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Pledges transparency, accountability of pension system
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Excited retirees express optimism
By Henry Uche
The National Pension Commission (PenCom) during the week announced a significant policy initiative aimed at expediting the payment of benefits to Retirement Savings Account (RSA) holders. This is part of ongoing efforts to enhance operational efficiency and service delivery, as outlined in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators, dated 12th March 2025.
Effective from 1st June 2025, Pension Fund Administrators (PFAs) will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits, including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
However, PFAs must continue to submit requests for approval to the Commission regarding depleted RSAs and death benefit applications, in accordance with Section 8(2) of the Pension Reform Act 2014.
Furthermore, PFAs are mandated to process and approve eligible benefit applications within two (2) working days of receiving all required documentation, while Pension Fund Custodians (PFCs) must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs. PenCom will continue to monitor the implementation of this policy through its regulatory technology platforms and other supervisory mechanisms to ensure full compliance.
Prior to this directive, PFAs were required to review, process, and forward all benefit payment applications to the Commission for approval before the appointed PFCs could credit beneficiaries’ accounts. This new policy is designed to streamline the benefit payment process, significantly reducing delays and improving access to entitlements for retirees and other RSA holders.
In line with its regulatory and supervisory mandate, PenCom will continue to conduct reviews of transactions processed by PFAs to ensure compliance with applicable regulations.
The Commission assured that it would apply appropriate regulatory measures where necessary to uphold transparency, accountability, and the integrity of the pension system.
“RSA holders are reminded that timely submission of the necessary documentation to their PFAs is crucial for seamless access to benefits. Prospective retirees are advised to submit all relevant documents at least six (6) months before retirement. All benefit applications must be supported by the documentation prescribed in the Commission’s Regulations and Guidelines. Further details are available on the Commission’s website: www.pencom.gov.ng,” PenCom added.
Speaking with a retiree in Lagos, who gave his name as Boniface Ajoh, he expressed excitement over the recent reforms introduced by the PenCom Director-General, which are geared towards ameliorating the plight of senior citizens.
Ajoh, who said he retired as a Chief Accounting Officer in a state Ministry of Finance, implored the federal and state governments, Pension Fund Administrators, and Pension Fund Custodians to work in sync to ensure all efforts are harmonised to deliver on the mandate of the Contributory Pension Scheme.
“We are seeing positive changes in the scheme since the new DG came on board. We have served Nigeria, and we deserve our rewards, but not in a painful manner. We are supposed to emulate developed economies by adopting their style, I mean in respect to technological advancement. With technology, things are becoming easier and more cost-effective. We should not lag behind.
“We commend the PenCom boss and urge the federal and state governments, as well as the PFAs and PFCs, to do their bids in a timely manner and respect the sacrifices senior citizens across different sectors have made for this country by giving them what they deserve as and when due,” he implored.
Another retiree, Mrs. Beatrice Onu, who served at a federal government agency, berated the inefficiency and lack of empathy displayed by some personnel at the doorsteps of certain PFAs and PFCs.
She urged PenCom to enforce strict sanctions on PFAs and PFCs that deliberately delay discharging their duties, saying: “It’s unfair how some staff of certain Pension Fund Administrators and Pension Fund Custodians behave towards retirees—without empathy or respect.
“We have laboured, and we deserve to be served better with dignity. No one should be subjected to any form of inhuman treatment. We appreciate the PenCom boss for her reforms. We look forward to when the whole process will be 100% paperless and devoid of human interface. We remain optimistic and pray for Nigeria to be better for everyone,” she added.