTC Pension Managers Limited, Demola Sogunle, while speaking on regulation of the industry disabused the minds of many who continue to say that the industry is over regulated.
He said: “We cannot be talking about over-regulation in a young industry that has to do with contributors’ emotions, an industry that is about retirees’ vulnerability.
“It is important that the industry is properly established for safety of the funds.” He added that there would be guidelines from time to time, to define codes, ethics and conduct of the operators.
Managing Director, Legacy Pension Managers Limited, Misbahu Yola, said the accounts of PFAs are International Financial Reporting Standard (IFRS) compliant in line with the deadline set by PenCom.
He said: “On International Financial Reporting Standard (IFRS), the compliance deadline for all operators was December 31, 2012. A number of our results are already out, which are in compliance with the IFRS. We have all complied.”
The Federal Government had informed operators in the economy that IFRS will be the new basis of financial reporting with effect from January last year.