Workers dump PFAs, new operators get N822bn retirement savings

Bisola David
Bisola David
Workers dump PFAs, new operators get N822bn retirement savings

203,127 workers have changed their Pension Fund Administrators and transferred N822.37 billion from their Retirement Savings Accounts since the National Pension Commission opened the transfer window.

The Punch reported that this information was provided by PenCom in their transfers report titled “Quarterly Summary of Retirement Savings Accounts Transferred by Pension Fund Administrators” for the period of time between the fourth quarter of 2020 and the second quarter of 2023.

In the second quarter of 2023, 34,359 workers transferred N158.6 billion, up from 24,963 workers who moved N111.67 billion in the first quarter, according to PenCom.

The data showed that 2,799 contributors moved N18.9 billion in the fourth quarter of 2020, N47.78 billion in the first quarter of 2021, N35.89 billion in the second quarter, N45.56 billion in the third quarter, and N42.49 billion in the fourth quarter of 2021.

It further stated that in the first quarter of 2022, 12,336 contributors moved N36.36 billion; in the second quarter, N50.22 billion; in the third quarter, N143.1 billion; and in the fourth quarter of 2022, N131.76 billion.

Following PenCom’s 2022 prohibition against PFAs offering presents to RSA holders, the number of employees switching PFAs increased further.

At the conclusion of the year prior to the suspension, PenCom claimed to have also sent birthday wishes and corporate presents to several of their RSA holders and clients.

A Retirement Savings Account holder may move his RSA from one PFA to another, according to Section 13 of the Pension Reform Act 2014.

It was also mentioned that such a move should only occur once a year.

“PFAs are only required to execute requests for RSA holders who are enrolled on the Enhanced Contributor Registration System and for those whose recaptured information has been successfully uploaded onto the ECRS,” according to the pension industry regulator.

Regardless of whether it is a leap year or not, it specified that “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.”

In November 2020, PenCom opened the transfer window, enabling contributors to switch their PFAs.

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