The gains of pension Reform Acts 2004 and 2014-Odunze Reginald C

   

“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.

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