The National Pension Commission (PenCom) has released new operational guidelines for Licensed Pension Fund Administrators (PFAs) to enhance service delivery and expand their reach across the country.
In a circular issued on Monday evening, PenCom stated that the new directive aims to improve accessibility and efficiency in pension service administration as the demand for pension services continues to grow.
Key Requirements for PFAs
According to the circular, PFAs must comply with the following:
- Establish a branch office in any state where they manage at least 10,000 funded Retirement Savings Accounts (RSAs).
- Open an additional service centre in a different location within a state where they manage 20,000 RSAs.
- Set up a service centre in any state where they have at least 2,000 RSAs.
- For PFAs handling the RSAs of state government employees under the Contributory Pension Scheme (CPS), a service centre is mandatory where at least 1,000 RSAs exist.
- The lead PFA managing the Contributory Defined Benefits Scheme (CDBS) for a state government must open a branch office in the state capital.
- Regardless of the above conditions, each PFA must establish branch offices in at least two states within each geo-political zone of Nigeria.
Service Expectations
PenCom emphasized that both branch offices and service centres must provide essential services, including:
- Registration and enrollment of pension contributors.
- Updates of RSA records.
- Collection of contribution schedules.
The Pension Reform Act 2004 established PenCom to regulate and oversee the administration of pension matters in Nigeria. These new directives reaffirm its commitment to ensuring an efficient and accessible pension system across the country.
