NATIONAL PENSION COMMISSION REGULATION FOR FEE SHARING BETWEEN STATE AND LOCAL GOVERNMENT PENSION BUREAUX/BOARDS AND PENSION FUND ADMINISTRATORS
Regulation · Governance
Regulations govern the sharing of management fees from state and local government employees' RSA accounts between Pension Fund Administrators and pension bureaux. They target state and local government pension boards and PFAs. This promotes transparent and equitable fee distribution.
NATIONAL PENSION COMMISSION REGULATION FOR FEE SHARING BETWEEN STATE AND LOCAL GOVERNMENT PENSION BUREAUX/BOARDS AND PENSION FUND ADMINISTRATORS
What Is This Policy?
Regulations governing how management fees from state and local government employees' RSA accounts are shared between Pension Fund Administrators and state/local government pension bureaux or boards.
Who Does It Target?
State and local government pension bureaux and boards PFAs managing state government employee RSAs State and local government employees under the CPS PenCom as the national regulator
What Does It Aim to Achieve?
Ensure transparent and equitable sharing of management fees between PFAs who manage RSA investments and state pension bureaux that handle administrative functions for state and LG employees.
Key Features
Fee Allocation Formula: Defines the percentage of total management fees allocated to the PFA and to the state pension bureau respectively. Basis of Calculation: Specifies the fund assets under management used as the basis for calculating allocable fees. Payment Timelines: Sets the timelines within which fee transfers between parties must be completed. Reporting Requirements: Requires PFAs to report fee sharing arrangements to PenCom quarterly.
Current Status
Rollout Stage: Active Coverage: All states and LGAs that have implemented the Contributory Pension Scheme Beneficiaries: State and LG employees; pension bureaux; PFAs Funding: Not applicable
How to Access
Agreements between PFAs and state pension bureaux must be documented and submitted to PenCom State bureaux may audit PFA fee calculations Application method: State pension bureaux engage PFAs directly; disputes referred to PenCom.
Important Terms
Fee sharing must be based on the PenCom-approved formula only No additional fees may be charged to contributors Non-compliance triggers PenCom investigation
Official Resources
Website: https://www.pencom.gov.ng Contact: National Pension Commission (PenCom)
Legal Framework
Issued under the Pension Reform Act 2014, which established the National Pension Commission (PenCom) and the Contributory Pension Scheme. Derives authority from PenCom's regulatory mandate under the Pension Reform Act and operates alongside the Investment Regulations for Pension Fund Administrators and the Guidelines for Pension Fund Operators.