FRAMEWORK FOR THE SUPERVISION OF STATES AND LOCAL GOVERNMENTS PENSION SCHEMES
Framework · Finance
A Framework establishes PenCom's oversight of states and local governments' pension schemes to ensure compliance with national standards. It targets state pension boards, local administrators, and fund managers handling these schemes. This protects employees' pension rights and promotes uniformity with federal guidelines.
FRAMEWORK FOR THE SUPERVISION OF STATES AND LOCAL GOVERNMENTS PENSION SCHEMES
What Is This Policy?
A framework governing PenCom's oversight role over state government and local government pension schemes, ensuring that states that have adopted the Contributory Pension Scheme comply with national standards.
Who Does It Target?
State government pension bureaux and boards Local government pension scheme administrators PFAs managing state and LGA employee RSAs PenCom supervision department
What Does It Aim to Achieve?
Ensure that state and local government pension schemes operate in compliance with the Pension Reform Act, protect state and LG employees' pension entitlements, and promote consistency with the federal CPS framework.
Key Features
Supervisory Framework: Establishes PenCom's authority to supervise state pension schemes where states have enacted the CPS. State Pension Bureau Standards: Sets minimum governance and operational standards for state pension bureaux. Reporting Requirements: Requires state pension bureaux to submit regular reports to PenCom on scheme operations, fund performance, and compliance. Corrective Action: PenCom may direct corrective action where state pension schemes are found to be non-compliant.
Current Status
Rollout Stage: Active - 26 states have enacted CPS legislation Coverage: States that have adopted the Contributory Pension Scheme Beneficiaries: State and local government employees; pensioners Funding: PenCom and state government budgets
How to Access
State pension bureaux must submit to PenCom registration and regular reporting States must enact enabling legislation aligned with the Pension Reform Act PenCom may conduct on-site examinations of state pension schemes Application method: State pension bureaux engage PenCom through the Supervison and Surveillance Department.
Important Terms
PenCom supervision is advisory in non-adopting states States that have enacted CPS legislation are bound by PenCom minimum standards State pension bureaux that fail to comply may be subject to enforcement by PenCom
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the regulatory powers of the National Pension Commission (PenCom) pursuant to the Pension Reform Act 2014 and relevant state enabling legislation. The framework coordinates between PenCom and state pension bureaux. Operates alongside the Fiscal Responsibility Act 2007, the National Pension Commission Act, and state pension laws. Aligns with IOPS Principles for Private Pension Supervision on multi-tiered pension oversight.