Pension Fund Administrators, PFAs, have accused life insurance companies of contravening the Pension Reform Act, 2014 by luring retirees under the Contributory Pension Scheme, CPS, with mouth watering loan offers as part of moves to make the retirees take up annuity.
Accordingly, the PFAs are in support of the directive from the National Pension Commission, PenCom, that life insurers should transfer all annuity assets under their kitty to a Pension Fund Custodian.
However, insurers have refuted the accusation, challenging the PFAs to point out any offending insurer that is involved in the unprofessional act. Pension fund operators that spoke on the condition of anonymity stressed that promising retirees that they will get loans from life insurance companies if they buy annuity is inconsistent with the Pension Reform Act (PRA) 2014.
Meanwhile, Managing Director of Consolidated Hallmark Insurance Plc, Mr. Eddie Efekoha said that the PFAs and PenCom should be bold enough to state the companies that are breaking the law rather than giving such directive.
Efekoha said, “If PenCom has issues against an insurance operator sufficient for it to take a position like it has taken, PenCom should be bold enough to say, company A, B, C, or D has done this. But until they come up with such facts, it cannot take action that undermines the other party.
“I have not heard of any annuitant that complained that they are not getting the fund they gave to an insurer to manage.
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