PenCom Announces Growth In Retirement Savings Accounts, Assets

National Pension Commission (PenCom) has disclosed that the number of Retirement Savings Accounts (RSAs) under the contributory pension scheme (CPS) has risen to 10 million and the size of the pension asset under management amounted to N16.76 trillion in the third quarter of 2023.

PenCom also said contributions worth N10.20 billion have been transferred to the Retirement Savings Accounts of 142,486 staff of Nigerian Social Insurance Trust Fund (NSITF) contributors under the Contributory Pension Scheme (CPS).

Director-general of PenCom, Aisha Dahir-Umar disclosed this during an interactive session on the contributory pension scheme with the private sector players in Abuja on Thursday.

To ensure that all contributors under the NSITF platform have their contributions transferred to their RSAs, the commission implored all employers to encourage their employees who have contributed to the scheme to liaise with their Pension Fund Administrators (PFAs) and in particular trustfund pensions for guidance on how to have their contributions transferred to their RSAs. 

Aisha Dahir-Umar said the commission has continued to take giant strides towards ensuring the smooth implementation of the CPS through the revision of existing regulations and guidelines and the development of new ones.

Dahir-Umar who was represented by the commissioner in charge of administration of the commission, Dr. Umar Farouk Aminu said PenCom has deployed an enhanced contributors registration system for the pension industry. 

Farouk said the commission has also introduced a data recapture exercise, which mandatorily requires all RSA holders who joined the CPS before the 1st of July 2019 to update their information with their respective PFAs. 

She assured the private sector operators that the commission will continue to ensure robust social dialogue with NECA in the interest of all stakeholders under the CPS. Accordingly, she said the commission will always support NECA to champion programmes that will ensure the successful implementation of the CPS in Nigeria.

In his opening remarks, director-general of NECA, Mr Adewale-Smatt Oyerinde said the private sector remains committed to the success of the Pension Scheme as long as our concerns are not only noted but also addressed expeditiously. 

The Oyerinde stated that one key outcome of the session and others that will be held is the FEEDBACK that the OPSN will give. As critical stakeholders in the success of the Scheme, we owe everyone the duty to be up and about to ensure the Scheme succeeds, no matter the definition of success.

He explained that before 2014, life after retirement could be described as uncertain and unpredictable. However, with the Pension Reform Act 2014, the narration has changed significantly. 

“For many of us that have been around for a while, you will agree with us that the circumstantial suspension of this interactive session a few years ago has created a gap and deprived not only the private sector but also PenCom the opportunity to get critical feedback that will help in further improving the operationalisation and administration of the Pension Scheme,” he stated.

According to Foruk, to facilitate the implementation of Section 13 of the Pension Reform Act 2014 which allows an RSA holder to transfer his/her RSA from one PFA to another at least once a year, the commission developed and deployed the RSA transfer system in 2020. 

The RTS is a computer-based application for initiating, processing and monitoring the RSA Transfer process. It also ensures the seamless transfer of RSAs from one PFA to another. Amongst others, the opening of the RSA transfer window has continued to improve the quality of service delivery by the PFAs.