The governor of Lagos State, Akinwumi Ambode, has approved the appointment of four additional Pension Fund Administrators (FPA) to the existing six whose services are already being used in the state.
The government said the action was in a bid to ensure an efficient and effective pension scheme in the state.
The governor’s approval was contained in a circular issued by the Head of Service, Mrs. Shade Jaji.
The circular further explained that the addition would pave the way for competition among the PFAs, adding that such would create an enabling environment to facilitate “evolvement of quality, investible products through which the pension assets can be invested safely, with high returns for the contributors”.
The circular explained that, “The approval of the four additional PFAs ─ Premium Pension Managers Limited, Pension Alliance Limited, AIICO Pension Manager Limited and Fidelity Pension Manager Limited ─ is also part of the innovation being sought by the government in guidelines and regulations that guide pension operations.
“In as much as pension contributions are given a first line charge treatment against the state’s consolidated revenue, it is worthwhile for this administration, which is a people-oriented one, to make sure that pensioners live in peace and comfort, having spent the better part of their lives in active service.”
It was learnt that the state now has 10 approved PFAs, to manage retirement savings account of employees, and five insurance companies to provide life annuity service.