Jonathan Signs Pension Reform Bill Into Law

President Goodluck Jonathan has signed the 2014 Pension


Reform Bill into law.
The Act, among other highlights, provides stiffer penalties
that would serve as deterrent against mismanagement or
diversion of pension funds’ assets under any guise.
With the new law, operators who mismanage pension
funds would be liable on conviction to not less than ten
years imprisonment or fine of an amount equal to three
times the amount so misappropriated, or diverted, or both
imprisonment and fine.
The law also empowers PENCOM to institute criminal
proceedings against employers who persistently fail to
deduct and or remit pension contributions of their
employees within the stipulated time.
This was not provided for by the old 2004 Act, which only
allowed PENCOM to revoke the licence of erring operators.
The signing ceremony, which took place in the office of the
President, was witnessed by Vice President Namadi
Sambo, the Attorney-General of the Federation,
Mohammed Bello Adoke and the Chairman of the People’s
Democratic Party (PDP), Adamu Muazu.