Jigawa State Pension Board has signed a Memorandum of Understanding (MoU) with 10 Pension Fund Administrators (PFAs) for management of its funds for a period of two years.
“Jigawa state and local government contributory pension board has signed a memorandum of understanding with 10 Pension Fund Administrators (PFAs) that will oversee the management of the boards total assets worth N19.788 billion,” the state acting Head of Service, Hussaini Ali Kila said.
Kila, who made this known while speaking with Chronicle after signing the agreement on Monday in Dutse, said the contract was a renewal with eight PFAs that were originally managing the board’s funds while two others that did not perform to the expectation of the board were replaced with new ones.
He noted that in the past the contractual agreement was usually renewed after every one year but this time, owing to some obvious reasons, the board decided to extend the duration to two years.
He said, “In the past the board reviews the agreement yearly but now decided to extend it to two years. Premium Pension, Trustfund Pension, Veritas Unity Gravills, OAK Pension, Leadway Pension, Fidelity Pension, First Guarantee Pension, Radix Pension and NLPC Pension, were the PFAs selected for the next two years contractual agreement to manage the funds.”
Kila explained that the funds were shared among the PFAs based on their pedigrees particularly the ability for return on investment, adding that the highest allocation was 14.09 percent while the lowest was 9.09 percent.
He said the board caters for pension of both the state and local government councils’ retirees, insisting that the recent local government financial autonomy reform did not in any way affect the pension contribution scheme of the state which the board was managing.
Speaking on behalf of the PFAs, the Managing Director of Nigerian Live Providence Company (NLPC), Wole Kolawole, assured the board that the selected PFAs would live up to expectation by adhering to all the clauses in the agreement particularly, on return on investment.