The House of Representatives, on Wednesday, passed the Pension Reform Act 2013 concurring with the Senate on 15 years’ experience as requirement for the appointment of Director-General of the National Pension Commission (PENCOM).
This is coming just as the bill prescribes a 10-year jail term for anyone who misappropriates pension fund, apart from refunding three times, the amount embezzled.
The new bill, which has 121-clauses and 15 sections, was passed after the chairman of the House Committee on Pensions, Honourable Ibrahim Bawa Kamba, moved for the consideration of the report of his committee on the bill, entitled: “ A bill for an act to repeal the Pension Reform Act, No2 of 2004 and Re-enact the Pension Reform Act, 2013 to make provision for Contributory Pensions Scheme and for other connected matters.”
The bill, passed after a clause-by-clause consideration at the session presided over by the Deputy Speaker, Honourable Emeka Ihedioha; repealed the Pension Reform Act, 2004 and enacted the Pension Reform Act, 2013 to govern and regulate the administration of uniform contributory pension scheme for both the public and private sectors in Nigeria, among others.
Section 26 (2) (d) of the passed bill states that “the Director-General shall possess relevant and adequate professional qualification in pension matters, with 15 years cognate experience.”
It also spelt out that “the DG is to hold office for a term of four years in the first instance and shall be eligible for re-appointment for another term of four years and no more.”
There had been controversy over the bill, as it was argued that it was sponsored to pave way for the the acting Director-General, PenCom, Mrs Chinelo Anohu-Amazu, to be confirmed as the substantive DG, because with the endorsement of the 15-year experience, Mrs Anohu-Amazu, with less than 20 years experience, may be confirmed as substantive DG.
The bill equally retains the minimum of eight per cent contribution of salary monthly by employees into the scheme as in the Principal Act, which stipulates a minimum of 10 per cent monthly by the employer.
Also, a fine of N10 million will be imposed on any pension fund administrator which fails to meet the obligations of the contributors, while each of the directors of the firm would pay N5 million as fines.
