The National Pension Commission (PenCom), in a bid to ensure that principal contributors are not eroded has directed Pension Fund Administrators (PFAs) to stop charging fees on micro pension fund under management below N5 million.
A recent circular by the regulator to PFAs on fee structure for the micro fund, by head, Surveillance Department, Ehimeme Ohioma, outlined that the policy was to hedge the depletion of the micro pension fund.
The circular cleared that no fee shall be charged until the funds under management reach a threshold of N5 million, pointing out that pension fund administrators shall not charge fees once the daily value of accounting unit of the fund falls below N1.00 to ensure the principal contributions are not eroded.
PenCom stated that the review of the fee structure is a response to challenges involved in implementing micro pension plan and assures that it shall not participate in micro pension fund fee regime until funds under management reaches the threshold of N4 bn.
The Commission explained that extensive consultations was done on the appropriate fee structure for the micro pension fund, to encourage pension fund operators to market and grow the micro pension assets, in order to achieve the objectives of the micro pension plan.