The National Pension Commission (PenCom), has planned to sanction any Pension Fund Administrator (PFAs) who fails to enlighten pensioners on the features of Programmed Withdrawal and others would be liable for an administrative sanction of N500, 000 in the country.
The commission also includes Retirement Life Annuity (RLA) as it would enable the retiree to make an informed decision on how to manage their pension benefits.
This, the commission revealed under the administrative sanctions, in its Revised Regulation on the Administration of Retirement and Terminal Benefits, saying that where a PFA delays payment of retirement benefits for up to five working days after receipt of no-objection from the commission, it shall pay an administrative sanction of N200,000.00 and N20,000.00 for every day of delay thereafter.
The commission noted that PFA and/or Pension Fund Custodian (PFC) that pays retirement benefits without the commission’s prior no-objection shall pay an administrative sanction of N1, 000,000.00, in addition to refunding either the principal amount so paid or lost investment income thereof, whichever is higher.
It said a PFA that pays an amount over that specified on the no-objection approval granted by the Commission shall be liable to refund the amount overpaid and Investment income lost arising from the transaction, except where the difference is a residual amount or as a result of return on investment.
Any PFA that pays an amount lower than that specified on the no-objection approval granted by the Commission, shall, in addition to paying the differential to the retiree, pay an administrative sanction of N500,000.00, it said.
PenCom submitted that any PFA that negligently submits to the Commission, a request with incorrect information that is likely to result in accelerated depletion of the RSA balance of a retiree, shall pay an administrative sanction of N500,000.00, stressing that in addition, the PFA shall refund to the RSA both the amount that was overpaid and the lost investment income.
Any PFA that negligently submits to the Commission, a request with incorrect information and later requests the permission of the Commission to resubmit the request shall pay an administrative sanction of N100,000.00 per RSA, it posited.
The regulator said where a PFA delays the submission of a request for the payment of benefits by a retiree/beneficiary(ies) to the Commission for approval for more than 10 working days from the date of submission of relevant documents, it shall pay an administrative sanction of N200,000.00 and N20,000.00 for every further day of delay thereafter.
It stated that any violation of any provision of this regulation for which no sanction has been prescribed shall attract an administrative sanction of not more than N2,000,000.00.
All sanctions in this regulation shall be charged to the Operator’s Profit and Loss account and the burden shall not be transferred to the employees of the Operators, stating that any violation of this provision shall attract an administrative sanction of five times the initial sanction amount.
