BY SAM OTUONYE
The National Pension Commission (PenCom) has maintained that it is the right of employees to choose Pension Fund Administrators (PFAs) of their choice, or transfer to any without being coerced by either their employers or the operators.
According to the Commission, the choice of PFA and Retirement Savings Account (RSA) transfers are statutory rights of RSA holders and must not, under any circumstance, be influenced by their employers or their affiliates.
“Any act of inducement or compulsion whether direct or indirect undermines the integrity of the Contributory Pension Scheme (CPS) and the credibility of the RSA Transfer Process.”
PenCom in a circular to Licenced Pension Fund Operators titled: ‘Illegal and Unethical Practices Regarding Opening of Retirement Savings Account (RSA) and RSA Transfer’ signed by its head of surveillance, A M Saleem said: “The Commission shall not hesitate to take the following appropriate regulatory and legal actions on any LPFO or employer found to contravene the above directives”
“Imposition of monetary penalties and other regulatory sanctions as deemed necessary by the Commission in line with the provisions of the extant Regime of Sanctions and Penalties.
“Suspension of RSA Transfer window for the affected PFA, such that it can only participate as a Transferring PFA and not a Receiving PFA.
“Criminal prosecution of any employer or individual infringing on employees’ statutory rights to choose their PFA or transfer their RSA, contrary to the provisions of the PRA 2014 and relevant extant subsidiary legislations issued by the Commission.”