The Regulator:
Oversees the entire industry, protects the integrity
of the system etc via the issue and enforcement
of operational regulations. The regulator appoints
and authorises firms that can operate in the
pension industry, e.g. as PFA, PFC etc. The
Regulator is the underlying issuer of the PIN
number that is the unique identifier of all
individual participants i.e. employees. The
Regulator maintains the National Databank; also,
it has the responsibility for issuing general
and specific (permissible) investment criteria
and guidelines.
Pension Fund Administrator:
Perform fund administration and risk management
roles. They are also responsible for asset management.
They are obliged to maintain up-to-date and
accurate RSA (Retirement Savings Account) records.
PFA are responsible for optimal management of
RSA pension assets i.e. in accordance with PRA
2004, regulation and best professional practice.
As with PFC and Custodians, PFA earns fees with
(ceiling set by Regulator).
Each PFA will select a PFC to be the custodian
of Assets that it manages, from the list approved
by the Regulator.
Pension Fund Custodian:
In custody of all pension assets, including
cash, share certificates, other title deeds;
these are held to the order of the PFA. The
Custodian receives cash contributions from the
Employer. In addition, PFC, on behalf of PFA,
vote at general meetings, settle all transactions
and undertake all related activities such as
collection of dividends and execution of proxies.
Also, PFC are required to make periodic reports
to PenCom including calculation of investment
returns.
Employees:
Select a PFA with which to open an RSA and are
subsequently issued with a unique life-long
PIN. Employees (as clients of the PFA) instruct
their employers to pay their monthly pension
contribution (being a sum of the employee and
employer contribution; minimum contributions
are prescribed in legislation) to the PFC (of
that PFA), for credit to the RSA of that employee.
On retirement, part of RSA redemption value
will be used to acquire an annuity (minimum
size prescribed). Should death occur prior to
retirement, redemption value will form part
of estate.
Employers:
Required to contribute their
share (prescribed as a proportion of pensionable
salary and emolument) to the funds that they
send, monthly, to the PFC for credit to the
PFA designated account. The employer is also
required to simultaneously provide the PFA with
information of amount to credit to each employee
RSA.
Life Underwriters:
All Each employers with 5 or more employees
are required to maintain Group Life Insurance
policies on the lives of the employees for a
minimum of three (3) times their total emolument.
Total Emolument is defined in the Act as total
of sum of basic salary, housing and transportation
allowances. In addition to providing mortality
cover, Life offices are also required to provide
Pension Annuity to members who attain the retirement
status as defined.
