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PFAs’ to invest pension funds in real estate – PenCom

Industry regulator, National Pension Commission (PenCom) has said  Pension Fund Administrators (PFAs) are now free to invest the N5.14tn pension assets in real estate in addition to infrastructure.

The Director-General, PenCom, Mrs. Chinelo Anohu-Amazu disclosed this recently in a  presentation to the National Economic Council.
According to her, Pension Fund Administrators can now invest part of the pension funds in infrastructure and real estate through viable and secure investible outlets. She added that there was  need to provide adequate risk mitigation tools to guide the investment of pension assets.

However, she appealed to PFAs’ to pay retirees on time in order to achieve the aim of saving towards retirement.

Amazu stressed that the commission had during the  presentation highlighted the numerous benefits that states could derive under the CPS. Moreover, she said based on the response at the presentation,  the commission would also enhance its technical support to the states for speedy compliance.

She further disclosed that many states in the federation had adopted the CPS and were at various stages of its
implementation.

She said the Pension Reform Act 2014 prescribe the coverage of states and local government employees, in addition to the federal public service and private sector by the CPS.

Speaking further she said the enrollment of North-West Zone was encouraging, adding that there were some implementation milestones that should be attained by respective states.  Moreover, she appealed to states that are yet to adopt the CPS to immediately comply in order to avail their employees the numerous benefits inherent in the scheme.

Anohu-Amazu said in its quest to assist the states in the guided implementation, PenCom established functional offices in the six geo-political zones including Kano for the North-West Zone.

Speaking further she said these offices have been equipped to provide the required technical assistance to states and local governments in their efforts to adopt and implement the CPS.

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