Senate prescribes 10-year jail term for pension thieves

Senate yesterday, passed the Pension Reform Act with a prescription of a 10-year jail term for pension thieves.

The new Act officially accommodates employees of private firms in the contributory pension scheme.

The passage of the bill automatically repealed the Pension Reform Act 2004 thereby, making it possible for every person who worked in either the public service of the Federation,  the Federal Capital Territory,  states or local government and the private sector, to receive pension benefits as and when due.

The scheme covers private organisations with at least three or more employees.

The new law, stipulates that apart from a 10-year jail term, anyone who misappropriates pension fund must also refund three times the amount embezzled by him or her.

Also, whoever attempts to misappropriate the fund, on conviction, will be liable to the same punishment as it is prescribed for the full offence in the Act.

It provides that all monies received as penalty by the Pension Commission shall be paid into the Pension Protection Fund, which would  be established under section 82 of the Act.

In addition to payment of fines and serving the jail terms, the Act stipulates that anyone who misappropriates pension fund shall forfeit to the Federal Government,  any property, asset or fund with accrued interest on the stolen money.

The Act also imposed a fine of N10million on any pension fund administrator, who fails to meet the obligations of the contributors while each of the directors of the firm would pay N5million each as fines.

It also provides that, “notwithstanding the provisions of any other law, the commission may, in addition to the penalties stipulated under this Act,  impose additional sanctions on the board, any director, management,  manager or officer of a pension fund administrator or pension fund custodian that violates any of the provisions of this Act.”

Retrieved from: sunnewsonline