Understanding the Roles of Pension Fund Officials
Members of pension funds should understand the duties of fund officials and how their actions impact member benefits. This knowledge helps members know their rights and what to expect, ensuring better engagement and accountability.
Who Are Pension Fund Officials?
Under the Pension Funds Act of 1956, officials responsible for managing the affairs of a pension fund include:
- Principal Officer (PO)
- Trustees
- Benefit Administrators
- Investment Managers
- Consultants
- Actuaries
Who Are Pension Fund Officials?
Under the Pension Funds Act of 1956, officials responsible for managing the affairs of a pension fund include:
- Principal Officer (PO)
- Trustees
- Benefit Administrators
- Investment Managers
- Consultants
- Actuaries
Note: Auditors are not considered officials of the fund. Their role is to give an independent opinion on the fund’s financials.
Trustees: The Decision-Makers
Trustees are ultimately responsible for the management of the fund. Their main goal is to protect members’ contributions and ensure proper governance.
Key Responsibilities:
Key Responsibilities:
Statutory Reporting:
Risk Management:
Fiduciary Duty:
Principal Officer (PO): The CEO of the Fund
The Principal Officer is responsible for the day-to-day administration and acts as the fund’s main representative.
Key Duties:
- Liaise with members, the employer (sponsor), service providers, and NAMFISA.
- Ensure compliance and communication flow.
- Coordinate with administrators, asset managers, actuaries, auditors, and consultants.
Service Providers
Due to the complex nature of pension fund management, Trustees may appoint external experts to perform specific duties. However, accountability remains with the Trustees.
Key Duties:
- Liaise with members, the employer (sponsor), service providers, and NAMFISA.
- Ensure compliance and communication flow.
- Coordinate with administrators, asset managers, actuaries, auditors, and consultants.
Service Providers
Due to the complex nature of pension fund management, Trustees may appoint external experts to perform specific duties. However, accountability remains with the Trustees.
