GUIDELINES FOR THE APPOINTMENT OF PENSION FUND ADMINISTRATORS AND CUSTODIANS FOR EXISTING PENSION SCHEMES
Guideline · Finance
Guidelines specify the criteria and process for appointing Pension Fund Administrators and Custodians for existing pension schemes. They target trustees and administrators of approved schemes, as well as bidding PFAs and PFCs. This ensures qualified entities manage and safeguard pension assets professionally.
GUIDELINES FOR THE APPOINTMENT OF PENSION FUND ADMINISTRATORS AND CUSTODIANS FOR EXISTING PENSION SCHEMES
What Is This Policy?
Guidelines specifying the criteria and process by which existing defined benefit pension schemes and Approved Existing Schemes may appoint Pension Fund Administrators and Custodians to manage and safeguard their assets.
Who Does It Target?
Trustees and administrators of Approved Existing Schemes PFAs and PFCs bidding for existing scheme management mandates PenCom licensing department Beneficiaries of existing pension schemes
What Does It Aim to Achieve?
Ensure that existing pension schemes appoint qualified, licensed, and financially sound PFAs and PFCs to manage scheme assets professionally.
Key Features
Appointment Criteria: PFAs and PFCs must hold valid PenCom licences and meet financial and operational standards. Competitive Selection: Existing schemes must use a competitive selection process to appoint service providers. PenCom Approval: Appointments are subject to PenCom review and approval before taking effect. Service Level Agreements: Appointed PFAs must execute service level agreements defining performance standards and reporting.
Current Status
Rollout Stage: Active Coverage: All Approved Existing Schemes and closed pension fund administrators Beneficiaries: Beneficiaries of existing pension schemes Funding: Scheme management fees
How to Access
Scheme trustees must conduct a competitive selection process documented for PenCom review PFAs and PFCs must submit qualification documentation PenCom must approve the appointment before transfer of assets Application method: Submit appointment approvals to PenCom Pension Management Department.
Important Terms
Unapproved appointments are invalid Scheme assets must be transferred to a PenCom-licensed custodian Performance against SLAs is monitored 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. The approval process draws on the Companies and Allied Matters Act (CAMA) 2020, the Code of Corporate Governance for Licensed Pension Operators, and the CBN fit and proper person framework for BOFIA licensees. Aligns with IOPS and OECD guidelines on pension fund administrator licensing.