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Chuks Udo Okonta
The National Pension Commission (PenCom) has eradicated the unnecessary delays that had hitherto clogged easy payment of pension benefits by Pension Fund Administrators (PFAs) and Life Insurance Companies to Retirement Savings Account (RSA) holders.
The pension sector regulator in a circular signed by the Head, Surveillance Department, PenCom Abdulrahman Saleem, referenced: PenCom/lNSP/Surv/2025/Aut/451, issued on March 12, 2025, titled; Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Operators, and sent to all licensed pension fund operators, noted that effective from June 1, 2025, it will no longer approve or grant “No Objections” to some benefits applications before the PFAs process them for payments.
According to PenCom the benefits applications are: Programmed Withdrawal; Retire Life Annuity; Access to Benefits upon Temporary Loss of Employment; En Bloc Payments to retirees whose RSA balances cannot provide a reasonable pension; Pre-Pension Reform Act Benefits Payments to retirees in the Private Sector; Voluntary Contributions; Payments to RSA holders towards payment of equity contributions for residential mortgages; Payment of Nigeria Social Insurance Trust Fund (NSITF) Contributions to retirees whose NSITF contributions were transferred to their RSAs; Changes in the periodicity of pension payments; Resolution of Errors from employers’ remittances of pension contributions for Private Sector and Self-funding Agencies; and Refunds to persons exempted from participating in the CPS by the PRA 2014.
PenCom submitted that the processing, approval and payment of the above requests shall be concluded by the PFA within two (2) working days after completing the necessary documentations and instructing the appointed PFC to effect payment, with the Commission in copy.
It said the medium for forwarding instructions to the PFC for processing payments shall be the Shared Folders deployed by the Commission, adding that PFCs shall effect payment into the beneficiaries’ accounts within 24 hours upon receipt of instructions from the PFA.
PenCom noted that PFAs shall continue to forward requests for approval to the Commission relating to depleted RSAs and death benefit applications in line with Section 8 (2) of the PRA 2014, stating that in order to facilitate the implementation of the above directives, it has approved the amendment of Sections of five regulatory instruments on benefits administration.
PenCom maintained that it had over the years issued several regulations, pursuant to its powers under the Pension Reform Act 2014 (PRA 2014), to establish clear guidelines, standards, and procedures for administering retirement and terminal benefits under the Contributory Pension Scheme (CPS) and that pursuant to Section 55 (f) and (g) of the PRA 2014, which mandated Pension Fund Administrators (PFAs) to undertake the computations and payment of retirement benefits to holders of Retirement Savings Accounts (RSAs), PFAs were mandated by the Commission to review, process and forward all applications for payments of benefits of RSA holders to the Commission for approvals, before benefit payments are credited into beneficiaries’ accounts by appointed Pension Fund Custodians (PFC).
“In furtherance of the Commission’s commitment to improving the efficiency of processes and ensuring service delivery to RSA Holders, the Commission deemed it imperative to allow PFAs to solely perform their statutory functions in the administration of benefits as stipulated under Section 55 (f) and (g) of the PRA 2014,” it submitted.
It said all inquiries regarding the circular shall be directed to the Head, Benefits and Insurance Department.
