FG approves new pension company for Nigerian universities
Written by freshfm on January 29, 2019
The Federal Government has approved the issuance of a license to Nigerian University Pension Management Company Limited to carry out the business of a Pension Fund Administrator.
The National Pension Commission stated that the approval was consequent upon a detailed evaluation of NUPEMCO’s compliance with the requirements, terms and conditions stipulated by the commission.
According to PenCom, more information will be released on how the new PFA will handle the pension of university retirees.
Recall that in 2014, PenCom last granted an operating licence to the Nigeria Police Force Pensions as a PFA, after fulfilling very stringent licensing requirements.
The NPF Pensions was licensed to administer the pension contributions of personnel of the NPF under the Pensions Reform Act 2014.
PenCom later instructed other existing PFAs to transfer several billions of naira of pension contributions of all the personnel of the Nigeria Police which they were managing to the NPF Pension in line with the conditions for the licensing of the Police PFA.
Also, the commission revealed that the ranking of PFAs as of the third quarter of 2018 by the number of registered contributors showed a redistribution of the market share across the various groups.
It stated, “While the market shares of the bottom three, five and ten PFAs had continued to grow, those of the top three, five and ten slightly dipped as at end of third quarter of 2018. The shares of bottom five and ten PFAs increased from 4.95 and 17.18 per cent in the second quarter of 2018 to 5.03 and 17.38 per cent as at the end of the reporting period respectively.
“However, the market shares of the top five and 10 PFAs dropped from 54.51 and 79.59 per cent in the previous quarter to 54.26 and 79.42 per cent as at the end of the quarter.”