PenCom Implements Policy to Fast-Track Pension Benefit Payments

New Initiative Eliminates Approval Delays for RSA Holders

The National Pension Commission (PenCom) has introduced a transformative policy designed to accelerate the disbursement of retirement benefits to Retirement Savings Account (RSA) holders. This initiative, detailed in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators dated March 12, 2025, marks a significant shift in pension administration.

Key Changes Effective June 1, 2025

Under the new framework, Pension Fund Administrators (PFAs) will no longer require prior approval or a “No Objection” clearance from PenCom before processing and disbursing benefits such as Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits. This change is aimed at reducing delays and improving service efficiency.

However, PFAs are still mandated to seek PenCom’s approval for cases involving depleted RSAs and death benefits, as stipulated in Section 8(2) of the Pension Reform Act 2014.

Faster Processing and Payment Timeline

To ensure seamless benefit disbursement, PFAs must now:

• Process and approve eligible benefit applications within two (2) working days after receiving all required documentation.
• Pension Fund Custodians (PFCs) must complete payments within 24 hours of receiving instructions from PFAs.

Regulatory Oversight and Compliance

According to the report excerpted from the Commission X handling saying PenCom will monitor the entire process through advanced technological platforms and regulatory measures to guarantee strict adherence to the new guidelines. The Commission emphasizes that RSA holders can facilitate faster processing by submitting complete documentation promptly.

Advisory for RSA Holders

• Timely Documentation Submission: Prospective retirees should submit all required documents at least six months before their retirement date to ensure smooth processing.
• Mandatory Supporting Documents: All benefit applications must be accompanied by the prescribed documentation outlined in PenCom’s Regulations and Guidelines.

For further details, RSA holders can visit the Commission’s official website: http://pencom.gov.ng.

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