Arewa Voice

May 21, 2021

Pension: Portability excites account holders, 12,681 port RSAs

Pension Funds: Pensioners beg State Govts to implement increment

Retirement Savings Account, RSA, holders are excited by the transfer window launched by the National Pension Commission, PenCom, going by the number of account holders that have changed RSAs less than six months of the transfer window
In an assessment of transfer window since its launch by PenCom, on 16 November 2020, no fewer than 12,681 RSA transfers have taken place

According to a statement by the commission: “The launching of the RSA Transfer System, RTS, on November 16, 2020, heralded the full implementation of one of the cardinal features of the Contributory Pension Scheme, CPS, the portability of RSAs.

By this development, RSA holders have been empowered to move their RSAs from their current Pension Fund Administrators, PFAs, to other PFAs of their choice, whenever they desire to do so.

“The opening of the ‘Transfer Window’, as it is popularly referred to, has been embraced by a large number of RSA holders in their quest for better service delivery and returns on investment from PFAs. The Commission has ensured that the requirements for initiating RSA transfers are minimal, and has also made available on its website, necessary information to guide RSA holders through the process.

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Specifically, its publication of the ‘Frequently Asked Questions’ on RSA transfers, provides RSA holders with all they need to know about RTS.

“The RTS is a fully automated, efficient and transparent process that has pre-defined timelines. It ensures hassle-free movement of RSAs across PFAs. As the transfer of RSAs involves movement of pension assets between PFAs, the entire process attracts the full weight of the Commission’s regulatory surveillance. The fact that the process has been completely free of charge has also given RSA holders an added advantage.

“The overwhelming response by RSA holders to the opening of the RSA Transfer Window is, therefore, not surprising. In the maiden Transfer Quarter, which ended on December 31, 2020, a total number of 2,799 RSA holders transferred their RSAs to various PFAs. This number more than quadrupled in the next Transfer Quarter, which ended on 31 March 2021, as a total number of 12,681 RSA transfers took place.

“A consistently upward trend is anticipated, as RSA holders continue to realise the ease with which they can initiate the transfer of their RSAs. Overall, the opening of the RSA Transfer Window is revolutionary. Going forward, high standards of service delivery will be a focal point in the Pension Industry.”

Vanguard News Nigeria