Nigeria. PenCom to fine PFAs over pensioners’ delayed payment, others
The National Pension Commission has vowed to sanction Pension Fund Administrators over the spate of delays in the payment of pension benefits, among other related infractions.
The commission stated this in its ‘Revised regulation on the administration of retirement and terminal benefits.’
“A PFA that fails neglects or refuses to enlighten the retiree on the features of Programmed Withdrawal and Retiree Life Annuity to enable the retiree to make an informed decision shall be liable for an administrative sanction of N500,000,” the regulator stated in the revised regulation.
According to PenCom, a situation where a PFA delays the submission of a request for approval to the commission, for the payment of benefits to a retiree/beneficiary for more than 10 working days from the date of submission of relevant documents shall attract a penalty.
Specifically, the PFA will pay an administrative fine of N200,000, and N20,000 for every further day of delay thereafter
Where a PFA delays the payment of retirement benefits for up to five working days after receipt of no-objection from the commission, PenCom said the affected operator would pay an administrative fine of N200,000 and N20,000 for every additional day of delay thereafter.
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