The pension industry, which has recorded steady growth since the establishment of the Contributory Pension Scheme (CPS) by the Pension Reform Act 2004, is going through difficult times with the House of Representatives, The Nation has learnt.
Insider sources and stakeholders, who revealed the development, said the House of Representatives Ad-hoc Committee in a recent summon of the National Pension Commission (PenCom) is asking the commission to provide vital and sensitive information of the operations of the CPS.
They warned against releasing sensitive information on workers, retirees and Pension Fund Administrators (PFAs) to the public through the Ad-hoc Committee.
Basically, the committee is asking for vital information of Retirement Savings Account (RSAs) holders, retirees and Pension Fund Administrators (PFAs) that are considered confidential under the PRA 2004 as repealed by PRA 2014.
The commission has, however, informed the Ad-hoc Committee that it will be unable to do so, explaining that it is prohibited by the provisions of some sections of the PRA 2014 from disclosing such information.
In a letter signed by the Chairman of the Ad-hoc Committee, Hon E. Agbonayinina dated January 11, 2019 (PenCom/DG/CSLD/2019/TR11) and titled, “Request for Information-Request for Clarifications, said they have mandate to investigate the commission.
He requested the commission to furnish them with the Net Assets Values of the contributory pension funds; Details of supervisions and regulations of Pension Funds Administrators, their key instructions and performances, compliances and default.
The letter read further: “The Ad-hoc Committee following mandate for an investigation is pleased to clearly state that your Commission should furnish it with the Annual pension operations of all the Pension Funds Administrators. For instance, details of amount collected from contributors and amount being paid out to retirees, from April, 2017 till date. Details of investment percentages and profits from the investment of pension funds; Details of the Federal Government contributions to the Federal Government bond; Contributions of retirement savings account holders to Pension Funds Administrators; Details of payments from PenCom into the Treasury Single Accounts (TSA) and bank account details operated by the Commission.
“Details of the amount sent in by Ministry Department and Agencies (MDAs) to PenCom through the Treasury Single Accounts between April, 2017 till date, before it is distributed to the PFAs through their Pension Custodians by Central Banks of Nigeria (CBN). Your Commission Is also expected to avail the committee any other hand over note prepared by your different department, as this will aide investigation.”
Hon. Agbonayinina directed the commission in the letter to forward all documents in 20 hard copies and one soft copy to Office No 1.27, First floor, House of Representatives New Building, National Assembly Complex, Abuja 011 or before 10am on Thursday, 24, January, 2019, bearing in mind that the Ad-hoc Committee will be interacting with all the Pension Funds Administrators on this matter’’.
But PenCom in its reaction to the Ad-hoc Committee in a letter dated January 23. 2019, titled, “Request for Information – Request for Clarifications” stated that the Commission has noted the Ad-hoc Committee request for documents/information in respect of the request listed in the letter under reference. However, the Commission would like to respectfully bring the following to the attention of the Ad-hoc Committee.
“Details of supervisions and regulations of Pension Fund Administrators and their key instructions and performances, compliances and default: We are unable to decipher the Ad-hoc Committee’s specific request on the subject because these are general statements on the statutory functions of the Commission. We, therefore, request for further clarifications on the specific requirements of the Committee. Annual pension operations of all the Pension Fund Administrators. For example, details of amount collected from contributors and amount being paid out to retirees from April. 2017 till date: This information is confidential to RSA holders under the CPS Accordingly, members of the, Board, officers, employees and agents or other persons engaged by the Commission are prohibited by the provisions of Section 113(3) of the Pension Reform Act (PRA) 2014 from disclosing such information.
“Details of the Federal Government contributions to the Federal Government bonds. The Commission requests for clarification on whether reference is being made to the amount disbursed by the Federal Government for payment of accrued pension rights or bonds issued by the Debt Management Office, which Pension Funds invest into from time to time. Contributions of RSA holders to Pension Fund Administrators: The Commission is also unable to provide the information based on it because it will constitute a breach of the provisions of Section 113(3) of the PRA 2014. Details of payment from PenCom into the Treasury Single Accounts (TSA) and bank accounts details operated by the Commission: The Commission had explained in its earlier correspondence to the Committee that it maintains a TSA account in the Central Bank of Nigeria (CBN) in line with the Federal Government’s policy on same. Accordingly, the Commission would like to request for further clarifications on this request of the Ad-hoc Committee.
“Details of the amount sent in by MDAs to PenCom through the Treasury Single Accounts between April 2017 till date, before it is distributed to the PFAs through their Pension Custodians by the CBN: The Commission requests for clarification on this in view of the fact that pension contributions for employees of Treasury Funded MDAs are deducted at source by the Accountant General of the Federation and remitted directly to the Retirement Savings Accounts (RSAs) of FGN employees on IPPIS Platform. The contributions of employees of MDAs not on IPPIS are remitted to the Contributory Pension Account maintained with the CBN for onward transfer to their RSAs.”
On the invitation to an investigative hearing by the committee, the commission requested that the investigative hearing be deferred until the issue of the documents and information necessary to the hearing are sorted out.
“You would recall that the commission had, vide a letter referenced PenCom/DG/CSLD12019/ of January 23, 2019 subsequently sought further necessary clarifications in respect of most items listed in your letter of request under reference. We believe that the further clarifications are necessary to enable the commission furnish the required information to facilitate the Committee’s work.
“In the light of the foregoing and in order to facilitate the Committee’s work in a meaningful and productive manner the Commission requests that the investigative hearing be deferred until the issue of the documents/information necessary to the hearing are sorted out. In the meantime, the commission is collating the information on those requests that are clear, and which would take a while in view of the volume of information required by the committee. This further necessitates the need to fix a future date for the hearing in order to have a productive session”, the commission said.
A major stakeholder who spoke on condition of anonymity, said the request by the committee of confidential information of the CPS is capable of jeopardising the safety of the accumulated N8.5 trillion pension fund.
He wondered the rationale behind attempts to probe the commission at every slightest opportunity.
He called on workers and retirees under the scheme to reject the committee by ensuring that the commission does not reveal information that can endanger their future.
He urged lawmakers to help maintain the sanity of the industry and not work to destroy it.