By Ishaya Ibrahim, News Editor
As the Coronavirus pandemic continues to wreak havoc on global economies and businesses continue to grapple with the fallout, workers in the country’s pension industry have cause to wear a broad smile and thank their luck.
This is because even as banks and other institutions in the financial sector of the economy are mulling the idea of retrenchment, the National Pension Commission (PenCom), has advised all industry operators not to travel that route and lay off their staff.
This advice was contained in a memo -PenCom/INSP/Surv/2020/515 – dated May 6, 2020, which TheNiche exclusively obtained.
The memo titled, “Effects of COVID-19 on the Pension Industry,” was signed by Ehimeme Ohioma, Head, Surveillance Department of PenCom.
Addressed to all licensed pension fund administrators and custodians, PenCom admonished LPFOs not to carry out any form of staff rightsizing or rationalization during the period of the COVID-19 pandemic, except for reasons of fraud, forgeries and other unethical conduct.
PenCom predicated its advice against sack of staff on the need to avoid bringing the pension industry into collision with the labour unions.
Besides, it said the need not to retrench staff cannot be over-emphasised because “the pension industry must be seen to promote the protection of employees as well as help to create and retain jobs, for therein lies the sustainability of the Contributory Pension Scheme (CPS).”
The memo classified as confidential reads: “The Covid-19 pandemic has thrown up opportunities and threats to the values and processes of organizations in all sectors of the economy, including the pension industry.
“Thus, it is expected that Licensed Pension Fund Operators (LPFOs), like other corporate entities in the financial sector, are currently reviewing business strategies to limit the impact of Covid-19 on their effectiveness, efficiency and profitability.
“However, in fine-tuning strategies, the Commission strongly advises that you be mindful of social landmines that could have higher potential impact on the pension industry as a whole.
“Accordingly, the Commission wishes to crave the understanding of LPFOs not to carry out any form of staff rightsizing or rationalization during the period of this pandemic, except for reasons of fraud, forgeries and other unethical conduct.
“Taking such action, may bring the pension industry into collision with the labor unions. The pension industry must be seen to promote the protection of employees as well as help to create and retain jobs, for therein lies the sustainability of the Contributory Pension Scheme (CPS).”
