IN line with one of the promises of the National Pension Commission (PenCom) to the general public, which is effective communication and enlightenment, the Commission in the month of October 2021 put in the public domain notifications on two decisions taken by it, aimed at moving the administration of the Contributory Pension Scheme (CPS) to the next level. The two notifications published through two different press releases were as follows:
- Introduction of a Non Interest Fund (FUND VI) and Issuance of Operational Framework for its operation issued on October 28, 2021 and
- Notice of Extension of the Online Verification and Enrolment Exercise issued on October 29, 2021.
The two press releases, which are self-explanatory, are reproduced here.
INTRODUCTION OF A NON-INTEREST FUND (FUND VI) AND ISSUANCE OF THE OPERATIONAL FRAMEWORK
The National Pension Commission (PenCom) hereby informs pension contributors and retirees that it has introduced a Non-Interest Fund (Fund VI) and issued an Operational Framework for the Fund. This is in furtherance of the implementation of the Multi-Fund Investment Structure, which seeks to provide investment portfolio choices to pension contributors and retirees.
The Non-Interest Fund is a fund that complies with the provisions of Islamic Commercial Jurisprudence and any other established non-interest principles, as approved by the Financial Regulation Advisory Council of Experts (FRACE) or any other body constituted by the Central Bank of Nigeria and the Securities and Exchange Commission, from time to time. The FRACE, has certified that the Operational Framework issued by the Commission complies with non-interest (Shari’ah) finance principles.
All Pension Fund Administrators (PFAs) are required to create and maintain the Non-Interest Fund (Fund VI) for interested Retirement Savings Account (RSA) holders. The Fund shall be separated into two funds for Active RSA holders and Retirees respectively.
RSA holders in Fund I, II, III and retirees in Fund IV are eligible to move their RSA contributions to the Non-Interest Fund (Fund VI) by making a formal request to the PFA, in line with the provisions of the RSA Multi-fund Implementation Guidelines and Section 7.6 of the Investment Regulation dealing with Transfers between Fund Types within a PFA.
The Non-Interest Fund offers a viable alternative to the conventional interest-based financial instruments for pension funds investment.
Further information on the Non-interest fund (Fund VI) can be obtained from the Commission’s website at: www.pencom.gov.ng as well as the various Pension Fund Administrators (PFAs).
NOTICE OF EXTENSION OF THE ONLINE VERIFICATION AND ENROLMENT EXERCISE FOR 2021 RETIREES/PROSPECTIVE RETIREES OF FEDERAL GOVERNMENT TREASURY-FUNDED MINISTRIES, DEPARTMENTS AND AGENCIES (MDAs)
The Online Enrolment Exercise
The National Pension Commission (the Commission) had developed an online application that automated the Annual Pre-Retirement Verification and Enrolment Exercise for retirees/prospective retirees of Treasury- Funded Federal Government MDAs. The online enrolment application went live on 1st September, 2021 and Retirees and prospective Retirees were given a deadline of 29th October, 2021 to conclude the enrolment process.
This is to inform all Retirees and prospective Retirees that the Commission has extended the timeline for the online enrolment exercise from 29th October, 2021 to 31st December, 2021 in order to ensure that all eligible persons complete the enrolment process.
Persons Eligible to Participate in the 2021 Online Enrolment
The following categories of Employees of Federal Government Treasury-Funded MDAs are eligible to participate in the 2021 online Verification and Enrolment Exercise:
i) Employees who retired from January to October 2021;
ii) Employees who are due to retire from November to December 2021; and
iii) Retirees that missed the previous enrolment exercises from 2007 to 2019.
Self-Assisted Registration
The affected retirees/prospective retirees are required to visit PenCom’s website www.pencom.gov.ng to initiate the online enrolment process by registering and capturing their employment details as well as uploading scanned copies of the required documents before proceeding to their respective Pension Fund Administrator (PFA) for the physical verification and enrolment.
Pension Desk Officer (PDO)/PFA-Assisted Registration:
Retirees/prospective retirees who are unable to complete the online registration could approach the PDOs of their respective MDAs or visit their PFAs for assistance.
