BY ZAKA KHALIQ, Lagos
The pension industry regulator, the National Pension Commission (PenCom) has increased the minimum capital base requirement for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to N5billion each, LEADERSHIP can authoritatively report.
This translates to 150 per cent increment from previous capital base of N2billion the pension operators were operating with.
Although, other information were still sketchy as at the time of filing this report, insider sources disclosed that all PFAs and PFCs have been communicated by PenCom through a circular mandating them to begin the process of augmenting their capital to the new threshold.
LEADERSHIP findings revealed that the current naira devaluation that has affected the asset valuations and the changing business dynamics were responsible for the new minimum capital requirement.
While PFAs manage and administers the pension fund assets, PFCs are the custodians of the funds and both arms of the industry operate seamlessly to ensure that there is no record of mismanagement of the Contributory Pension Scheme (CPS) since its inception in 2004.
The pension assets currently stand at over N12.24trillion, which were invested in different approved investment portfolios.