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Chuks Udo Okonta and Blessing Ogbebor
Emotions, sentiments and competition seemed to be driving the Retirement Savings Account (RSA) Transfer System as over N277.19 billion has been moved from one Pension Fund Administrator (PFA) to another since the opportunity was granted by the National Pension Commission (PenCom) in 2020.
Investigations conducted by Inspenonline revealed that most retirement savings account holders are moving their funds not because of service delivery which was a core objective of the initiative, but due to emotions, sentiments and unhealthy competition amongst the pension fund administrators.
It was observed that family and friends move their funds just to appease their relatives working in a pension fund administrator. Others moved theirs due to unfounded sentiments and unhealthy competitions by operators who believed that it is better to capture those already contributing and with huge fund rather than marketing new contributors.
According to PenCom, in the fourth quarter of 2020, 2,799 RSA holders transferred N18.89 billion, noting that by first quarter 2021, 12,681 RSA holders moved N47.78 billion.
Continuing, the pension sector regulator said 10,166 RSA holders, moved N35.89 billion in second quarter 2021; 12,872 RSA holders, transferred N45.56 billion in third quarter 2021 and 12,874 RSA holders, moved N42.49 billion in fourth quarter 2021.
PenCom submitted that in first quarter 2022, 12,336 RSA holders moved N36.36 billion and in second quarter, 14,821 RSA holders transferred N50.22 billion.