Over 2,100 RSA holders to switch PFAs at transfer window

Following the launch of the pension transfer window by the National Pension Commission (PenCom), over 2, 100 Retirement Savings Account (RSA) holders have applied to move their pension accounts from their current Pension Fund Administrators (PFAs) to a new one due to poor service delivery.

This disclosure was made by the Head, ICT, PenCom, Polycarp Anyanwu, at a virtual meeting organised by the Pension Fund Operators Association of Nigeria (PenOp).

He said over 2,100 applications were submitted and received by the commission between November 16 and 30, 2020.

The transfer window known as Retirement Savings Account Transfer System (RTS) was launched by PenCom on November 16, 2020, following Section 13 of the Pension Reform Act, 2014.

Polycarp noted that most of the pension contributors seeking a switch to a new PFAs were those who were not satisfied with the service delivery of their current pension fund handlers, a development, he said, would enhance the quality service delivery of the PFAs to their clients.

Explaining how the window operates, he said, the RTS has four quarters in a year, and contributors can change their PFAs once in a year. He added that over 2,100 applications received so far would be processed for the December 31, 2020 window.

He said fingerprint, which serves as their consent, is a unique criterion to switch PFAs.

The head, Corporate Communications, PenCom, Peter Aghahowa, said, the activation of the RSA transfer process would engender competition and improve service delivery in the pension industry. He said it was the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.

The new President, PenOp, Mr. Wale Odutola, said pension fund operators have done the requirement by upgrading their IT systems to enhance seamless pension account transfer among operators.

Odutola, who is also the Managing Director/CEO, ARM Pension PFA, believes the transfer would improve service delivery, a development that would benefit the contributors.

According to him, the ultimate aim is to grow the pension industry, make the pension funds have a bigger impact on the economy and give good investment returns to contributors.