9 things to know about the Pension Reform Bill 2014

President Goodluck Jonathan signed the Pension Reform Bill 2014 into law, consequently repealing the Pension Reform Act 2004.

The whole idea is to govern and regulate the administration of uniform Contributory Pension Scheme (CPS) for both the public and private sectors in the country.

Below are nine things about the new Act that you should know.

1. It prescribes a 10-year jail term for anybody who embezzles pension fund – at long last!

In the past, huge funds belonging to pensioners had been fraudulently diverted to private pockets due to holes in the previous act. This one explicitly prescribes that “Any pension fund administrator or pension fund custodian or person or body, who misappropriates or diverts pension funds, commits an offence under this Act …, the individual or group will also be liable on conviction to a fine of an amount equal to three times the amount misappropriated or diverted, or to a term of not less than 10 years or both the fine and imprisonment.”