January 22, 2022

51,392 workers change pension companies, move N190.62bn

pension-fund No fewer than 51,392 aggrieved workers under the Contributory Pension Scheme have changed their Pension Fund Administrators and subsequently moved their Retirement Savings Accounts to other pension companies in 13 months, it has been learnt.

Figures obtained from the National Pension Commission’s ‘Quarterly Summary of Retirement Savings Accounts Transferred by Pension Fund Administrators’ report showed that the angry workers moved a total of N190.62bn to their preferred PFAs between Nov ember 2020 and December 2021.

PenCom opened the transfer window in November 2020.

The report revealed that 2,799 workers moved N18.89bn in the fourth quarter of 2020, while 12,681 workers moved N47.78tn in the first quarter of 2021.

A total 10,166 workers moved N35.89bn in the second quarter of 2021, while 12,872 workers moved N45.56bn in the third quarter of 2021; 12,874 workers moved N42.49bn in the fourth quarter of last year.

Section 13 of the Pension Reform Act 2014 specifies that a RSA holder may transfer his RSA from one PFA to another.

It added that such transfer should not be more than once a year.

To facilitate the implementation of Section 13 of the PRA 2014, PenCom stated that it deployed the RSA Transfer System.

The RTS is an application that is used for coordinating the processes relating to the transfer of RSAs from one PFA to another, according to PenCom.

It stated that the RTS was designed to provide an electronic platform through which RSA transfers are initiated, processed, monitored and the Global Net Transfer Positions for all affected PFAs determined, on an online real-time basis.

PenCom stated that the RSA Transfer Regulation issued by the commission provides PFAs with the modalities through which RSA transfers are carried out.

It added that, “The regulation defines the criteria for determining the eligibility of RSA holders to transfer their RSAs to chosen PFAs. It also outlines sanctions that shall apply to PFAs for the violation of RSA transfer processes, in order to ensure full compliance with the requirements of the Regulation.”