Pension News

PenCom Press Release on Transfer of Retirement Savings Account

Press Release from the National Pension Commission (PenCom) on Transfer of Retirement Savings Account

Section 13 or the Pension Reform Act 2014 allows Contributors to move their Retirement Savings Account (RSA) through a transfer window from one Pension Fund Administrator (PFA) to another, provided that it is not more than once in a year. The National Pension Commission has been working assiduously to actualize the provisions of Section 13 of the Pension Reform Act 2014. Preparatory to the opening of the Transfer Window, the Commission developed and deployed the Enhanced Contributor Registration System (ECRS) in September 2019.

Furthermore, the Commission has developed the RSA Transfer System (RTS), a robust electronic platform that would enable seamless RSA transfer. Pension Fund Administrators (PFAs) would be able to utilize the RTS platform for the submission of RSA transfer requests. The full deployment of the platform, would however entail extensive training of the PFA’s relevant personnel and simulation of the processes, industry-wide. The Commission was unable to carry out these activities as planned due to the nationwide lockdown because of the COVID-19 pandemic.

Subsequent to the easing of the lockdown by the Federal Government and the lifting of the ban on interstate travels between the end of June and July 2020, the preparations for a comprehensive training plan was concluded. Accordingly, the Commission is currently holding workshops on the RTS for the Pension Operators, which would run from August 10 – 28, 2020. It is also expected that in line with the plan, Operators will participate in an industry simulation of transfer processes and simulations in September 2020.

The opening of the transfer window will facilitate full and equitable pension assets portability within the pension industry, enhance ethical competition amongst the PFAs and Improve service delivery to RSA holders. The Commission is optimistic that all necessary preparations will take place to enable opening of the RSA Transfer Window by the end of the year.

Signed:
PenCom Management

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