Economy Politics

20 Pension Fund Administrators meet deadline for N5bn minimum capital – PenCom

PenCom begins verification of retirees/prospective retirees of MDAs– Official
Written by Maritime First

Twenty Pension Fund Administrators (PFAs) met PenCom’s deadline to increase their Minimum Regulatory Capital (shareholders’ fund) from N1 billion to N5 billion by April 27.

Pension Commission (PenCom) made the declaration in a statement it issued in Lagos on Friday.

Also read: PenCom kicks against suggested payment of “at least 75 per cent” lump sum

The newsmen report that in 2021, PenCom approved recapitalization for PFAs, with a 12-month transition from April 27, 2021, to April 27, 2022.

The commission declared then that the recapitalization was expedient as the value of pension fund assets under management and custody had grown exponentially.

The assets had grown by 244 per cent from N3 trillion in 2012 (when the previous recapitalization was done), to N12.29 trillion (as at Dec. 31, 2020).

The sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs.

There was also an urgent need to ramp up PFAs’ capacity to manage the increasing number of registered contributors and the value of pension fund assets in their custody.

PenCom explained that 10 PFAs had met the new regulatory capital requirement of N5 billion as at Dec. 31, 2021, while the others intensified efforts to meet the April 27, 2022 deadline.

The commission stated that the exercise resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20.

“The commission approved the acquisition of AIICO Pension Managers Ltd. by FCMB Pensions Ltd. and the merger between Tangerine Pensions Ltd. and APT Pension Funds Managers Ltd.

“It also approved a subsequent change of name of the merged entities to Tangerine APT Pensions Limited.

“In addition, the commission approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Ltd. after its acquisition of majority shareholding.

“With the conclusion of the recapitalization, stakeholders, particularly Retirement Savings Accounts holders should expect increased effectiveness and efficiency as well as improved service delivery from PFAs,’’ PenCom stated.

 

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Maritime First