…says PFAs no longer require approval before disbursing benefits to retirees
The National Pension Commission (PenCom) has introduced significant policy initiatives to expedite benefits payments to holders of Retirement Savings Account (RSA).
Effective from 1st June 2025, Pension Fund Administrators (PFAs) will no longer be required to seek approval or obtain a “No Objection” from PenCom before processing and disbursing benefits, including Programmed Withdrawal, Retiree Life Annuity, and Temporary Loss of Employment benefits, among others.
However, PFAs must continue to submit requests for approval to the Commission regarding depleted RSAs and death benefit applications, in accordance with Section 8 (2) of the Pension Reform Act 2014.
Furthermore, PFAs are mandated to process and approve eligible benefit applications within two working days of receiving all required documentation, while Pension Fund Custodians (PFCs) must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs.
These policies are part of PenCom’s ongoing efforts to enhance operational efficiency and service delivery, as outlined in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators, dated 12 March 2025.
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PenCom said it would continue to monitor the process through deployed technological platforms and other regulatory instruments to ensure strict compliance.
It reminded RSA holders that the timely submission of necessary documentation to PFAs is essential to accessing benefits and advised prospective retirees to submit all relevant documents at least six months before retirement.
PenCom further advised that all benefit applications must be supported by the documentation prescribed in the Commission’s Regulations and Guidelines.
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