President Goodluck Jonathan on Tuesday signed the Pension Reform Bill 2014 into law at the Presidential Villa, Abuja.
The incipient law, which is betokened to govern and regulate the administration of the uniform pension scheme for both public and private sectors in Nigeria, repeals the Pension Reform Act, No.2, 2004.
The Bill was passed into law by the Senate on June 3, 2014 and the House of Representatives on May 27, 2014.
It was sent to the President for his assent on June 14, 2014.
The brief signing ceremony was witnessed by Vice President Namadi Sambo; Minister of Justice and Attorney-General of the Federation, Mr. Muhammed Adoke (SAN); acting Director-General, National Pension Commission, Chinelo Anohu-Amozu.
The highlights of the incipient law include the potency vested in the pension commission to institute malefactor proceedings against employers for sedulously assiduous refusal to remit pension contributions.
The 2014 Act empowers PenCom, subject to the fiat of the AGF, to institute malefactor proceedings against employers who assiduously fail to deduct and/or remit pension contributions of their employees within the stipulated time.
This was not provided for by the 2004 Act.
The incipient law additionally reviewed upward the penalties and sanctions, having discovered that those provided under the old law were no longer sufficient deterrents against infractions of the law.
The incipient law sanctions PenCom to revoke the licence of erring pension operators but does not provide for other interim remedial measures that may be taken by PenCom to resolve identified challenges in licensed operators.
Accordingly, the Pension Reform Act 2014 now empowers PenCom to take proactive corrective measures on licensed operators whose situations, actions or inactions jeopardise the safety of pension assets.
This provision further fortifies the pension assets against mismanagement and/or systemic jeopardies.
