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National Pension CommissionNational Pension Commission
A developing economy perspective on Pension Fund Reforms and liberalisation of
the domestic economy Nigeria
Presentation by M K Ahmad
Director-General National Pension Commission
August 2007 helliphellipensuring your comfort after retirement
National Pension National Pension CommissionCommission2222
Presentation Outline
Rationale for ReformRationale for Reform Objectives of the Reform Objectives of the Reform Key features of the schemeKey features of the scheme Implementation BreakthroughImplementation Breakthrough Pension reform and the economy Pension reform and the economy Key success factors Key success factors Pension fund investmentsPension fund investments Lessons and policy implicationsLessons and policy implications
National Pension National Pension CommissionCommission3333
RationaleGoals of the Reform
Pensions Pensions ReformsReforms
Most schemes were under or unfundedUnsustainable outstanding pension liabilitiesWeak and inefficient pensions administration Defined Benefit SchemePAYG was unsustainableMost workers in the Private Sector not covered by any form of retirement benefit arrangements
Ensure that every worker receives his retirement benefits as and when due
Empower the workers amp assist them to save in order to cater for their livelihood during old age
Establish uniform rules regulations and standards for administration of pension matters
Secure compliance amp promote wider coverage
Primary objectives of Reform Primary objectives of Reform
Rationale for ReformsRationale for Reforms
National Pension National Pension CommissionCommission4444
Secondary objectives of Reform An integral part of government medium term development agenda An integral part of government medium term development agenda
ndash National Economic Empowerment and Development Strategy ndash National Economic Empowerment and Development Strategy (NEEDS)(NEEDS)
To reduce the fiscal cost of pension to the government To reduce the fiscal cost of pension to the government Stem the growth of outstanding pension liability Stem the growth of outstanding pension liability Mobilise long term savings Mobilise long term savings Stimulate the development of an efficient capital marketStimulate the development of an efficient capital market Provide long term finance for the real sector Provide long term finance for the real sector Promote GDP growth Promote GDP growth
National Pension National Pension CommissionCommission55 5
Key features of the schemeKey features of the scheme
The Key Elements of the Pension Reform
The Establishment of Contributory Pension Scheme for both Public and Private Sectors
The Establishment of Transitional Provisions for both the Public and Private Sectors
The establishment of PenCom as a single Supervisor amp Regulator of all pension matters in the Country
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission2222
Presentation Outline
Rationale for ReformRationale for Reform Objectives of the Reform Objectives of the Reform Key features of the schemeKey features of the scheme Implementation BreakthroughImplementation Breakthrough Pension reform and the economy Pension reform and the economy Key success factors Key success factors Pension fund investmentsPension fund investments Lessons and policy implicationsLessons and policy implications
National Pension National Pension CommissionCommission3333
RationaleGoals of the Reform
Pensions Pensions ReformsReforms
Most schemes were under or unfundedUnsustainable outstanding pension liabilitiesWeak and inefficient pensions administration Defined Benefit SchemePAYG was unsustainableMost workers in the Private Sector not covered by any form of retirement benefit arrangements
Ensure that every worker receives his retirement benefits as and when due
Empower the workers amp assist them to save in order to cater for their livelihood during old age
Establish uniform rules regulations and standards for administration of pension matters
Secure compliance amp promote wider coverage
Primary objectives of Reform Primary objectives of Reform
Rationale for ReformsRationale for Reforms
National Pension National Pension CommissionCommission4444
Secondary objectives of Reform An integral part of government medium term development agenda An integral part of government medium term development agenda
ndash National Economic Empowerment and Development Strategy ndash National Economic Empowerment and Development Strategy (NEEDS)(NEEDS)
To reduce the fiscal cost of pension to the government To reduce the fiscal cost of pension to the government Stem the growth of outstanding pension liability Stem the growth of outstanding pension liability Mobilise long term savings Mobilise long term savings Stimulate the development of an efficient capital marketStimulate the development of an efficient capital market Provide long term finance for the real sector Provide long term finance for the real sector Promote GDP growth Promote GDP growth
National Pension National Pension CommissionCommission55 5
Key features of the schemeKey features of the scheme
The Key Elements of the Pension Reform
The Establishment of Contributory Pension Scheme for both Public and Private Sectors
The Establishment of Transitional Provisions for both the Public and Private Sectors
The establishment of PenCom as a single Supervisor amp Regulator of all pension matters in the Country
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission3333
RationaleGoals of the Reform
Pensions Pensions ReformsReforms
Most schemes were under or unfundedUnsustainable outstanding pension liabilitiesWeak and inefficient pensions administration Defined Benefit SchemePAYG was unsustainableMost workers in the Private Sector not covered by any form of retirement benefit arrangements
Ensure that every worker receives his retirement benefits as and when due
Empower the workers amp assist them to save in order to cater for their livelihood during old age
Establish uniform rules regulations and standards for administration of pension matters
Secure compliance amp promote wider coverage
Primary objectives of Reform Primary objectives of Reform
Rationale for ReformsRationale for Reforms
National Pension National Pension CommissionCommission4444
Secondary objectives of Reform An integral part of government medium term development agenda An integral part of government medium term development agenda
ndash National Economic Empowerment and Development Strategy ndash National Economic Empowerment and Development Strategy (NEEDS)(NEEDS)
To reduce the fiscal cost of pension to the government To reduce the fiscal cost of pension to the government Stem the growth of outstanding pension liability Stem the growth of outstanding pension liability Mobilise long term savings Mobilise long term savings Stimulate the development of an efficient capital marketStimulate the development of an efficient capital market Provide long term finance for the real sector Provide long term finance for the real sector Promote GDP growth Promote GDP growth
National Pension National Pension CommissionCommission55 5
Key features of the schemeKey features of the scheme
The Key Elements of the Pension Reform
The Establishment of Contributory Pension Scheme for both Public and Private Sectors
The Establishment of Transitional Provisions for both the Public and Private Sectors
The establishment of PenCom as a single Supervisor amp Regulator of all pension matters in the Country
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission4444
Secondary objectives of Reform An integral part of government medium term development agenda An integral part of government medium term development agenda
ndash National Economic Empowerment and Development Strategy ndash National Economic Empowerment and Development Strategy (NEEDS)(NEEDS)
To reduce the fiscal cost of pension to the government To reduce the fiscal cost of pension to the government Stem the growth of outstanding pension liability Stem the growth of outstanding pension liability Mobilise long term savings Mobilise long term savings Stimulate the development of an efficient capital marketStimulate the development of an efficient capital market Provide long term finance for the real sector Provide long term finance for the real sector Promote GDP growth Promote GDP growth
National Pension National Pension CommissionCommission55 5
Key features of the schemeKey features of the scheme
The Key Elements of the Pension Reform
The Establishment of Contributory Pension Scheme for both Public and Private Sectors
The Establishment of Transitional Provisions for both the Public and Private Sectors
The establishment of PenCom as a single Supervisor amp Regulator of all pension matters in the Country
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission55 5
Key features of the schemeKey features of the scheme
The Key Elements of the Pension Reform
The Establishment of Contributory Pension Scheme for both Public and Private Sectors
The Establishment of Transitional Provisions for both the Public and Private Sectors
The establishment of PenCom as a single Supervisor amp Regulator of all pension matters in the Country
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission66
Key features of the scheme hellip contrsquod
Old System New System
Type Largely Defined Benefit
Defined Contribution
Funding Mostly unfunded amp PAYGO
Contributory amp Fully Funded
Membership
Coverage
Voluntary in private sector
Mandatory for all employees
Pension Portability Not Portable Personalised amp Very Portable
Management Largely State amp Management amp Union Influence
Private Sector amp Individual Choice
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission77
Key features of the scheme hellip contrsquod
Old System New System
Retirement
Benefits
Discriminatory Uniform Application
Supervision Fragmented amp Unregulated (SEC NAICOM JTB)
Strictly regulated by PenCom
Pension Liabilities
Implicit amp not transparent
Explicit through Retirement Bond amp Capped
Tax exemption
Limited Contribution amp Retirement Benefits
Insurance Policy
Voluntary amp mostly in private sector
Mandatory for all employers
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission88
Implementation Breakthrough
Establishment of Supervisory and Regulatory FrameworkRegulationsGuidelines Issued (Transitional arrangements Licensing Investments valuation of investments Fees Structure Life Policy and Operational Guidelines)
Reporting requirements for operators amp Daily monitoring
Consultative process in rule - making
Licensing of Operators23 PFAs 4 PFCs 6 CPFAs
Registration of ContributorsRegistered a total of 245 million RSAs as at the end of July 07
Public sector ndash 7316
Private sector ndash 26841048766
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission99
Accumulation of Pension Funds Generated pool of long term investible funds for the first time in
Nigeria Estimated size of pension fund is N655 billion (USD 512 billion) as
at end of July 2007 amp Normal monthly accumulation of about N6billion (USD 005 billion)
Out of the assets N1902 billion (USD 149 billion) are new contributions while N4648 billion (USD 363 billion) are transferred by legacy funds
Public Sector Accrued Pension Rights being covered by Retirement Benefits Bond About N16 trillion (USD 125 billion) for over 800000 employees
Public education amp enlightenment SeminarsWorkshops Website FAQs also in local languages Strong partnership with key social partners- labouremployer
Unions General acceptance of the Scheme by employees amp key Unions
Implementation BreakthroughhellipContrsquod
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission10101010
Impact of the Reform on the economy
Social ImpactSocial Impact
Sustainable Economic GrowthSustainable Economic Growth
bull Promotion of Employment Generation Activities
bull Improves living Improves living standards of the standards of the elderlyelderly
bull Secures financial Secures financial autonomy amp autonomy amp independence of independence of retireesretirees
bull Improves Labour Improves Labour marketmarket
Buoyant Buoyant Capital MarketCapital Market
bull Increased market integritytransparency
bull Innovative productsbull Improved regulationsupervisionbull Creation of domestic institutional
investorsbull Vibrant and competitive securities
marketbull Lower transaction costsbull Improved integritycorporate
governancebull Avenue for long term borrowing
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission11111111
Key Success FactorsKey Success Factors
Political will and policy consistency and continuity are essential Political will and policy consistency and continuity are essential Macro economic stability and low inflation to protect pension Macro economic stability and low inflation to protect pension
assets (single digit inflation achieved and lowerstable exchange assets (single digit inflation achieved and lowerstable exchange rate) rate)
Effective regulation and supervision Effective regulation and supervision Commitment create an effective agency- licensing inspectionCommitment create an effective agency- licensing inspection
Level of development of the financial market is criticalLevel of development of the financial market is critical Determine the type of pension reform (multi-pillar not appropriate with Determine the type of pension reform (multi-pillar not appropriate with
underdeveloped financial market)underdeveloped financial market) Number and diversity of financial instrumentsNumber and diversity of financial instruments Liquidity and valuation of assets Liquidity and valuation of assets Transparency and efficient settlement system is keyTransparency and efficient settlement system is key
Sound banking and insurance companies due to banking and Sound banking and insurance companies due to banking and insurance reforms insurance reforms Contributions and payments Contributions and payments Insurance and annuity contracts Insurance and annuity contracts Custodial servicesCustodial services
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission12121212
Pension Fund Investment Management Key Objectives
Secure safety amp security of funds Ensure adequate affordable and sustainable
benefits Link between contribution and benefits Ensure diversification amp acceptable risk levels Safeguard conflict of interest Promote amp sustain public confidence
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission13131313
Pre-requisites for Pension Fund Investments in Nigeria
Authorised Markets for Trading Primary - new issues Secondary ndash Floors of recognised Stock Exchange
Quality of Instruments InstrumentsIssuers must be rated Records of past profitability andor dividends payouts Instruments must be readily marketable
Foreign investments and derivatives are future possibilities
Regulated investment limits (asset classinstruments) amp performance benchmarks
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission14141414
Direct real estate private equitiesventure capital and unlisted securities ndash not allowed due to Valuation and reporting issues Liquidityexit Transparency and disclosure requirements Specialized expertise and the need for capacity
building Need to build contributorsrsquo confidence
Un-authorised investmentsfuture possibilities
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission15151515
Indirect promotion of other businessesinstitutional operators Sales agents Stock brokers Rating agencies Insurance companies and brokers Mutual funds Mortgage finance institutions ndash through mortgage
bonds or mortgage securitization Factoring and Leasing
Opportunities for entrepreneurs
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission16161616
Pension reform should not be an isolated policy Pension reform should not be an isolated policy decision but complimentary to other reformsdecision but complimentary to other reforms Financial sector reform etcFinancial sector reform etc
Political will and policy consistencycontinuity are Political will and policy consistencycontinuity are essential essential
Adequate and timely delivery of data are essential for Adequate and timely delivery of data are essential for planning planning
Conducive investment climate that would create Conducive investment climate that would create avenues to invest the pool of pension fundsavenues to invest the pool of pension funds
Lessons and policy implications Lessons and policy implications
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission17171717
Challenges of expanding coverage of the informal Challenges of expanding coverage of the informal sector problem of identification securing buy-in sector problem of identification securing buy-in irregular income basis for contribution mode of irregular income basis for contribution mode of collectioncollection
Challenges of enforcement compliance and evasionChallenges of enforcement compliance and evasion Inter-regulatory agenciesrsquo co-operation is essential Inter-regulatory agenciesrsquo co-operation is essential Awareness and sensitization programmes Awareness and sensitization programmes Need for skill development and capacity building Need for skill development and capacity building
Lesson for developinghellipContrsquodLesson for developinghellipContrsquod
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission1818
SEC- Securities amp Exchange CommissionSEC- Securities amp Exchange CommissionPenCom- National Pension CommissionPenCom- National Pension CommissionNAICOM ndash National Insurance CommissionNAICOM ndash National Insurance CommissionJTB ndash Joint Tax BoardJTB ndash Joint Tax BoardPFA ndash Pension Fund AdministratorPFA ndash Pension Fund AdministratorPFC ndash Pension Fund CustodianPFC ndash Pension Fund CustodianCPFA ndash Closed Pension Fund AdministratorCPFA ndash Closed Pension Fund AdministratorRSA ndash Retirement Savings AccountRSA ndash Retirement Savings AccountABS ndash Asset backed Securities ABS ndash Asset backed Securities MBS ndash Mortgage Backed SecuritiesMBS ndash Mortgage Backed SecuritiesREITs- Real Estate Investment TrustsREITs- Real Estate Investment Trusts
Abbreviations Abbreviations
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng
National Pension National Pension CommissionCommission1919
Thank You
National Pension Commission
Plot 174 Adetokunbo Ademola Crescent
Wuse II Abuja - Nigeria
234 (9) 413 8736 ndash 40
infopencomgovng
wwwpencomgovng