“PENCOM SLAMS NLC, SAYS ALLEGATIONS ON PENSION FUNDS
GREATRIBUNETVNEWS-‘THE National Pension Commission (PenCom) has rejected allegations made by the Nigeria Labour Congress (NLC) regarding the management of workers’ pension funds and the non-inauguration of its Governing Board. PenCom’s Acting Director of Corporate Communications, Ibrahim Garba Buwai, described the allegations as “incorrect, gravely misleading, and surprising”.
PenCom’s Response:
– Pension Funds Safe: The Commission assured the NLC, pension contributors, and retirees that their pension contributions are safe and secured.
– Regulated Investment: PenCom clarified that it does not directly invest pension funds, instead, licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) manage and safe-keep investments under strict regulations.
– Supervision: The Commission emphasized that PFAs and PFCs operate under its strict supervision, ensuring the security and integrity of pension funds .
NLC’s Allegations:
– Sidelining Workers: The NLC had accused PenCom of sidelining workers and employers in the management and investment of pension contributions.
– Unauthorised Spending: The union also alleged that PenCom was engaging in unauthorised spending and operating without a properly inaugurated board.
– Ultimatum: The NLC gave PenCom a two-week ultimatum to inaugurate its board and provide a comprehensive status report on the funds
“It is, therefore, incorrect to suggest that contributors and employers are kept in the dark about investments of pension funds. Equally, there is nothing to suggest that the funds are in any jeopardy,” the letter clarified.
Clearing air on the union’s suggestion of “possible sinister motives,” PenCom expressed dismay, saying it has always operated with transparency and accountability.
Speaking on the NLC’s complaint about the non-inauguration of PenCom’s board, PenCom noted that while Section 19 of the Pension Reform Act (PRA) 2014 provides for its establishment, the appointment of board members is strictly the prerogative of the President, subject to Senate confirmation.
The Commission reminded the NLC that by virtue of provisions of PRA 2014, the NLC is one of the 10 institutions represented on PenCom’s Board.
Besides, PenCom said, the President has the prerogative of appointing the other six members, comprising the Chairman, the Director General and the four Executive Commissioners.
“It is clear that the NLC is well aware that it is outside the purview of PenCom to appoint a Board for itself,” PenCom said.
It assured NLC that appointment of Board members is no longer a matter of concern as the Federal Government has already taken steps to address the issue.
PenCom faulted claims of unauthorised spending, explaining that the National Assembly, as provided under the Constitution, approves PenCom’s budget, regardless of whether a board is in place or not.
The Commission drew the attention of the NLC to the fact that all its procurement activities are undertaken in accordance with the Public Procurement Act 2007.
It reiterated its openness to dialogue and collaboration with organised labour, reminding the NLC of its historic role in shaping the PRA 2004 and 2014.
It also said that the labour union had unfettered access to its management and had previously engaged PenCom constructively on pension industry matters.
“The doors of the Commission have been, and would remain, open to the NLC and other social partners for inquiries and engagements on any issue of concern relating to the pension industry,” PenCom added.
About the Author
