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By Henry Uche
To smoothen the operations of the pension industry in Nigeria, the Pension Fund Operators Association of Nigeria (PenOp) is leading a transformative shift in the retirement system, offering retirees a fresh sense of security and hope for the future.
To this end, the body has engaged four Payment Solutions Service Providers (PSSPs) to facilitate pension remittances and ensure all platforms meet industry specifications.
The PSSPs are: PayPen by Netline Limited; Paythru by Pethahiah by Rehoboth International Ltd; Pension Central by Chams; and Cyberpay by Cyberspace Ltd.
The Chief Executive Officer PenOp, Mr Oguche Agudah, said PenOp was working on a technology system whereby it can engaging some firms tagged ‘the Pension Service Solution Providers’ to ensure that everyone who was paying pension from April 1, 2025 has to go through this model.
Explaining the process, he said, “What will happen is that when the employer pays pension, it goes straight to the RSA holder. There are going to be four of them that we have engaged now. With these, there is going to be a standardised remittance template.”
He added that there would also be validation checks to eliminate instances of, “we got money, but don’t know where it’s coming from.
“We are also going to do awareness between now and April 1 so that employers will know that from April 1, they can just go to the bank and send their pension. The result is that RSA holders will get their pension without delay.”
On the benefits of engaging the providers he said it brings, “a more transparent remittance process, allows for better tracking and reporting, which can enhance trust among stakeholders, including employees, employers, and regulatory bodies.
“A well-functioning pension system contributes to economic stability by mobilising long-term savings for investment in various sectors. Timely pension remittances enhance this effect by ensuring that funds are available for investment purposes.”
On the rights of the RSA holders regarding the new solution, he said they have rights to timely remittance of contribution by employers; to choose a PFA, retirement; earn penalties on late remittances; use RSA balance for specific purposes and understand retirement options.
He urged employers to ensure timely remittance of deducted contributions to the Pension Fund Custodian within seven working days from the date employees are paid their salaries.
According to him, failure to do so is illegal and attracts penalties, including a minimum fine of 2% on unpaid contributions for each month of default.
He noted that employers who comply with pension remittance requirements can receive Clearance Certificates from PenCom, which are essential for eligibility in government contracts and other business opportunities. He charged employers to provide life insurance coverage for their employees, ensuring additional financial security in case of unforeseen events.
Chatting with a retiree who worked in one of the Agencies of government at the federal level, who pleaded anonymous, he commended PenOp for its efforts to make the process seamless, but urged other stakeholders including the government, employers and PFAs, to join hands in making senior citizens in the country to reminisce their service to their country with smiles, instead of the usual sigh, pains and anguish that envelopes some of them when the memories of their active service days comes to mind.
“One thing is to serve your country, it’s another thing to get your rewards at the end of the day. But ours has been a sad tale. It’s the fear of “the Known” (I don’t call it the fear of the unknown) because we all know even those in active service working in different government Ministries, Departments and Agencies know, they are very much aware of what awaits them after leaving service.
“What awaits them you asked? It’s the same sad experience we are facing today. Going round the 36 states, how many governors give top priority to senior citizens? From time immemorial, the plight of retirees is better imagined. Some die in the process due to stringent processes, but that was in the past, but with the recent innovations from Pencom and PenOp, we are seeing improvements. So we can do more and better. Therefore, we expect more. A labourer is worthy of his wages” he added.
