Pension Fund Law and Regulation Act Training

Course Fee:

₦300,000.00

Course Overview

• Thorough understanding of pension, pension schemes and plans as well as pension governance and regulation.
• The required knowledge and information to oversee and manage the pension plans in the organisation.
• Adequate skill and confidence to work with advanced techniques and strategies to enhance pension management through better governance and regulation.
• Adequate perspective and awareness to predict challenges and risks related to effective pension governance and the necessary ability to work towards eliminating these completely.
• The required information, experience, exposure and confidence to examine and enhance current pension schemes or devise new schemes for the benefit of employees.
• Information and knowledge to ensure that the organisation’s plans comply with universally acceptable standards.
• The required capabilities to undertake more challenging and senior roles in pension management, governance and regulation.
Course Content:
Overview of Pension, Pension Governance and Pension Regulation
• Definition of pension
• Importance of pension governance
• Importance of pension regulation
• Types of pensions
o Defined benefit pension
o Defined contribution pension
Factors Determining Defined Benefit Pension
• Final salary at retirement
• Tenure of employment with the employer
• Accrual rate
Factors Determining Defined Contribution Pension
• Money paid by the employee into a pension
• Money paid by an employer into a pension
• Tax relief received by the employee
• Performance of employee investments
Benefits of Saving into Pension
• Employer contribution
• Tax relief
• No inheritance tax
• Diversified, well-managed investment portfolio
Possible Recipients of Public Pension Schemes
• Civil servants
• The judiciary
• Local government workers
• Teachers
• Health service workers
• Fire and rescue workers
• Members of the police forces
• Members of the armed forces
Potential Risks to Pension Funds
• Financial crises
• Dishonest employer and pension managers
• Lack of financial literacy of employees
Objectives of Pension Fund Regulation
• Rule and standard creation to protect against theft
• Ethical standard creation for pension managers
• Supervision of performance and activities of pension managers
• Penalty issuance on offence or non-adherence to rules
• Representation of the voice of individual workers to ensure pension security
Focus Areas for Regulation in Case of Pension Management by Agencies
• Risk aversion
• Outcome uncertainty
• Goal conflict
• Task programmability
• Outcome measurability
• Length/tenure of agent–organisation association
Stakeholders of Public Pension Funds
• Plan participants
o active members/current contributors
o retired member/current recipients
o survivors and dependents of active and retired members
• Government
• Taxpayers
Board-Related Focus Areas in Pension Governance and Regulation
• Board composition
• Nomination and termination
• Accountability
• Performance measurement
• Definition of roles and responsibilities
• Standards of behaviour
• Information management and transparency
Benefits of Good Pension Governance and Regulation
• High pension fund performance, low stakeholder cost
• Lowered overregulation costs
• Appropriate and effective supervision by authorities
• Positive effects on economic efficiency
Challenges in Pension Governance and Regulation
• Corruption and misconduct
• Lack of expertise of the governing body
• Agency issues
• Uncertain population dynamics
• Lack of required resources and skill
• Conflicts of interest
• Lack of incentives for fund managers
• Board member issues
o Lack of discipline
o Lack of skill and expertise
o Unclear, undefined responsibilities
o Incorrect member selection
METHODOLOGY
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.