THE NEW PENSION REFORM: AN APPRAISAL OF THE PERFORMANCE OF PENSION FUND ADMINISTRATORS

ABSTRACT

The research examines the New Pension Reform Act with emphasis on the performance of pension fund administrators in Nigeria. The key issues considered were PFAs compliance with PENCOM’s investment guidelines, payment of pensioners entitlement as and at when due, PFAs products and services and the rate of returns for PFAs activities and the market. Secondary data were collected from official publications, national dailies, documentations and internet materials. Correlation, Z-test of proportion and Sample t-test were used to analyse the data. It was revealed that positive correlation exit between pensioners satisfaction and support services offered by PFAs, more than 70 percent of PFAs were complying with the Pension Act with respect to  pensioners entitlement and that the returns from both treasury bill (market rate) and PFAs are almost equivalent. The study recommended viable investment for pension fund to ensure prompt and regular payment of entitlements of retirees and pensioners. The need for Pension fund investment to be carefully monitored and investment instruments rated for optimal returns. The study concludes that the success of the pension reforms largely depends on the sincerity, collaboration and commitment of all stakeholders like government, PENCOM, pension fund custodian, pension fund administrators employer and employees.

KeyWord: National Pension Commission (PENCOM), Pension Fund Administrators (PFA), Pension Reform Act (PRA) and Retirement Saving Account (RSA).