Mr. Obiora Ibeziako (Head, Benefits and Insurance Department, PenCom), Mr. Dauda Ahmed (Head, Micro Pensions Department, PenCom), Dr. Babatunde Alayande (Head, South-West Zonal Office, PenCom) and Mr. Abdulqadir Dahiru (Head, Corporate Communications Department, PenCom).
BY NKECHI NAECHE-ESEZOBOR–The National Pension Commission (PenCom) said the new fee structure introduced by the commission will help to address challenges hindering the implementation of Micro Pension Plan by Pension Fund Administrators ( PFAs).
The new fee structure according to the commission are two types of allowable fees chargeable to pension funds which are Administration Fees and Asset/Income Based Fees.
Ibrahim Kangiwa, Head, Investment Supervision Department National Pension Commission disclosure this while speaking on the topic: “What you Need to Know About the Investment of the Micro Pension Fund (Fund VI)” that sset based fees, according to him, are charged on the RSA ‘Active’ Funds while income based fees are charged on the Retiree Funds.
He added that all statutory charges (taxes) and transaction costs shall be borne by the pension funds while Bank charges shall be borne by the Pension Fund Custodian (PFCs).
“The revised fees is based on Hybrid Asset and Income Based Fee structure.
“The fee structure was amended to address some challenges in implementing the Micro Pension Plan (MPP) by PFAs,” Kangima explained.
“No fee shall be charged until the Funds under Management (FuM) reach a threshold of N5 million.
“PFAs shall not charge fees once the Daily Value of Accounting Unit of the fund falls below N1.00 to ensure that principal contributions are not eroded.
“The Commission shall not participate in Micro Pension Fund fee regime until Fund under Management (FuM) of a PFA attains the threshold of N4 Billion.”
He also listed the Benefits of Micro Pension Fund Investments to the economy and to the contributor, stating that the Commission is committed to ensuring the safety of Micro Pension Fund and the investments.
According to him, the Commission is committed to ensuring the safety of pension funds and structures have been established in this regard.
“As the pension industry and financial system evolves, the Commission would also continue to develop and implement innovative policies to foster safety and fair returns on pension fund investment,” he added.
The Head of Micro Pensions Department, Mr. Dauda Ahmed, in his presentation entitled “The Micro Pension Plan: Bringing Financial Security at Old Age to the Doorsteps of the Informal Sector,” he listed the benefits of Micro Pension Plan.
He said Micro Pension Plan will improve the standard of living of the elderly as it provides a regular stream of benefits at old age; provide access to other incentives and secures financial autonomy and independence of retirees amongst other benefits.
Speaking on the topic “The Administration of Retirement Benefits Under Micro Pension Plan,” the Head of Benefits & Insurance Department, Mr. Obiora Ibeziako, gave insights into the benefits administration of MPP which he said is divided into two – Contingent Withdrawal and Retirement Benefits Withdrawal
According to him, Withdrawals/accessing benefits shall be two types reflecting the flexibility incorporated in the treatment of the contributions.
Over forty journalists attended the workshop.
