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PenCom’s New Directive For Benefits Approval To RSA Holders Begins June 1, 2025

 




 Pursuant to its powers under the Pen­sion Reform Act 2014 (PRA 2014), to establish clear guidelines, standards, and procedures for administering re­tirement and terminal benefits under the Contributory Pension Scheme (CPS), the National Pension Commission (Pen­Com) has reviewed procedures for retire­ment and terminal benefits payment for Retirement Savings Account holders by the pension fund administrators (PFAs).



The new regulation, according to the Commission, will take effect from 1st June 2025.

In a circular addressed to all Licensed Pension Fund Operators recently, the Commission stated that it would no longer approve or grant ‘No Objections’ before payment of terminal retirement benefits for RSA holders by Pension Fund Operators under the Contributo­ry Pension Scheme (CPS).

The new directive issued by the Pen­Com states that i. Effective from 1 June 2025, the Commission will no longer Ap­prove or grant “No Objections” to the following benefits applications before the PFAs process them for payments, i.e Programmed Withdrawal; Retire Life Annuity; Access to Benefits upon Temporary Loss of Employment; and En Bloc Payments to retirees whose RSA balances cannot provide a reasonable pension.

­dential mortgages; as well as Payment of Nigeria Social Insurance Trust Fund (NSITF) Contributions to retirees whose NSITF contributions were transferred to their RSAs will have to follow the new directive for payment to be effected by the PFA.

Also, changes in the periodicity of pension payments; Resolution of Er­rors from employers’ remittances of pension contributions for Private Sector and Self-funding Agencies; and Refunds to persons exempted from participating in the CPS by the PRA 2014. The process­ing, approval and payment of the above requests, according to the Commission, shall be concluded by the PFA within two (2) working days after completing the necessary documentations and in­structing the appointed PFC to effect payment, the Commission in copy.

PenCom added that the medium for forwarding instructions to the PFC for processing payments shall be the Shared Folders deployed by the Commission while the PFCs shall effect payment into the beneficiaries’ accounts within 24 hours upon receipt of instructions from the PFA.

“PFAs shall continue to forward re­quests for approval to the Commission relating to depleted RSAs and death ben­efit applications in line with Section 8 (2) of the PRA 2014.

PenCom said in order to facilitate the implementation of the above direc­tives, the Commission has approved the amendment of the following Sections of five (5) regulatory instruments on bene­fits administration.

Source; independent Newspaper 

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