NATIONAL PENSION COMMISSION REGULATION ON FEES STRUCTURE
Regulation · Finance
Regulations specify the maximum fees that Pension Fund Administrators can charge for managing Retirement Savings Accounts. They target PFAs, custodians, and contributors. This protects contributors from excessive charges.
NATIONAL PENSION COMMISSION REGULATION ON FEES STRUCTURE
What Is This Policy?
PenCom regulations specifying the maximum fees that Pension Fund Administrators (PFAs) may charge contributors and retirees for managing their Retirement Savings Accounts.
Who Does It Target?
Pension Fund Administrators Pension Fund Custodians Active contributors to RSA funds PenCom compliance officers
What Does It Aim to Achieve?
Protect pension contributors from excessive fee charges by capping management and administration fees, ensuring contributors retain the maximum portion of their pension savings.
Key Features
Management Fee Cap: Sets maximum management fee PFAs may charge as a percentage of fund assets under management. Other Fee Limits: Caps any additional fees for account maintenance, statement issuance, and other services. Fee Disclosure: Requires PFAs to disclose all applicable fees to contributors at account opening and annually. Fee Sharing: Governs how fees are shared between service providers where multiple parties are involved in service delivery.
Current Status
Rollout Stage: Active Coverage: All PFAs and their contributors nationwide Beneficiaries: Pension contributors and retirees Funding: Not applicable - governs fees charged to contributors
How to Access
Contributors may verify applicable fees in their RSA agreement Complaints about overcharging may be filed with PenCom Application method: Contact your PFA for fee schedule or raise overcharging complaints with PenCom.
Important Terms
PFAs may not charge fees above the PenCom-approved maximum Fee schedules must be published on PFA websites Overcharging is a regulatory violation subject to sanction
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.