A total of 2,799 Retirement Savings Account (RSA) holders under the Contributory Pension Scheme (CPS) have changed their Pension Fund Administrators (PFAs) in the opening period of the RSA Transfer Window.
The transfers, which are worth ₦18.9 billion and represents the first batch, took place at the end of the quarter, which ended in December 2020.
Section 13 of the Pension Reform Act 2014 allows RSA holders to transfer their accounts from one PFA to another once in a year.
According to PenCom, the transfer window will ensure that contributors and retirees are satisfied with the services provided by their various PFAs.
Its Director-General, Mrs. Aisha Dahir-Umar said the commission okayed the transfer window after efforts to develop the Enhanced Contributor Registration System (ECRS) in June 2019.
She said: “It is noteworthy that the Commission was unable to embark on the full implementation of the RSA transfer policy due to challenges hitherto experienced in its contributor registration system. These challenges were largely hinged on technology, given that in the early days of the pension reform, contributor registration did not include a biometrics component.
“However, the Commission renewed its commitment towards taking the pension industry to greater heights by undertaking the in-house development of some computer applications that are required to enable the opening of the RSA transfer window.
“The Commission, therefore, developed and deployed the Enhanced Contributor Registration System (ECRS) in June 2019. The ECRS has enabled the unique identification of contributors registered on the Commission’s database, which is a critical requirement for smooth RSA transfers.”
The PenCom boss maintained that the activation of the RSA transfer is expected to result in improved service delivery across the industry, as PFAs engage in healthy competition, by providing improved service offerings for the benefit of RSA holders.
She said due to the envisaged competitiveness, the Commission has strengthened the Code of Ethics and Business Practices for licensed pension operators, to ensure the sustenance of the high ethical standards the industry has established over the years.
She urged RSA holders to continue to support the industry in maintaining these standards by basing their decision to transfer their RSA on objective considerations.
Source: The Nation
