Here’s why you may not receive gifts from your pension fund administrator

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Pension is a retirement fund for an employee that is funded by the employer, the employee, or both, with the employer typically covering the majority of contributions (Bankrate).

In simpler words, it is the money you save aside for your retirement. As regulated by the law in Nigeria, you employer is expected to a contribute a certain percent to your retirement funds.

It is what you look forward to after your retirement.

How many companies in Nigeria provide pensions for their employees? How many of them truly remit the money every month?

Some companies have been found to default the law by not remitting. Not remitting the money means that the company is not contributing to its employees’ retirement fund.

Some of the Pension Fund Administrators (PFAs); Stanbic IBTC, ARM, Leadway Pensure PFA and Fidelity.

Transfer window

The Pensions Reform Act of 2014 established a transfer window for Retirement Savings Account (RSA) holders to switch from one pension funds administrator (PFA) to another.

PFAs during the transfer window and even celebrations some times send gifts to their customers to woo them.

At the end of the year, PFAs also distribute corporate gifts to many of their RSA holders and clients.

pension

Here’s why you might not receive gifts from your PFA

The National Pension Commission (PenCom) has prohibited PFAs from sending gifts to RSA account holders.

PenCom is taking this step in its efforts to stifle healthy industry competition.

It issued this directive to the PFAs in a new directive. This directive is the reason why you might not get gifts from your PFAS.

In an email to some of its RSA holders, Stanbic IBTC said, “Congratulations on your upcoming birthday celebration!

“This is to inform you that we are in receipt of a new directive from the National Pension Commission, advising the immediate discontinuation of the distribution of gifts by all Pension Fund Administrators to Retirement Savings Account holders.

“As a result, we are engaging the commission for clarity on the instruction and once confirmation is received to proceed, your gift will be delivered to your preferred address.

“We sincerely apologise for any inconvenience which may result from this new development. We would, however, like to reassure you of the high value we place on our clients.

“Our commitment to providing you with excellent services remain unwavering, while our pledge to client obsession remains unchanged.”

Regardless of the new directive, be rest assured that you can choose to change your PFA or remain with your current one.

The gift does not define the company, in fact you will be able to evaluate companies well.

Do you think PenCom did the right thing by banning PFAs from distributing gifts?

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