2,799 workers change pension firms, move N18.89bn
No fewer than 2,799 workers under the Contributory Pension Scheme have moved their Retirement Savings Accounts from their former Pension Fund Administrators to other operators.
Statistics obtained from the National Pension Commission on its report titled ‘Update on the RSA Transfer System’ for the fourth quarter obtained by our correspondent on Sunday showed this.
Part of the report read, “Following the launch of the RSA Transfer System on 16 November 2020, a total of 2,799 RSA holders initiated the transfer of their RSAs from their existing pension PFAs to other PFAs during the fourth RSA Transfer Quarter of 2020 (i.e. the maiden RSA Transfer Quarter).
“The total value of the RSA balances transferred stood at N18,898,848,438.79. All the 22 PFAs were involved in the transfer, as transferring and/or receiving PFAs.”
Before the transfer window was opened, contributors did not have the opportunity to change their PFAs even when they were not pleased with the services.
PenCom opened the transfer window which enabled workers in the CPS to change their pension companies in November.
According to the pension industry regulator, RSA holders may transfer their accounts from one PFA to another once in a year, in line with Section 13 of the Pension Reform Act 2014.
It also gave the PFAs directives on how to ensure smooth movement of RSAs and Retiree Life Annuity as it opened the transfer window.
In a directive titled ‘Circular on fund accounting’, PenCom had stated, “This fund accounting circular is for reporting the accounting entries for the transfer of RSA from one PFA to another and the purchase of RLA by retirees with their RSA balances.
“The provisions of this circular are consistent with the PRA, 2014.”
The main objective of the circular was to ensure that accurate and reliable records were maintained as well as uniformity in record-keeping across the pension industry, it said.
In line with the regulation for the transfer of RSA, PenCom said the following ledger and bank accounts must be maintained by PFAs for each of the RSA Funds.
It said the accounts were RSA fund investment transit account, RSA transfer allocation account, consolidated investment transit account, and consolidated transfer transit account.
PenCom noted that it successfully developed the RSA transfer application, a robust electronic platform that enables seamless RSA transfers.