The new law repeals the 2004 Pension Reform Act No. 2 and prescribes a 10-year jail term for pension thieves.
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Nigerian President Goodluck Jonathan arrives for the inauguration ceremony of the South African President at the Union Buildings in Pretoria on May 24, 2014 (AFP Photo/Siphiwe Sibeko) |
The 2014 Pension Reform Bill Passed by the Senate has been signed into law by President Goodluck Jonathan.
The new pension law will accommodate employees of private firms in the Contributory Pension Scheme.
Presidential Spokesman Reuben Abati today revealed the new law will also be applied to private organizations boasting of more than three workers and the new law contains a strict 10-year jail term for anyone found guilty of stealing pension funds.
The Pension Reform Act 2014 will include the Pension Reform (Amendment) Act 2011 and the Provisions Act 2012 which reviewed the retirement age and benefits of University Professors.
The new Act was also made to come down heavy on law breakers and read:“Operators who mismanage pension fund will be liable on conviction to not less than 10 years imprisonment or fine of an amount equal to three-times the amount so misappropriated or diverted or both imprisonment and fine” the document read.
This new law will now replace the 2004 law due to more sophisticated mode of diversion of pension assets, such as diversion and/or non-disclosure of interests.
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