By Own Correspondent
THE Insurance and Pensions Commission (IPEC) has revealed that several workers unions are choking the smooth flow of business by knee-jerk recall of members from Pension Funds boards.
Speaking to the media recently, IPEC director of pensions, Cuthbert Munjoma said such conduct remains a thorn in the flesh for the funds.
“One of the main challenges is that trade unions continuously recall members seconded to Pension Fund boards sometimes due to internal fissures. This disrupts progress especially when you are continuously receiving new appointees time and again,” he said.
He said as a result, the regulator has since taken it upon them to continuously engage trade unions on the need to respect sanity and the long term stability to run pension funds.
Munjoma also decried the low quality of trustees being seconded to pension funds who often lack basic professional qualifications to appreciate the matters arising in the sector.
“There is also limited specialist knowledge about the insurance and pensions industry prompting the abdication of responsibilities to service providers like administrators as well as rampant Conflict of Interests in the balance of employer and employee interest,” he said.
He said going forward, IPEC has also considered introducing new minimum qualification of a Diploma and a New Pension Act introducing the requirement for expert trustees over and above the mandatory requirement for Annual General Meetings and Benefit Statements.
The regulator is also set to introduce new Financial Reporting Requirements