The National Pension Commission (PenCom) has issued a new circular directing all Pension Fund Administrators (PFAs) to ensure that Trustees and Sponsor Companies of Approved Existing Schemes (AES) and Additional Benefits Schemes (ABS) appoint external auditors and actuarial firms to conduct audits and actuarial valuations of their pension schemes.
The directive, outlined in Circular REF: PENCOM/lNSP/ClR/SURV/2026/11, signed by the Director of Surveillance, A.M. Saleem, dated January 6, 2026, which was obtained by Dailyeconomy today, comes after PenCom’s supervisory review revealed widespread non-compliance with Sections 50(2) and 66(2) of the Pension Reform Act (PRA) 2014. The Act mandates employers operating Defined Benefits Schemes (DBS) to conduct annual actuarial valuations to determine the adequacy of pension fund assets.
According to the circular, PFAs are required to notify Trustees and Sponsor Companies at least two months before the end of each financial year to appoint external auditors and actuaries. If there is no response within 21 days, PFAs are authorized to appoint these professionals themselves, with terms of engagement forwarded to PenCom for approval. Audit and actuarial fees will be charged to the respective schemes after Commission approval.
PenCom emphasized that the failure to appoint auditors and actuaries poses significant risks to the ability of schemes to meet obligations to members and constitutes a violation of the PRA 2014 and related regulations.
The circular takes immediate effect, and all enquiries are to be directed to the Commission.
