GUIDELINES FOR THE APPOINTMENT OF PENSION FUND CUSTODIANS FOR STATE GOVERNMENT AND RETIREE FUNDS
Guideline · Finance
Guidelines govern the process for appointing Pension Fund Custodians for state government and retiree funds. They target state pension boards, retiree fund administrators, and licensed custodians. The goal is to ensure assets are safeguarded by competent entities through a transparent selection.
GUIDELINES FOR THE APPOINTMENT OF PENSION FUND CUSTODIANS FOR STATE GOVERNMENT AND RETIREE FUNDS
What Is This Policy?
Guidelines governing the process by which state governments and retiree fund administrators appoint Pension Fund Custodians to safeguard state government and retiree pension fund assets.
Who Does It Target?
State government pension bureaux and boards Retiree fund administrators Licensed Pension Fund Custodians PenCom licensing and supervision officers
What Does It Aim to Achieve?
Ensure state government and retiree pension fund assets are custodied with licensed, financially sound, and operationally competent PFCs selected through a transparent process.
Key Features
Eligibility Criteria: PFCs must hold a valid PenCom custodian licence and meet minimum capital and operational requirements. Competitive Selection: State bodies must conduct a competitive selection process rather than direct appointment. PenCom Approval: All appointments are conditional on PenCom review and approval. Custody Agreements: A standard PenCom-approved custody agreement must be executed before assets are transferred.
Current Status
Rollout Stage: Active Coverage: State government pension fund custodial arrangements Beneficiaries: State government pensioners and active contributors Funding: Custodian fees from state pension fund assets
How to Access
State pension bureaux must document the selection process Appoint PFCs must be submitted to PenCom for approval before transfer of assets All custody arrangements must be renewed with PenCom approval every five years Application method: Submit appointment documentation to PenCom.
Important Terms
State pension assets must be held with a licensed PFC, not the state government directly Unapproved custody arrangements are invalid Custodians are required to issue monthly statements to the state pension bureau
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 for state and retiree funds. Operates alongside the Banks and Other Financial Institutions Act (BOFIA) 2020 (for custodian licensing), the Companies and Allied Matters Act (CAMA) 2020, and PenCom's Code of Corporate Governance for Licensed Pension Operators.