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Chuks Udo Okonta
The RSA Transfer System (RTS) is gaining traction as 38,518 aggrieved Retirement Savings Account (RSA) holders have within a space of 11 months, transferred N148.1 billion from their former Pension Fund Administrators (PFAs) to new pension administrators.
This was obtained by Inspenonline from the quarterly summary of Retirement Savings Accounts (RSAs) transferred by Pension Fund Administrators (PFAs), published by the National Pension Commission (PenCom)
PenCom in the publication stated that as at the end of fourth quarter 2020, 2,799 RSA holders transferred N18.89 billion, while in first quarter, 2021, 12,681 RSA holders, moved with N47.78 billion; second quarter 2021, 10,166 of them, moved with N35.87 billion and in third quarter 2021, 12,872 RSA holders transferred N45.56 billion.
The Head, Corporate Communications, PenCom, Peter Aghahowa, noted that there was an overwhelming response by RSA holders to the opening of the RSA Transfer Window.
He noted that a consistently upward trend is anticipated, as RSA holders continue to realise the ease with which they can initiate the transfer of their RSAs. Overall, the opening of the RSA Transfer Window is revolutionary. Going forward, high standards of service delivery will be a focal point in the Pension Industry, he said.
“It was a day long awaited, when the National Pension Commission opened the Retirement Savings Account (RSA) Transfer Window. The launching of the RSA Transfer System (RTS) on 16 November 2020, heralded the full implementation of one of the cardinal features of the Contributory Pension Scheme (CPS), the portability of RSAs. By this development, RSA holders have been empowered to move their RSAs from their current Pension Fund Administrators (PFAs) to other PFAs of their choice, whenever they desire to do so.
“The opening of the ‘Transfer Window’, as it is popularly referred to, has been embraced by a large number of RSA holders in their quest for better service delivery and returns on investment from PFAs. The Commission has ensured that the requirements for initiating RSA transfers are minimal, and has also made available on its website, necessary information to guide RSA holders through the process. Specifically, its publication of the ‘Frequently Asked Questions’ on RSA transfers, provides RSA holders with all they need to know about RTS,” he submitted.
He maintained that the RTS is a fully automated, efficient and transparent process that has pre-defined timelines and that it ensures hassle free movement of RSAs across PFAs.
He noted that as the transfer of RSAs involves movement of pension assets between PFAs, the entire process attracts the full weight of the Commission’s regulatory surveillance, stressing that the fact that the process has been completely free of charge has also given RSA holders an added advantage.
