All Pension Fund Administrators have been ordered by the National Pension Commission to establish branch offices in at least two states in each geopolitical region of the country.
Additionally, PenCom ordered PFAs to establish a branch office in any state where it has up to 10,000 funded retirement savings accounts, or RSAs.
PenCom stated that the change was required to accommodate the public’s rising demand for pension services.
The instruction was contained in a PenCom circular titled “Circular on the operations of branch offices and service centers by licensed pension fund administrators” that was distributed to all PFAs and custodians yesterday.
According to the circular, more pension fund administrators are required to be present nationwide in order to accommodate the public’s growing demand for pension services.
The Commission has also noted that PFAs’ branches need to provide services in a more effective manner. The Commission has established new minimum guidelines for the operation of branch offices and service centers, which were not covered by the earlier circular the Commission issued in this regard, in order to resolve this issue.
PenCom added that the new guideline will ensure that PFAs provide holders of Retirement Savings Accounts, with more effective service.
The following prerequisites must be met in order to open branch offices and service centers, according to the circular:
i. A PFA is required to open a branch office in any state where it has up to 10,000 funded retirement savings accounts ii. A PFA shall in addition to (i) above, be required to open a service center in a different location within the state, for every additional 10,000 funded retirement savings accounts; iii. Notwithstanding (i) and (ii) above, a PFA shall open a service center in a state where it has up to 2,000 funded RSAs; iv. any PFA that is managing the pension funds of state government employees or any other pension scheme under the contributory pension scheme shall open a branch office in the state capital, immediately after the state commences funding of the scheme; v. notwithstanding (i) (ii) and (iii) above, every PFA shall have a branch office in, at least, two states in each geo-political zone of the country.”
