The National Pension Commission (PenCom) has unveiled a new policy aimed at accelerating benefit payments to Retirement Savings Account (RSA) holders, enhancing efficiency and service delivery in the pension sector.
Under this directive, Pension Fund Administrators (PFAs) will no longer need to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits such as Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits. …CONTINUE READING
According to the Circular by the National Pension Commission dated March 13, 2025, the new policy will take effect from June 1, 2025.
However, in accordance with Section 8 (2) of the Pension Reform Act, 2014, PFAs must submit approval requests to PenCom for depleted RSAs and death benefit applications.
Key highlights of the new policy include:
PFAs must approve eligible benefit applications within two (2) working days of receiving all required documentation.
Pension Fund Custodians (PFCs) must process payments within 24 hours after receiving instructions from PFAs.
PenCom will continue to monitor implementation through regulatory technology platforms to ensure full compliance.
Previously, PFAs had to submit all benefit payment applications to PenCom for approval before disbursement by PFCs, which often caused delays. This streamlined approach is expected to significantly reduce waiting times and improve access to pension entitlements for retirees and RSA holders.
PenCom has also reminded RSA holders that timely submission of required documentation is crucial for seamless benefit processing. Prospective retirees are advised to submit all necessary documents at least six (6) months before retirement to avoid delays.
Further details on the new policy are available on the PenCom website: www.pencom.gov.ng.
Source: Proshare
