The National Pension Commission (PenCom) has announced a new fee structure for approved pension agents (APAs).
PenCom announced the development in a circular dated September 25, signed by A. M. Saleem, the director of its surveillance department.
The commission also issued a framework on the licensing of APAs as strategic partners for the enrollment of eligible persons in the personal pension plan (PPP).
“To this end, the Commission has approved a Fee Structure for APAs that incentivises them to un-board PPP participants, follow up on regular payment of pension contributions and facilitate contingency withdrawal,” the circular reads.
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“The Fee Structure is based on Key Performance Indicators (KPIs), which ensure that only APAs that meet the KPIs are paid.
“The Fee Structure provides APAs with diversified income streams linked to specific services rendered.
“In addition, APAs are eligible for an annuitised performance bonus of up to forty per cent (40%) of Management Based Fees on all contributions they mobilise, subject to the achievement of agreed performance standards.
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“This ensures that incentives are both sustainable and directly aligned with the long-term growth of the pension fund and the retention of contributors.”
The commission invited qualified financial technology firms and corporate entities to apply for a licence as APAs.
The circular is part of reforms announced by PenCom following the inauguration of the ‘Pension Revolution 2.0’, an initiative designed to strengthen Nigeria’s pension industry, enhance inclusion, and “secure dignity for retirees”.
The commission, following the inauguration, directed pension fund administrators (PFAs) to dedicate at least 50 percent of the infrastructure investment fund to projects domiciled in Nigeria.
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Additionally, PenCom approved new rules allowing Nigerians abroad and foreign workers in Nigeria to contribute to pension funds in foreign currency.
