The National Pension Commission (PenCom) has launched a new Pension Contribution Remittance System, an automated platform designed to enhance the accuracy, efficiency, and transparency of pension contributions into employees’ Retirement Savings Accounts (RSAs).
According to a statement signed by the commission’s management, the initiative, developed in collaboration with the Pension Operators’ Association of Nigeria (PenOp), aims to resolve long-standing issues related to uncredited pension contributions and verification delays.
The newly introduced system mandates that all employers remit pension contributions through approved Payment Solution Service Providers (PSSPs). The commission explained that these PSSPs will validate employees’ Personal Identification Numbers (PINs) and Pension Fund Administrators (PFAs) with PenCom’s database before processing payments, ensuring that pension contributions are accurately credited.
PenCom expressed concerns over the growing volume of uncredited pension contributions, which often result from incomplete or inaccurate documentation from employers. This has prevented PFAs from crediting employees’ RSAs, potentially affecting their retirement plans.
By fully automating pension remittances, PenCom and PenOp seek to eliminate errors in contribution schedules and reduce the administrative back-and-forth between employers and pension administrators. The Commission has emphasized that strict compliance with this new process is necessary to ensure a robust and reliable Contributory Pension Scheme (CPS).
The commission explained further that the new Pension Contribution Remittance System offers several advantages, including, “Error Prevention Mechanisms: The system is equipped with protocols that ensure uploaded remittance schedules are free of inaccuracies, which have historically led to discrepancies between reported contributions and actual payments.
“Seamless Validation Process: A significant feature of the system entails verifying employee PINs and PFAs with PenCom, only allowing compliant remittances to proceed. This considerably reduces administrative back-and-forth between employers and pension authorities.
“Convenient Access to Payment Providers: Employers now have the flexibility to select from multiple approved PSSPs, enhancing their choice according to preferences for service, speed, and accessibility. Approved PSSPs so far are PAYPEN by Netline Limited, PENCENTRAL by Chamsaccess Limited, PENSPHERE (formerly PAYTHRU) by Pethahiah Rehoboth Int’l Limited, PENREMIT by Cyberspace Limited, PENSOL by Uniswitch Technology Limited, ENCO by Gemspay Solutions Limited, AWABAH by Awabah Remit Services Limited, PCOSS by Nigeria Inter-bank Settlement systems Plc and INTERSWITCH by Interswitch group.
“Instant Online Payment Options: The Remittance Platforms of these PSSPs support various payment methods, enabling employers to make immediate online payments, thus facilitating timely contributions to employees’ RSAs.
“No Costs to Employers: The implementation of the system comes at no cost to employers, making it an economically viable option that promotes greater compliance and efficiency,”
To adopt the new system, employers are required to select a PSSP from the list of approved providers based on their operational needs.
Register on the chosen platform by creating an employer profile and submitting necessary business details.
Prepare and upload remittance schedules, ensuring that employees’ names and RSA PINs are accurate.
Validate employee information, as the system automatically cross checks details with PenCom’s database.
Initiate and confirm payments, receiving a remittance confirmation for compliance and audit purposes.
PenCom also set June 1, 2025, as the deadline for employers to transition to this new remittance process. After this date, all pension contributions must be made exclusively through the approved PSSPs. The Commission has also stated that more PSSPs may be approved in the future to expand access and improve efficiency.
