Home Finance Over 63,000 aggrieved contributors dump PFAs, transfer N226.98bn

Over 63,000 aggrieved contributors dump PFAs, transfer N226.98bn

by Emmanuel Ogundele
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No fewer than 63,728 workers under the Contributory Pension Scheme that were displeased with their Pension Fund Administrators have changed their pension companies since the National Pension Commission opened the transfer window.

Figures obtained from PenCom showed that the contributors transferred N226.98bn to new PFAs of their choice.

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 the 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.

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 bonafide 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 finalised 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 the inception of the Contributory Pension Scheme to June 2019 were required to get recaptured, it added.

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