PenCom begins transfer system for Retirement Savings Account holders

Contributors to an approved pension fund in Nigeria can now transfer their funds from one Retirement Savings Account (RSA) to another, courtesy of PenCom. The regulatory body for pension affairs, PenCom (National Pension Commission), announced the new policy would take effect from 16 November 2020.

RSA holders will be able to transfer RSA between Pension Fund Administrators (PFAs). PenCom intends to create a seamless transfer process for users through the use of the RSA Transfer System. Section 13(1) of the Pension Reform Act 2014 allows a contributor to switch account from one PFA to another once per annum. PenCom has also issued a Regulation for the transfer of RSA. The Regulation covers eligibility, procedures for transfer, post-transfer events, and sanctions. Also, the Regulation applies to every PFA and supersedes the two Frameworks issued by PenCom for the Transfer of RSAs to NPF Pensions Limited and NUPEMCO Limited.

Overall, the new policy can improve service delivery of PFAs and increase the returns on contributions to the pension fund.