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Employees Transferred N663bn RSA To Different PFAs – PenCom
No fewer than 168,768 employees have modified their Pension Fund Directors (PFAs) and moved N663.761bn Retirement Financial savings Accounts (RSA) for the reason that Nationwide Pension Fee (PenCom) opened the window of switch.
The window of switch allowed employees to maneuver their financial savings from a PFA to a different of their alternative every year.
PenCom disclosed the transfers in its ‘Quarterly abstract of Retirement Financial savings Accounts transferred by Pension Fund Directors’ from the fourth quarter of 2020 to the primary quarter of 2023.
In accordance with PenCom, 24,963 employees moved N111.67bn within the first quarter of 2023.
The figures disclosed that 2,799 contributors moved N18.9bn within the fourth quarter of 2020; 12,681 contributors moved N47.78bn within the first quarter of 2021; 10,166 moved N35.89bn within the second quarter of 2021; 12,872 contributors moved N45.56bn within the third quarter of 2021; whereas 12,874 contributors moved N42.49bn within the fourth quarter of 2021.
It added that 12,336 contributors moved N36.36bn within the first quarter of 2022; 14,821 moved N50.22bn within the second quarter of 2022; 30,973 moved N143.1bn within the third quarter of 2022; whereas 34,283 moved N131.76bn within the fourth quarter of 2022.
Part 13 of the Pension Reform Act 2014 specifies {that a} Retirement Financial savings Account holder could switch his RSA from one PFA to a different.
It added that such switch shouldn’t be greater than every year.
The pension trade regulator said that PFAs should solely course of requests for RSA holders registered on the Enhanced Contributor Registration System and people whose recaptured info had been efficiently uploaded onto the ECRS.
“PFAs shall solely course of RSA switch requests for eligible RSA holders who haven’t transferred their RSAs throughout the final three hundred and sixty five days utilizing the RTS, no matter whether or not it’s a bissextile year or not,” it said.
PenCom opened the switch window in November 2020, which allowed contributors to vary their PFAs.
“Efficient switch of RSAs from one PFA to a different requires an correct and dependable database as it is very important be certain that the pension property transferred belong to the bona-fide RSA holders initiating the transfers,” it mentioned.
PenCom famous that the opening of the RSA switch window was accomplished after it ensured that sturdy IT infrastructure to drive the method was put in place.
It mentioned the method was finalised in June 2019 with the deployment of an enhanced contributor registration system for the pension trade.
The pension regulator mentioned the ECRS integrated in depth validations, controls and information necessities that might ship excessive information integrity requirements for the pension trade.
It added that the improve of RSA holders’ particulars to satisfy the ECRS requirements was a prerequisite for RSA transfers.
