PenCom Approves Fees for Pension Funds and Agents

NATIONAL PENSION COMMISSION

Plot 174 Adetokunbo Ademola Crescent Wuse II, Abuja. Nigeria Email: info@pencom.gov.ng Website: www.pencom.gov.ng Tel: +234 (9) 460 39 54 – 55, +234 (9) 460 39 30

Dear Sir/Madam, SUBJECT : FEES ON FOREIGN CURRENCY CONTRIBUTION FUND (FUND VII), PERSONAL PENSION PLAN FUND (FUND V), AND THE COMPENSATION FRAMEWORK FOR ACCREDITED PENSION AGENTS

The National Pension Commission (Commission) hereby approves Assets-based fees chargeable on the Foreign Currency Pension Contributions Fund (Fund VII), the

Personal Pension Plan Fund (PPP) for Fund V Conservative and Fund V Growth, and the Compensation Framework for Accredited Pension Agents (APA) as follows: A. Fee Rate for Foreign Currency Pension Contributions (Fund VII)

1. Fee Rate for Personal Pension Plan (Fund V)
   To prevent the depletion of the above funds (Fund VII and Fund V) and to ensure long-term preservation of capital, no fee shall be charged when the funds' prices are below 1USD and N1, respectively. CIRCULAR Page 1 of 3 Restricted TO: MDs/CEOs of All Licensed Pension Fund DATE: 05 March, 2026 REF: PENCOM/TECH/ISD/2026/21 Management Total Regulatory Custody Management Total Regulatory Custody 1.70% 0.35% 0.15% 1.20% 3.00% 0.40% 0.20% 2.40% Administrators and Custodians

2. Compensation Framework for APAs under the PPP:

3. Onboarding Fees: A one-time enrolment and onboarding fee of Five
   Hundred Naira (₦500.00) per Retirement Savings Account (RSA) to be paid by the Pension Fund Administrator (PFA).

4. Transaction Charges: Transaction charges of Twenty Naira (₦20.00) on
   each contribution and One Hundred Naira (₦100.00) on each withdrawal processed via the platform provided by the APA shall be payable by the RSA holder.

5. Performance Bonus: A performance bonus shall be payable from the
   asset management fees due to the PFA. The bonus shall be computed as indicated in the table below:

6. Maximum Fees: APAs shall be entitled to a maximum of 40% of asset
   management fees if they meet the performance criteria outlined in (iii) above, while PFAs shall be entitled to a maximum of 60% of asset management fees.

7. Transfer of Any Difference in Earnings: Where an APA fails to earn up
   to the maximum bonus prescribed, i.e. 40% of asset management fees, the difference shall be transferred to a Personal Pension Plan Incentives Fund Account.

8. Periodic Review of the Compensation Framework: Pursuant to the
   mandate under Section 11.2 of the Framework for the Engagement of 15% of Asset 30% of Asset Where RSA contributions tied to an 10% of Asset 20% of Asset 25% of Asset Page 2 of 3 Restricted APA exceed N20 million per Management Management Management Management 1.0 Base Fee Management Where RSA contributions attributed to the APA are Where RSA contributions tied to an APA exceed Where RSA contributions attributed to the APA are Where RSA contributions attributed to the APA quarter. Fees earned Fees earned Fees earned Fees earned Fees earned S/N DESCRIPTION Additional fee between ₦50 and ₦100 million per quarter. range from ₦301 to ₦600 million per quarter. N600 million per quarter. 2.0 RATE CONDITION between ₦101 and ₦300 million per quarter. 2.1 2.2 2.3 2.4 APAs, the Commission shall, from time to time, review the compensation framework, taking into consideration market conditions, service performance and the strategic objectives of the PPP. This Circular takes immediate effect. For further enquiries or clarifications, please contact the undersigned. Thank you.

9. M. Saleem
   Director, Surveillance Department

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