Operators activate contingency plan against Covid-19

By Omobola Tolu-Kusimo

Pension operators have activated their business contingency arrangement to enable them continue seamless monthly payment to retirees, The Nation has learnt.

They said the arrangement became  necessary due to the lockdown arising from the Covid-19 pandemic that has shut many businesses globally.

The Head of Corporate Communications, National Pension Commission (PenCom), Mr Peter Aghahowa, said in a telephone interview that payments of monthly pension would continue.

Aghahowa said before Covid-19, the operators had put in place standard risk management.

He said: “Pension business is a very routine operation even more than banking.The pension industry is the most regulated sector in the country. The whole system is automated such that it reacts to different scenarios immediately.

“The pension operators, which include Pension Fund Administrators (PFAs), Pension Fund Custodian (PFCs) and Closed Pension Fund Administrators (CPFAs), have a contingency arrangement, which spells out what they do in different scenarios. It’s a standard risk management practice that each of them have as a document.

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“It is put in place for this kind of period and they have all activated the arrangement now. This is why you cannot find any retiree complain of non-payment.

“The contingency arrangement varies from company to company to ensure when there is a disruption, they can continue with service to clients.

For instance, most PFAs have sent messages to their clients. Also, the quarterly statement, email, and other online channel of communication to their clients have not stop.

He further stated that the Commission has a surveillance department that monitors the operators to ensure compliance.

“We have a surveillance department that have the responsibility of ensuring that the operations are running. The contingency arrangement is an automatic thing that kicks off immediately there is a disruption to business like what we are witnessing in the country and globally,” he added.