63,728 unhappy RSA holders move N226.96bn to new PFAs


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Chuks Udo Okonta

The quest for better services has led to the transfer of N226.96 billion by 63,728 Retirement Savings Account (RSA) holders to new Pension Fund Administrators (PFAs) Inspenonline can report.

This was revealed in a document obtained from the National Pension Commission (PenCom).

According to PenCom, the figures represented the transactions carried out since the commencement of the RSA transfer system.

It noted that 2,799 RSA holders transferred N18.89 billion in the fourth quarter of 2020, while 12,681, moved N47,78 billion in first quarter 2021 and 10,166, moved N35,89 billion in second quarter 2021.

Continuing, the pension sector regulator said 12,872 RSA holders, transferred N45.56 billion in third quarter 2021; 12,874, moved N42.49 billion in fourth quarter 2021 and 12,336, moved N36.36 billion in first quarter 2022.

PenCom noted that there was an overwhelming response by RSA holders to the opening of the RSA Transfer System.

It maintained 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, it 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,” the regulator submitted.

It noted 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.

It stated 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.

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