The failure or liquidation of a PFC will not affect the pension assets in its custody as it only keeps investment certificates and records. The only cash being held by the PFC comprises of monthly contributions before decisions are made by the PFA to invest the amount contributed; and matured investments before reinvestment by the PFA. In addition, PenCom has the power and responsibility in such situations to transfer the pension fund assets being held by any failed PFC to another PFC.
- 04. Can my contributions be used to settle liabilities of a failed PFA or PFC?
- 02. What happens if a PFA fails or is liquidated?