The National Pension Commission (PenCom) has introduced policy initiative aimed at expediting the payment of benefits to Retirement Savings Account (RSA) holders.
This is conveyed in the Circular on Approval of Benefits to Holders of Retirement Savings Accounts by Licensed Pension Fund Operators ,dated 12 March 2025
According to the circular, effective from 1st June 2025, 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.
It however quoted that Pension Fund Administrators (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.
Besides, PenCom mandates PFAs to process and approve eligible benefit applications within two (2) working days of receiving all required documentation, while PFCs must ensure payment of the approved benefits within 24 hours of receiving instructions from the PFAs.
The agency says it will continue to monitor the process through deployed technological platforms and other regulatory instruments to ensure strict compliance
It added:” RSA holders are reminded that the timely submission of necessary documentation to PFAs is essential to accessing benefits. Prospective retirees are advised to submit all relevant documents at least six (6) months before retirement
“All benefit applications must be supported by the documentation prescribed in the Commission’s Regulations and Guidelines”
