In a move aimed at improving access and service quality for pension contributors and retirees, the National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) to establish branches in states where they manage at least 10,000 funded Retirement Savings Accounts (RSAs).
This directive is part of a broader initiative to bring PFAs closer to RSA holders, making services more accessible and efficient. Additionally, PFAs are required to establish Service Centres in separate locations within the state for every additional 10,000 funded RSAs.
The circular, titled “Circular on the Operations of Branch Offices and Service Centres by Licensed Pension Fund Administrators” was issued to all licensed PFAs and Custodians. It provides a 12-month transition period to enable PFAs to allocate adequate resources to implement these requirements effectively.
In the circular, PenCom emphasized the need for a stronger PFA presence across the nation to meet the growing demand for pension services and enhance service delivery. These new minimum requirements seek to ensure that PFAs can effectively cater to RSA holders.
Furthermore, the circular outlines specific requirements for Branch Offices, including a secure and accessible location, well-equipped facilities, and a minimum of six staff members. The Branch Head is required to hold a Deputy Manager/Assistant Manager position with a minimum of seven years of experience in the pension industry. The remaining five staff members should cover operational and business services and must be full-time employees, not contract staff.
Service Centres are also specified in the circular, requiring at least three staff members, including one university or polytechnic graduate with less than three years of pension industry experience.
The directive aligns with Section 72 of the Pension Reform Act of 2014, which allows PFAs and Pension Fund Custodians to open or close branch offices within or outside Nigeria, subject to PenCom’s approval.
This move by PenCom is expected to enhance accessibility, streamline service delivery, and ultimately benefit pension contributors and retirees by bringing pension services closer to their doorsteps.
