Lagos, Nigeria – The Pension Reform Act has brought significant advancements to Nigeria’s Contributory Pension Scheme (CPS), with the recent introduction of the Retirement Savings Account (RSA) Transfer. This innovation allows RSA holders to easily transition their accounts from one Pension Fund Administrator (PFA) to another using the Retirement Savings Account Transfer System (RTS) developed by the National Pension Commission (PenCom).
Under Section 13 of the Pension Reform Act 2014, RSA holders can now transfer their accounts from one PFA to another once a year, marking a pivotal moment for PenCom in implementing the CPS. The deployment of the Enhanced Contributor Registration System (ECRS) in June 2019 enabled the identification of contributors on the Commission’s database, a crucial step for initiating RSA transfers.
Following the ECRS development, the RSA Transfer System (RTS) was created as a robust electronic platform for seamless RSA transfers. This application streamlines the submission, processing, and monitoring of RSA transfer requests, enhancing efficiency within the pension industry.
In efforts to ensure transparency and enable informed decision-making for RSA holders, the Commission has expanded its disclosure requirements. By providing more statistics on the pension industry’s performance through a dedicated section on its website, RSA holders can access relevant information regarding RSA transfers.
The RSA transfer process simplifies the transfer of accounts for RSA holders, allowing them to approach their desired receiving PFA with necessary details to initiate the transfer. Requests through the RTS are processed quarterly, with deadlines for each period to manage an efficient transfer process.
As the RSA Transfer process rolls out, expectations for improved service delivery and competition among PFAs are on the rise. The system incorporates controls to verify RSA holder identities, including live fingerprint validation through the National Identity Management Commission (NIMC) database, ensuring security and compliance throughout the process.
Since the inception of RSA transfers, a notable number of RSA holders have initiated transfers between PFAs. In the last quarter of 2023, a substantial 21,498 RSA transfer requests were submitted to PenCom, demonstrating the growing trend of account migration within the pension industry.
Looking ahead, the Commission encourages RSA holders to continue upholding ethical standards when considering RSA transfers, focusing on objective factors. As PenCom and PFAs strive to enhance service delivery in the Nigerian Pension Industry, the RSA Transfer system aims to provide better solutions for all stakeholders involved.