CPS: Understanding Roles of Pension Fund Administrators

The successes attained since the advent of the Contributory Pension Scheme (CPS) in Nigeria over the years are often ascribed to the fundamental structures upon which the system was built. A vital feature of the scheme is the separation of management and custody of pension funds. While Pension Fund Administrators (PFAs) are saddled with the responsibility of managing pension funds, Pension Fund Custodians (PFCs) are responsible for the custody of the funds. These Pension Fund operators are licensed, supervised and regulated by the National Pension Commission (PenCom). Therefore, understanding the role of PFAs will provide further insight into the workings of the CPS. The following are the roles of PFAs under the CPS: Thisday