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78,549 Aggrieved Contributors Dump PFAs, Transfer N227.2bn

By: Highcelebritysquard 



Displeased workers under the Contributory Pension Scheme who dumped their Pension Fund Administrators for others rose to 78,549 as of the end of the second quarter of 2022, figures obtained from the National Pension Commission have revealed.

Figures obtained from PenCom on ‘Quarterly summary of Retirement Savings Accounts transferred by Pension Fund Administrators’ showed that the contributors transferred N226.98bn to new PFAs of their choice.

In the latest report, the pension industry regulator disclosed that 14,821 RSA holders dumped their PFAs and transferred N50.22bn to other pension companies in the second quarter of 2022.

According to PenCom, 2,799 aggrieved contributors transferred N18.9bn in the fourth quarter of 2020, while 12,681 transferred N47.78bn in the first quarter of 2021.

In the second and third quarters of 2021, 10,166 and 12,872 displeased contributors left their PFAs and transferred N35.89bn and N45.56bn respectively, while in fourth quarter of 2021 and first quarter of 2022, 12,874 and 12,336 workers transferred N42.49bn and N36.36 after leaving their former PFAs.

Section 13 of the Pension Reform Act 2014 specifies that a Retirement Savings Account holder may transfer his RSA from one PFA to another.

It added that such transfer should not be more than once a year.

The pension industry regulator stated that PFAs must only process requests for RSA holders registered on the Enhanced Contributor Registration System and those whose recaptured information have been successfully uploaded on to the ECRS.

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“PFAs shall only process RSA transfer requests for eligible RSA holders who have not transferred their RSAs within the last 365 days using the RTS, irrespective of whether it is a leap year or not,” it stated.

PenCom opened the transfer window in November 2020, which allowed contributors to change their PFAs.

“Effective transfer of RSAs from one PFA to another requires an accurate and reliable database as it is important to ensure that the pension assets transferred belong to the bona-fide RSA holders initiating the transfers,” it said.

PenCom noted that the opening of the RSA transfer window was done after it ensured that robust IT infrastructure to drive the process was put in place.

It said the process was finalized in June 2019 with the deployment of an enhanced contributor registration system for the pension industry.

The pension regulator said the ECRS incorporated extensive validations, controls and data requirements that would deliver high data integrity standards for the pension industry.

It said the upgrade of RSA holders’ details to meet the ECRS standards was, therefore, a prerequisite for RSA transfers.

Those who registered with various PFAs from inception of the Contributory Pension Scheme to June 2019 were required to get recaptured, it added.

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