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Tuesday, March 28, 2023

Nigeria’s Pension Regulator PENCOM Unveils Transfer of Accounts Scheme

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Nigeria’s Pension Funds regulator or PENCOM has unveiled a scheme that will enable Retirement Savings Account (RSA) holders to transfer their accounts from one Pension Fund Administrator (PFA) to another under the Contributory Pension Scheme from November 16, 2020.

PENCOM explained that RSA account holders might transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year.

“Prior to this launch, the Commission had successfully developed the RSA Transfer Application, a robust electronic platform that would enable seamless RSA transfers,” PENCOM said.

“The activation of the RSA transfer process will engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.”

The total value of Pension Fund Assets hit the sum of N11.37 trillion for the month of August led by gains in local money market instruments, latest data from PENCOM the regulator shows.

Fund Managers exposure to local money market instruments such as Bank Placements and Commercial Papers increased to N1.88 trillion or 16.6 percent of assets under management (AuM).

The inability to transfer accounts had been seen as not keeping PFAs on their toes and making them unable to lose clients even if their performance was below peers or an appropriate benchmark.

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