pension-reform-act-no-2-2004.md

EXPLANATORY MEMORANDUM

ThisAct repeals the Pension Reform Act No .2, 2004 and enacts the Pension Reform Act, 2014 to continue to govern and regulate the administration of the uniform contributory pension scheme for both the public and private sectors in Nigeria.

PENSION REFORM ACT, 2014

ARRANGEMENT OF SECTIONS

Section:

PART I - OBJECTIVES AND APPLICATION

1. Objectives.

2. Application.

PART II - ESTABLISHMENT OF A CONTRIBUTORY PENSION SCHEME

3. Establishment of Contributory Pension Scheme.

4. Rate of contribution to the Scheme.

5. Exemption from the Scheme.

6. Supervisionof retirement benefits of employees exempted from the Scheme.

PART III - RETIREMENT BENEFITS

7. Retirement benefits.

8. Death of an employee.

9. Missing employees.

10. Exemption from taxes.

PART IV - RETIREMENT SAVINGS ACCOUNT

11. Retirement savings account and remittance of contributions.

12. Contributionsof the Federal Government and Federal Capital Territory Administration.

13. Transfer of account from one Pension Fund Administrator to another.

14. Transfer from one employment to another.

15. Transfer of entitlement from defined benefits scheme into the Scheme.

16. Withdrawalfrom retirement savings account

PARTV - THE NATIONAL PENSION COMMISSION

17. Establishment of the National Pension Commission.

18. Objects of the Commission.

19. Governing Board of the Commission.

20. Tenure of office.

21. Cessation of office.

22. Emoluments.

PARTVI- FUNCTIONS AND POWERS OF THE COMMISSION

23. Functions of the Commission.

24. Powers of the Commission.

25. Functions and Powers of the Board.

PARTVII - MANAGEMENT AND STAFF OF THE COMMISSION

26. Appointment and tenure of the Director - General and Commissioners.

27. Secretary and Legal Adviser.

28. Other staff of the Commission.

29. Service in the Commission.

30. Establishment of Departments, Divisions and Special Units.

31. Executive Committee of the Commission.

PARTVIII - FINANCIAL PROVISIONS

32. Fund of the Commission.

33. Expenditures of the Commission.

34. Annual estimates.

35. Accounts and audit.

36. Annual report.

37. Power to borrow.

38. Power to accept gift.

PARTIX - TRANSITIONAL PROVISIONS FOR THE PUBLIC SECTOR

39. Federal Government Retirement Benefit Bond Redemption Fund.

40. Governmentobligation to be a charge on the Consolidated Revenue Fund.

41. Federal Capital Territory Retirement Benefits Bond Redemption Fund.

42. Establishment of Pension Transitional Arrangements Directorate for the

PublicService of the Federation

43. MiscellaneousProvisions Relating to Pension Arrangement Transitional Arrangements Directorate for the Public Service of the Federation.

44. Establishmentof Pension Transitional Arrangements Directorate for the Federal Capital Territory.

45. Functionsof the Federal Government and Federal Capital Territory Pension Transitional Arrangements Directorates.

46. Determination of gratuity and pension of exempted pensioners.

4 7. Transfer of assets of the pension offices existing before this Act.

48. Powerof the Commission to regulate and supervise the Federal Government and Federal Capital Territory Pension Transitional Arrangements Directorates.

49. Cessationof the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate.

PARTX - TRANSITIONAL PROVISIONS FOR PRIVATE SECTOR

50. Existing pension scheme in the private sector.

51. Closed Pension Fund Administrator.

52. The Commission to regulate closed pension administrator.

PART XI - PENSION FUND ADMINISTRATORS AND PENSION FUND CUSTODIANS

53. Funds with Nigeria Social Insurance Trust Fund.

54. Pension Fund Administrators.

55. Functions of Pension Fund Administrators.

56. Pension Fund Custodians.

57. Functions of Pension Fund Custodians.

58. Application for a licence as Pension Fund Administrator.

59. Operatingas Pension Fund Administrator or Pension Fund Custodian without licence.

60. Requirements for licence as a Pension Fund Administrator ..

61. Application for licence as Pension Fund Custodian.

62. Requirements for a licence as Pension Fund Custodian.

63. Refusal of licence.

64. Revocation of licence.

65. Publicationof list of Pension Fund Administrators and Pension Fund Custodians.

66. Properbooks of account and audit of the Pension Fund Administrators and Pension Fund Custodians.

67. Annual reports by Pension Fund Administrators.

68. External auditor's obligation to report to the Commission.

69. Generalobligations of the Pension Fund Administrator and Pension Fund Custodian.

70. Specific obligation of the Pension Fund Custodian.

71. Agreements or arrangements requiring consent of the Commission.

72. Operationof branch offices by a Pension Fund Administrator and a Pension Fund Custodian.

73. Returns on frauds and forgeries.

74. Notification of dismissed staff.

75. Prohibition of employment.

76. Penalty for non-compliance.

77. Prohibited transactions.

78. Risk Management and Investment Strategy Committee.

79. Appointmentof chief executive officers for Pension Fund Administrators and Pension Fund Custodians.

80. Compliance officer.

81. Statutory Reserve .Fund.

82. Pension Protection Fund.

83. Pension fund administrative expenses.

84. Minimumpension guarantee.

PARTXII - INVESTMENT OF PENSION FUND

85. Investment of pension funds.

86. Modes of investments of pension funds.

87. Investment outside Nigeria.

88. Restricted investment.

89. Restriction on sale of pension fund assets.

90. Additional restriction on investments.

91. Penalty of Pension Fund Administrator for non-compliance.

PARTXIII - SUPERVISION AND EXAMINATION

92. Supervisionand examination of Pension Fund Administrators and Pension Fund Custodians.

93. Appointment of examiners.

94. Powers of examiners.

95. Examination reports.

96. Powers of the Commission to order special investigation.

97. Duty to produce information to examiners.

98. Specialpowers of the Commission to intervene in the management of Pension Fund Administrators and Pension Fund Custodians.

PARTXIV - OOFFENCES, PENALTIES AND ENFORCEMENT POWERS

99. Offences and penalties.

100. Offences relating to misappropriation of pension funds

101. Offencesrelating to Pension Fund Custodian.

I 02. Power of the Commission to impose additional sanctions.

103. Offences by body corporate.

104. Penalty for refusing to give information, etc.

105   Jurisdiction.

PART XV - MISCELLANEOUS

106. Disputes resolution.

107. Arbitration and arbitral awards.

108. Application of Public Officers Protection Act.

l 09. Limitation of legal actions.

110. Service of notice.

111. Restriction on execution against the property of the Commission.

112. Indemnity.

113. Obligation of confidentiality by Pension Fund Administrators and Pension Fund Custodians.

114. Obligation of confidentiality by the Commission.

115. Powerto make regulations.

116. Exemption of pension funds from liquidation process or garnishee Proceedings

117. Repealand savings provision.

118. Transitional provisions.

119. Enactments inconsistent with this Act.

120. Interpretation.

121. Citation

Schedules

PENSIONREFORM ACT, 2014

An Act to repeal the Pension Reform Act No. 2, 2004 and enact the Pension Reform Act, 2014 to make provision for the uniform contributory pension scheme for public commencement and private sectors in Nigeria ; and for related matters.

ENACTED by the National Assembly of the Federal Republic of Nigeria-

PART l - OBJECTIVES AND APPLICATION

Objectives.

1. The objectives of this Act are to -

(a) establisha uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the Public Service of the Federation, the Public Service of the Federal Capital Territory, the Public Service of the State Governments, the Public Service of the Local Government Councils and the Private Sector;

(b) makeprovision for the smooth operations of the Contributory Pension Scheme;

(c) ensurethat every person who worked in either the Public Service of the Federation, Federal Capital Territory, States and Local Governments or the Private Sector receives his retirement benefits as and when due; and

(d) assistimprovident individuals by ensuring that they save in order to cater for their livelihood during old age.

2. (1) The provisions of this Act shall applyto an employment in the Public Service Application. of the Federation, the Public Service of the Federal Capital Territory, the Public Service of the States, the Public Service of the Local Governments and the Private Sector.

(2) In thecase of the Private Sector, the Scheme shall apply toemployees who are in the employment of an organization in which there are 15 ormore employees.

(3) Notwithstandingthe provisions of subsection (2) of this section, employees of organisations with less than three employees as well as self-employed persons shall be entitled to participate under the scheme in accordance with guidelines issued by the Commission.

PART II - ESTABLISHMENT OF A CONTRIBUTORY PENSION SCHEME

Establishmentof Contributory Pension Scheme.

3. (1) There is established for any employment in the Federal Republic of Nigeria, a Contributory Pension Scheme (in this Actreferred to as "the Scheme") for payment of retirement benefits of employees to whom the Scheme applies under this Act.

(2) TheScheme established under subsection (1) of this section shall apply to all employees in the Public Service of the Federation, the Federal Capital Territory, States, Local Governments and the Private Sector subject to the provisions of section 5 of this Act.

4. (1) The contribution for any employee to which this Act applies shall be made in the following rates relating to his monthly emoluments -

(a) a minimum of ten per cent by the employer; and

(b) a minimum of eight per cent by the employee.

(2) Therates of contribution mentioned in subsection (1) of this section may, upon agreement between any employer and employee, be revised upwards, from time to time, and the Commission shall be notified of such revision.

(3) Anyemployee to whom this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account.

(4) Notwithstandingany of the provisions of this Act, an employer may agree -

(a) onthe payment of additional benefits to the employee upon retirement; or

(b) electto bear the full responsibility of the Scheme provided that in such a case, the employer's contribution shall not be less than 20 percent of the monthly emoluments of the employee.

(5) Inaddition to the rates specified in subsection (1) of this section, every employer shall maintain a Group -Life· Insurance ·Policy· in· favour ·of each employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.

(6) Wherethe employer failed, refused or omitted to make payment as and when due, the employer shall make arrangement to effect the payment of claims arising from the death of any staff in its employment during such period.

(7) Subjectto such guidelines as may be issued, from time totime by the Commission, the categories of persons covered under section 2(3) of this Act or persons exempted under section 5 of this Act shall be entitled to make voluntary contributions under the Scheme.

Exemptionfrom the Scheme.

5. (1) The categories of persons exempted from the Contributory Pension Scheme are -

(a) thecategories of persons mentioned in section 291 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) including members of the Armed Forces, the intelligence and secret services of the Federation;

(b) anyemployee who is entitled to retirement benefits under any pension scheme existing before the 25th day of June 2004, being the commencement of the Pension Reform Act, 2004, but as at that date had 3 or less years to retire.

(2) Anyperson who falls within the provisions of subsection (1) of this section shall continue to derive benefit under existing pension scheme in accordance with the formula provided for in the Second Schedule to this Act or under the Second schedule provisions of enabling laws.

(3) Nothingin this Act shall preclude the right of any person mentioned in subsections (1) and (2) of this section to be paid his pension as and when due.

(4) Wherean officer exempted under section 5(1)(b) of this section dies in service or in the course of duty, the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate shall cause to be paid, en bloc, his next of-kin or designated survivors a gratuity and pension to which the officer would have been entitled at the date of his death calculated in accordance with section 46 ofthis Act.

(5) Wherean officer exempted under this section is retired by his employer as a result of mental or physical incapacity, the officer shall be paid gratuity and pension in accordance with section 46 of this Act.

(6) Forthe .purpose of subsection (5) of this section; a properly constituted medical: · board shall advise the employer on the officer's state of incapacity.

Supervisionof retirement benefits of employees exempted from the Scheme.

6. (1) The administration of the retirement benefits of the categories of employees exempted from the Scheme under section 5(1)(b) of this Act shall be subject to the supervision and regulation of the Commission.

(2) In the case of professors covered by the Universities (Miscellaneous Provisions) (Amendment) Act, 2012 and category of political appointees entitled, by virtue of their terms and conditions of employment, to retire with full benefits, the Commission shall issue guidelines to regulate the administration . of their retirement benefits provided that any shortfall shall be funded from budgetary allocations by the employer.

(3) TheAccountant-General of the Federation and the FCT Treasury, as the case may be, subject to the framework developed jointly with the Commission, shall make payments of retirement benefits directly into individual bank accounts of retired persons covered under section 5 (1)(b) of this Act and details of such payment shall be submitted to the Commission and the Pension Transitional Arrangements Directorate of the Federation and Federal Capital Territory established under sections 42 and 44 of this Act respectively.

PARTIII - RETIREMENT BENEFITS

Retirement benefits.

7. (1) A holder of a retirement savings account shall. upon retirement or attaining the age of 50 years, whichever is later, utilize the amount credited to his retirement savings account for the following benefits -

(a) withdrawalof a lump sum from the total amount credited to his retirement savings account provided that the amount left after the Jump sum withdrawal shall be sufficient to procure a programmed fund withdrawals or annuity for life in accordance with extant guidelines issued by the Commission, from time to time;

(b) programmedmonthly or quarterly withdrawals calculated on the basis of an expected life span;

(c) annuityfor life purchased from a life insurance company licensed by the National Insurance Commission with monthly or quarterly payments in line with guidelines jointly issued by the Commission and National Insurance Commission;

(d) professorscovered by theUniversities (Miscellaneous Provisions (Amendment) Act, 2012 shall be according to the University Act; or

(e) othercategories of employees entitled, by virtue of their terms and conditions of employment, to retire with full retirement benefits shall still apply.

(2) Wherean employee voluntarily retires, disengages or is disengaged from employment as provided for under section 16·(2) and (5) of this Act, the employee may with the approval of the Commission, withdraw an amount of money not exceeding 25 per cent of the total amount credited to his retirement savings account, provided that such withdrawals shall only be made after four months of such retirement or cessation of employment and the employee does not secure another employment.

(3) Wherean employee has accessed the amount standing in his retirement savings account pursuant to subsection (2) of this section, such employee shall subsequently access the balance in the retirement savings account in accordance with subsection (1) of this section.

Death of an employee.

8. (1)Where an employee dies, his entitlements under the life insurance policy Death of an employee. maintained under section 4 (5) of this Act shall be paid by an underwriter to the named beneficiary in line with section 57 of the Insurance Act.

(2) Uponreceipt of a valid Will admitted to Probate or a letter of administration confirming the beneficiaries under the estate of the deceased employee, the pension fund administrator shall, with the approval of the Commission, release the amount standing in the retirement savings account of the deceased to the personal representative of the deceased or to any other person as may be directed by a court of competent jurisdiction, in accordance with the terms of the Will or the personal law of the deceased employee, as the case may be.

Missing employees.

9. Wherean employee is missing and is not found within a period of one year from Missing employees. the date he was declared missing, and a board of inquiry set up by the Commission makes a determination that having regards to available information and all relevant circumstances, it is reasonable to presume that the employee is dead, the provisions of section 8 of this Act shall apply.

Exemption from taxes.

10. (1) Notwithstanding the provisions of any other law, contributions to the Scheme Exemption from taxes. under this Bill t shallform part of tax deductible expenses in the computation of tax payableby an employer or employee under the relevant income tax law.

(2) Allinterests, dividends, profits, investment and other income accruable to pension funds and assets under this Act shall not be taxable.

(3) Any amount payable as a retirement benefit under this Act shall not be taxable.

(4) Withoutprejudice to the provisions of subsection (2) of this section, any income earned on any voluntary contribution made under section 4 (3) of this Act shall be subject to tax at the point of withdrawal where the withdrawal is made before the end of 5 years from the date the voluntary contribution was made.

PARTIV - RETIREMENT SAVINGS ACCOUNT

Retirementsavings account and remittance of contributions.

11. (1) Every employee to whom this Act applies shall maintain an account, (in this Act referred to as "Retirement Savings Account") in his name with any Pension Fund Administrator of his choice.

(2) Theemployee shall notify his employer of the Pension Fund Administrator chosen and the identity of the retirement savings account opened under subsection (1) ofthis section.

(3) Theemployer shall:-

(a) deduct at source the monthly contribution of the employee; and

(b) notlater than 7 working days from the day the employee is paid his salary, remit an amount comprising the employee's contribution under paragraph (a) of this subsection and the employer's contribution to the Pension Fund Custodian specified by the Pension Fund Administrator of the employee.

(4) Uponreceipt of the contributions remitted under subsection (3) (b) of this section, the Pension Fund Custodian shall notify the Pension Fund Administrator who shall cause to be credited the retirement savings account of the employee for whom the employer had made the payment.

(5) Wherean employee fails to open such Retirement Savings Account within a period of six months after assumption of duty, his employer shall, subject to guidelines issued by the Commission, request a Pension Fund Administrator to open a nominal retirement savings account for such employee for the remittance of his pension contributions.

(6) An employerwho fails to deduct or remit the contributions within the time stipulated in subsection (3) (b) of this section shall, in addition to making the remittance already due, be liable to a penalty to be stipulated by the Commission.

(7) Thepenalty referred to in subsection (6) of this section shall not be less than 2 percent of the total contribution that remains unpaid for each month or part of each month the default continues and the amount of the penalty shall be recoverable as a debt owed to the employee's retirement savings account, as the case may be.

(8) Anemployee shall not have access to his retirement savings account or have any dealing with the Pension Fund Custodian with respect to the retirement savings account except through the Pension Fund Administrator.

(9) TheCommission shall determine the cost of recovery of unrernitted contributions and the sources to defray the cost, which may include the amount recovered as penalty pursuant to subsection (6) of this section.

Contributionsof the Federal Government and Federal Capital Territory Administration.

12. (1) The contributions of the Federal Government to the retirement benefits of employees of the Public Service of the Federation under section 11 (3) of this Act shall be a charge on the Consolidated Revenue Fund of the Federation.

(2) Thecontributions of the Federal Capital Territory Administration to the retirement benefits of employees of the Federal Capital Territory under section 11 (3) of-this Act shall be a charge on the Revenue Fund of the Federal Capital Territory.

(3) The Accountant-General of the Federation shall make the deductions of the contributions mentioned in subsection (1) of this section.

(4) TheFederal Capital Territory Treasury shall make the deductions of the contributions mentioned in subsection (2) of this section.

Transferof account from one Pension Fund Administrator to another.

13. Subjectto guidelines issued by the Commission, a holder of a retirement savings account maintained under this Act may not, more than once in a year, transfer his account from one Pension Fund Administrator to another.

Transferfrom one employment to another.

14. Wherean employee transfers his employment from one employer or organization to another, the same retirement savings account shall continue to be maintained by the employee or be transferred subject to section 13 of this Act.

Transferof entitlement from defined benefits scheme into the Scheme.

15. (1) As from 25 June, 2004, being the commencement of the Pension Reform Act 2004, the accrued pension right to retirement benefits of any employee who is already under any pension scheme existing before the commencement of that Act and has over 3 years to retire shall -

(a) inthe case of employees of the Public Service of the Federation where the scheme is unfunded, be recognized in the form of an amount acknowledged through the issuance of Federal Government Retirement Benefits Bonds by the Debt Management Office in favour of the employees and the bond issued under this subsection shall be redeemed upon the retirement of the employee in accordance with section 39 of this Act and the amount so redeemed shall be added to the balance of the retirement savings account of the employee and applied in accordance with the provisions of section 7 of this Act;

(b) inthe case of employees of the Federal Capital Territory where the scheme is unfunded, be recognised in the form of an amount acknowledged through the issuance of a bond to be known as Federal Capital Territory Retirement Benefits Bonds, in favour of the employees and the bond issued under this subsection shall be redeemed upon retirement of the employee in accordance with section 39 of this Act and the amount so redeemed shall be added to the balance in the retirement savings account of the employee and applied in accordance with the provisions of section 7 of this Act; and

(c) inthe case of the employees of the Public Service of the Federation, Federal Capital Territory or in the Private Sector, where the scheme is funded, credit the Retirement Savings Accounts of the employees with any fund to which each employee is entitled and in the event of an insufficiency of funds to meet this liability the shortfall shall immediately become a debt of the relevant employer and shall have priority over any other claim.

(2) Wherethere is such a debt the employer shall immediately issue a written acknowledgement of the debt to the relevant employee and take steps to meet the shortfall and such debt shall not be affected by the by the provisions of any limitation law in force for the time being.

(3) Theemployer shall notify the Commission of any written acknowledgment that arises under subsection (1)( c) of this section and any step taken or planned to meet the shortfall.

(4) Theaccrued pension rights and entitlements of employees of the Public Service of the Federation as provided for under subsection (1) of this section shall be reviewed by the Federal Government of Nigeria from time to time in line with the provisions of section 173(3) of the Constitution of the Federal Republic of Nigeria J 999(as amended), provided that the variation so derived from the salary reviews shall be provided by the Federal Government and credited directly into retirement savings account of individual retiree.

(5) Theaccrued pension rights and entitlements of employees of the Federal Capital Territory as provided for under subsection (1) of this section shall be reviewed by the Federal Capital Territory from time to time in line with the provisions of section 173(3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), provided that the variation so derived from respective salary reviews shall be provided by the Federal Capital Territory and credited directly into retirement savings account of individual retiree.

Withdrawal from retirement savings account.

16. (1) An employee shall not be entitled to make any withdrawal from his retirement savings account opened under section 11 (1) of this Act, before attaining the age of 50 years.

(2) Notwithstandingthe provisions of subsection (1) of this section, any employee who retires, disengages or is disengaged from employment -

(a) onthe advice of a suitably qualified physician or a properly constituted medical board certifying that the employee is no longer mentally or physically capable of carrying out the functions of his office;

(b) due to total or permanent disability either of the mind or body; or

(c) beforethe age of 50 years in accordance with the terms and conditions of his employment, shall be entitled to make withdrawals in accordance with section 7 of this Act.

(3) Personswho retire under subsection (2) of this section shall be reintegrated into the Scheme upon securing another employment, subject to guidelines to be issued by the Commission from time to time.

(4) Forthe purpose of subsection (1) of this section, the authentic age of an employee entering the public service or any other employment shall be that submitted by him on entering the service or taking up the employment.

(5) Withoutprejudice to subsection (1) of this section, any employee who disengages or is disengaged from employment before the age of 50 yearsand is unable to secure another employment within four months of such disengagement may make withdrawal from his retirement savings account in accordance with the provisions of section 7(2) and (3) of this Act

PART V THE NATIONAL PENSION COMMISSION

Establishmentof the National Pension Commission.

17. (1) There is established the National Pension Commission (in this Act referred to as "the Commission").

(2) The Commission -

(a) shallbe a body corporate with perpetual succession and a common seal; and

(b) may sue or be sued in its corporate name.

(3) TheCommission may acquire, hold or dispose of any moveable or immoveable property for the purpose of its functions under this Act.

(4) TheCommission shall have its head office in the capital of the Federal Republic of Nigeria and may open offices and branches in any part of Nigeria as may be approved by the Board.

(5) TheCommission shall report directly to the President of the Federal Republic of Nigeria,

Objectsof the Commission.

18. The principal objects of the Commission shall be to -

(a) enforce and administer the provisions of this Act;

(b) co-ordinateand enforce all other Jaws on pension and retirement benefits; and

(c) regulate,supervise and ensure the effective administration of pension matters and retirement benefits in Nigeria.

19. (1) There is established a Governing Board for the Commission (in this Act referred to as "the Board").

(2) The Board shall consist of -

(a) a part-time chairman who shall be a fit and proper person with adequate cognate experience in pension matters;

(b) theDirector-General of the Commission;

(c) fourfull-time Commissioners of the Commission;

(d) a representative each of the following agencies and institutions-

(i) Headof the Civil Service of the Federation;

(ii) FederalMinistry of Finance;

(iii) NigeriaLabour Congress;

(iv) Trade Union Congress of Nigeria;

(v) NigeriaUnion of Pensioners;

(vi) Nigeria Employers Consultative Association;

(vii) Central Bank of Nigeria;

(viii) Securities and Exchange Commission;

(ix) NigerianStock Exchange; and

(x) NationalInsurance Commission.

(3) TheChairman, the Director-General and the Commissioners shall be appointed by the President subject to the confirmation by the Senate.

(4) TheChairman, Commissioners and the Director-General of the Commission shall each represent each of the six gee-political zones of Nigeria.

(5) The Chairman and members of the Board shall not-

(a) owncontrolling shares in any Pension Fund Administrator or Pension Fund Custodian prior to and during their tenure of office as Chairman or members of the Board; or

(b) bedirectors or shareholders in any Pension Fund Administrator or Pension Fund Custodian before the expiration of three years after ceasing to be a Chairman or member of the Board.

(6) TheChairman and each member of the Board shall, within one month of appointment, declare personal shareholding as well as those of his family members or close associates in any Pension Fund Administrator or Pension Fund Custodian, in writing to the Board.

(7) Thesupplementary provisions set out in the First Schedule to this Act shall have effect with respect to the proceedings of the Board and the other matters mentioned therein.

Tenure of office.

20. (1) The Chairman and the Director-General shall hold office for a term of five years in the first instance and may be re-appointed for another term of five years and no more.

(2) A member of the Board other than the Chairman· and the Director-General shall hold office for a term of four years in the first instance and may be reappointed for another term of four years and no more subject to the provisions of section 21 (1 )(g) of this Act.

(3) noaccount shall a person that has served for two consecutive terms in the Board be re-appointed as to serve for a third succeeding term in the Board.

21. (1) Notwithstanding the provisions of sections 20 and 26 (3) of this Act, a Cessation of office, member of the Board shall cease to hold office as a member of the Board if -

(a) heresigns his appointment as a member of the Board by a notice, under his hand, addressed to the President;

(b) his term of office expires;

(c) he dies

(d) he becomes of unsound mind;

(c) he becomes bankrupt or makes a compromise with his creditors;

(d) he is convictedof a felony or of any offence involving dishonesty or corruption;

(e) hebecomes incapable of carrying out the functions of his office either arising from an infirmity of mind or body;

(f) heis found to have contravened the provisions of section 19(5) or (6) of this Bill;

(g) in the case of an ex-officio member, he ceases to hold the office on the basis of which he became a member of the Board; or

(h) thePresident is satisfied that it is not in the interest of the Commission or public for the person to continue in office and notifies the member in writing to that effect

(2) Inthe event of a vacancy, the President shall appoint a replacement from the geo-political zone of the immediate past member that vacated office to complete the remaining tenure.

22. TheChairman and other members of the Board shall be paid such emoluments, Emoluments. allowancesand incidental expenses as may be determined by the appropriate Agencyof the Federal Government of Nigeria, from time to time.

PART VI - FUNCTIONS AND POWERS OF THE COMMISSION

Functions of the Commission.

23. The Commission shall - Commission.

(a) regulateand supervise the Scheme established under this Act and other pension schemes in Nigeria.

(b) issueguidelines, rules and regulations for the investment and administration of pension funds;

(c) approve,license, regulate and supervise pension fund administrators, custodians and other institutions relating to pension matters as the Commission may, from time to time, determine;

(d) establishstandards, benchmarks, guidelines, procedures, rules and regulations for the management of the pension funds under this Act;

(e) ensure the maintenance of a national data bank on pension matters;

(f) carryout public awareness, enlightenment and education on the establishment, operations and management of the Scheme;

(g) promotecapacity building and institutional strengthening of Pension Fund Administrators and Pension Fund Custodians;

(h) receive,investigate and mitigate complaints of impropriety made against any Pension Fund Administrator, custodian, employer, staff or agent;

(i) promoteand offer technical assistance in the application of the contributory pension scheme by the States and Local Government Councils in accordance with the objectives of this Act; and

(j) performsuch other duties which, in the opinion of the Commission, are necessary or expedient for the discharge of its functions under this Act.

24. TheCommission shall have the power to -

(a) formulate,direct and oversee the overall policy on pension matters in Nigeria;

(b) fixthe terms and conditions of service and remuneration of the employees of the Commission;

(c) requestor call for information from any employer or Pension Fund Administrator or Pension Fund Custodian or any other person or institution on matters relating to retirement benefits;

(d) chargeand collect such fees, levies or penalties, as may be necessary for the provision of services under this Act;

(e) establishand acquire offices and other premises for the use of the Commission in such locations as it may deem necessary for the proper performance of its functions under this Act;

(f) investigateany Pension Fund Administrator, Pension Fund Custodian or other party involved in the management of pension funds;

(g) imposeadministrative or civil sanctions or fines on erring employers or Pension Fund Administrators or Pension Fund Custodians;

(h) orderthe transfer of management or custody of all pension funds or assets being managed by a Pension Fund Administrator or held by a Pension Fund Custodian whose licence has been revoked under this Act or subject to insolvency proceedings to another Pension Fund Administrator or Pension Fund Custodian, as the case may be;

(i) movepension funds and assets from one Pension Fund Administrator or Pension Fund Custodian to another when the Commission believes that the funds and assets are endangered;

(j) appointManagement Committee in the resolution of failing pension operators;

(k) accreditany person, body corporate or institution that engages in any activity relating to pension matters in Nigeria pursuant to this Act;

(l) requestthe Accountant-General of the Federation to credit into the Federal Government Retirement Fund Account, Federal Government's obligation for the redemption of the Retirement Benefits Bonds issued to its employees for their past service; and

(m) set up technicalcommittees, working groups and task forces to assist the Commission in the performance of its duties and functions under this Act;

(n) makechanges to its structure with the approval of the Board; and

(o) dosuch other things which in its opinion are necessary to ensure the efficient performance of the functions of the Commission under this Act.

Functions and Powers of the Board

25. (1) The Board shall -

(a) formulateand provide general policy guidelines for the discharge of the functions of the Commission;

(b) monitorand ensure the implementation of the policies and programmes of the Commission; and

( c) carry out such other functions as are necessary or expedient to ensure the efficient performance of the functions of the Commission under this Act.

(2) The Board shall have power to-

(a) approverules and regulations relating to the appointment, promotion and disciplinary measures for the employees of the Commission;

(b) fixthe remuneration, allowances and benefits of the employees of the Commission; and

(c) regulateits proceedings and make standing orders with respect to the holding of its meetings, notices to be given, the keeping of minutes of its proceedings and such other matters as the Board may, from time to time determine.

PART VII - MANAGEMENT AND STAFF OF THE COMMISSION

Appointmentand tenure of the Director· General and Commissioners.

26. (1) There shall be for the Commission, a Director - General who shall be appointed by the President subject to confirmation by the Senate.

(2) The Director-General shall-

(a) bethe chief executive and accounting officer of the Commission (b) be responsible for the day-to-day administration of the Commission;

(c) keep the books and records of the Commission; and

(d) possessrelevant and adequate professional qualification m pension matters with 15 years cognate experience.

27. (1) There shall be for the Commission, a Secretary and Legal Adviser who shall -

(a) be appointed by the Commission;

(b) beresponsible to the Director-General and the Board;

(c) beresponsible for -

(i) takingthe minutes of meetings of the Board;

(ii) keepingthe corporate records of the Commission and conducting the correspondences of the Board;

(iii) issuingnotices for the meetings of the Board;

(iv) keeping in safecustody, the common seal, documents and agreements of the Commission;

(d) be in-charge of the Legal Department of the Commission; and

(e) performsuch other duties as may be assigned to him, from time to time, by theBoard or the Director-General.

(2) TheSecretary shall possess adequate professional qualifications skills and cognate experience as a legal practitioner.

Otherstaff of the Commission.

28. (1) The Commission may, from time to time, appoint such other category of employees as mayappear to it expedient and necessary for the proper and efficient performance of its functions under this Act.

(2) Thestaff of the Commission shall be public officers as defined in the Constitution of the Federal Republic of Nigeria.

(3) Thestaff of the Commission appointed under subsection (1) of this section shall be appointed on such terms and conditions of service as the Commission may determine.

(4) TheCommission may make rules relating generally to the conditions of service of employees of the Commission, and without prejudice to the generality of the foregoing, the rules may provide for -

(a) theappointment, promotion and disciplinary control of all employees of the Commission;

(b) appeals by employees against disciplinary measures; and

(c) suchother matters to ensure the efficient performance of the functions of the Commission wider this Act.

Servicein the Commission.

29. Servicein the Commission shall be public service for the purpose of this Act and accordingly, officers and other staff of the Commission shall, in respect of their service in the Commission, be entitled to such pension and retirement benefits as are prescribed in this Act.

Establishmentof Departments, Divisions and Special Units.

30. Thereshall be established for the Commission Departments, Divisions and Special Units as may be approved by the Board, from time to time.

ExecutiveCommittee of the Commission.

31. Thereshall be an Executive Committee of the Commission consisting of the Director- General and four Commissioners.

PART VIII-FINANCIAL PROVISIONS

Fund of the Commission

32. (1) The Commission shall establish and maintain a fund into which shall be paid or credited -

(a) takeoff grants, annual subventions and budgetary allocations received from the Government of the Federation;

(b) moniesas may be appropriated to the Commission, from time to time, by the National Assembly;

(c) moniesas may, from time to time, be lent, deposited with or granted to the Commission by the Government of the Federation, States or Local Governments;

(d) fees, fines, charges and commissions made by the Commission;

(e) income from any investment made by the Commission;

(f) grants,gifts or donations from international organizations and donor agencies;

(g) allsums of money or income accruing to the Commission by way of testamentary dispositions and endowments; and

(h) otherfunds which may, from time to time, accrue to the Commission.

(2) TheFund established under subsection (1) of this section shall be managed in accordance with extant Financial Regulations applicable in the Public Service of the Federation.

(3) TheCommission shall be exempted from the payment of income tax under the Companies Income Tax Act or any other levies, duties or contributions that may be imposed by law or regulations.

Expenditures of the Commission.

33. TheCommission may, from time to time, apply the proceeds of the fund established under section 32(1) of this Act for the following purposes-

(a) the cost of administration and operations of the Commission;

(b) thereimbursement of members of any committee set up by the Commission or the Board for such expenses as may be authorized in accordance with the rates approved by the Government of the Federation;

(c) thepayments of salaries, fees and other remunerations or allowances, payable to employees, experts or professionals appointed by the Commission;

(d) themaintenance of any property acquired or vested in the Commission; and

(e) anymatter connected with all or any of the functions of the Commission under this Act.

34. TheCommission shall, not later than the 30th day of September in each year or Annual estimates, any such time as may be required by the Financial Regulations, prepare an estimate of its income and expenditure for the next succeeding year.

35. (1) The financial year of the Commission shall start on the 1st day of January of Accounts and audit. eachyear and end on the 31st day of December of the same year or any such timeas may be prescribed by Financial Regulations issued by the Federal Governmentof Nigeria, from time to time.

(2) TheCommission shall keep proper accounts and records of its receipts, payments, assets and liabilities in respect of each year in manual and electronic devices and shall cause the accounts to be audited within three months from the end of each financial year by an auditor appointed from the list and in accordance with guidelines issued by the Auditor-General for the Federation.

(3) Anauditor appointed pursuant to subsection (2) of this section shall have access to all records relating to the accounts which are kept by the Commission or its agents and shall have the power to require from any employee or agent of the Commission such information and explanation as in the auditor's opinion are necessary for the purpose of the audit.

(4) Anyemployee or agent of the Commission who fails, without reasonable cause, to comply with a request or instruction of an auditor pursuant to subsection (3) of this section shall be guilty of an offence and is liable on conviction to a fine of N500,000.00 or 6 months imprisonment or both fine and imprisonment.

Annual report.

36. (1) The Commission shall, not later than four months after the end of each year, submit to the President and the Public Account Committee of the National Assembly a report on the activities and administration of the Commission during the immediately preceding year and shall include in such report the audited accounts of the Commission and the auditors' report thereon for the preceding year.

(2) Withoutprejudice to subsection (1) of this section, the Commission may submit such other reports to the President on matters of expediency or urgency relating to its functions under this Act.

(3) TheCommission shall, not later than six months after the end of each year, publish the annual report prepared under subsection (1) of this section in at least three national newspapers circulating in Nigeria.

37. TheCommission may, with the approval of the President, borrow money by way Power to borrow, of overdraft or loan for the purpose of carrying out its functions under this Act.

38. (1) The Commission may accept gift of land, money or other property or things on Power 10 accept gift such terms and conditions, if any, as may be specified by the person or organization making the gift.

(2) TheCommission shall not accept any such gift where the terms or conditions attached by theperson or organization making the gift are inconsistent with the objectives and functions of the Commission, under this Act.

PART IX - TRANSITIONAL PROVISIONS FOR THE PUBLIC SECTOR

FederalGovernment Retirement Benefit Bond Redemption Fund.

39. (1) The Central bank of Nigeria shall establish, invest and manage a fund to be known as the Federal Government Retirement Benefit Bond Redemption Fund ·(in this Act referred to as "the Redemption Fund") in respect of the Federal public service.

(2) The Federal Government shall pay into the Redemption Fund an amount not less than 5% of the total monthly wage bil1 payable to employees in the Public Service of the Federation.

(3) Withoutprejudice to subsection (2) of this section, the Commission shall by the end of every calendar year, determine the adequacy of the Redemption Fund against the projected pension liability of Government arising from voluntary and mandatory retirements, death of employees in service and the right of pensioners to pension review in line with section 173(3) of the 1999 Constitution (as amended), and advise the Budget Office of the Federation of shortfall, if any.

(4) TheBudget Office of the Federation shall, on receipt of advice from the Commission pursuant to subsection (3) of this section, ensure adequate appropriation for the shortfall and subsequent payment.

(5) Theamount in the Redemption Fund shall be used by the Central Bank of Nigeria, as prescribed by the Commission, to redeem any retirement benefit bonds issued pursuant to section 15 (1) (a) of this Act.

(6) Paymentsinto the Redemption Fund shall cease after all the retirement benefit bonds issued under section 15 (1) (a) of this Act have been redeemed.

Government obligation to be a charge on the Consolidated Revenue Fund.

40. (1) Government obligation to theFederal Government Retirement Benefits Redemption Fund shall be a charge on the Consolidated Revenue Fund of the Federation.

(2) TheAccountant-General of the Federation shall effect the deductions and payment into the Redemption Fund specified in subsection (1) of this section.

Federal Capital Territory Retirement Benefits Bond Redemption fund.

41. (1) There shall be opened in the Central Bank of Nigeria, an account for the management and investment of funds to be known as the Federal Capital Territory Retirement Benefits Bond Redemption Fund (in this Act referred to as "the Federal Capital Territory Redemption Fund") in respect of the Federal Capital Territory.

(2) TheFederal Capital Territory shall pay into the Redemption Fund an amountnot less than 5 % of the total monthly wage bill payable to employees in the service of the Federal Capital Territory provided that the Commission shall, by the end of every calendar year, determine the adequacy of the Redemption Fund against the projected pension liability of the Federal Capital Territory arising from normal, voluntary and mandatory retirements and death of shortfall, if any.

(3) TheFederal Capital Territory Treasury shall, on receipt of advice from the Commission pursuant to subsection (2) of this section, ensure adequate appropriation for the shortfall and subsequent payment.

(4) Theamount in the Federal Capital Territory Redemption Fund shall be use by theCentral Bank of Nigeria, as prescribed by the Commission, to redeem any retirement benefit bonds issued pursuant to section 15 (1) (b) of this Act.

(5) Theobligation of the Federal Capital Territory to the Federal Capital Territory Retirement Benefits Redemption Fund shall be a charge on the Revenue Fund of the Federal Capital Territory,

(6) TheCommission shall, upon the failure of the Federal Capital Territory to redeem any bond issued within one month of its due date, demand such redemption in writing from the Federal Capital Territory,

(7) Uponthe failure of the Federal Capital Territory to redeem the bond within one month of the receipt of the Commission's demand, the Commission shall issue a request to the Accountant - General of the Federation who shall thereafter deduct directly from the Federal Capital Territory allocation from the Federation Account, the value of the bond and credit either the Redemption Fund Account with the Central Bank of Nigeria or the Retirement Savings Account maintained by the affected employee with his Pension Fund Administrator.

(8) Paymentsinto the Redemption Fund shall cease after all the retirement benefit bonds issued under section 15 (1) (b) of this Act have been redeemed

Establishmentof Pension Transitional Arrangements Directorate for the Public Service of the Federation.

42. (1) There is established for the Public Service of the Federation, the Federal Government Pension Transitional Arrangements Directorate (in this Act referred to as "Pension Transitional Arrangements Directorate").

(2) TheFederal Government Pension Transitional Arrangements Directorate shall be an extra Ministerial Department under the Federal Ministry of Finance with management team to be appointed by the Minister.

(3) ThePension Transitional Arrangements Directorate shall be headed by an Executive Secretary and shall be made up of representatives of the following Departments -

(a) the Civil Service Pension Department;

(b) the Police Pension Department;

(c) the Customs, Immigration and Prison Pension Department;

(d) the Treasury Funded Parastatals Pension Department;

(e) the Pensioner Service Department;

(f) theInformation Technology Department; and

(g) the Support Services Department .

(4) ThePension Transitional Arrangements Directorate shall also comprise of other relevant Departments as may be determined by the Commission, from time to time.

Miscellaneousprovisions relating to Transitional Arrangements Directorate for the Public Service of the Federation.

43. (1) The Pension Transitional Arrangements Directorate may, from time to time, appoint such other category of employees as may appear to it expedient and necessary for the proper and efficient performance of its functions under this Act.

(2) ThePension Transitional Arrangements Directorate shall fix and pay its employees such remuneration, allowances and other benefits as it may determine from time to time, subject to the approval of the Minister of Finance.

(3) ThePension Transitional Arrangements Directorate may make rules relating generally to the condition of service of its employees including the appointment, promotion and disciplinary control of all its employees.

( 4) The expenses of the Pension Transitional Arrangements Directorate shall be defrayed from its fund, which shall consists of the initial take-off grant, and annual subvention from the Federal Government as well as other assets and monies that may, from time to time, accrue to it.

Establishmentof Pension Transitional Arrangements Directorate for the Federal Capital Territory.

44. (1) There is established for the Federal Capital Territory, a Federal Capital Territory Pension Transitional Arrangements Directorate (in this Act referred to as "the Federal Capital Territory Pension Transitional Arrangements Directorate").

(2) The Federal Capital Territory Pension Transitional Arrangements Directorate shall be a Directorate under the Federal Capital Territory Administration.

(3) TheFederal Capital Territory Pension Transitional Arrangements Directorate shall be headed by an Executive Secretary, not below the level of a Director, and shall be made up of the following Departments to be represented by an officer not below the rank of a Director –

(a) the Federal Capital Territory Pension Department;

(b) the Area Councils Pension Department;

( c) the Pensioner Service Department;

(d) theInformation Technology Department; and

(e) the Support Services Department.

(4) TheFederal Capital Territory Pension Transitional Arrangements Directorate shall also comprise of other relevant Departments as may be determined by the Minister of the Federal Capital Territory, from time to time.

(5) TheFederal CapitalTerritory Pension Transitional Arrangements Directorate shall fix and pay its employees such remuneration, allowances and other benefits as it may determine, from time to time as may appear to it expedient and necessary for the proper and efficient performance of its functions under this Act.

(6) TheFederal Capital Territory Pension Transitional Arrangements Directorate shall fix and pay its employees such remuneration, allowances and other benefits as it may determine, from time to time, subject to the approval of the Minister of the Federal Capital Territory.

(7) Theexpenses of the Federal Capital Territory Pension Transitional Arrangement Directorate shall be defrayed from its Fund, which shall consists of the initial take-off grant and annual subvention from the Federal Capital Territory as well as other assets and monies that may, from time to time, accrue to it.

Functionsof the Federal Government and Federal Capital Territory pension Transitional Arrangements Directorates.

45. TheFederal Government and Federal Capital Territory Pension Transitional Arrangements Directorates shall, respectively, carry out the existing functions of the relevant pension boards or offices in the Public Service of the Federation and Federal Capital Territory and shall in particular-

(a) makebudgetary estimates for existing pensioners and the officers exempted from this Scheme under section 5(1)(b) of this Act;

(b) prepareand submit the monthly payroll of pensioners to the office of the Accountant - General of the Federation for direct payment from the budgetary allocation maintained with the Central Bank of Nigeria to pensioners' bank accounts;

(c) issuepayment instructions to the office of the Accountant-General of the Federation;

(d) maintaina comprehensive database of pensioners under their respective jurisdiction;

(e) ascertaindeficits in pension payments, if any, to existing pensioners or the categories of officers exempted under section 5(1)(b) of this Act, and carry out such other functions aimed at ensuring the welfare of pensioners as the Commission may, from time to time, direct; and

(f) rendermonthly returns to the Commission on existing staff, pensioners, deceased pensioners, details of next of kin of deceased pensioners and on any other issue as may be required by the Commission, from time to time.

Determination of gratuity and pension of exempted pensioners.

46. TheFederal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate shall determine and cause to be paid gratuity and pension to the pensioners in the category of officers exempted under section 5(1)(b) of this Act, in accordance with the provisions of section 5 (2) of this Act and relevant and applicable computations under the existing Pay-As-You-Go Pension Scheme of the Public Service of the Federation and Federal Capital Territory.

Transferof assets of the pension offices existing before this Act.

47. Asfrom the commencement of this Act, the responsibilities, funds, assets or liabilities of all pension offices in the Public Service of the Federation and the Federal Capital Territory existing before the commencement of this Act shall be vested in the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate respectively as provided under this Act to cover for category of those exempted under section 5(1)(b) of this Act.

(2) Allfunds meant for payment of pension or retirement benefits with all pension offices shall be transferred to the Central Bank of Nigeria for use by the Accountant-General of the Federation for the payment of pension.

Powerof the Commission to regulate and supervise the Federal Government and Federal Capital Territory Pension Transitional Arrangements Directorates.

48 (1) The Commission shall regulate and supervise the activities of the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate to ensure compliance with the provisions of this Act.

(2) TheCommission shall, at the directive of the President of the Federal Republic intervene to administer and render technical support and advice on the management of the various Pension Transition Administration Directorates.

(3) TheFederal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate shall operate under the rules, regulations and directives issued by the Commission from time to time,

Cessationof the Federal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate.

49. TheFederal Government Pension Transitional Arrangements Directorate and the Federal Capital Territory Pension Transitional Arrangements Directorate shall cease to exist after the death of the last pensioner or employee entitled to pension as specified under sections (1) (b )of this Act.

PART X - TRANSITIONAL PROVISIONS FOR PRIVATE SECTOR

50. (1) Notwithstanding any other provisions of this Act, any pension scheme in the private sector existing before the commencement of this Act may continue to exist provided that -

(a) thepension scheme shall be fully funded and in case of any defined contribution scheme, contributions in favour of each employee including the attributable income shall be computed and credited to a retirement savings account opened for the employee.

(b) thepension funds and assets shall be fully segregated from the funds and assets of the company;

(c) the pension funds and assets shall be held by a custodian;

(d) everyemployee in the existing scheme shall be free to exercise the option of coming under the Scheme established under section 3 of this Act and his employer shall compute and credit to his account, his contributions and distributable income earned as at the date the employee exercises such an option subject to the regulations, rules and standards established by the Commission;

(e) anyamount computed under paragraph (d) of this subsection shall be transferred to the retirement savings account of the employee maintained with a pension fund administrator of his choice;

(f) allinvestments in assets other than those specified as permissible investment for pension funds and assets under section 86 of this Act may be maintained and from the commencement of this Act all investments shall be subject to the regulation, rules and standards established by the Commission;

(g) theemployer shall undertake to the Commission that the pension fund shall be fully funded at all times and any shortfall to be made up within 90 days or as may be prescribed by the Commission; and

(h) theexisting scheme shall be closed to new employees and such new employees shall be required to open a retirement savings account.

(2) Anemployer operating any defined benefits scheme shall undertake, at the end of every financial year, an actuarial valuation to determine the adequacy of his pension fund assets.

(3) Nothingin this section shall preclude the right of any person who has retired before the commencement of this Act and is receiving benefits from any pension scheme in the private sector from receiving his pensions as and when due in accordance with the provisions of the Trust Deed and Rules of the Scheme.

(4) Themanagement and custody of the pension funds for the category of pensioners referred to in subsection ( 4) of this section shall be undertaken by licensed Pension Fund Administrators and Pension Fund Custodians respectively.

Closed Pension Fund Administrator.

51. Subjectto the provisions of this Act and any regulation issued by the Commission, Closed Pension Fund Administrators licensed by the Commission before the commencement of this Act may continue to exist provided that new employees of sponsor companies shall join the Contributory Pension Scheme and open Retirement Savings Account.

TheCommission to regulate closed pension administrator.

52. Subjectto section 51 of this Act; every closed pension fund administrator shall be—

(a) subject to supervision and regulation by the Commission; and

(b) deemedto be pension fund administrator, and all provisions in this Act relating to the conduct and operations of a pension fund administrator shall apply to it.

Fundswith Nigeria Social Insurance Trust Fund.

53. (1) The Nigeria Social Insurance Trust Fund shall continue to maintain the company it established under the Pension Reform Act, 2004 to undertake the business of a PensionFund Administrator in accordance with this Act.

(2) Thefunds contributed to the Nigeria Social Insurance Trust Fund by any person before the registration of a pension fund administrator under this Act including any attributable income thereof not required for the purpose of administering minimum pension as determined by the Commission shall be computed and credited into the respective retirement savings accounts opened under this Act by each contributor or beneficiary of the contributions made under the Nigeria Social Insurance Trust Fund Act.

(3) Wherea person who contributed any fund under the Nigeria Social Insurance Trust Fund Act has retired before the commencement of this Act, the funds due to him shall be paid to him in accordance with section 7 of this Act or in lump sum in accordance with the rules and regulations of the Commission.

( 4) Where a person who contributed any fund under the Nigeria Social Insurance Trust Fund has died before the commencement of this Act, the estate or beneficiary of the deceased shall be paid the entitlement of such deceased person subject to the provisions of the Nigeria Social Insurance Trust Fund Act.

(5) Allpension funds and assets held and managed by the Nigeria Social Insurance Trust Fund shall, pursuant to rules made by the Commission, be transferred to a Pension Fund Custodian or Administrator.

(6) TheCommission shall directly supervise the transfer of funds pursuant to subsection (4) of this section and all necessary payments under this section.

PART XI - PENSION FUND ADMINISTRATORS AND PENSION FUND CUSTODIANS

PensionFund Administrators.

54. Fromthe commencement of this Act, pension funds shall only be managed by Pension Fund Administrators licensed by the Commission under this Act.

Functionsof Pension Fund Administrators.

55. A Pension Fund Administrator licensed under this Act shall -

(a) openRetirement Savings Account for all employees with a Personal Identity Number (PIN) attached;

(b) investand manage pension funds and assets in accordance with the provisions of this Act;

(c) maintainbooks of account on all transactions relating to pension funds managed by it;

(d) provideregular information on investment strategy, market returns and other performance indicators to the Commission and employees or beneficiaries of the retirement savings accounts;

(e) providecustomer service support to employees· including access to employees account balances and statements on demand;

(f) causeto be paid retirement benefits to holders of retirement savings account in accordance with the provisions of this Act;

(g) beresponsible for all calculations in relation to retirement benefits; and

(h) carryout other functions as may be directed, from time to time, by the Commission.

Pensionfund Custodians.

56. Fromthe commencement of this Act, pension funds and assets shall only be held by pension funds custodians licensed by the Commission under this Act.

Functionsof Pension Fund Custodians.

57. A Pension Fund Custodian shall -

(a) receivethe total contributions remitted by the employer under section 11 of this Act on behalf of the Pension Fund Administrator and credit the account of the pension funds administrator immediately;

(b) notifythe Pension Fund Administrator within 24 hours of the receipt of contributions from any employer;

(c) holdpension funds and assets in safe custody on trust for the employee and beneficiaries of the retirement savings account;

(d) onbehalf of the Pension Fund Administrator, settle transactions and undertake activities relating to the administration of pension fund investments including the collection of dividends, bonus) rental income, commissions and related activities;

(e) reportto the Commission on matters relating to the assets being held by it on behalf of any Pension Fund Administrator at such intervals as may be determined, from time to time, by the Commission;

(f) undertakestatistical analysis on the investments and returns on investments with respect to pension funds in its custody and provide data and information to the Pension Fund Administrator and the Commission;

(g) executein favour of the Pension Fund Administrator relevant proxy for the purpose of voting in relation to the investments; and.

(h) carryout other functions as may be prescribed by regulations and guidelines issued by the Commission, from time to time.

Applicationfor a licence as Pension Fund Administrator.

58. (1) A person proposing to operate as a Pension Fund Administrator shall apply to the Commission for a licence in such form and with the payment of such fees as may be prescribed by the Commission from time to time.

(2) TheCommission may, if satisfied that the applicant meets the requirements set out in section 60 of this Act, issue a licence to the applicant to operate as a Pension Fund Administrator subject to such terms and conditions as the Commission may consider expedient and necessary in the circumstances.

Operatingas Pension Fund Administrator or Pension Fund Custodian without licence.

59. (1) A person who contravenes the provisions of sections 54 and 56 of this Act commits an offence and is liable on conviction to a fine of not less than N10,000,000.00 or to a term of not less than 10 years imprisonment or to both such fine and imprisonment; or

(2) A corporate body who contravenes the provisions of sections 54 and 56 of this Act commits an offence and is liable on conviction to a fine of not less than N50, 000,000.00 and in addition, the directors or officers shall each be liable to a fine of not less than N5, 000,000 or to a term of not less than 10 years imprisonment or to both such fine and imprisonment.

(3) Inaddition to the penalty prescribed in subsections (1) and (2) of this section, the Court may order for the forfeiture of the proceeds of the contravention of the offence established under this section.

Requirements for licence as a Pension Fund Administrator.

60. (1) An application for licence to operate as a Pension Fund Administrator shall not be granted unless the applicant -

(a) isa limited liability company incorporated under the Companies and Allied Matters Act whose object is to manage pension funds;

(b) hasa minimum paid up share capital of such sum as maybe prescribed, from time to time, by the Commission;

(c) satisfiesthe Commission that it has the professional capacity to manage pension funds and administer retirement benefits;

(d) hasnever been a manager or administrator of any fund which was mismanaged or has been in distress due to any fault, either fully or partially, of the Pension Fund Administrator or any of its subscribers, directors or officers;

(e) undertakesto the satisfaction of the Commission, that it shall not be engaged in any business other than the management of pension funds; and

(f) satisfiesany additional requirement or condition as may be prescribed, from time to time; by the Commission.

(2) Allcompanies and institutions already engaged in the management of pension funds who are not licensed by the Commission shall, at the commencement of this Act, compute and credit all contributions to the Retirement Savings Account opened by them for each contributor including distributable income.

(3) Allcompanies and institutions referred to in subsection (2) of this section shall transfer all pension funds and assets held by them to Pension Fund Administrators and Pension Fund Custodians as may be determined by the Commission,

(4) Pursuantto the provisions of section 116 of the Companies and Allied Matters Act, the voting rights of every shareholder in a Pension Fund Administrator or Pension Fund Custodian shall be proportionate to his contribution to the paid-up share capital of the Pension Fund Administrator or Pension Fund Custodian.

Applicationfor licence as Pension Fund Custodian.

61. (1) A person proposing to act as a custodian of pension funds shall apply to the Commission for a licence in such form with the payment of such fees as may be prescribed by the Commission, from time to time.

(2) TheCommission may, if satisfied that the applicant meets the requirements set out in section 62 of this Act, issue a licence to the applicant to carry out the functions of a Pension Fund Custodian prescribed under section 46 ofthis Act.

Requirements for a licence as Pension Fund Custodian.

62. Applicationfor license to act as a Pension Fund Custodian shall not be approved by the Commission unless such applicant -

(a) isa limited liability company incorporated under the Companies and Allied Matters Act by a licensed financial institution with sole object of keeping custody of pension fund and retirement benefits assets;

(b) hasa minimum paid capital of such sum that may be prescribed by the Commission from time to time and is wholly owned by a licensed financial institution with net worth of a minimum of N25,000,000,000 or as may be prescribed from time to time;

(c) showsthat the parent company has issued a guarantee to the full sum and value of the cash float of pension funds and assets held by the Pension Fund Custodian company, as may be determined by the Commission, from time to time;

(d) undertakesto hold the pension fund assets to the exclusive order of the Pension Fund Administrator on trust for the respective employees as may be instructed by the Pension Fund Administratorappointed by each employee;

(e) hasnever been a custodian of any fund which was mismanaged or has been in distress due to any default of the Pension Fund Custodian; and

(f) satisfiessuch additional requirements as may be prescribed from time to time, by the Commission.

Refusal of licence.

63. (1) The Commission may refuse to issue a licence to any applicant pursuant to an application made under sections 58 and 61 of this Act where it is satisfied that -

(a) theinformation contained in the application for grant of licence is false or untrue in any material particular;

(b) theapplication does not meet the requirements prescribed by this Act or the Commission for grant of license; or

(c) Thelicence of the applicant had earlier been revoked by the Commission under any of the conditions mentioned in section 64 of this Act.

(2) Wherethe Commission refuses to register any Pension Fund Administrator or Pension Fund Custodian, it shall notify the applicant in the prescribed form, specifying the reasons for such refusal.

Revocationof Licence.

64. (1) Subject to subsection (2) of this section, the Commission may revoke a licence issued to a Pension Fund Administrator or Pension Fund Custodian, where it discovers that -

(a) a statement was made in connection with the application which the applicant knew or ought to have known to be false, untrue or misleading in any material particular;

(b) theapplicant or licensee is subject to an insolvency proceeding or is likelyto be wound up or otherwise dissolved;

(c) theconduct of affairs of the Pension Fund Administrator or Pension Fund Custodian does not conform to the provisions of this Act or any regulations made pursuant to this Act;

(d) anyevent occurs which renders the Pension Fund Administrator or Pension Fund Custodian unable to manage the pension funds or take custody of the pension funds as the case may be; or

(e) thePension Fund Administrator or Pension Fund Custodian is in breach of any condition attached to the licence issued by the Commission.

(2) TheCommission shall, before revoking any licence, give the Pension Fund Administrator or Pension Fund Custodian at least seven calendar days notice of its intention and shall consider any representations made to it in writing by the Pension Fund Administrator or Pension Fund Custodian within that period before the revocation.

(3) Thenotice under subsection (2) of this section shall be in the prescribed form and shall specify the .reasons for the-revocation of licence.

(4) Therevocation of licence of a Pension Fund Administrator or Pension Fund Custodian shall not in any way prejudice the entitlements of any beneficiary of the retirement savings account under the Scheme and other approved schemes.

(5) Notwithstandingthe provisions of the Companies and Allied Matters Act, the Commission shall in its revocation order, withdraw the powers of the board of the Pension Fund Administrator or Pension Fund Custodian over the pension funds and assets held or administered by the company and may appoint administrators with relevant qualifications who shall superintend the transfer of the assets and funds held or administered by the Company and exercise the powers of the board where necessary in accordance with this Act.

(6) The Commission shall -

(a) causethe Retirement Savings Accounts being managed by the Pension Fund Administrator whose licence was revoked under subsection (l)of this section to be transferred to another Pension Fund Administrator or administrators as the case may be; and

(b) transferthe pension fund and assets being held by a Pension Fund Custodian whose licence was revoked under subsection (1) of this section to another Pension Fund Custodian or custodians as the case may be.

(7) TheCommission shall publish by notice in the Federal Gazette, the list of the Pension Fund Administrators or Pension Fund Custodians whose licenses have been revoked.

Publicationof list of Pension Fund Administrators and Pension Fund Custodians.

65. TheCommission shall, at the end of each calendar year publish a list of all Pension Fund Administrators and Pension Fund Custodians licensed by it in such manner as it considers necessary.

Properbooks of account and audit of the Pension Fund Administrators and Pension Fund Custodians.

66. (1) A Pension Fund Administrator or Pension Fund Custodian licensed under this Act shall cause to be kept proper books of account and records of both the pension funds and company operations.

(2) A Pension Fund Administrator or Pension Fund Custodian shall, not later than three months from the end of the year, cause both the pension funds and company accounts to be audited by qualified external auditors.

(3) Every Pension Fund Administrator or Pension Fund Custodian shall -

(a) submitits audited financial accounts to the Commission for approval, not later than four months from the end of its financial year;

(b) causeto be published the audited accounts approved under paragraph (a) of this subsection in at least two daily newspapers widely circulated in Nigeria within one month of the approval by the Commission; and

(c) exhibitapproved audited accounts in a conspicuous position in each of its offices and branches within30daysofthe approval throughout the financial year.

(4) Notwithstandingthe provisions of subsection (3)(b) and (c) of this section, Closed Pension Fund Administrators and sponsors of approved retirement benefit schemes shall not be required to publish or exhibit their respective approved audited accounts.

Annualreports by Pension Fund Administrators.

67. A Pension Fund Administrator shall, not later than four months from the end of the financial year submit to the Commission an annual report in respect of the immediate preceding year, on both the company operations and pension funds being managed by it and such report shall include the audited accounts.

Externalauditor's obligation to report to the Commission.

68. (1) An external auditor engaged by a Pension .Fund Administrator or Pension Fund Custodian referred to under section 66(2) of this Act shall be responsible to theCommission for the protection of pension funds and assets managed or held by the Pension Fund Administrator or Pension Fund Custodian and shall, in the discharge of his or its duties, report to the Commission -

(a) anyextreme situation such as evidence of imminent financial collapse of the Pension Fund Administrator or Pension Fund Custodian;

(b) anyevidence of an event or occurrence which has led or is likely to lead to material diminishing of the net assets of the fund or Pension Fund Administrator or Pension Fund Custodian;

(c) anyevidence that there has been a significant weakness in the accounting and other records or the internal control systems of the fund or Pension Fund Administrator or the Pension Fund Custodian;

(d) anyevidence that the management of the Pension Fund Administrator or Pension Fund Custodian has reported financial information to the Commission, in respect of the pension fund and company's operations, which is misleading in a material particular;

(e) wherethe auditor believes that a fraud or other misappropriation has been committed by the directors or the management of the Pension Fund Administrator or Pension Fund Custodian or has evidence of an attempt by the directors or management to commit such fraud or misappropriation; or

(f) wherethere has been an event or occurrence which affects or is likely to affect the auditor's confidence in the competence of the directors or the management to conduct the business of a Pension Fund Administrator or Pension Fund Custodian in a prudent, safe and sound manner.

(2) Nothingin this section shall be construed to be a breach of the duty of the auditor to a Pension Fund Administrator or Pension Fund Custodian by reason only of his communicating in good faith to the Commission, whether or not in response to a request made by the Commission; any information or opinion on any matter or situation to which this section applies.

(3) Anyauditor of a fund, Pension Fund Administrator or Pension Fund Custodian who acts in contravention of or fails deliberately or negligently to comply with any of the provisions of subsection (1) of this section commits an offence and is liable on conviction to a fine of not less than N10, 000 ,000 for the firm or to a term not less than three years imprisonment for the responsible partner or principal officer or to both such fine and imprisonment.

Generalobligations of the Pension Fund Administrator and Pension Fund Custodian.

69. The Pension Fund Administrator and Pension Fund Custodian shall -

(a) ensurethat the pension fund is at all times managed or held in accordance with the provisions of this Act regulations or guidelines made hereunder and any directive given by the Commission;

(b) takereasonable care to ensure that the management or custody of the pension funds is carried out in the best interests of the retirement savings account holders;

(c) reportto the Commission, as soon as practicable, any unusual occurrence with respect to the pension funds which in his view could adversely affect the rights of the owner of a retirement savings account under the Scheme;

(d) reportto the Commission, as soon as reasonably practicable, if an employer is in default of remittance of any contribution and such remittance remains due for a period of more than 14 days; and

(e) subjectto the guidelines issued by the Commission and upon the request of an employee, transfer the retirement savings account promptly to another Pension Fund Administrator;

(f) provideannual fidelity insurance cover for its staff to the full value of the pension funds and assets managed or held or as may be determined by the Commission.

Specificobligation of the Pension Fund Custodian.

70. (1) The Pension Fund Custodian shall maintain all pension funds and assets in its custody to the exclusive order of the relevant Pension Fund Administrator and the Commission.

(2) ThePension Fund Custodian shall not utilise any pension fund or assets in its custodyto meet its own financial obligation to any person whatsoever.

Agreementsor arrangements requiring consent of the Commission.

71. Exceptwith the priorconsent of the Commission in writing, no Pension Fund Administrator or Pension Fund Custodian shall enter into any agreement or arrangement -

(a) forthe sale or transfer of significant shareholding of the Pension Fund Administrator or Pension Fund Custodian which is capable of causing a change in the shareholding structure of the Pension Fund Administrator or Pension Fund Custodian;

(b) for the restructuring of its share capital;

(c) forthe amalgamation or merger of the Pension Fund Administrator or Pension Fund Custodian with any other Pension Fund Administrator or Pension Fund Custodian;

(d) forthe restructuring of the Pension Fund Administrator or Pension Fund Custodian; or

(e) to employ a management agent or transfer its business to any agent.

Operationof branch offices by a Pension Fund Administrator and Pension Fund Custodian.

72. Subjectto the approval of the Commission, a Pension Fund Administrator or Pension Fund Custodian may open or close any of its branch offices anywhere within or outside Nigeria.

Returns on frauds and forgeries.

73. EveryPension Fund Administrator or Pension Fund Custodian shall render to the Commission reports of any fraud, forgery or theft which occurs in its organization in a format approved by the Commission.

Notificationof dismissed staff.

74. (1) Every Pension Fund Administrator or Pension Fund Custodian shall notify the Commission of any staff that is dismissed, his appointment terminated or advised to retire or resign on the grounds of fraud, misconduct or dishonesty.

(2) The Commission shall maintain a list of persons -

(a) who have been dismissed;

(b) whoseappointments are terminated; and

(c) whoare advised to retire or resign, on the grounds of fraud, misconduct or dishonesty, and shall circulate such list to Pension Fund Administrators and Pension Fund Custodians.

(3) TheCommission may, if it deems fit in the circumstances, circulate to other regulatory agencies the list of persons maintained under subsection (2) of this section.

(4) Itshall be the duty of all government appointing or screening and or confirming bodies to make sure that no person that has been indicted in any form of pension fraud or crime be allowed to serve in any pension and or finance administration in Nigeria.

Prohibition of employment.

75. A Pension Fund Administrator or Pension Fund Custodian shall not employ any person whose name is on the list maintained by the Commission under section 74 (2) of this Act, unless with the prior approval of the Commission.

Penaltyfor non-compliance.

76. (1) A Pension Fund Administrator or Pension Fund Custodian who fails to comply with any of the provisions of sections 73, 74 and 75 of this Act shall pay a penalty of N1,000,000 to the Commission for every violation.

(2) Inaddition to the penalty specified in subsection (1) of this section, the Commission may impose additional penalties including removal of any top management staff of the Pension Fund Administrator or the Pension Fund Custodian who had knowledge or ought to have knowledge of the offences.

Prohibited transactions.

77. (1) A Pension Fund Administrator shall not hold any pension fund or asset

(2) A Pension Fund Administrator shall not keep any pension fund or asset with a Pension Fund Custodian in whom the Pension Fund Administrator has any business interest, share or any relationship whatsoever.

(3) Anemployee of the Pension Fund Administrator shall not engage in any business transaction or trade in any manner with the Pension Fund Administrator as a counterpart or with the subsidiary in relation to pension fund or assets.

(4) A Pension Fund Administrator or Pension Fund Custodian shall not divert or convert pension funds and assets as well as any income or brokerage, commission arising from the investment of pension fund or asset or by any other means.

78. (1) To assist it in carrying out its functions and ensuring compliance with the provisions of this Act, every Pension Fund Administrator shall establish -

(a) RiskManagement Committee; and

(b) InvestmentStrategy Committee.

(2) The Risk Management Committee shall -

(a) determinethe risk profile of the investment portfolios of the Pension Fund Administrator;

(b) draw up programmes of adjustments in the case of deviation;

(c) determinethe level of reserves to cover the risks of the investment portfolios;

(d) advisethe Pension Fund Administrator on maintaining adequate internal control measures and procedures; and

(e) carryout such other functions relating to risk management as the Pension Fund Administrator may, from time to time, determine.

(3) The Investment Strategy Committee shall -

(a) formulatestrategies for complying with investment guidelines issued by the Commission;

(b) determinean optimal investment mix consistent with risk profile agreed by the board of the Pension Fund Administrator;

(c) evaluatethe value of the daily market-to-market portfolios and make proposals to the board of the Pension Fund Administrator;

(d) reviewthe performance of the major securities of the investment portfolios of the Pension Fund Administrator on periodic basis, and

(e) carryout such other functions relating to investment strategy as the board of the Pension Fund Administrator may, from time to time, determine.

Appointmentof chief executive officers for Pension Fund Administrators and Pension Fund Custodians.

79. (1) The Chief Executive Officer, Directors and Management Staff of a Pension Fund Administrator or Pension Fund Custodian shall not be appointed without the prior written approval of the Commission.

(2) TheChief Executive Officer and Directors of a Pension Fund Administrator or Pension Fund Custodian shall execute the code of conduct form as may be provided by the Commission from time to time.

(3) Notwithstandingsubsections (1) and (2) of this section, the Commission may suspend or direct the resignation and/or sack of any Chief Executive Officer Director or Management staff of any Pension Fund Administrator or Pension Fund Custodianfound to have grossly disregarded the provisions of this Act.

Compliance officer.

80. EveryPension Fund Administrator and Pension Fund Custodian shall employ a compliance officer who shall -

(a) beresponsible for ensuring compliance with the provisions of this Act rules and regulations made there under and the internal rules and regulations made by the Pension Fund Administrator or the Pension Fund Custodian;

(b) have relevant professional and cognate experience;

(c) reportto the chief executive officer of the Pension Fund Administrator or the Pension Fund Custodian and the Commission on any non – compliance by the Pension Fund Administrator or Pension Fund Custodian; and

(d) liaisewith the Commission with regard to any matter which, in the opinion of the Commission, will enhance the compliance of the Pension Fun Administrator and Pension Fund Custodianwith the provisions of this Act and guidelines issued there under.

Statutory Reserve Fund.

81. (1) Every Pension Fund Administrator shall maintaina Statutory Reserve Fund as contingency fund to meet any claim for which the Pension Fund Administrator may be liable as may be determined by the Commission.

(2) TheStatutory Reserve Fund shall be credited annually with 12.5 percent of the net profit after tax or such other percentage of the net profit as the Commission may, from time to time, stipulate.

Pension Protection Fund.

82. (1) The Commission shall establish and maintain a fund to be known as the Pension Protection Fund for the benefits of eligible pensioners covered by any pension scheme established, approved or recognized under this Act.

(2) The Pension Protection Fund shall consist of -

(a) anannual subvention of 1 % of the total monthly wage bill payable to employees in the Public Service of the Federation towards the funding of the minimum guaranteed pension;

(b) annualpension protection levy paid by the Commission and all licensed pension operators at a rate to be determined by the Commission, from time to time; and

(c) income from investment of the Pension Protection Fund.

(3) The Commission shall utilise the Pension Protection Fund for -

(a) thefunding of the minimum guaranteed pension pursuant to section 84 of this Act;

(b) thepayment of compensation to eligible pensioners for shortfall or financial losses arising from investment activities; and

(c) anyother purpose deserving protection with the Pension Protection Fund as the Commission may, from time to time, determine.

(4) TheCommission shall make regulations governing the operations of the Pension Protection Fund, fund management and custody, eligibility criteria and related matters.

Pension Fund administrative expenses.

83. ( 1) Allincome earned from investment of pension funds under this Act shall be credited to the individual Retirement Saving Accounts of beneficiaries.

(2) All fees, charges, costs and expenses on transactions made and properly delineated by the Pension Fund Administrators shall be debited from the pension fund, in line with regulations issued by the Commission, from time to time.

(3) TheCommission shall ensure that all information in brochures, advertisements, promotional materials and claims of Pension Fund Administrators are truthful in every way without omission of any fact which may make the information contained therein misleading, false or deceptive.

Minimumpension guarantee.

84. (1) All Retirement Savings Account holders who have contributed to a licensed Pension Fund Administrator for a number of years to be specified by the Commission shall be entitled to a guaranteed minimum pension as may be specified from time to time by the Commission.

(2) TheNigeria Social Insurance Trust Fund shall continue to provide every eligible citizen of Nigeria and legal resident social security insurance services other than pension in accordance with the Nigeria Social Insurance Trust Fund Act.

(3) TheNigeria Social Insurance Trust Fund Act shall be deemed amended in all particulars to bring it in full compliance with this Act.

PART XII - INVESTMENT OF PENSION FUND

Investmentof pension funds.

85. (1) All contributions made under this Act shall be invested by the Pension Fund Administrators with the objectives of safety and maintenance of fair returns on amount invested.

(2) Pension funds and assets shall only be invested in accordance with regulations and guidelines issued by the Commission, from time to time.

Modesof investments of pension funds.

86. Subjectto guidelines issued by the Commission, pension funds and assets shall be invested in any of the following -

(a) bonds,bills and other securities issued or guaranteed by the Federal Government and the Central Bank of Nigeria;

(b) bonds,bills and other securities issued by the States and Local Governments;

(c) bonds, debentures, redeemable preference shares and other debt instruments issued by corporate entities and listed on a Stock Exchange registered under the Investments and Securities Act;

(d) ordinaryshares of public limited companies listed on a securities exchange registered under the Investments and Securities Act;

(e) bank deposits and bank securities;

(f) investmentcertificates of closed-end investment fund or hybrid investment funds listed on a securities exchange registered under the Investments and Securities Act with good track records of earning;

(g) unitssold by open-end investment funds or specialist open-end investment funds registered under the Investments and Securities Act;

(h) real estate development investments; or

(i) specialistinvestment funds and such other financial instruments as the Commission may, from time to time, approve.

Investmentoutside Nigeria.

87. (1) A Pension Fund Administrator may invest the pension funds in units of any investment outside Nigeria within the categories of investments set out in section 86 of this Act.

(2) Subjectto the subsisting Central Bank of Nigeria foreign exchange rules, the Commission may recommend to the President for approval, the portfolio limits for investment of pension fund or assets outside the territory of the Federal Republic of Nigeria.

Restricted investment.

88. A Pension Fund Administrator shall not invest pension fund or assets in shares or Restricted investment other securities issued by -

(a) the Pension Fund Administrator or its Pension Fund Custodian; and

(b) a shareholder of the Pension Fund Administrator or its Pension Fund Custodian.

Restrictionon sale of pension fund assets.

89.(1) A Pension Fund Administrator shall not -

(a) sell pension fund assets to -

(i) itself:

(ii) anyshareholder, director, affiliate, subsidiary, associate, related party or company of the Pension Fund Administrator,

(iii) anyemployee of the Pension Fund Administrator,

(iv) the spouse of any of the persons referred to in sub-paragraphs (i) to (iii) of this paragraph or those related to the said persons.

(v) affiliatesof any shareholder of the Pension Fund Administrator, or

(vi) the Pension Fund Custodian holding pension fund assets to the order of the Pension Fund Administrator and any related party to the Pension Fund Custodian;

(b) utilisepension fund to purchase assets from the persons mentioned in subsection (a) of this section; and

(c) apply pension fund assets under its management by way of loans and credits or as collateral for any loan taken by a holder of retirement savings account or any person whatsoever.

(2) Notwithstandingthe provision of subsection (1) (c) of this section, a Pension Fund Administrator may, subject to guidelines issued by the Commission, apply a percentage of the pension assets in the retirement savings account towards payment of equity contribution for payment of residential mortgage by a holder of Retirement Savings Account.

Additionalrestriction on investments.

90. (1) The Commission may, by regulations, impose additional restrictions on investments by Pension Fund Administrators with the object of protecting the interest of the beneficiaries of the Retirement Savings Accounts.

(2) For the purpose of complying with any regulation or guideline issued by the Commission on the quality of instruments that pension fund assets may be invested in, and to ensure the safety of pension fund assets in general, every Pension Fund Administrator shall conduct extensive research and due diligence prior to investment as well as utilize the risk rating report to the risk rating of instruments that has been undertaken by any risk rating company registered under the Investments and Securities Act. Cap. 124 LFN, 2004

Supervision and examination of Pension Fund Administrators and Pension Fund Custodians.

91. Any PensionFund Administrator who fails to comply with any provision of this Act shall be liable to a penalty of not be less than N500, 000 for each day that the non-compliance continues and the Pension Fund Administrator shall forfeit the profit from that investment to the beneficiaries of the Retirement Savings Accounts and where the investment has Jed to a loss, the Pension Fund Administrator shall be made to make up for the loss.

PART XIII-SUPERVISION AND EXAMINATION

92. (1) The Commission shall, at least once in each year authorise an inspection or examination, as the case may be, of the -

(a) Pension Fund Administrators;

(b) Pension Fund Custodians;

(c) FederalPension Transitional Arrangement Directorate; and

(d) FederalCapital Territory Pension Transitional Arrangement Directorate, for the purpose of determining whether or not the provisions of this Act or any regulations made there under are being complied with.

(2) Notwithstandingthe provisions of subsection (1) of this section, the Commission may, at any time, authorise one or more of the officers of the Commission or agent to inspect, examine or investigate any aspect of the activities of any Pension Fund Administrator, Pension Fund Custodian, Federal Government Pension Transitional Arrangements Directorate, Federal Capital Territory Pension Transitional Arrangements Directorate, any pension department, board of trustee, employer or body relating to pension funds or assets.

Appointmentof examiners.

93. TheCommission may appoint its officers or agent or any other qualified person as examiners as it may consider expedient to carry out duties under section 92 of this Act.

Powers of examiners.

94. (1) In the performance of the duties imposed under this Part of this Act, the Commission or its officers or agents shall have power to -

(a) inspect,examine or investigate under conditions of confidentiality, the books, activities and affairs of any person or body corporate relating to. pension funds in accordance with section 92 (1) of this Act or any regulations made under this Act;

(b) gainaccess at all times to the hard copies and electronic versions of books, accounts, documents and vouchers of any Pension Fund Administrator or Pension Fund Custodian or any person or body in relation to pension funds;

(c) verifyor check the balances in the retirement savings account and the records of deposit made to date;

(d) verifythe investment made by a Pension Fund Administrator with pension funds under its management; and

(e) requestfrom any director, manager or officer of any Pension Fund Administrator or Pension Fund Custodian any information or explanation as the Commission may deem necessary in each case to enable it determine whether or not the provisions of this Act or any regulation made there-under are being complied with.

(2) Inexercising the powers under subsection (1) of this section, an examiner shall exercise reasonable care to avoid undue hindrance to the day-to-day activities of any Pension Fund Administrator or Pension Fund Custodian or any person or body relating to pension funds.

95. (1) The Commission shall, upon the completion of an examination or Examination reports. investigation, forward a copy of its report to the Pension Fund Administrator or Pension Fund Custodian or such other person or body with the instruction that the report be placed before the board of directors of the Pension Fund Administrator or Pension Fund Custodian or such other persons or body.

(2) Theboard of directors of the Pension Fund Administrator or Pension Fund Custodian or any other pension related body recognised under this Act shall, within 30 days of receiving the report mentioned in subsection (1) of this section, convene a meeting of the board to consider the report and submit its reactions to the report and proposals for implementing any recommendations to the Commission.

(3) AnyPension Fund Administrator, Pension Fund Custodian, person or body who fails to comply with the provisions of subsection (2) of this section commits an offence and is liable on conviction to a fine of not less than N500,000 for each day during which the offence continues and where the offence continues for more than 30 calendar days, the Commission may, in addition to the fine, suspend any director; management staff or officers of the Pension Fund Administrator or Pension Fund Custodian.

(4) Themanagement of the Commission shall submit quarterly reports to the Board of the Commission on its findings in the performance of its function with respect to the supervision and examination of the Pension Fund Administrators and Pension Fund Custodiansor any otherperson or body relating to pension funds.

Powersof the Commission to order special investigation.

96. (1) The Commission may, at any time, order a special examination or investigation of the books, operations or affairs of a Pension Fund Administrator, Pension Fund Custodian or any other person or body in relation to pension matters where -

(a) it suspects or is satisfied that -

(i) itis in the public interest to do so:

(ii) thePension Fund Administrator or Pension Fund Custodian has been carrying on its business in a manner detrimental to the interest of beneficiaries of the Retirement Savings Account,

(iii) thePension Fund Administrator or Pension Fund Custodian does not have sufficient assets to cover its liabilities,

(iv) the Pension Fund Administrator or Pension Fund Custodian has contravened any of the provisions of this Act, or

(b) anapplication is made requesting for the examination or investigation by -

(i) a director, manager, officer or shareholder of the Pension Fund Administrator or Pension Fund Custodian,

(ii) a beneficiary of a retirement savings account or any client of a Pension Fund Administrator,

(iii) anyPension Fund Administrator to examine the Pension Fund Custodian of the pension fund assets that the Pension Fund Administrator is managing; or

(iv) any Pension Fund Custodian to examine the Pension Fund Administrator for whom it is holding pension fund assets.

(2) Anapplicant under subsection (1) (b) of this section shall be responsible for the cost of conducting the requested examination or investigation.

Dutyto produce information to examiners.

97. A Pension Fund Administrator, Pension Fund Custodian, person or body connected to pension matters, shall produce and give the examiners such books, accounts, documents, vouchers, information and explanation as the examiner may request for the purpose of this Act.

Specialpowers of the Commission to intervene in the management of Pension Fund Administrators and Pension Fund Custodians.

98. (1) The Commission may exercise any of the powers specified in subsection (2) of this section where:

(a) a Pension Fund Administrator or Pension Fund Custodian informs the Commission that it is unlikely to meet its obligations under this Act or it is insolvent; or

(b) afteran examination under section 92 of this Act or otherwise the Commission is satisfied that the Pension Fund Administrator or Pension Fund Custodian -

(i) isunable to meet any of its obligations under this Act;

(ii) is insolvent;

(iii) violatedor failed to comply with any of the provisions of this Act, guidelines or regulations issued by the Commission;

(iv) failed to comply with any directive issued by the Commission; or

(v) failedto adhere to proper corporate governance standards.

(2) Pursuantto subsection (1) of this section, the Commission may, by order in writing-

(a) directthe Pension Fund Administrator or Pension Fund Custodian to transfer the pension funds and assets being managed or he1d by it to another Pension Fund Administrator or Pension Fund Custodian;

(b) requirethe Pension Fund Administrator or Pension Fund Custodian to take any steps or action or to do or not to do any act or thing whatsoever, in relation to its business or its directors or officers which the Commission may consider necessary and which is set out in the order, within a time frame as may be stipulated therein;

(c) suspenda board or management, or remove the chief executive officer, any director, manager or officer of the Pension Fund Administrator or Pension Fund Custodian, notwithstanding anything in any enactment or law, or any limitation contained in the Memorandum and Articles of Association of the Pension Fund Administrator or Pension Fund Custodian provided that such order of suspension or removal shall state the reason and effective date of such suspension or removal; and

(d) constitutean interim board or management, appoint an interim chief executive officer, director, manager or officer for the Pension Fund Administrator or Pension Fund Custodian, removed pursuant to paragraph (c) of this subsection and set out such terms of reference and conditions of appointment, including remuneration, as theCommission may determine;

(3) Theinterim board, management, chief executive officer, director, manager or officer of the Pension Fund Administrator or Pension Fund Custodian, constituted or appointed respectively pursuant to paragraph (d) of this subsection shall remain in office until such a time as it may be considered no longer necessary by the Commission.

PART XIV - OFFENCES, PENALTIES AND ENFORCEMENT POWERS

Offencesand penalties.

99. (1) A person who contravenes any of the provisions of this Act commits an offence and where no penalty is prescribed, shall be liable on conviction to a fine of not less than N250,000 or to a term of not less than one year imprisonment or to both fine and imprisonment.

(2) Any personor body who attempts to commit any offence specified in this Act commits an offence and is liable, on conviction, to the same punishment as is prescribed for the full offence in the Act. Offences and penalties.

(3) Withoutprejudice to section 174 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), the Commission may compound any offence provided for under this Act by accepting an amount Jess than the fine provided for the offence under this Act.

(4) A Pension Fund Administrator, Pension Fund Custodian that reimburses or pays for a staff, officer or director directly or indirectly a fine imposed under this Act commits an offence and is liable on conviction to a fine of not less than N5, 000,000 and also forfeits the amount repaid or reimbursed to the staff, officer or director.

Offences relating to misappropriation of pension funds.

100. (1) A Pension Fund Administrator or Pension Fund Custodian or person or body who misappropriates or diverts pension funds commits an offence under this Act and is liable on conviction to a fine of an amount equal to three times the amount so misappropriated or diverted or to a term of not less than 10 years imprisonment or to both fine and imprisonment.

(2) Inaddition to the penalty prescribed in subsection (1) of this section, the Pension Fund Administrator, Pension Fund Custodian, person or body so convicted shall refund the amount so misappropriated or diverted.

(3) Whenevera person is convicted of an offence under this Act, the court, in passingsentence, shall, in addition to any punishment which the court may imposein respect of the offence, order the forfeiture to the Federal Governmentof Nigeria of any property, asset or fund with accrued interest, or the proceed of any unlawful activity under this Act and is in the possession,custody or control of the convicted person.

Offencesrelating to Pension Fund Custodian.

101. A Pension Fund Custodian who contravenes the provisions of section 70 of this Act commits an offence and is liable on conviction to a fine of not less than N10, 000,000 and each of its director or principal officers is liable to a fine of not less than N5, 000,000 or to a term of not less than 5 years imprisonment or to both such fine and imprisonment.

Power of the Commission to impose additional sanctions.

102. Notwithstandingthe provisions of any other Jaw, the Commission may, in addition to the penalties stipulated under this Act, impose additional sanctions on the board, any director, management, manager or officer of a Pension Fund Administrator or Pension Fund Custodian that violates any of the provisions of this Act

Offencesby corporate body

103. Where an offence under this Act is committed by a body corporate, the body corporate or every-

(a). director, manager, secretary or other officers of the body corporate;

(b) person whowas purporting to act in such capacity mentioned m paragraph (a) of this section, whohad knowledge or believed to have had knowledge of the commission of theoffence and who did not exercise due diligence to ensure compliance withthis Act shall be deemed to have committed the offence and shall be proceededagainst in accordance with this Act.

Penalty for refusing to give information, etc.

104. A Pension Fund Administrator, Pension Fund Custodian, any person or body who-

(a) refuses to-

(i) produce any book, account, document or voucher;

(ii) give any information or explanation required by an examiner;

(b) with intend to defraud -

(i) produces any book, account, document or voucher, or

(ii) gives any informationor explanation, which is false or misleading in any material particular; or

(c) suppliesinformation which he knows to be false or supplies the information recklessly as to its truth or falsity, commits an offence under this Act and shall on conviction be liable to a fine not Jess than N200, 000 or to imprisonment for a term of not less than three years or to both such fine and imprisonment for every false or misleading information given and where the offence continues to a fine not Jess than N100,000 for every day the offence continues,

Jurisdiction.

105. (1) An offence under this Act shall be tried in a court of competent jurisdiction,

(2) Prosecutionfor offences under this Act shall be instituted before the court in the name of the Federal Republicof Nigeria by the Attorney-General of the Federation or suchofficer in the Federal Ministry of Justice as the Attorney-General of the Federation may authorise.

(3) Withoutprejudice to the provisions of the Constitution of the Federal Republic of Nigeria 1999 (as amended), the Attorney-General of the Federation may -

(a) afterconsultation with the Attorney-General of any State, authorize the Attorney-General of a State or any officer in the Ministry of Justice of that State; or

(b) wherethe Commission so requests, authorise any legal practitioner in Nigeria, to carry out the prosecution of offences under this Act directly or assist therein.

(4) Inthe exercise of powers under this Act, a court of competent jurisdiction referred to under subsection (1) of this section -

(a) shallconduct its proceedings in such a manner as to avoid undue delay;

(b) maylift the corporate veil of a body corporate, where it is necessary for the purpose of revealing members of the corporate entity that may be guilty of an offence under this Act; and

(c) may,subject to this Act, adopt any procedure, where it is expedient, to ensure speedy and just determination of any case before it.

PART XV-MISCELLANEOUS

Disputes resolution.

106.(1) An employee or beneficiary of a Retirement Savings Account who is dissatisfied with a decision of the Pension Fund Administrator or employer in respect of pension matters under this Act, may request, in writing, that such decisions be reviewed by the Commission with a view to ensuring that such decision is made in accordance with the provisions of this Act or any regulation made there under.

(2) A copy of any request under subsection (1) of this section shall be served on the relevant Pension Fund Administrator or employer.

(3) TheCommission shall in review a request of a Pension Fund Administrator or employer under subsection (1) of this section, conduct its proceedings in such a manner as to avoid delay.

(4) Notwithstandingsections 19 (2)(a) and 26 (2) and (4) of this Act, where the Board of the Commission is not yet reconstituted after six months of the dissolution of the last Board, the President of the Federal Republic may appoint fit and proper persons with pension cognate experience to constitute the Board at the first instance, subject to the confirmation by the Senate.

Arbitrationand arbitral awards.

107. (1) Where either party is dissatisfied with the decision of the Commission on any matter referred to it under section I 06 of this Act, such party may refer the matter to arbitration in accordance with the Arbitration and Conciliation Act or to the National Industrial Court.

(2) Where a person or body corporate is aggrieved or dissatisfied with anyaction or decision of the Commission under this Act, the aggrieved person or body corporate may refer the matter to arbitration under the Arbitration and Conciliation Act or to the National Industrial Court.

(3) Anyarbitration award made under subsections (1) and (2) of this section shall be binding on the patties and shall be enforceable by a court of competent jurisdiction.

(4) Notwithstandingthe provision of any law, no limitation of time shall apply to actions for the recoveryof contributions, penalties and other benefits under this Act.

Application of Public Officers Protection Act.

108. (1) Subject to the provisions of this Act, the provisions of the Public Officers, Application of Public OfficersProtection Act. Protection Act shall apply in relation to any suit instituted against an officeror employee of the Commission.

(2) Notwithstandinganything contained in any other law, no suit shall lie against a member of the Board, Director-General, Commissioner or any other officer or employee of the Commission for any act done in pursuance or execution of this Act or any other enactment or law, or of any public duty or authority in respect of any alleged neglect or default in the execution of this Act or any other enactment or law, duty or authority or be instituted in any court unless it is commenced-

(a) withinthree months next after the act, neglect or default complained of; or

(b) inthe case of a continuation of damage or injury, within six months next after the ceasing thereof.

Limitationof legal actions.

109.(1) A suit shall not be commenced against a member of the Board, Director-General, Commissioner or any other officer or employee of the Commission before the expiration of a period of one month after written notice of the intention to commence the suit shall have been served on the Commission by the intending plaintiff or his agent.

(2) Thenotice referred to in subsection (1) of this section shall clearly and explicitly state -

(a) the cause of action;

(b) theparticulars of the claim;

(c) the name and place of abode of the intending plaintiff; and

(d) the relief which he claims.

Serviceof notice.

110. The notice referred to in section 109 of this Act and any summons, notice or other document required or authorised to be served upon the Commission under the provisions of this Act or any other law may be served by delivering it to the Director-General, Secretary, any principal officer or by sending it by registered post addressed to the Director-General or Secretary at the headquarters of the Commission.

Restriction on execution against the property of the Commission.

112 (1) In any action or suit against the Commission, no execution or attachment process in any nature shall be issued against the Commission unless not less than three months notice of the intention to execute or attach has been given to the Commission.

(2) Anysum of money which by the judgment of any court has been awarded against the Commission shall, subject to any direction given by the court, where notice of appeal against the judgment has been given, be paid from the fund of the Commission.

Indemnity.

112. A memberof the Board, officer or employee of the Commission shall be indemnified out of the assets of the Commission against any liability incurred by him indefending any proceeding, whether civil or criminal, if theproceeding is brought against him in his capacity as a member, officer or employee of the Commission,

Obligationof confidentiality by Pension Fund Administrators and Pension Fund Custodians.

113. (1) Notwithstandingthe provisions of any other law, every member of the board, officer, employee, agent or any other person engaged by a Pension Fund Administrator or Pension Fund Custodian shall not make any unauthorized disclosure or use of any information which they may have received directly or indirectly in the course of their engagement with a Pension Fund Administrator or Pension Fund Custodian.

(2) Theobligation under subsection (1) of this section shall continue even after the termination of appointment as a member of the Board, officer, employee or agent of the Pension Fund Administrator or Pension Fund Custodian.

(3) Theobligation specified in subsection (1) of this section extends to members of the Board, officers, employees and any agent or other persons engaged by the Commission.

(4) Theprovisions of subsection (1) of this section shall not apply to communications made to the Commission, external auditors of the Pension Fund Administrator or Pension Fund Custodian in connection with the purposes of the Commission or pursuant to the provisions of this Act.

(5) Anyperson who violates the provisions of this section commits an offence under this Bill and is liable on conviction to a fine of N10, 000,000.00 or to a term of five years imprisonment or to both such fine and imprisonment.

114.(1) Without prejudice to any other law, no member of the Board, officer, employee, agent of the Commission or persons authorized by the Commission to examine a document or make an inquiry under this Act shall disclose except in the performance of their duties or under authority of the Commission.

(2) Notwithstandingsubsection (1) of this section, a member of the Board, officer, employee or agent of the Commission or any person authorized by the Commission to examine or make an inquiry under this Act shall be entitled to disclose any information obtained in the administration of this Act where such is required by any court of competent jurisdiction.

Powerto make regulations.

115. (1)The Commission may make regulations, rules or guidelines as it deems necessary or expedient for giving full effect to the provisions of this Act.

(2) Thecontravention of any regulation issued pursuant to any of the provisions of this Act shall constitute an offence and shall be punishable as prescribed Indemnity.

Exemptionof pension funds from liquidation process or garnishee proceedings.

116. (1) Notwithstanding the provisions of any other law, no pension funds or assets kept with a Pension Fund Custodian under this Bill shall be used to meet the claims of any of the Pension Fund Custodian's creditors in the event of liquidation of the Pension Fund Custodian and neither shall the pension life annuity funds and assets in the custody of any insurance company be seized or be subject of any execution of judgment debt or be used to meet the claims of any of their creditors in theevent of winding tip, liquidation or otherwise cessation of business of the insurance company in all cases.

(2) Inthe case of winding up, liquidation or otherwise cessation of business of the Pension Fund Custodian or any or all of its shareholders, the pension funds or assets in the custody of the Pension Fund Custodian shall not be seized or be subject of execution of a judgment debt or stopped from transfer to another Pension Fund Custodian.

(3) Pensionfund and assets in the retirement savings accounts shall not be subject to attachment, injunctive and any garnishee proceedings or used in satisfaction of a judgment debt obtained against any person.

Repealand provision.

117.(1) The Pension Reform Act No.2, 2004 as amended, is repealed.

(2) Pursuantto the provision of subsection (1) of this section, the following enactments are repealed -

(a) the Pension Act 1990;

(b) thePolice and Other Agencies Pensions Offices (Establishment, etc.) Act. I993; and

(c) the Police PensionRights of Inspector-General of Police Act, 1993.

(3) Withoutprejudice. to the provisions of section 6 of the Interpretation Act, the repeal of the enactments specified in subsections (1) and (2) of this section shall not affect -

(a) anyadditional fringe benefits enjoyable upon retirement by any person before the commencement of this Act except as provided by this Act; and

(b) anythingdone or any action taken under or pursuant to the repealed enactments except that such thing done or any action taken shall be construed in accordance with the provisions of this Act.

(4) Everyregulation, order, requirement, certificate, notice, direction, decision, authorization, consent, application, request or thing made, issued, given or done under the repealed Act shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued, given or done under the corresponding provisions of this Act.

(5) All assets, funds, resources and other movable and immovable property which, immediately before the commencement of this Act, vested in the Commission established under the repealed Act shall, by virtue of this Act and without further assurance, be vested in the Commission.

(6) Everyreference to the Commission established under the repealed Act, Board, Minister, Director - General, Chairman or any person under their control or a document issued in the name of the Commission established under the repealed Act, Board, Director-General, Chairman of the former Board or employee of the former Commission shall be read, unless the context otherwise requires, as a reference to the Commission, Board, Director-General, Chairman, or an employeeof the Commission.

(7) Everyboard of trustees established or operating under any of the enactments repealed under this section shall transfer all the pension funds and assets hitherto held by it to the Federal Government Pension Transitional Arrangements Directorate or Federal Capital Pension Transitional Arrangement Directorate, as the case may be, established in respect of the Public Service of the Federation and Federal Capital Territory under sections 42 and 44 of this Act, respectively.

(8) TheCommission shall supervise the transfer of all the pension funds and assets under subsection (7) of this section.

Transitional provisions.

118. (1) Subject to the provisions of this Act, the Director - General of the Commission established under the repealed Act is deemed to have been transferred to the Commission under the same conditions as Director-General.

(2) Anyperson who immediately before the commencement of this Act was a staff of the Commission established under the repealed Act shall continue in office and be deemed to have been appointed under this Act for purposes of implementing the subject matter and provisions of this Act.

(3) Anyproperty held immediately before the commencement date of this Act on behalf of the Commission established under the repealed Act by any person shall, by virtue of this Act, be vested in the Commission established under this Act.

(4) TheCommission shall be subject to all the obligations and liabilities to which the Commission established under the repealed Act was subject immediately before the commencement of this Act and all other persons shall have the same rights, powers and remediesagainst the Commission as they had against the Commission established under the repealed Act immediately before the commencement of this Act.

(5) Anyproceeding or cause of action pending or existing immediately before the commencement of this Act by or against the Commission established under the repealed Act in respect of any right, interest, obligation or liability of the Commission established under the repealed Act, may be continued or commenced, as the case may be, and any determination of a court of law, tribunal or other Commission or person may be enforced by or against the Commission established by this Act to the same extent that such proceeding, cause of action or determination might have been continued, commenced or enforced by or against the Commission established under the repealed Act, as if this Act had not been made.

(6) Asfrom the commencement of this Act, any disciplinary proceeding pending or existing against any employee of the Commission established under the repealed Act, shall be continued and completed by the Commission.

Enactments inconsistent with this Bill.

119. Where any other enactment or law relating to pensions is inconsistent with this Act, this Act shall prevail.

Interpretation.

120. In this Act -

"annuity" means a right to receive periodic payments, usually fixed in size, for life or a term of years;

"As from the commencement of this Act " means the commencement of the Pension Reform Act 2013 andshall, where the context so admits, includes the effective date of the repeal of the Pension Reform Act 2004 (as amended) under section 117 of this Act;

"annual total emolument" in relation to the Group Life Insurance Policy to be maintained by an employer means the gross emoluments of an employee or deceased person;

"Board" is the Board of the Commission established under section 19(1) of this Act.

"closed Pension Fund Administrator'? means any employer 'or its subsidiary licensed by the Commission as closed Pension Fund Administrator under section 51 of this Act whose business includes taking responsibility for safe custody of the funds, securities, financial instruments and documents of title of pension fund assets to exclusively manage only pension fund of its employees;

"Commission" means the National Pension Commission established under section 17(1) of this Act;

"court of competent jurisdiction" includes the Federal High Court, High Court of the Federal Capital Territory, High Court of a State and the National Industrial Court;

"distributable income" means all income earned by the contribution Jess reasonable charges and costs on investment transactions and other reasonably allowable fees and charges;

"employee,' means any person employed in the Service of the Federation, the Federal Capital Territory, a Government of a State of Nigeria, Local Government Council or private company or organization or firm;

"employer" includes the Federal Government of Nigeria, Government of a State of Nigeria, Local Government Council or any organization or business that employs three persons or more;

"Federal Government Transitional Arrangements Directorate'" means the Federal Transitional Pension Office established under section 42 of this Act;

"Federal Capital Territory Transitional Arrangements Directorate" means the Federal Capital Territory Transitional Pension Office established under section 44 of this Act;

"local government council" means a Local Government Council of the Federal Republic of Nigeria, including the Area Councils of the Federal Capital Territory Administration, listed in the First Schedule to the Constitution of the Federal Republic of Nigeria 1999 (as amended);

"member" means a member of the Board of the National Pension Commission and includes the Chairman;

"Minister" means Minister in charge of Finance;

"monthly emoluments" means total emoluments as may be defined in the employee's contract of employment but shall not be less than a total sum of basic salary, housing allowance and transport allowance;

"National Data Bank" means National Pensions Data Bank;

"pension fund" means an investment fund within the Pension Scheme which is intended to accumulate during an individual working life from contributions and investment income; with the intention of ·providing income in-retirement from the purchase of an annuity or in the form of a programmed withdrawal, with the possible option of an additional tax free cash lump sum being paid to the individual;

"pension assets" means all assets set aside as retirement benefits;

"Pension Fund Administrator" means anybody corporate licensed by the Commission as a Pension Fund Administrator;

"Pension Fund Custodian" means a companyincorporated under the Companies and Allied Matters Act that has been licensed by the Commission under this Bill;

"PIN" means Personal Identification Number issued to an individual upon opening a Retirement Savings Account.

"President" means the President of the Federal Republic of Nigeria;

"programmed withdrawal" means a product offered by a Pension Fund Administrator for periodic payments to a beneficiary of a retirement savings account as specified in section 7 of this Act;

"Public Service of the Federation" is as defined in section 318 of the Constitution of Federal Republic of Nigeria 1999, including the Federal Capital Territory;

"Retirement savings account" means an account opened with a Pension Fund Administrator as specified in section 11 of this Act;

"Scheme" means the Contributory Pension Scheme established under section 3 of this Act; and

"State" means a State of the Federal Republic of Nigeria, including the Federal Capital Territory Administration, listed in the First Schedule to the Constitution of the Federal Republic of Nigeria 1999 (as amended).

Citation.

121. ThisAct may be cited as the Pension Reform Act, 2014. Citation

SCHEDULES

FIRST SCHEDULE

[Section 19(7)]

SUPPLEMENTARYPROVISIONS RELATING TO THE BOARD

Proceedingsof the Board

1. Subjectto this Act and section 27 of the Interpretation Act, the Board shall have power to regulate its proceedings and may make standing orders with respect to the holding of its meetings, and those of its committees, notices to be given, the keeping of minutes of its proceedings, the custody and production for inspection of such minutes and such other matters as the Board may, from time to time determine,

2. Thereshall be at least three ordinary meetings of the Board in every calendar year and subject thereto and the Board shall meet whenever it is convened by the Chairman, and if the Chairman is requested to do so by notice given to him by not less than four other members, he shall convene a meeting of the Board to be held within 30 days from the date on which the notice was given in the event that the office of the Chairman is vacant pursuant to section 21 (1) of this Act , the Director General shall exercise his powers under this section to convene a meeting of the Board.

3. Everymeeting of the Board shall be presided over by the Chairman and if the Chairman is unable to attend a particular meeting, the members present at the meeting shall elect one of them to preside at the meeting.

4. Thequorum of any meeting of the Board shall consist of the Chairman (or in an appropriate case, the person presiding at the meeting pursuant to paragraph 2 ofthis Schedule) and six other members.

5. A question put before the Board at a meeting shall be decided by consensus· and where this is not possible, by a majority of the votes of the members present and voting.

6. TheChairman shall, in the case of an equality of votes, have a casting vote in addition to his deliberate vote.

7. Wherethe Board seeks the advice of any person on a particular matter, the Board may invite that person to attend, for such period as it deems fit, but a person who is invited by virtue of this paragraph shall not be entitled to vote at any meeting of the Board and shall not count towards the quorum.

8. TheBoard shall meet for the conduct of its business at such places and on such days as the Chairman may appoint.

9. The Board of the Commission shall report directly to the President.

Committees

10. TheBoard may appoint one or more committees to carry out on behalf of the Board such of its functions as the Board may determine and report on any matter with which the Board is concerned.

11. A committee appointed under paragraph l 0 of this Schedule shall be presided over by a member of the Board and shall consist of such number of persons (not necessarily all members of the Board) as, may be determined by the Board and a person other than a member of the Board shall hold office on the committee in accordance with the terms of his appointment.

12. A decision of a committee of the Board shall be of no effect until it is confirmedby the Board.

Miscellaneous

13. Thefixing of the sea] of the Commission shall be authenticated by the signature of the Chairman and the Secretary to the Board.

14. A contract or an instrument which, if made or executed by any person not being a body corporate, would not be required to be under seal, may be made or executed on behalf of the Commission by the Director-General or by any person generally or specifically authorized to act for that purpose by the Board.

15. A document purporting to be a contract, an instrument or other document signed or sealed on behalf of the Commission shall be received in evidence and until the contrary is proved, be presumed without further proof, to have been properly signed or sealed.

16. Thevalidity of any proceeding of the Board or its committees shall not be affected by –

(a) any vacancy in the membership of the Board or its committees ··

(b) reasonthat a person not entitled to do so took part in the proceedings; or

(c) any defect in the appointment of a member.

17. Anymember of the Board or committee who has a personal interest in any arrangement entered into or proposed to be considered by the Board or any committee shall-

(a) disclose his interest to the Board or committee; and

(b) not vote on any question relating to the arrangement.

SECOND SCHEDULE

[Section 5(2)]

COMPUTATION OF RETIREMENT BENEFITS

FORMULA FOR CALCULATION OF PENSIONS AND GRATUITY IN RESPECT OF RETIREMENT

Year of Qualifying service

Gratuity as percentage of final pay

Pension as percentage of final pay

Year of Qualifying service enrolment

Gratuity as percentage of total final enrolment

Pension as percentage of total final enrolment

---

---

---

5

100

---

---

---

---

6

108

---

---

---

---

7

116

---

---

---

---

8

124

---

---

---

---

9

132

---

10

100

---

10

100

30

11

110

---

11

108

32

12

120

---

12

116

34

13

130

---

13

124

36

14

140

---

14

132

38

15

100

30

15

140

40

16

110

32

16

148

42

17

120

34

17

156

44

18

130

36

18

164

46

19

140

38

19

172

48

20

150

40

20

180

50

21

160

42

21

188

52

22

170

44

22

196

54

23

180

46

23

204

56

24

190

48

24

212

58

25

200

50

25

220

60

26

210

52

26

228

62

27

220

54

27

236

64

28

230

56

28

244

66

29

240

58

29

252

68

30

250

60

30

260

70

31

260

62

31

268

72

32

270

64

32

276

74

33

280

66

33

284

76

34

290

68

34

292

78

35

300

70

35

300

80

Reference

This document was obtained from this Law Nigeria web page