Overview

The Pension Reform Act, 2014 is a comprehensive legislative document that establishes a new regulatory framework for pension administration in Nigeria. It repeals the Pension Reform Act, 2004 and consolidates laws relating to pension matters. The Act is divided into several parts covering establishment of the National Pension Commission, administration, contributions and benefits, investment and management of pension funds, and transitional provisions. Key highlights include the creation of the National Pension Commission (PenCom) as the regulatory body, mandatory contributions of 10% by employers and 8% by employees for new entrants, and the establishment of the Retirement Savings Account (RSA) system. The Act also provides for the establishment of Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to manage and safeguard contributions. It includes provisions for voluntary contributions, transfer of pension rights between employers, and treatment of pensions in cases of death or disability. The Act sets out regulations for investment of pension funds, emphasizing prudent management and diversification. It also covers offenses and penalties for violations such as unauthorized deductions or mismanagement of funds. The document specifies transitional arrangements for existing pension schemes and employees covered by previous laws. Overall, the Act aims to ensure retirement income security for workers and promote a sustainable pension system.

Download