Retirement Savings Account (RSA) holders under the nation’s Contributory Pension Scheme (CPS) can now choose the Pension Fund Administrator (PFA) of their choice, once every year, with the launch of the long-awaited transfer window.
With the formal launch expected Monday, November 16, 2020, according the National Pension Commission (PenCom), contributors will port to PFAs that pay higher returns on contributions as well as offer quality service delivery.
The implication is that, it puts all the 21 registered PFAs on the same scale irrespective of how long they have existed, but now to be differentiated by what each PFA pays as returns on contributors funds as well as service delivery quality and customer relations.
The transfer window is a platform created by PenCom to enable pension contributors who are dissatisfied with the services of their current PFAs transfer their retirement savings account (RSA) to any other PFA of choice
The transfer window promises to be an exciting happening within the industry as PFAs are set to slug it out with one another in a competitive market to retain old contributors, and as much as possible win new ones.
As at August 31, 2020, the Contributory Pension Scheme has registered 9.11 million RSA holders, with total pension fund assets under management now N11.35 trillion.
PenCom, in a statement Monday, informed all stakeholders and the general public, especially RSA holders under the Contributory Pension Scheme, that the Commission had concluded arrangements for the take-off of RSA Transfers.
“Accordingly, RSA holders may transfer their accounts from one Pension Fund Administrator (PFA) to another once in a year, in line with Section 13 of the Pension Reform Act 2014.”
PenCom said, “The launch date for the RSA Transfer System is scheduled for Monday 16 November, 2020. This will signify the official opening of the RSA Transfer Window.
“Prior to this launch, the Commission had successfully developed the RSA Transfer Application, a robust electronic platform that would enable seamless RSA transfers. In addition, the Commission had conducted extensive workshops for licensed Pension Operators and State Pension Bureaus in readiness for this epoch-making event.”
According to the Commission, 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.
