The National Pension Commission (PenCom) has issued a new circular empowering Pension Fund Administrators (PFAs) to directly appoint external auditors and actuaries for Approved Existing Schemes (AES) and Additional Benefits Schemes (ABS).
The directive, signed by A. M. Saleem, Director of the Surveillance Department, follows a discovery that many Trustees and Sponsor Companies have failed to fulfill their statutory audit obligations under the Pension Reform Act (PRA) 2014.
Under the new regulatory framework, PFAs must notify Trustees of their obligation to appoint auditors and actuaries at least two months before the end of the financial year. If a Trustee fails to act within 21 days of the initial notice, the PFA is required to send a formal reminder. If no response is received within an additional five working days, the PFA is authorized to appoint the necessary professionals itself and submit the terms of engagement to PenCom for final approval.
PenCom emphasized that the failure of sponsors to conduct these audits and valuations poses a significant risk to the “going concern” of the pension schemes. These audits are critical for determining the adequacy of pension fund assets to meet future payment obligations to retirees.
To ensure financial accountability, the commission stipulated that the fees for these PFA-appointed services will be charged directly to the specific pension scheme under management.
In a separate development, PenCom has also directed Federal Government self-funded agencies to implement mandated pension increases for their eligible retirees. This applies to agencies whose salary structures are already recognized by the National Salaries, Incomes and Wages Commission (NSIWC).
Agencies not currently listed in NSIWC circulars have been advised to coordinate with the commission to determine the appropriate adjustments, ensuring that all retirees under self-funded models receive constitutional pension increments.
 has issued a new circular empowering Pension Fund Administrators (PFAs) to directly appoint external auditors and actuaries for Approved Existing Schemes (AES) and Additional Benefits Schemes (ABS).){kind=link}