TheCable

The National Pension Commission (PenCom) says a total of 48, 543 contributors switched pension fund administrators (PFAs) in 2021, valued at about N171.7 billion.

The commission said this in a bulletin obtained by TheCable Index on Tuesday.

In November 2020, the commission launched the RSA Transfer System (RTS), also known as, Transfer Window. The RTS allows clients to switch their Pension Fund Administrator (PFA). The development made way for the full implementation of one of the key features of the Contributory Pension Scheme (CPS), which is, the portability of RSA’s.

According to the bulletin, the commission said it recorded a total of 12,681 retirement savings account (RSA) holders made transferred requests in the first quarter of 2021 with the value of the assets at N47.7 billion.

In the second quarter of 2021, the commission said it recorded another increase in transfer to the tune of 10,166 RSA valued at N35.8 billion.

The third and fourth quarters saw RSA transfers of 12,872 and 12,824, valued at N45.5 billion and 42.4 billion, respectively.

OVERVIEW OF 2021 PERFORMANCE OF PFAs

Since the launch of the transfer window, available data showed that PFAs have enhanced services and witnessed a high return on investment (ROI).

In RSA fund I, Stanbic IBTC led with 11.93 percent returns, followed by APT Pension with 10.99 percent in 2021. Crusader Pension recorded a 7.97 percent return in the year under review, according to Nairalystics.

In RSA fund II, APT Pension recorded a 10.83 percent return on investment, followed by Sigma Pension with an ROI of 9.95 percent, while Veritas Glanvills Pension posted a return of 9.2 percent. 

The RSA Fund III is a conservative fund with only about 5 percebt to 20 percent invested in variable income instruments.

Veritas Glanvills led the category with a 9.53 percent ROI, significantly higher than the industry average. Tangerine Pensions followed with 9.05 percent returns, while First Guarantee Pension recorded a 9.02 percent return.

The RSA Fund IV printed an average return on investment of 7.41 per cent. This fund category is only open to retirees and investment conservatives. 

Guarantee Pension led this category with 10.42 percrnt ROI, closely followed by Sigma Pensions with 10.19 percent and Crusader Pensions with 9.86 percent.