TheCable

The National Pension Commission (PenCom) says it has received over 2,100 applications from retirement savings account (RSA) holders to transfer from one pension fund administrator (PFA) to another.

Polycarp Anyanwu, head of information communication technology (ICT) unit of PenCom, disclosed this at the virtual 2020 Pension Fund Operators Association of Nigeria (PenOp) media seminar.

The transfer window was launched by PenCom on November 16, 2020, to allow RSA account holders to switch from their current PFA to a PFA of their choice.

Anyanwu said the applications received were within four days; between November 16 and November 30, 2020.

“Over 2,100 applications were submitted and received by the commission between November 16 and 30. The transfer window known as the retirement savings account transfer system (RTS) is in accordance with section 13 of the pension reform act, 2014,” he said.

“It permits contributors to move their RSA’s through a transfer window from PFA to another, provided that it is not more than once in a year.”

Anyanwu said most of the pension contributors seeking to switch to a new PFA were those not satisfied with the service delivery of their current pension fund handlers, adding that it is a development that would enhance the quality of service delivered to clients.

He explained that the RTS window has four quarters in a year, which are March 31, June 30, September 31, and December 31 in which contributors can change their PFAs once within a year.

Anyanwu further said the applications received so far would be processed for the December 31 window.

“A month to the specified dates, the concerned pension fund operators must have submitted the necessary documentation to the commission and notify it of the amount leaving its kitty and the RSA holders concerned.

“This is to give ample time for both PenCom, the affected PFA’s, and the receiving PFA’s to plan ahead.”

Also speaking at the seminar, Peter Aghahowa, head of corporate communications, PenCom, said activation of the RSA transfer window would engender competition and improve service delivery in the pension industry.