Pension Remittance Defaulters to be Blacklisted from Nov. 30 – PenCom
The National Pension Commission (PenCom) has warned that organisations failing to comply with pension remittance obligations will be blacklisted starting Nov. 10.
The Director-General of PenCom, Ms Omolola Oloworaran, issued the warning during the commission’s second-quarter media briefing in Lagos on Wednesday.
Oloworaran noted that this was to reinforce PenCom’s adoption of its zero-tolerance approach to non-compliance with the Pension Reform Act of 2014.
She said, “Moving on, it is now zero tolerance for non-compliance with the pension reform act of 2014. Effective immediately, PenCom has launched an uncompromising compliance drive to ensure the pension reform act is complied with by every operator.
“Every organisation, public, private, big or small, must comply with pension remittance obligations. No exceptions, no delays.
“All Pension Fund Administrators and Custodians have been directed to ensure every vendor, service provider and counterparty have a valid Pension Clearance Certificate (PCC) that evidences that they have been up to date and compliant with pension contribution.
“By November 30 this year, any entity without a PCC will be blacklisted and cut off from pension business with all PenCom regulated entities.
“This directive also extend to banks, investment counterparty, parent companies and shareholders of licensed pension funds administrators and custodians.
“All pension fund affiliated entities must enforce the pension clearance certificate requirements across their operators and across all ecosystem and submit our compliance attestations.
“We are drawing the red line, pension compliance is no longer optional, it is existential. Only those who value the future of their employees can participate in this ecosystem and the reward that it offers.”
Oloworaran noted that the commission was seriously committed to rejigging the pension industry to achieve a more robust and inclusive system that supports sustainable economic development.
She said earlier in May, PenCom convened an inaugural pension industry leadership retreat with the theme, ‘Sustainable Retirement: A Strategic Blueprint for Economic Development and Inclusion’.
She explained that four clear pillars emerged from the strategy session. “First, was infrastructure financing. Long-term pension funds should drive real economic growth and pension fund contributors and retirees deserve real returns.
“This means investment only in the risk, transparent and brand capable products, no shortcuts and no excuses,” she said.
Oloworaran listed the second pillar as legislative partnership, noting that the commission was establishing a Pension Legislature Working Group.
She said that the group would work with lawmakers to institutionalise needed reforms and strengthen the legal framework governing the pension sector.
“The third pillar was the diversification of pension assets. We are revising the investment regulations to open up access to a broader range of alternative asset classes. “This will be done with full regard for transparency and reinforced risk management,” she said.
The PenCom boss said the fourth pillar focused on revolutionising the micro pensions scheme, which had now been rebranded as the Personal Pension Plan.
“This plan has been re-engineered for scale, technology enablement, and deep penetration into the informal sector. “We are resetting the industry’s strategic compass,” Oloworaran said.#Pension Remittance Defaulters to be Blacklisted from Nov. 30 – PenCom#
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