Fear of job loss is currently brewing among staff of the Pension Fund Administrators (PFAs) in the country as deadline given to them to raise their capital base from N150 million to N1 billion expires tomorrow, Daily Trust learnt. Daily Trust gathered that while some PFAs have met the minimum shareholders' fund of the recommended N1 billion, many others may be forced to merge or be acquired by others that are bigger. The National Pensions Commission that regulates the pension industry said it would not extend the deadline. "There is no extension. Those that are not able to recapitalized may have their operating license withdrawn or their assets transfered to other PFAs," a senior management staff of PenCom who does not want his name in print said. Management of PFAs are refusing to comment on the issue, saying people should wait till the deadline expires. An official of Legacy Pension told Daily Trust that the company has surpassed the minimum capital base of N1 billion but is not thinking of acquiring any other PFA. But a senior management staff in the corporate communication department of Premium Pension Administrator who sought not to be named said the firm's shareholders' fund as at December ending 2011 was N1.3 billion. The staff said Premium is considering acquiring any PFA that approached them. "We are open for that. Some PFAs have approached us but nothing has been worked out yet." A staff of one of the PFAs said the fear of job loss in the sector is because of the experience that workers in the banking sector had when some of them were acquired or merged. Daily Trust recalls that many bank workers lost their jobs during the period of recapitalizing. Some banks are still retrenching. Last Friday, the management of Mainstreet Bank sacked 650 staff while Sterling Bank sacked 400 workers on Tuesday.
Culled from The Nigerian Daily Trust Newspaper