“Those
who love money will never enough” Ecclesiastics (5 VS 10) and Kiyosaki (1990:70) noted that the world of
money is filled with crooks, con-men and charlatans”
Before
mismanagement of public fund especially pension fund has been the
characteristics and bane of most African countries and Nigeria in particular.
The National Provident Fund Act of 1973 and the NSITF Act of 1003 all failed
because of mismanagement. And the inert
desire to get rich quick has led to emergence of financial crime which includes
mismanagement of pension fund.
And
therefore the need to protect these fund against such. In an article captioned “ PenCom Assures security of Retirement Saving” Dina (
2011:36 ) noted that “since the pensioners will utilize the fund at the end of
their working life, it becomes imperative that adequate measures be taken for
its protection”
The
provisions of 2004 PRA and the Amended
2014 Pension Reform Act which through its regulatory body PenCom has in built
checks and balances to safeguard these
funds. This is step in the right direction.
The
regulator noted that in order to keep track of the activities, the PFAs and the
PFCs are required to make a regular
report of their activities to PenCom. They are also required to maintain a
statutory reserve of 12.5 percent of their net profit after tax with the
regulatory body.
These
checks and balances are meant to give the contributors and the retiree’s rest
of mind and ensures the availability of these fund to the retirees at the point
of retirement.
Culled from reginald odunze.blogspot.com
No comments:
Post a Comment